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Where is EastBridge (OTC-BB: EBIG) Headed in 2011 and Beyond?

EastBridge Investment Group (OTC-BB: EBIG), a financial services provider focused on helping Asian companies access U.S. public markets, helping companies similar to China Education Alliance, Inc. (NYSE: CEU) and ChinaEDU Corporation (Nasdaq: CEDU) go public int he U.S., has a number of important catalysts coming up in 2011 and 2012 that could unlock value.

EastBridge Investment Group (OTC-BB: EBIG) is a financial services company that assists Asian clients with auditing, legal and investor relations processes to help them become public companies listed on U.S. stock exchanges. With clients like Tsingda Education and Wonder Education, the company is uniquely positioned to profit from China’s growing education sector.

EastBridge recently held a shareholders’ conference call in late-January that outlined its plans for the coming year. With the upcoming IPO of Wonder Education and Tsingda Education, investors are looking forward to the potential dividends and returns planned by the company, but there were some concerns about the plans to up-list to the Amex exchange.

The company noted that concerns about a proposed reverse stock split – needed to achieve the minimum share price for an Amex listing – were overdone. After all, a stock split does not affect the market capitalization of the stock, while an up-listing will increase exposure and likely lead to more trading volume and increased interest by institutional investors. Also, the management of the company stressed over and over again that a reverse split will not occur until the company’s financials can support such a move and support a much higher stock price.

Meanwhile, the terms of the potential reverse stock split will depend largely on the pending IPOs of Tsingda Education and Wonder Education. If the transactions generate enough value to organically drive the share price higher, a reverse split may prove unnecessary. And given the enormous potential, this remains a strong possibility, according to some investors.

Looking ahead, EastBridge indicated that it expects Wonder Education to IPO in about four to six months. The company recently received clearance from the SEC for its registration filings and has planned a road show for late-February or early-March to begin the IPO process. Meanwhile, Tsingda Education’s registrations with the SEC are expected to be approved in the near future, too. Tsingda will then move quickly to listing on AMEX. Additionally, the company is working with several other clients to help them become public companies and become listed in the United States and/or help them raise capital, including Dwarf Technologies, Arem Pacific, Stayarrow, Alpha Lujo (E-Global), Alpha Green and Fizza. A few of these, if not all of them, should help to make 2011 an exciting year for EastBridge.

In the end, EastBridge offers investors several exciting catalysts, including two potential IPO candidates and an up-listing that could improve liquidity and enable additional larger investors to buy into the company’s stock. As a result, this is one firm that investors may want to consider for their portfolios.

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