After all our efforts to inform Hong Kong Stock Exchange about undisclosed risks of Amazar Pulp and Saw Mill (“Polyarnaya” Project) we got the final answer from the potential investor: “The Company hereby announces that in light of the potential risks in relation to the Project as disclosed in the announcement of the Company dated 4 November 2019, the Board has decided not to proceed with the Project and to terminate the Operation and Management Contract with Polaris.”
The RwB is happy this episode is over.
In 2018 we assisted another firm at Shenzhen Stock Exchange to arrive at similar conclusions. Communication at Shenzhen took more than a year , while at HKEX the project was rejected in less than 6 months after our first inquiry and now looks as a textbook example on how a stock exchange should protect shareholders and potential investors from excessive risks.
Meanwhile, the Government of Zabaikalsky Province is still procrastinating and have not annulled forest lease agreements signed with Polyarnaya Project. However, according to Russian law, it had to be done last May. We hope that Prosecutor’s Office will pay attention to that violation and force the authorities to follow the rules.