Important Note – Will CC Puan’s Bankruptcy Affect G3 Global?

The fiasco begins with a commonly known, yet remained underground “financing” method offered to listed equities holder, which was engaged by CC Puan and two companies, namely Medinis and Everegion for a total sum of RM30.66 million payment.

In layman terms, the party who held equities that are listed and liquid, could directly-indirectly pledge their shares to the financing party, in exchange for a sum of capital.

Notwithstanding CC Puan’s case, it is obvious the infamous businessman is seeking for capital at the time, hence why he would agree to join into several put option agreement in order to secure the loan. Unfortunately, things turned out ugly and CC Puan had now claimed the financing to be “illegal” and turned to the law for help.

The business paper – TheEdge had an article here ( https://www.theedgemarkets.com/article/green-packet-founder-receives-bankruptcy-notices-failure-settle-rm3066-mil-sum) for your further understanding.

But how would this impact G3 Global as a whole?

The short answer is – nothing will change for G3 Global except for the shareholding structure.

As you can see, the price of G3 Global had already went down before the scandal was made known to the public. This simply means that either CC Puan or the counterparty had made their move for the past 3 months, the subject matter of insider trading will be another topic for discussion.

And for the financing party, there were no feelings involved as they would take anything in as collateral in exchange for well-charged interest, hence there were no fundamental aspects involved in the selling of shares.

But for investors, we can take this as the selling had subsided for G3 Global, and chances are there will be minimal selling from Green Packet, the investment holding vehicle for CC Puan as bulk of the warrants were converted and sold, as per the public announcement made by the company.

With all due respect, hopefully G3 Global could outgrown the shadow of CC Puan and Green Packet to truly reflect their value.