YI 111 Inc - ADR

$YI So, the company first offloaded shares at $13 apiece—which would be $130 post-reverse split—then, about two or three years ago, there was a buyout offer at exactly $4.50 or $4.60 (meaning $45 or $46 pre-split), and now the very same people are proposing $4.60—or 46 cents pre-split. It’s unbelievable; something like this ought to be punished as a Ponzi scheme or Enron-style fraud. It turns out that the founders' glowing biographies, titles, and achievements don't stop them from swindling people—what a disgrace.

$YI I wonder how much it works against YI management that they have repeatedly stated the stock was very undervalued at prices above their buyout price. Does that hold in court? Or can they be dismissed as superfluous remarks.

$YI Interesting that they said it twice "any alternative strategic option that the Company may pursue." Was the buyout to stop the slide or do they have something else up their sleeve and the low ball buyout offer was the way to get the other option passed? We shall know soon enough.

$YI established a special committee of three independent directors to evaluate a non-binding proposal and other strategic alternatives.

$YI Worth noting that the old buyout deal was a complete mess. The buyout consortium was 16 parties, members dropped out, the process dragged on, and the unchanged offer became increasingly unattractive to buyers. Today’s deal is much cleaner and why I give it the 90% chance. The founders already own about 43% of the shares, while Huadeng is contributing roughly $20.7M in cash for 55.4% of the private company. There is no debt financing condition, the post-deal ownership split is already defined, and far fewer parties need to remain aligned. So the money is there already. The other major difference is size. The old deal was $300M, compared to only $20M of new cash required for the deal. Add six months of exclusivity, management controlling 92% of the voting power and an easy sell on valuation given the conversion issue and this deal looks far more executable. It’s still non-binding, so nothing is guaranteed, but structurally this is a very different transaction.

$YI It is sad how this has turned out. Once again, a China-listed company taken private near the bottom, just as the business is turns around screwing long-term shareholders (I am not one). YI’s 160% move in 2022 was my biggest winner that year. Crazy that my exit near the top on a massive-volume day post in RT was over $40 pre-split and blows my mind at that loss if I had diamond hands. Since then, the 1 Pharmacy redemption obligation from the failed IPO has been the albatross around the company’s neck and the main reason I stayed away for any size and just few flips over the years off the lows. I have been very vocal the past few years on the debt this issue caused. I held a very small position at $4 coming into today and added a few at 3.40-3.45 just now but small. Today's price suggests the market doubts the $4.52 buyout gets done. I put the odds around 90%, although it could easily take 5–7 months. Going private is the only practical path forward given the conversion issue.

$YI Personally, I can't complain, as I managed to make a pretty good move and offload a significant amount, actually aside from Intel, Moderna and NVAX it was my biggest winner 2024 / 2025; however, looking at the big picture, I think lawsuits are bound to follow. Admittedly, most large and institutional investors have likely already divested, but a case like this is still ripe for high-profile litigation.

$YI $4.52 could be a low ball starter - maybe it’s more after negotiation with a special committee. Much cheaper transaction compared to 2022, that’s why I see a good probability of success

$YI $4.52 buyout offer 111 (YI) has received an unsolicited, preliminary and non-binding proposal dated September 16, 2026 from a buyer group to take the company private. The buyer group consists of co-founders and co-chairmen Dr. Gang Yu and Mr. Junling Liu, who is also chief executive officer, together with Huadeng Tech BioArray Ventures Ltd. The proposal contemplates acquiring all outstanding Class A ordinary shares not already owned by the buyer group, including shares represented by American depositary shares (ADSs), for US$0.226 per Class A Share or US$4.52 per ADS in cash.