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EastBridge (OTCBB: EBIG) Reports Strong Results and Outlines Potential Ahead

EastBridge Investment Group, Inc. (OTCBB: EBIG), a provider of financial services to emerging public companies in Asia, with clients similar to companies like Chinacast Education Corporation (Nasdaq: CAST) and China Education Alliance, Inc. (NYSE: CEU), recently reported a significant increase in revenues in FY2010 as it enters its commercialization phase.

EastBridge Investment Group, Inc. (OTCBB: EBIG), a provider of financial services to emerging public companies in Asia, recently reported revenues that increased from $50,000 to $1,741,682 in its 10-K annual report filing with the SEC. With several of its clients on the verge of going public, the company is at the tipping points of commercialization and ready to unlock significant value for shareholders.

The Tipping Point of Commercialization

EastBridge’s long-term business model is now approaching a crucial tipping point as the first of its clients prepare to list on U.S. exchanges. With 10 current clients and several other potential clients in various stages of negotiation, the company’s current $1.7 million in revenues from just one of its clients represents just the beginning of its commercialization phase.

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Wonder Education is one of the closest of its client to unlocking significant value with plans to list on a U.S. stock exchange in the near future. EastBridge received 2,512,310 shares of Wonder for its consulting services in March of 2011 and declared a stock dividend of these shares for shareholders on record as of July 31, 2009, and this dividend is currently being distributed.

EastBridge has also received shares and declared dividends for two other clients. The company received 1,142,350 shares of Alpha Lujo in December 2010 and declared a dividend for shareholders on record as of March 31, 2011. Meanwhile, it also received 2,079,740 shares of Tsingda Education that will be distributed in part to shareholders on record as of March 15, 2010.

Some Clients Delayed, Progress in Others

One of the key issues addressed in its earnings conference call was the delay in the initial public offerings of Wonder and Tsingda Education. Despite EastBridge’s disappointment with the delay, the decision could result in significantly higher valuations with the attitude towards Chinese public companies a bit sour on Wall Street in recent months, and could prove a positive.

And while some clients have faced delays, EastBridge indicated that other clients are drawing closer to commercialization. Dwarf Technologies completed is audit and plans on filing its S-1 with the SEC in about two weeks, while it is still AREM Pacific and Alpha Green audits are nearly complete with S-1 filings slated for June.

EastBridge is also making progress with several newer clients, including Fizza, StrayArrow and Golden Eagle. Fizza and StrayArrow are in the process of raising seed capital and eventually seeking a listing on a U.S. exchange, while Golden Eagle was recently signed as a new client. Combined, these clients could provide a future pipeline of value for shareholders.

Conclusions

EastBridge recently reported strong financial results, despite some small setbacks, with a strong pipeline of deals set to unlock shareholder value over the long-term. As a result, this is one stock that investors may want to take a closer look at in the near future.

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