China Topreach 2006-23.1.11 On (OTC BB:CGSQF)

Coding China TopReach (warrants) as a high risk GeoSpecial on the Radar arbitrage Opportunity. Our ultimate decision will depend on the verification of the share count. We are attempting to contact the company. Among other share issues, warrants exist that have a strike price of $6.00. The common is trading at $3.00, so no arbitrage opportunity currently exits, unless investors determine that the common stock is worth more than $6.00.  For our initial stab at fully diluted EPS ranges based on an amended make good agreement SEE NOTE.

2010 EPS growth could be minimal due to dilution. However, with a tiny P/E, value investors may investigate this company which is why we will track this story.

We are also coding the common stock, CGSXF, as a GeoSpecial on the Radar.

On January 27, 2009 CGSAC’s shareholders approved its previously announced proposed acquisition of Olympia Media Holdings Limited.

Olympia Media Holdings (“OMH”) is the leading privately owned aggregator and operator of print media businesses in China. OMH has established a print media network consisting of 13 newspapers with a circulation of approximately 3 million across China, reaching 17 cities with an aggregate population of 76 million. OMH usually enters into exclusive contracts for full or partial co-operations with newspapers. Under a fully cooperative contract, OMH manages advertising operation and printing of the newspapers, and provides select contents and distribution consultative service to the newspapers. Under a partially cooperative contract, OMH manages part of advertising operations of the newspapers. OMH is well positioned to take advantage of the growth in China’s print media sector due primarily to the continued growth of Chinese economy and rapid speed of urbanization.

Source: Business Wire (January 28, 2009)