On Monday Great Wall Builders Ltd. (OTC:GWBU) filed an 8-K which revealed that according to Anotn & Chia, LLP, GWBU’s former auditor, the already unimpressive Balance Sheets of the company are not to be relied upon.
This was hardly a good development, but GWBU tried to mitigate the potential negative effect by issuing a press release saying the company was issued a EUR40 million Bank Guarantee. GWBU also claims it will be filing an 8-K form in the coming days.
The news gave GWBU a close at $0.245, a 31% increase. This brings the market cap back to more than $85 million.
The guarantee supposedly comes from Banca Nazionale del Lavoro, and is attached to the Coopsette contract. There are no details about what the conditions of that guarantee might be, and until an 8-K is filed traders may be better off erring on the side of caution.
Some traders may find themselves in a precarious situations, since the future of GWBU is still anything but certain. The resignation of the auditors and the non-reliance opinion are worrying developments, to say the least.
Apparently, the auditor had a disagreement regarding the 8-K filed by GWBU on Apr. 11. It is the filing about the Asset Acquisition Agreement with dPollution International, Inc. At this point, it’s not clear what exactly prompted the disagreement.[BANNER]
Whatever it is, traders and potential investors should be very careful with GWBU. $85 million is a lot of money for a start-up with no financial reports, no independent auditors, dubious pump history and loads of optimistic press releases.
All the hype created by this latest press release may yet cost some investors money. We will have to wait until Thursday to see where this story goes from here.
