YANGTZE RIVER DEVELOPMENT - YERR OTCQB
Top Stock Reporter Sets $7.50 Short Term Target Price
| These shares are poised for an advance on volume through its
$5.00 resistance, after which we anticipate a move to test our short
term Target Price of $7.50
- $8.00 - 2X Estimated Book Value
Their $1 Billion port development project is unique. Central to most of China the port of Wuhan is an important crossroad of commerce into central China . Five hundred miles inland from the Pacific, the city of Wuhan has a population of over 10 million and is an important railroad hub. Modern offloading facilities are presently constructed on the company property. ASSET PLAY ! With 172 million closely held shares, book value could easily reach $10. Fact Sheet - Watch This Video |
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SeeThruEquity Issues Update on Yangtze River Development Ltd. -
OTC: YERR - Raising Price Target From $8.00 To
$11.00 - 3X Book Value
NEW YORK, NY / ACCESSWIRE / October 27, 2016 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update on Yangtze River Development Ltd. (OTC: YERR) and raised the 12-month price target to $11.00 per share. The report is available here: YERR October 2016 Update. Highlights from the update are as follows: Strategic financing agreement offers significant potential On October 6, 2016, YERR announced a significant new partnership with Armada Enterprises GP, LLC ("Armada"), a Delaware LLC. The announcement states that YERR has received commitments for up to $1 billion in project financing for its large-scale port project in Wuhan, China. As we stated in our initiation of the company in June 2016, we have seen capital raising as a key need for the company to advance development of the projects and put YERR in a position to realize / demonstrate value from its significant real estate assets located in a strategic industrial area of China. In the announcement, YERR indicated that it will also engage Wight International Construction ("Wight"), and Armada subsidiary, to lead the construction and development of the port. As consideration YERR will issue $500mn in convertible debt to Wight (converting into 50mn shares at $10 per share), and will issue 60mn shares to Armada valued at 8.33 per share. If the debt is fully converted, and YERR issues the maximum number of shares to Armada, the company would issue up to 110mn shares at an average price of $9.09 per share. For its part, Armada will be responsible for raising $1 billion in project financing, and will be subject to a breakup fee of $2mn in the event that it is unable to raise a minimum of $50mn in project capital. YERR will also receive 100mn membership units of Wight International Construction, valued at $10 per unit, which would convert to limited partnership units in Armada Enterprise LP, upon Armada's contribution of Wight to Armada LP. Of note, YERR management noted that the company could receive an increase of $1 billion in assets on their balance sheet from the the 100mn units at $10, and the company will have approximately a 33% ownership in Wight International Construction following the deal. Price target to $11.00 for YERR Considering the company's recent financing announcement, which management believes should provide the opportunity to realize value from its asset, we are raising our price target to $11.00 at this time. We would look to revisit this as funding commitments are realized, or real estate assets are monetized at transaction prices that highlight the potential upside for the project. Please review important disclosures at www.seethruequity.com. About Yangtze River Development Limited Yangtze River Development Limited primarily engages in the business of real estate development with a port logistic project located in the middle reaches of the Yangtze River. Wuhan Newport is a large infrastructure development project implemented under China's latest "One Belt One Road" initiative and is believed to be strategically positioned in the anticipated "Free Trade Zone" of the Wuhan Port, a crucial trading window between China, the Middle East and Europe. To be fully developed upon completion of three phases, within the logistics center, there will be six operating zones, including port operation area, warehouse and distribution area, cold chain logistics area, rail cargo loading area, exhibition area and residential community. The logistics center is also expected to provide a number of shipping berths for cargo ships of various sizes. Wuhan Newport is expected to provide domestic and foreign businesses a direct access to the anticipated Free Trade Zone in Wuhan. The project will include commercial buildings, professional logistic supply chain centers, direct access to the Yangtze River, Wuhan-Xinjiang-Europe Railway and ground transportation, storage and processing centers, IT supporting services, among others. Large infrastructure project in a strategic area YERR has invested approximately $400mn thus far in the development of Wuhan Yangtze River Newport Logistics Center, and will require an additional $800mn to bring the project through to completion, likely through a combination of real estate asset monetization and capital raising. Considering its location in an economic development zone as well as an area which has applied to become a Free Trade Zone, the company stands to benefit from policy that is supportive of infrastructure development, such as the One Belt One Road infrastructure development plan. We see the company as offering a high risk, high potential reward avenue to invest in the development of logistics in China. Experienced management highly invested in company Given the scope of the project, we expect that management quality will play a significant role in the company's ability to execute. Importantly, YERR is led by CEO Mr. Xiangyao Liu, an experienced executive with a history of success in the Chinese steel trading and logistics industries. Mr. Xiangyao Liu has funded a considerable portion of YERR's development and holds a controlling equity stake in the company. YERR seeking to uplist to national exchange YERR has taken several strides on the corporate development front thus far in 2016. In March, the company publicly stated its intent to uplist shares to a national exchange. In the announcement, YERR highlighted recent actions including the expansion of its Board and the institution of several corporate governance policies. Clearly an uplisting to a national exchange would likely offer the opportunity for improved liquidity in YERR shares, and should expand the potential pool of investors, including some institutional investors which might be interested in considering a Chinese infrastructure play, but cannot invest in OTC securities. About Yangtze River Development Limited Yangtze River Development Limited primarily engages in the business of real estate development with a port logistic project located in the middle reaches of the Yangtze River. Wuhan Newport is a large infrastructure development project implemented under China's latest "One Belt One Road" initiative and is believed to be strategically positioned in the anticipated "Free Trade Zone" of the Wuhan Port, a crucial trading window between China, the Middle East and Europe. To be fully developed upon completion of three phases, within the logistics center, there will be six operating zones, including port operation area, warehouse and distribution area, cold chain logistics area, rail cargo loading area, exhibition area and residential community. The logistics center is also expected to provide a number of shipping berths for cargo ships of various sizes. Wuhan Newport is expected to provide domestic and foreign businesses a direct access to the anticipated Free Trade Zone in Wuhan. The project will include commercial buildings, professional logistic supply chain centers, direct access to the Yangtze River, Wuhan-Xinjiang-Europe Railway and ground transportation, storage and processing centers, IT supporting services, among others. Forward Looking & Disclaimer / Privacy
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