By Billy Toh / theedgemarkets.com | January 18, 2017 : 7:47 PM MYT
KUALA LUMPUR (Jan 18): Diversified Gateway Solutions Bhd (DGSB) will be uplifted from being classified as a Guidance Note 3 (GN3) company tomorrow.
In a statement today, Bursa Securities said it has approved DGSB's application for a waiver from complying with Rule 8.03(a) and GN3 of the ACE Market listing requirements.
"The decision was arrived at after taking into consideration all facts and circumstances of the matter including among others, that the company no longer triggers any of the criteria of pursuant to Rule 2.1 of GN3," it added.
DGSB slipped into GN3 status on Aug 3 last year after its auditors expressed an emphasis of matter on the company's ability to continue as a going concern in its audited financial statement for the financial year ended March 31, 2016 and the shareholders' equity on a consolidated basis fell 50% or less of the total issued share capital.
With the upliftment of DGSB from the classification as a GN3 company, there remain four companies under GN3 which represent 0.44% of the total number of 903 companies listed on Bursa Malaysia as at Jan 18, 2017.
They are Cybertowers Bhd, R&A Telecommunication Group Bhd, Scan Associates Bhd and Wintoni Group Bhd.
DGSB shares closed unchanged at 4 sen today, giving it a market capitalisation of RM54.2 million.
zhm540I have 1.5 mill bought at 3s, but sorry I don't have a view!
Becareful...these days Sharks are a plenty, scouting for opportunities. Listen listen...Blue Whales doesn't kill, Sharks do !!
Now for DGSB, a potential cash cow? Some in-depth thoughts...
1) Why some here would think that DGSB will run up after the upliftment from GN3? DGSB is unlike MEGASUN (0081) in April, 2014 you know...
2) This company has 'some' sort of political connections as some of you might have already known. So, the question is: A GE this year? And if there is going to be one, what do you think will happen? Common sense will tell you...
3) Nearly 55% of the shares amounting to more than 740M shares belong to Omesti (9008). There is no way there will be a run up if Omesti is NOT GOING to BEGIN disposing small stakes of at least 15 - 20M in blocks at the right price...'THEY - SOMEONE' needs a sizeable chunk of shares !!!
4) No sizeable movement in the price and volume for Omesti as yet (10M volume should trigger some activity). These two counters are interlinked...Omesti rally, DGSB will follow!! The value of the shareholding will top 119M if DGSB's share price is @ 16 cts.
Conclusion: Omesti will only be sitting on this chunk of 'invaluable securities' if they don't act soon!!