CYC Holdings plc - The Gateway to Invest in China

Parting Gift for you - received this approx 1 mth ago. Those that want to, will see good in this , those that want to, will see bad. Decided that I can't wait any longer, may miss out on good times or I may miss the collapse. My money is better invested in CDN, now it's no longer a China play. China is proving far to hard a market to place any confidence in. I firmly believe that MM has the companies interests at heart but to many things out of his hands I'm afraid.

SW - I hope it goes bust just to teach you a valuable lesson that pointless ramping does not work

For the others I hope it flies, especially Ricardo as it will give many a fine man the opportunity to say "I told you so" !!

"This is an email that I penned three weeks ago before leaving for China which I copy it to you, as it explains where we are. I got back from my trip last night and can advise we have made good progress on the acquisition front, and now pick up the cudgels with the advisors, who have already voiced their support (NB this is not RD/CS), who have shown precious little support for our fledglings.

SWC has recently raised some mezzanine funding to enable them to progress the legal DD required for their second transaction and their management is currently in China progressing the deal. There is no doubt SWC will be readmitted to AIM and we hear mention January - but don't bank on it!!



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You may be interested in knowing we have conducted a strategic review of our activities in the light of the current Chinese regulatory environment relating to overseas flotations of Chinese companies.


As an advisory company we clearly cannot continue to wait for things to either clarify or change, the slippage of time is not sustainable. In one way or another, all of our flotation candidates, including ChinaCat, are caught up in these new regulations and none have any idea when the bureaucratic process could be completed once started. Added to which, once started there is no degree of certainty that approval will be forthcoming at the end of the journey. So a very chancy time for us to continue staking a future on such a business model. Recent clarifications of the regulations (8 Sept) call for approvals for a share for share exchange from 6 government ministries - a nightmarish prospect. One main reason for this change is that the Chinese authorities wish to exert more control over the flotation approval process to improve the quality of Chinese companies being listed here. There are some shockers out there already admitted to AIM and Ofex, ones that will turn into horrors that will not improve the standing of China, or its reputation for corporate professionalism(!) But much of the blame has to be laid at the feet of fee-driven UK advisors, some of whom have scant regard for investor's that they put into such companies.

But that does not mean we have been sitting twiddling our thumbs while Rome burns. The opposite it true. For the past months we have been working hard along with our partners to identify a cash generative growing Chinese business of the appropriate size that along with some assistance CYC could acquire. One such candidate has been under process for the last 3 months and we are well on our way to finalising our discussions with the owners of one such company. We are optimistic this will be successful and restore some value to our company.

We totally share our shareholder's frustration, the value of our own investments in CYC has been similarly affected. We look forward to better days as a result of our new initiatives, which we are progressing as quickly as possible.

Regards.
--



Michael McAlister"



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