RUYAN to resume trading stocks?

[paulyc44]

Can someone decipher this announcement? Ruyan seems to be motioning to resume trading.

Disclosure Pursuant to Rule 13.09 of the Listing Rules and Rule 3.7 of the Takeovers Code Unusual Movement in Price and Trading Volume Resumption of Trading

[ConfusedAlso]

It seems to me to be two announcements :

1) They have missed a debt payment in September

2) They are negotiating with "an independent third party" (i.e. someone not currently management or a major shareholder of the company)

The third party may end up acquiring a large stake in the company which would force a takeover offer as there has been a "change of control"

This change of control could come about because the major shareholders sell some of their shares, or because the financial institutions whose debt payment they have missed seize the shares they have pledged as collateral and then re-sell them to the "independent third party"

This third party could be Phillip Morris as the company was talking with them earlier in the year, or it could be a new company.

[YoMike]

Interesting,

The sales performance of the Group continued to decline as a result of increase in competition from pirated electronic cigarette products and decrease in promotion and advertising activities. In addition, the Group continued to experience a delay in the recovery of trade receivables from its customers (being wholesale distributors) due to relatively weak retail sales performance of the Group’s electronic cigarette. As a result of the poor financial performance of the Group, the Company was unable to meet the full payment of the First Scheduled Redemption which was due on 30 September 2009.

[danielwd]

This is the confusing part to me - the Runyan cigarettes are in high demand and doesn't many of the other models, such as Joye and others, ultimately come from Runyan? Surely there is high demand for these as many suppliers can keep a consistent inventory. How could there possibly be weak sales performance?

[lkim65]

This is the confusing part to me - the Runyan cigarettes are in high demand and doesn't many of the other models, such as Joye and others, ultimately come from Runyan? Surely there is high demand for these as many suppliers can keep a consistent inventory. How could there possibly be weak sales performance?

There is actually a Runyan brand of e-cig. It is quite expensive and not the e-cigs that we use such as the 510, KR808D-1, etc. Runyan holds the patent for the e-cig so I assume these other manufacturers like Joye have patent rights. Although they hold the patent, it is possible that their actual e-cig sucks. Or it could just be bad business practice...

[paulyc44]

The following link shows that Ruyan was scheduled to resume trading today...

Quamnet.com

[Angela]

This is the confusing part to me - the Runyan cigarettes are in high demand and doesn't many of the other models, such as Joye and others, ultimately come from Runyan? Surely there is high demand for these as many suppliers can keep a consistent inventory. How could there possibly be weak sales performance?

There is actually a Runyan brand of e-cig. It is quite expensive and not the e-cigs that we use such as the 510, KR808D-1, etc. Runyan holds the patent for the e-cig so I assume these other manufacturers like Joye have patent rights. Although they hold the patent, it is possible that their actual e-cig sucks. Or it could just be bad business practice...

Sorry for being a pedant, but this little error seems to be spreading throughout the forum recently, so I'd just thought I'd post in here... it's Ruyan not Runyan

[sherid]

The last time I looked, NO ONE was selling any of Ruyan's e cigs. I think that is telling in itself since they may be about to start selling under a completely different name, like PM.

[hizen]

The e-cig market is getting cheaper by the day. Just because companies like Ruyan, SE and NJOY were some of the first to be in the market it does not mean their initial business plan still works today. Of course it's easy as hell to make money if you are SE and selling at $150 per kit but what does their business model look like if they all of a sudden have to compete at $35? Same goes for NJOY and might be exactly what is happening with Ruyan.

[Tom09]

The last time I looked, NO ONE was selling any of Ruyan's e cigs.

WOW, I did not notice. Now, that development is really remarkable.

Ruyan entered the European market in spring 2006. (For those interested in history: some 2005 announcements.) Ruyan was first the exclusive and for some time the leading brand for e-smoking devices. Today, the brand is still present and vivid within the EU - though sales might tend to turn out a bit low due to Ruyan’s high-price policy (see some of their distributors in the UK, France and Germany).

The belated dynamic development of the US e-cig market apparently took place without Ruyan performing high, but the brand regained some grounds with the launch of their innovative disposables, like Ruyan Cigar (RatInDaHat’s review) and Ruyan Jazz (http://www.e-cigarette-forum.com/for...Parked’s), introduced mid-2008 and early 2009.

Looking around today, virtually no one in the US is selling Ruyan products, indeed, and a Ruyan exclusive distributor can be found shut down. Perhaps the last reminiscent is just one lone web page, linked to from Ruyan America, about to sell some remaining, (now) overpriced V8 (classic penstyle) nicotine cartridges in terms of a “legacy product”.
The very last last sight of Ruyan America was an announcement (in August 2009) about launching some new “e-mystick® rapp®”; essentially a disposable Jazz where nicotine had been replaced by lobelia. AFAIK, the announced launch did never materialize.

Todays web page of Ruyan America has erased ALL previous hints to their nicotine-delivering devices (e-cigarettes). So, Ruyan appears to have pulled out completely - 100% out of the USA. Ruyan has pulled out of the region which is presently the world-largest e-cigarette market, without even trying to hold their exclusive market segments (different to EU), without even trying to hold some remote presence. Why?