SOKO Fitness And Spa Group Inc Buyout Under Investor Investigation

If you purchased shares of SOKO Fitness and Spa Group Inc (OTC: SOKF) prior to the announcement and currently hold those shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
SOKO Fitness and Spa Group
Affected Securities: 
OTC: SOKF

The announcement by SOKO Fitness and Spa Group Inc that it received a buyout proposal at 4.50 per SKOF share prompted an investigation on behalf of investors of SOKO Fitness and Spa Group Inc. (OTC: SOKF) concerning whether the takeover offer at $4.50 and the process are unfair to investors of SOKO Fitness and Spa Group (SOKF), and whether certain of its officers and directors or others breached their fiduciary duties owed investors in OTC:SOKF shares.

The investigation by a law firm concerns whether the SOKO Fitness and Spa Group Inc, certain of its officers and directors, and/or others breached their fiduciary duties owed to SOKO Fitness and Spa Group (OTC:SOKF) investors in connection with the proposed takeover.

On July 25, 2011, SOKO Fitness & Spa Group, Inc. (OTC BB: SOKF) announced that it was informed by a consortium of its existing shareholders that they have entered into a contribution and subscription agreement with Queen Beauty and Wellness Group Limited and others whereby SOKO Fitness & Spa Group, Inc.will become a wholly owned subsidiary of Queen Beauty and Wellness Group Limited. Under the proposed transaction, SOKO Fitness & Spa Group, Inc shareholders will receive $4.50 per share in a cash.

Following the buyout proposal SOKF stocks rose from a close of $3.55 on Monday to as high as $4.25 on Tuesday, July 26, 2011.

However, shares of SOKO Fitness and Spa Group Inc (Public, OTC:SOKF) traded as early as May at $4.75 and in January as high as $4.80 per share, thus above the current $4.50 offer.

Therefore the investigation concerns whether the SOKO Fitness and Spa Group Board of Directors undertook an adequate and in particular breached their fiduciary duties to the SOKO Fitness and Spa Group Inc (OTC:SOKF) shareholder by failing to adequately shop the Company before entering into the transaction.

The investigation concerns also whether Queen Beauty and Wellness Group Limited would underpay for OTC:SOKF shares, thus unlawfully harming SOKO Fitness and Spa Group stockholders.

In fact, despite recent stock prices that traded above the $4.50 offer at least one analyst has set a high target price for SOKF shares at $6.00 per share. Furthermore, shares of SOKO Fitness and Spa Group Inc grew over the past two years at an exceptional growth rate. SOKF stock grew from as low as $0.83 in January 2009 to as high as $4.80 per share in January 2011. Additionally, SOKO Fitness and Spa Group has performed well for its investors. Its 12months Total Revenue rose over the past four filing periods from $5.23million to $29.93million. Its Net Income increased over the same time frame from $0.13million to $10.44million.

A potential securities class action lawsuit would seek to maximize the amount of money and information OTC:SOKF shareholders would receive in a buyout, so the law firm.