Who is the scam artist who took money out of public listed company?

SCAlert - MQ Technology Bhd right issue on spot light 14 Nov 2016. Cash purchase in Melacca spoked.

SCAlert
Publish date: Mon, 07 Nov 2016, 08:52 AM
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Who is the liar who rip off public listed company? History leaves trail.
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7 November 2016, Penang, Malaysia - Manufacturing company MQ Technology Bhd (MQTech) early on 28 October 2016 announced issuance of Right Issue entitlement date as follows:

RENOUNCEABLE RIGHTS ISSUE OF UP TO 418,470,537 NEW ORDINARY SHARES OF RM0.10 EACH IN MQ TECHNOLOGY BERHAD ("MQ") ("MQ SHARES") ("RIGHTS SHARES") ON THE BASIS OF THREE (3) RIGHTS SHARES FOR EVERY ONE (1) EXISTING MQ SHARE HELD AS AT 5.00 P.M. ON 28 OCTOBER 2016 AT AN ISSUE PRICE OF RM0.10 PER RIGHTS SHARE, TOGETHER WITH UP TO 278,980,358 FREE DETACHABLE WARRANTS ("WARRANTS") ON THE BASIS OF TWO (2) WARRANTS FOR EVERY THREE (3) RIGHTS SHARES SUBSCRIBED FOR

The said Right Issue is to be used for purchase of a piece of land in the state of Melacca. According to Bursa Malaysia announcement, the proposed 9.16 acres 99 years leasehold land is at "Pekan Klebang, district of Melaka Tengah", and company will spend RM28,300,000 from the Right Issue cash. Substantial shareholder Teh Eng Huat and Goh Boon Soon undertakes 70,470,000 Right Issue shares without hesitation, show their eagerness to spend money in the land.

Market is concerned the executive director Teh Eng Huat integrity which is being sued for breach of contract and misused of public funds may jeopardize MQ Technology Bhd credibility. Teh was formerly a director and CEO of Zoomic Technology (m) Sdn Bhd (ZTSB), a company he sold to Ire-Tex Corporation Bhd and have since booked losses according to public fillings.

On 6 November 2015, Bursa Malaysia announced that Teh Eng Huat and his related party acting in concert Khoo Hun Sniah was sued for breach of contract and defaulted on profit guarantee to public listed company Ire-Tex Corporation Bhd, according to Writ of Summons and Statement of Claim by Ire-Tex against Teh Eng Huat (First Defendant) and Khoo Hun Sniah (Second Defendant) in the High Court of Malaya at Penang (Civil Suit No.: 22NCVC-166-10/2015). According to the filing of the Writ of Summons and Statement of Claim is a result of the First Defendant and Second Defendant (collectively referred to as “Defendants”) failing to settle the outstanding amount of RM6,315,113.00, being the shortfall amounting to RM8,815,113.00 of the guaranteed profit after tax for the financial years of 2013 and 2014 (jointly and severally guaranteed by the First Defendant and Second Defendant to the Plaintiff in the proportions of 80% and 20% respectively) less the profit guarantee security of RM2,500,000.00 (“Profit Guarantee Security”), pursuant to the terms of the Sale and Purchase Agreement dated 18 November 2013, Supplemental Agreement dated 7 February 2014 and Further Supplemental Agreement dated 14 April 2015 (collectively referred to as “SPA”) entered into between the Company and the Defendants.
 
Subsequently, Zoomic's solicitors, Messrs. Thomas Philip, filed a Writ of Summons and Statement of Claim in the High Court of Malaya at Penang against Teh Eng Huat (“Defendant”) on 26 September 2016. Details of the default or circumstances leading to the filing of Writ of Summons and Statement of Claim as follows: The filing of the Writ of Summons and Statement of Claim is a result of the Defendant who was a director of ZTSB (primarily responsible for the financial management of ZTSB), who owed the following duties to ZTSB:-
(a)   the Defendant was reposed with trust and confidence and consequently owed a duty of good faith to ZTSB;
(b)   the Defendant was further subject to fiduciary duties with attendant obligations to exercise his powers for a proper purpose and in good faith in the interest of ZTSB; and
(c)    the Defendant was subject to further wider duties under law to ZTSB to, amongst others, account to ZTSB, including that set out under Section 132 of the Companies Act, 1965 read together with Part X of the Contracts Act, 1950.
 
In November 2014, according to Zoomic, stated that the Defendant caused ZTSB to make payment to him (Teh Eng Huat) of a sum of RM3 million. In a subsequent review of the financial affairs of ZTSB, ZTSB is unable to reconcile the payment of the said sum of RM3 million to the Defendant having regard to, among others, that ZTSB had previously issued 5,900,000 new ordinary shares of RM1.00 each to the Defendant (including one other minority shareholder in the Plaintiff) in satisfaction of all advances previously made by the Defendant to satisfy amounts owing to Malaysian Debt Ventures Berhad (MDV).
 
Teh owes substantial personal guaranteed debt to MDV, banks and creditors, which he had also defaulted according to the law suit and public fillings. His Ire-Tex Corporation Bhd shares and Zoomic were pledged to MDV and legally proceeds belong to MDV, banks as well as brokerages on share margin loan financing, which means despite selling off his Ire-Tex shares and Zoomic factory, Teh would have not much money left and still net owings to his creditors after paying off his debt and company creditors. During the same period, the entry of Teh and Khoo into MQ Technology Bhd have since raised eye brows, especially on the sudden sold off of MQ shares and resign of MQ former substantial shareholders and directors concurrently. Within short period of time, according to company quarterly financial reports, MQ had raised working capital by taking on more debt, and some how coincidentally Teh was able to under take MQ Right Issue potentially amounted to RM7million, or 70,470,000 shares. Any further subscription of Right shares would have quick diminishing of such cash exit through the said land purchase and paid on cost related to the development plan.
 
Teh also happened to use the same modus operandi by introducing Related Party Transactions (RPT) using companies related to himself to do business with MQ Technology Bhd, as per Bursa Malaysia fillings. Market is concerned on the executive directors past records and is anticipating relevant authority to instill better governance on public listed company.
 
MQ Tehnology Bhd saw the core business of hard disk collapse when foreign customers scaled down or closed businesses in Penang and other markets. Adhoc businesses to boost the account does not get the company out of the wood, which is main reason why the company diversified into other business.

With groomy economy out look, market will observe next few quarters how the new business will contribute. Right Issue payment date is expected to be 14 November 2016 as per Bursa announcement.

http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=177433&name=EA_DS_ATTACHMENTS

 

RENOUNCEABLE RIGHTS ISSUE OF UP TO 418,470,537 NEW ORDINARY SHARES OF RM0.10 EACH IN MQ TECHNOLOGY BERHAD ("MQ") ("MQ SHARES") ("RIGHTS SHARES") ON THE BASIS OF THREE (3) RIGHTS SHARES FOR EVERY ONE (1) EXISTING MQ SHARE HELD AS AT 5.00 P.M. ON 28 OCTOBER 2016 AT AN ISSUE PRICE OF RM0.10 PER RIGHTS SHARE, TOGETHER WITH UP TO 278,980,358 FREE DETACHABLE WARRANTS ("WARRANTS") ON THE BASIS OF TWO (2) WARRANTS FOR EVERY THREE (3) RIGHTS SHARES SUBSCRIBED FOR ("RIGHTS ISSUE OF SHARES WITH WARRANTS").

Kindly be advised of the following :

1)    The Right commence of trading : 31 Oct 2016
2)    The Date of Despatch of the Prospectus and Provisional Allotment Letter of Offer : 1 Nov 2016
3)    The last day and time for Acceptance, Renunciation and Payment : 14 Nov 2016
4)    The Rights cessation quotation : 7 Nov 2016

The Stock Short Name, Number and ISIN Code MQTECH-OR, 0070OR and MYQ0070OR004

 

 

 

 

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LimKokBoon

How come never made police report, on the RM 3m at least, if have a case?

2016-11-07 09:00

83punter

Why price keep drop....!!??

2016-11-07 10:19

83punter

Why report police...!? Play shares also involve police...? Just play shares.... You talk a lot looks close to owners can talk to owners to push up? My shares stuck high price cut also cannot cut.

2016-11-07 10:26

steve_usa

As long as Teh is still in MQ, "Market is concerned the executive director Teh Eng Huat integrity which is being sued for breach of contract and misused of public funds may jeopardize MQ Technology Bhd credibility. Teh was formerly a director and CEO of Zoomic Technology (m) Sdn Bhd (ZTSB), a company he sold to Ire-Tex Corporation Bhd and have since booked losses according to public fillings.

On 6 November 2015, Bursa Malaysia announced that Teh Eng Huat and his related party acting in concert Khoo Hun Sniah was sued for breach of contract and defaulted on profit guarantee to public listed company Ire-Tex Corporation Bhd, according to Writ of Summons and Statement of Claim by Ire-Tex against Teh Eng Huat (First Defendant) and Khoo Hun Sniah (Second Defendant) in the High Court of Malaya at Penang (Civil Suit No.: 22NCVC-166-10/2015)."

2017-01-18 11:40

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