Mar 18, 2021 (OTC PR WIRE via COMTEX) – Trans Global Group, Inc. (OTCMKTS:TGGI) shares have started to receive significant attention from market participants over the past three months. However, much of what has begun to define the story now relates to events exclusively covered in Chinese and to a Chinese audience, and therefore may not be clear to most US investors.
With that in mind, we lay out the relevant facts below that have recently been circulating about Trans Global Group in China so the reader may make an informed decision about the stock.
The Big Points
- The rumors relate to the potential for Zuixiangui International Holdings Group to reverse merger into the TGGI shell
- The company’s intent to gain access to US capital markets is highlighted by this article, which states that Zuixiangui has already started the listing process and is preparing to go public on the Nasdaq in the United States
- We also found some sites suggesting that a person named Ren Feiyang is the Chairman of the Board of both Trans Global Group (see here) and Zuixiangui International Holdings Group (see here)
The Key Facts
Based on some due diligence, a gentleman named Ren Feiyang appears to be a key piece of the story. Ren would seem to be the Chairman of TGGI’s Board of Directors, according to several pieces recently appearing in the Chinese press.
Interestingly, he is also apparently the Chairman of Zuixiangui International Holdings Group, a specialty wine and spirits company based in China that has emerged as a potential leader in nanotechnology-based wine production.
Nanotechnology in the wine industry is starting to become a potentially significant trend. A simple Google search for “Nano Tech for Wine” will confirm this. A recent piece in Wine Australia provides an effective summary.
One prominent example of how this works is through the attachment of magnetic nano particles to a special polymer that can then be added to wine to bind with impurities before subsequently being extracted – along with the impurities – through the use of a simple external magnet, producing a superior wine.
It turns out Zuixiangui is an up-and-coming potential leader in this space in China.
The Plot Thickens
Recent news suggests Zuixiangui is in the process of reverse-merging into an OTC company to gain exposure to US investment markets.
While we haven’t found anything that directly says what the vehicle for this strategic move will be, one should reflect on the fact that the two companies appear to share the same Chairman of the Board.
It also turns out that leadership for Trans Global Group, Inc. (OTCMKTS:TGGI), according to coverage in the Chinese press, recently attended a restructuring and acquisition process through which Zuixiangui would become the over-arching holdings company containing Hong Kong Zhicheng Investment, a financial arm specializing in strategic acquisitions and M&A, and Fire Culture Communications, a marketing and communications arm.
Summarizing the Puzzle Pieces
We don’t know the story in absolute terms. But we do know that a leading name in nanotechnology-based wine and spirits production in China – Zuixiangui International Holdings Group – has reportedly been working on a merger process to back the company into a currently traded OTC ticker.
We also know that the individual who appears to be the Chairman of Zuixiangui also appears to be the Chairman of TGGI. Furthermore, we know that TGGI leadership appears to have been actively engaged in evaluating Zuixiangui, including its recent restructuring and acquisition activities.
At the same time, TGGI shares recently launched higher on a large uptick in volume, rallying as much as 4,900% in two months with no press releases, filings, or official communications from the company.
That represents an inordinate rush of interest over the past two months in the stock. Given that TGGI is, officially, an empty shell at this point with no operations of any kind, it’s hard to understand the action in the stock without assuming something important is going and that has shares reacting to rumors and leaks.
An empty shell transforming into an emerging hi-tech wine and spirits company with real operations in the massive Chinese marketplace, with attached subsidiaries in the communications and finance markets, would certainly seem to suffice as a plausible explanation.
However, seeming associations like this have occurred in the past and left speculators hanging in the wind. Hence, caveat emptor applies.