Cash-strapped Lotus Pharma Explains CapEx Decisions

Lotus Pharmaceuticals (路坦制药有限公司) will be as much as six months late in completing its new Beijing facility, a combination of corporate headquarters, R&D labs, manufacturing, a crucial warehouse – and employee apartments. There is nothing particularly unusual about the delay of a construction project, even a major one. But Lotus is already on the outs with its shareholders. In 2008, the company allocated $33 million to building a warehouse in Outer Mongolia, some 200 miles from Beijing, then apparently abandoned the project to focus on an inside-Beijing center. After all the initiatives, Lotus ended 2010 with just $1.3 million in cash and two unfinished building projects. More details....

Stock Symbol: (OTCBB: LTUS)     Share this with colleagues: