Lower WestFranchise FCSutekh
Not knowing very much about these things, wouldn’t the shares just be bought up by Mr Yongge either directly or through one of his businesses or is that not allowed?
That's not necessarily the point. The point is that it is possible to issue share capital from a company without any cash being received. It wouldn't make much sense in this scenario, but it is possible.
Simply convert debt into equity.