SeeThruEquity Issues Update on Yangtze River Development Ltd. (OTC: YERR) Raising Price Target to $11.00

NEW YORK, NY / ACCESSWIRE / October 27, 2016 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update on Yangtze River Development Ltd. (OTC: YERR) and raised the 12-month price target to $11.00 per share.

The report is available here: YERR October 2016 Update.

Highlights from the update are as follows:

Strategic financing agreement offers significant potential

On October 6, 2016, YERR announced a significant new partnership with Armada Enterprises GP, LLC (“Armada”), a Delaware LLC. The announcement states that YERR has received commitments for up to $1 billion in project financing for its large-scale port project in Wuhan, China. As we stated in our initiation of the company in June 2016, we have seen capital raising as a key need for the company to advance development of the projects and put YERR in a position to realize / demonstrate value from its significant real estate assets located in a strategic industrial area of China.

In the announcement, YERR indicated that it will also engage Wight International Construction (“Wight”), and Armada subsidiary, to lead the construction and development of the port. As consideration YERR will issue $500mn in convertible debt to Wight (converting into 50mn shares at $10 per share), and will issue 60mn shares to Armada valued at 8.33 per share. If the debt is fully converted, and YERR issues the maximum number of shares to Armada, the company would issue up to 110mn shares at an average price of $9.09 per share. For its part, Armada will be responsible for raising $1 billion in project financing, and will be subject to a breakup fee of $2mn in the event that it is unable to raise a minimum of $50mn in project capital. YERR will also receive 100mn membership units of Wight International Construction, valued at $10 per unit, which would convert to limited partnership units in Armada Enterprise LP, upon Armada’s contribution of Wight to Armada LP. Of note, YERR management noted that the company could receive an increase of $1 billion in assets on their balance sheet from the the 100mn units at $10, and the company will have approximately a 33% ownership in Wight International Construction following the deal.

Price target to $11.00 for YERR

Considering the company’s recent financing announcement, which management believes should provide the opportunity to realize value from its asset, we are raising our price target to $11.00 at this time. We would look to revisit this as funding commitments are realized, or real estate assets are monetized at transaction prices that highlight the potential upside for the project.

Please review important disclosures at www.seethruequity.com.

About Yangtze River Development Limited

Yangtze River Development Limited primarily engages in the business of real estate development with a port logistic project located in the middle reaches of the Yangtze River. Wuhan Newport is a large infrastructure development project implemented under China’s latest “One Belt One Road” initiative and is believed to be strategically positioned in the anticipated “Free Trade Zone” of the Wuhan Port, a crucial trading window between China, the Middle East and Europe. To be fully developed upon completion of three phases, within the logistics center, there will be six operating zones, including port operation area, warehouse and distribution area, cold chain logistics area, rail cargo loading area, exhibition area and residential community. The logistics center is also expected to provide a number of shipping berths for cargo ships of various sizes. Wuhan Newport is expected to provide domestic and foreign businesses a direct access to the anticipated Free Trade Zone in Wuhan. The project will include commercial buildings, professional logistic supply chain centers, direct access to the Yangtze River, Wuhan-Xinjiang-Europe Railway and ground transportation, storage and processing centers, IT supporting services, among others.

About SeeThruEquity

SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. The company does not conduct any investment banking or commission based business. SeeThruEquity is approved to contribute its research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute its research to its database of opt-in investors. The company also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.

For more information visit www.seethruequity.com.

Contact:

Ajay Tandon
SeeThruEquity
info@seethruequity.com

SOURCE: SeeThruEquity

ReleaseID: 447780