L&L Issues Response to Short-Seller Attack, Refuses Allegations
L & L Energy, Inc. (NASDAQ: LLEN), a U.S.-based company with energy (coal) operations in China, today released additional information to refute the recent defamatory article by short-seller firm, GeoInvesting. In addition to contracts, legal opinions and other supportive evidence already produced, the Company has collected additional documents refuting allegations that its Hong Xing's coal washing facility ("Hong Xing") was shut down since 2012 and produced no revenue. The Company has collected the following documentation and explanatory material, which will be also shared with the proper authorities.
During the period in question, L&L operated two (2) washing facilities, Hong Xing and TaiFung. During fiscal 2013, Hong Xing washing only represented approximately 20% of consolidated total company sales (not 39% as alleged by GeoInvesting), while TaiFung washing represented approximately 19% of company sales. As previously disclosed, the Company idled Hong Xing plant this summer to redirect its capital investment to fulfill a large wholesale supply agreement with Datang. The Company has submitted a monthly sales analysis to auditors that reflects the reduction of activity at Hong Xing from May to June 2013. Hong Xing ceased operations as of June 30, 2013 and produced no revenue in July 2013.
In addition, GeoInvesting's allegation that