Chapter 804 - 300: Threatening Yu with Dirty Tricks, Handled by Yang Chen_4

Chapter 804: Chapter 300: Threatening Yu with Dirty Tricks, Handled by Yang Chen_4

Tong Hu is willing to sell 30% of the shares to foreign alumni from the Swiss Federal Institute of Technology Zurich, which indicates that his funding chain has encountered problems, requiring capital infusion to resolve the former students’ refund issues.

Third, Wanyou Education and Laurie Murphy’s M&B Investment Company have jointly set up a financial investment company, with Wanyou Education holding 70% of the shares and M&B Company holding 30%.

This financial investment company does not invest in any other companies or projects, but simply loans the tuition fees collected by Wanyou Education Group to M&B Investment Company, with an agreed annual interest rate of 10%.

At first glance, it seems like there is no issue; it’s just an investment with a 10% annual interest rate.

But once M&B Investment Company runs away with the money, Wanyou Education Group will face trouble.

What can Wanyou Education Group do to a company registered in the United States that runs with the money?

Even if the government intervenes, it might not be able to help recover tens of billions in funds.

However, Tong Hu himself does not worry about M&B running away.

Why is that?

Because he signed a contract with M&B company, all the money M&B company earns from Wanyou Education Group must be shared with him 50%.

To put it bluntly, Tong Hu is preparing to run away with the money.

Once the funding chain breaks or he receives a satisfactory amount of tuition, he will definitely run away without hesitation.

If he can make the company go public before running away and first take some profit from the stock market, they would earn even more money.

As for the aftermath, it’s the students who will have to bear it; he will have already gone abroad to enjoy life.

If the company is gradually made public, it will take at least 3 years, and passing the listing review is not guaranteed.

If they can borrow the shell of the soon-to-collapse Eastern Education Group for a quick public listing, it can happen as soon as next year, allowing them to profit and leave.

After understanding Tong Hu and Wanyou Education Group’s situation, things became manageable.

Yang Chen sent a message to Yu, explaining in detail about how to proceed next.

Upon comprehending Yang Chen’s strategy, Yu promptly called Tong Hu.

"President Tong, I’ve given it some thought. You can dismiss this idea. I can’t let you have your way. I’d rather delist the company than allow you to go public through a backdoor!" Yu decisively said.

Tong Hu chuckled and said, "President Yu, why bother? Your company is inevitably going to be delisted, even an Immortal couldn’t save it. Once delisted, you’ll be left with nothing. If you agree to our company acquiring and going public through a backdoor, you can hold up to 20% of shares and remain a billionaire."

Yu: "You should let go of the idea; I won’t agree. I’d rather delist the company than allow my reputation to be tarnished. If your company goes public through a backdoor and issues arise, I won’t be able to maintain my dignity. I’m willing to spend tens of billions to refund tuition; do you think I’m concerned about money? President Tong should consider other companies; don’t waste time on ours."

Tong Hu: "Ha ha... if President Yu is so unappreciative, don’t blame me then."

Yu: "President Tong, don’t try to scare me. At this age, I could be your father; do you think you can frighten me? I still have some connections in the business world; President Tong, it would be wise not to push things too far unless you want it to be unmanageable for everyone!"

Tong Hu: "In the capital market, newcomers laugh while old-timers cry. You’re overestimating yourself! Haha..."

After hanging up the phone, Yu’s face turned red with anger, clenching his teeth non-stop. It was clear he was truly enraged.

Tong Hu cursed at Yu for being unappreciative and ordered his secretary to continue soliciting media coverage of negative news about Yu and Eastern Education Group.

In cooperation with Tong Hu, Yu deliberately released the news of his plan to settle abroad.

Thrilled by this, Tong Hu immediately spent money to buy top trending spots on platforms like Weibo and Douyin.

Soon, the news "Eastern Education Group’s Yu Hong Confirms Escape with Embezzled Funds" shot to the top of trending lists on Weibo and Douyin.

As a result, Eastern Education Group’s stock plummeted in Xiangjiang’s securities market, losing 75% in one go, only stabilizing due to Star Investment’s sweeping purchases.

At this point, Eastern Education’s stock price had reached an all-time low of 2.8 yuan per share.

Imagine, like in the old Xiangjiang TV dramas depicting stock trading scenarios, where people would face bankruptcy and jump off a building in a single day.

There’s no limit to price ups and downs; if you’ve put all your assets into it and even leveraged it several times over, you could lose 80% in a rigged setup, anyone would opt for jumping off a building.

Yang Chen felt it was about right; at least 80% of retail investors have already sold out, and the remaining die-hard investors are surely holding till the end—they can’t push the price down any further.

In the evening, Yu published a video statement on his personal Weibo, Douyin, and other accounts.

Main content as follows.

First, he will never leave Dragon Country; this is his motherland. He will die here.

Second, he has found strategic investment partners, and the remaining tuition fees of less than 300 million will be fully refunded as soon as possible.

Third, the company’s stock won’t be delisted. He and his strategic partners have devised a new development plan to quickly bring the company’s operations back on track.

Fourth, he has discovered that all the online fake news was released by order of Tong Hu, president of Wanyou Education Group, through his secretary aiming to coerce him into compliance and agree to Wanyou Education Group backdoor listing through Eastern Education Group.

Fifth, he formally reports Wanyou Education Group and Tong Hu for alleged illegal fundraising, financial fraud, joint asset transfer with foreign investment companies, and embezzlement of students’ tuition fees. He urges relevant authorities to immediately freeze related accounts and timely recover funds transferred abroad. He also hopes the students under Wanyou Education Group will promptly apply for refunds; delay further and the funds may be untraceable.