Albert Einstein once said, “If I were to remain silent, I’d be guilty of complicity.”

The real situation is, I already left the company. I don’t have to think about the company now, but some people still asking from inside and outside, trying to understand why was this happened, what will happen to the company? How come you just left like that?

But, the sad answer is, it is already all over the internet.

We start with the company announcement on 11 Feb 2021.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3128630

When the founder retired on Feb 11^th, as we know, the task was passed over to new Executive Director Mr N to oversee. At the beginning, he believed with the products and team, and direct us to carry on the recovery of the company, as per what we did in 2019 and 2020.

Only after that, Mr M, the Executive Chairman came into the operation, and telling everyone that there will be a lot of changes, failing specifically explain what type of changes. Then everything suddenly changed, with the new appointed Mr B as a Management Consultant, advised by Mr S, with no formal nor informal introduction.

Connection Revealed

By doing some simple internet search, you could find out that Mr B is the previous owner of Storm Front Pte. Ltd. A Singaporean company bought over by Nexion (Hong Kong), to only reveal the connection within the ‘New Management’ team.

http://nexion.com.hk/wp-content/uploads/2021/04/DISCLOSEABLE-TRANSACTION-IN-RELATION-TO-THE-ACQUISITION-OF-THE-ENTIRE-ISSUED-SHARE-CAPITAL-OF-THE-TA.pdf

XOX (Hong Kong) invested into Nexion, and Nexion invested into Storm Front. And then Mr B is now a trusted right-hand man of Mr S, the Director of XOX Berhad.

So, what’s wrong with that?

It is an open secret. So obvious.

Have you ever read about “Hidden hands behind penny stock surge”, a Special Report by The Edge Markets? https://www.theedgemarkets.com/article/special-report-hidden-hands-behind-penny-stock-surge

And the latest “Share issuances the new get-rich-quick scheme in town”? https://www.theedgemarkets.com/article/special-report-share-issuances-new-getrichquick-scheme-town

The biggest obstacle to put M3 Tech in their hidden agenda is the former founder. By understanding the articles, the question would be, what had happened that “made” him retired? The answer is remain unknown. Now, without him involve in the company and stop the hidden agenda, the nightmare about the “changes” started. Instead carry on the recovery of the company, internal politics card was played. Anyone they “THINK” that are closed to the former founder would be removed. 

First step. Get rid the COO and GM.

Everything was easy to them. First, they removed the duties and responsibilities of the Chief Operating Officers and the General Manager, put them in the cold-storage, and made them know nothing to look incompetence before the staff. Make them feel useless.

Then, feed the power hunger, put in place a junior, and the internal politics started.

Second. Tell them, current product is useless, you can’t sell with these poor user interface.

Mr B asked sales side to stop selling years of ongoing development of i3TeamWork and i3Display and new development i3Smart Messenger altogether. You could see they know nothing about the products. Did they think what will happen to thousands of users that still using the platform? Did they ever think about the loss of customer interest when all of these happened? Telling the customers that we stop carrying the products, while still promoting the products? How you would explain this? You don’t need a genius to understand that obvious contradict.

No. They just said, focus on SMS. It’s the bread and butter of the company for more than 20 years. It is the golden goose.

But, at the same time, Mr N took the framework of i3TeamWorks and i3Smart Messenger, and use that as the topic of Private Placement Proposal. Can you see that they are not in line with the direction? One asked to stop. Another one asked to proceed. Only after the staff brought up the issues, then, the next day, the result was; Ok, let’s carry on the products. That simple.

Why? Because they need it badly for Private Placement.

Then EGM on 19^th April 2021, was called to vote on the 30% Private Placement.

The Private Placement was vote AGAINST, and the REVENGE begun.

Knowing that the Private Placement is a “sham”, the former founder and other shareholders has voted down the 30% Private Placement on 19^th April 2021.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3149337

So, sack the COO and GM.

After a week of the EGM where the 30% Private Placement was voted AGAINST, Mr M has ordered the sacking of COO and GM accordingly, without any reasonable reason, instead of telling them that the company has no money to pay them. Then they were escorted out like a criminal, just to shame them, as a revenge on founder voting against them. This is how a company treated staff who was committed in serving the company for more than 20 years of their life? For real?

Total disregard to Malaysian Authority as if they are above.

Obviously, with these miss-treatment, complaint was filed to Labour Office. Guess what, both directors could not be bother when they are summoned to the Labour Office for meetings. No one representing M3Tech. Why? Because they don’t care about staff.

They don’t care about products, they don’t care about sales, they don’t care about customers, they don’t even care about the staff welfare. Then, what they really care about? Private Placement, and ESOS.

How this can be?
 

Maximizing the ESOS limit.

On 15^th June, 3 senior managers were issued “suspension” letters, all quote “suspicious” activities with no real proof. Then COINCIDENTALLY, ESOS was “offered” to Directors and Senior Managers.

And with all Senior Managers has been suspended, only left 2 Directors eligible for it.

Wait, does it means current 2 GMs are junior?? Just a sweet talk? Never mind, they are not even close.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3166792

And all these are done against the pending Full Trial.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3158571

Obviously, the Executive Chairman took maximum limit of the ESOS of 80,982,365 shares.

Mission accomplished! Not yet!

10 days after the 3 senior managers suspension, and after the ESOS has been taken, the 3 of them were “cleared” and was asked to come back to work without explanation on the investigation and show any evidence that has been discovered. Means, there is no transparency in the company now? No trust to staff? Or because there is nothing to show?

Next, remove the “non-related” Independent Director.

To make situation bad for the other Independent Directors, a proposal has been submitted to add removal of Ms L, as added agenda to the coming EGM on 19^th July.

Mr S, representing XOX and put forward this EGM agenda.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3169481

And this invariably caused Ms L to tender her resignation.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3171608

Now, the Grand ESOS plan.

With Ms L resigned, the portion of ESOS offered are not take up. The Executive Chairman now can easily take another ESOS of 41,838,081 shares (when Ms L no longer about to take ESOS). Wow!

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3172135

Dump all to the market.

Record show that all the previous ESOS shares of 80,982,365 shares was “sold” off. It is anybody guess where these ESOS shares end up. Other Proxy account own by “someone”??

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3172408

Anyone surprise when the trading volume of M3TECH shares was 154 million shares on July 2^nd?

Interlude.

Just an interlude, below is a random news as references, when the ESOS was secretly offered to “selected” staff as the original plan, before they been questioned, which then only come up with recent grand plan.

https://themalaysianreserve.com/2017/09/28/seven-sued-market-manipulation/

https://www.sc.com.my/resources/media/media-release/court-declares-in-scs-favour-in-iris-manipulation-case

It’s a breach of sections 84(1), 85(1)(a) and 87A of the Securities Industry Act 1983. Who will be at your side when you being caught, just because of others, for their own interest, are using your name, because they said it is a grey area, doing something above the law? Lowest “5-digit” end-year bonus for sleepless nights? Really?

Bad State for M3 Tech company.

With what had happened, with their interest to only Private Placement and ESOS, with no interest to the products, with the lack of staff welfare, what will happen to the company? It’s a bad state.

To them, any programmers can do the development job, when they do not even appreciate or even have the knowledge to understand Software Platform is beyond programmers alone. With all that had happened, with no clear direction, many employees and managers, senior and junior has since left the company. Even those who has contributed more than 10 years has no choice but leave the company.

So, what is left for M3 Tech Malaysia?

With junior manager promoted as General Manager, the only business left is Value Added Services for bank and corporate. With the gross margin just around 6%, this will definitely not sufficient for running as a company.

After all, there is only 1 bank that contributed close to 80% of the current mobile value added business for M3 Tech Malaysia. Let us pray that the bank don’t stop using SMS by moving to new mobile app or move to other competitors.

Heard since, they have reversed the decision to sell i3Display, but the business is also very bad, due to the MCO & EMCO.

With no long-term development, and business operation currently running on autopilot when no competent executive to drive for short and long term growth, the future is bleak.

What is left for M3 Tech customers?

With what has happened within M3 Tech, a lot of customers now also hesitated to continue their business, especially when crucial staff who service them is no longer around. This spell trouble for M3 Tech to get back their business, when support and services, which are core competence of M3 Tech has suffered during the last 4 months.

Directors perks and raising funds.

To these directors, when there is not much fund left in company the only way they know is to raise fund by issue more ESOS, Private Placement or corporate exercise.  Forgetting the fact that, ESOS is for benefit of employees and bring benefit to own a piece of company and encourage them to grow with company. It is their right and belongs to each eligible employees for the company. Sadly, it is irresponsible use as a tool to raise fund and bring no shareholders value.

Likewise, Private Placement are meant for expansion of business and new project that will bring benefit to shareholders. It is not a tool to fund and subsidized Directors’ perks.

Shareholder money is not to use to provide drivers, personal assistants, share trading staff (??) and “companion” (???) to directors or chairman. Last count, close to 5 employees inside M3Tech Malaysia are taking the position above. Removed the main architect, hire all these people, how they actually help the company to move forward? And these people are funded by who? Obviously not from operation income.

Didn’t they ashamed of using shareholders money for that? I wonder.

Summary

Is it beyond rescue? The answer lies with all M3TECH shareholders.  Easily there are close to 500 million shares in more than 6000 plus shareholders excluding all the substantial shareholders.

If ALL SHAREHOLDERS were to speak up and VOTE FOR THE REMOVAL of all the current directors in this coming EGM on 19^th, then M3TECH will have the chance to be rescued by the new team of competent directors proposed in the EGM.

Support for the Removal of these current directors, you vote via Proxy Forms or Attend the EGM online are needed badly to said NO to the abuse.

If you are a M3TECH Shareholders. Find out how to send Proxy Form or Vote here

https://savem3tech.wordpress.com/

“The world suffers a lot. Not because the violence of bad people. But because of the silence of the good people.”

― Napoleon