L & L Energy, Inc. (NASDAQ: LLEN) announced today that management has produced key documents to the special committee of independent directors to repudiate the short seller
allegations posted by GeoInvesting.
The GeoInvesting report alleges that L&L does not own the LuoZhou and LaShu mines. The claim hinges on the fact that the mines are owned by an entity not named "L&L Energy
."
In the company's SEC Form 10-K report for the year ended July 31,
2013, the company clearly states that it acquired the mines by
purchasing equity interests in Union Energy subsidiaries. The Company
completed the acquisition
by obtaining a 95% equity interest in two entities, "Guizhou Union
Energy Shun Da Inventory and Transport Corporation", the owner of
LuoZhou Coal Mine and "Guizhou Union Energy WuZhou Energy Development
Corporation", the owner of LaShu Coal mine. The Company supplied to its
independent board committee the following documents: the equity
acquisition agreement; a supplement that explains the deal structure; a
Proof of Purchase Status document stating that L&L fulfilled its
payment obligations under the agreement; and a legal opinion
from DaCheng Law Offices that confirms L & L's controlling interest
in the LuoZhou and LaShu mines. Similarly, allegation 7 purports that
SAIC filings show that neither Union Energy nor L&L own the DaPing
mine and ZoneLin Coking Plant. The Company has provided to its
committee both the original and translated versions of the Acquisition
Agreement
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