For Newbies To Know And Learn About Penny Stocks

PASUKGB - Multiple Proposal of Share Consolidation, Rights Issue With Free Warrants

whistlebower99
Publish date: Wed, 21 Jul 2021, 09:08 AM
whistlebower99
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For Newbies Education.

Every year people who are new to the stock market will get into the market to try their luck with the aim of making extra income or a steady income by investing or speculating on stocks.

Many started without much knowledge and blindly follow comments from friends or from public forum.

This blog intended to provide newbies with the knowledge and information & latest announcement on penny stocks especially those with huge total issued shares and making losses for years.
Following Message

MULTIPLE PROPOSAL

CONSOLIDATION OF EVERY 10 EXISTING ORDINARY SHARES IN PASUKHAS GROUP BERHAD ("PASUKHAS" OR THE "COMPANY") ("PASUKHAS SHARES" OR "SHARES") HELD AT 5.00 P.M. ON 10 JUNE 2021 INTO 1 SHARE ("CONSOLIDATED SHARE") ("SHARE CONSOLIDATION")

RENOUNCEABLE RIGHTS ISSUE OF 991,989,752 NEW SHARES ("RIGHTS SHARES") TOGETHER WITH 578,660,588 FREE DETACHABLE WARRANTS IN PASUKGB ("WARRANTS A") ON THE BASIS OF 12 RIGHTS SHARES TOGETHER WITH 7 FREE WARRANTS A FOR EVERY 2 SHARES HELD BY THE ENTITLED SHAREHOLDERS OF PASUKGB ("RIGHTS ISSUE WITH WARRANTS")

On behalf of the Board, Mercury Securities wishes to announce that Pasukhas’ existing number of 1,653,990,732 Shares will be consolidated into 165,399,072 Consolidated Shares after 5.00 p.m. today (after disregarding the fractional entitlements arising from the Share Consolidation), pursuant to the Share Consolidation.

The Consolidated Shares will be listed and quoted on the ACE Market of Bursa Securities with effect from 9.00 a.m. on 11 June 2021.

 This announcement is dated 10 June 2021.

 

https://www.klsescreener.com/v2/announcements/view/3394635

Kindly be advised that the abovementioned Company's additional 991,989,752 new ordinary shares issued pursuant to the aforesaid Rights Issue with Warrants will be granted listing and quotation with effect from 9.00 a.m., Wednesday, 21 July 2021.

We are also pleased to advise that PASUKGB’s 578,660,588 Warrants A issued pursuant to the Rights Issue with Warrants will be admitted to the Official List of the Exchange and the listing and quotation of the Warrants A on the ACE Market, will be granted with effect from 9.00 a.m., Wednesday, 21 July 2021.

The Stock Short Name, Stock Number and ISIN Code of the Warrants A are “PASUKGB-WA”, “0177WA” and “MYQ0177WAY68” respectively.

-----------------------------------------------------
Remember this date Wednesday, 21 July 2021.

Listing of 991,989,752 new ordinary shares and 578,660,588 Warrants A

 

PASUKHAS GROUP BERHAD ("PASUKHAS" OR THE "COMPANY") RIGHTS ISSUE WITH WARRANTS

On behalf of the Board, Mercury Securities wishes to announce that pursuant to the close of acceptance, excess applications and payment for the Rights Shares with Warrants A at 5.00 p.m. on 6 July 2021, the Company had received valid acceptances and excess applications for a total of 991,989,752 Rights Shares, representing 99.96% subscription of the total number of Rights Shares available for subscription under the Rights Issue with Warrants.

Details of such valid acceptances and excess applications received are as follows:-

_________________________________________No. of Rights Shares____% of total issue
Total valid acceptances__________________________186,547,381________18.80
Total valid excess applications____________________805,442,371_________81.16
Total valid acceptances and excess applications______991,989,752_________99.96
Total Rights Shares available for subscription________992,394,432_________100.00
Not subscribed for_________________________________404,680__________0.04


Successful applicants of the Rights Shares will be given Warrants A on the basis of 7 Warrants A for every 12 Rights Shares successfully subscribed for.

The total number of excess Rights Shares available for allocation was 805,847,051. In view that the total number of excess Rights Shares applied for was 805,442,371, the Board has decided to allot the excess Rights Shares to all the entitled shareholders and/or their renouncee(s) and/or transferee(s) who have applied for the excess Rights Shares in full.

The Rights Shares and Warrants A are expected to be listed on the ACE Market of Bursa Securities on 21 July 2021.

This announcement is dated 13 July 2021.

===========================
1. Total valid acceptance only 18.80% could mean that most retail minority shareholders do not subscribe for the rights after share consolidation.

2. Mostly the 18.80% subscribers are major shareholders and operators

3. Total valid excess applications of 81.16% is exceptionally high and could mean that major shareholders and operators are scooping up the rights shares and free warrants

4. Appears like the stock has been CORNERED by the major shareholders and operators with excess application

5. Market free float percentage could also be reduced. Wait for announcement on changes in shareholdings to see who are the major and substantial shareholders. .

6. Total amount raised = 991,989,752 X 0.10 = RM99,198,975 (lots of money !!!)

============================
Today's (13/7/21) price hike and movement is likely orchestrated by major subscribers (major shareholders and operators) to maintain the price to push out to retailers when the rights shares are listed on 21/7/21.
Most of today's transaction volume could just be from right acct to left acct to attract attention.

Together with this, is the listing of 578,896,700 warrant A on 21/7/21.

Looks like the operators might maintain the share price at a profitable level and gradually release the shares and warrants to retailers in the market from 21/7 onward.

Note: Cost per rights share = 10 sen plus free warrants.
If share price is maintained at 30sen, it is 200% profit plus free warrants
If share price is maintained at 20sen, it is 100% profit plus free warrants

===========================
Can expect the company to frequently churn out announcements and news on more MOUs, Collaboration Agreement, JV agreement, etc to maintain excitement for this stock.
That's how the wayang is normally played out.

Also be prepared for more fund raising exercises via share issuance to ESOS and PP if similar modus operandi of loss making penny stocks is observed.

Company performance can only be clearer after few quarters down the road to see whether real business profits are coming in.

==========================
Remember director MSW and AT (0072) price movement of past 12 months.
 
 

Take SANICHI as an example. Similar exercise in April 2021

- Consolidation of 10 shares to 1 share
- Rights issue of 6 for 1 consolidated share, @0.08 per rights share
- Free 3 warrant F

The share price has dropped from a high 0.415 to 0.035 and warrant F price = 0.015 on 16/7/21

After ex-date of consolidation, if an investor bought 2000 shares @ 0.25, he is entitled to 12000 rights share with 6000 free warrant F.

If the investor subscribed to 12000 rights share at 0.08 per share,
Total cost of 14000 shares = RM1460 or 10.42 sen per share

Market value (plus 6000 warrant F) = RM580
Paper loss as at 16/7/21 = RM880 or 6.28 sen per share

LOSS per share = 6.28 sen

https://klse.i3investor.com/quoteservlet.jsp?sa=ss&q=SANICHI
 


_________________________________________No. of Rights Shares____% of total issue
Total valid acceptances__________________________186,547,381________18.80
Total valid excess applications____________________805,442,371_________81.16

The figures indicated that the big boys are holding more than 80% of the shares and new warrants.
They have CORNERED the stock.

Look out for company announcement showing the SUBSTANTIAL SHAREHOLDERS to see who are main subscribers for the rights issue. The announcement could be out on Monday, or Wednesday(21/7/2021).

EXPECT the company to start churning out more announcements, news articles, I3 write-ups to excite minority shareholders, retailers and small fishes to get into their game.

Listing date 21/7/21, very interesting to see how they play out the game. They might try to push out the FREE (probably turned WORTHLESS on expiry date) warrants to retailers and small fishes.

Better to stay away from the game. Stay at sideline, enjoy watching the big boys fight each other for the profits.

Their total investments is about 80% of RM99,198,975 that is RM80 million !!!

If most retailers & small fishes are disciplined enough to stay out, then it will be more interesting to see how they struggle to reduce losses.

Look at price movement of stocks that had recently undergone similar exercise of share consolidation followed by rights issue with free warrant:

SANICHI, VC, TRIVE, DGB, MLABS, NETX, etc

For PASUKGB case, it is extra-ordinary that 80% of subscriptions were taken by big boys and they might have to try even harder to push out their shares to retailers and small fishes.
 

_________________________________________No. of Rights Shares____% of total issue

Total valid acceptances__________________________186,547,381________18.80
Total valid excess applications____________________805,442,371_________81.16

(12 rights shares entitled to 7 free warrants)

For 805,442,371 excess rights share, there will be 469,841,300 free warrant A to reduce the cost price

If warrant price = 5sen,
Profit from 469,841,300 warrants = 469,841,300 X 0.05 = RM23,492,065 (29.16%)
Cost per rights share = 0.10 - (23,492,065 / 805,442,371) = 7.08sen

If warrant price = 4sen,
Profit from 469,841,300 warrants = 469,841,300 X 0.04 = RM18,793,652 (23.33%)
Cost per rights share = 0.10 - (18,793,652 / 805,442,371) = 7.66sen

If warrant price = 3sen,
Profit from 469,841,300 warrants = 469,841,300 X 0.03 = RM14,095,239 (17.49%)
Cost per rights share = 0.10 - (14,095,239 / 805,442,371) = 8.25sen

If warrant price = 2sen,
Profit from 469,841,300 warrants = 469,841,300 X 0.02 = RM9,396,826 (11.66%)
Cost per rights share = 0.10 - (9,396,826 / 805,442,371) = 8.83sen

If warrant price = 1sen,
Profit from 469,841,300 warrants = 469,841,300 X 0.01 = RM4,698,413 (5.83%)
Cost per rights share = 0.10 - (4,698,413 / 805,442,371) = 9.41sen

If warrant price = 0.5sen,
Profit from 469,841,300 warrants = 469,841,300 X 0.005 = RM2,349,206 (2.91%)
Cost per rights share = 0.10 - (2,349,206 / 805,442,371) = 9.7sen

=============================
How many millions the excess subscribers will make depends on the share and warrant price.

What price are you willing to pay for the share and warrant ?

Finally WARRANT A listing today (21/7/2021)

 
FREE DETACHABLE WARRANTS IN PASUKHAS GROUP BERHAD ("PASUKHAS" OR THE "COMPANY") ("WARRANTS A") ISSUED PURSUANT TO THE RENOUNCEABLE RIGHTS ISSUE OF UP TO 992,394,438 NEW ORDINARY SHARES IN THE COMPANY ("PASUKHAS SHARES" OR "SHARES") ("RIGHTS SHARES") AT AN ISSUE PRICE OF RM0.10 PER RIGHTS SHARE TOGETHER WITH UP TO 578,896,755 WARRANTS A ON THE BASIS OF 12 RIGHTS SHARES TOGETHER WITH 7 FREE WARRANTS A FOR EVERY 2 EXISTING SHARES HELD BY THE ENTITLED SHAREHOLDERS OF THE COMPANY AT 5.00 P.M. ON 21 JUNE 2021
 
Listing Date 21 Jul 2021
Issue Date 15 Jul 2021
Issue Size in Unit 578,660,588
Maturity Date 14 Jul 2024
Exercise/Conversion Period 3.00 Year(s)
Exercise/Strike/Conversion Price Malaysian Ringgit (MYR) 0.1000
 
https://www.klsescreener.com/v2/stocks/view/0177WA
 
============================
How much is the free warrant worth ?
 
The price will determine the amount the big boy subscribers (rights issue) make.
 
============================
Trade with care, not be greedy and get stuck for years
 

As at 21/7/2021 

PASUKGB has Total Issue Shares = 1,157,793,504    

Total Warrant A = 578,660,588

Total amount raised = 991,989,752 X 0.10 = RM99,198,975 

 

The following announcements :

  1. Director Mak Siew Wei subscribed for the rights shares and now has 46,070,000 shares (3.98%)
  2. Director Mak Siew Wei is holding 26,868,333 warrant A (4.643%)
  3. JOE HOLDINGS BERHAD (a penny stock listed in Bursa) emerged as a substantial shareholder with 249,729,000 shares (21.58%) and 145,670,000 warrant A (25.17%)

Based on the number of "Total valid excess Application"  of 805,442,371 shares (81.16%), it is likely there could be more announcements on Substantial Shareholders and their shareholdings in the coming days.

https://www.klsescreener.com/v2/announcements/view/3396379

1.  Changes in Director's Interest 

Name MR MAK SIEW WEI
Descriptions(Class) Ordinary Shares

Details of changes

No
Date of change
No of securities
Type of transaction
Nature of Interest
1
15/07/2021
46,060,000
Others
Direct Interest
Name of registered holder MAK SIEW WEI
Description of "Others" Type of Transaction Rights Issue
Consideration (if any) RM0.10

Circumstances by reason of which change has occurred
Allotment of Rights Shares pursuant to the Rights Issue with Warrants.
Nature of interest
Direct Interest

Total no of securities after change
Direct (units) 46,070,000
Direct (%) 3.981
Indirect/deemed interest (units) 0
Indirect/deemed interest (%) 0.000
Date of notice 21/07/2021
Date notice received by Listed Issuer 21/07/2021

 

https://www.klsescreener.com/v2/announcements/view/3396373

2.  Changes in Director's Interest 

Name MR MAK SIEW WEI
Descriptions(Class) Warrants

Details of changes

No
Date of change
No of securities
Type of transaction
Nature of Interest
1
15/07/2021
26,868,333
Others
Direct Interest
Name of registered holder MAK SIEW WEI
Description of "Others" Type of Transaction Warrants
Consideration (if any)  

Circumstances by reason of which change has occurred
Allotment of Warrants pursuant to the Rights Issue with Warrants.
Nature of interest
Direct Interest

Total no of securities after change
Direct (units) 26,868,333
Direct (%) 4.643
Indirect/deemed interest (units) 0
Indirect/deemed interest (%) 0.000
Date of notice 21/07/2021
Date notice received by Listed Issuer 21/07/2021

 

https://www.klsescreener.com/v2/announcements/view/3396371

3.  Notice of Interest Sub. S-hldr 

Name JOE HOLDING BERHAD (FORMERLY KNOWN AS GPA HOLDINGS BERHAD)
Address Level 5, Block B, Dataran PHB,
Saujana Resort, Section U2,
Shah Alam
40150 Selangor
Malaysia.
Company No. 199901018997 (493897-V)
Nationality/Country of incorporation Malaysia
Descriptions (Class)
Ordinary Shares
Name of registered holder M & A Nominee (Tempatan) Sdn Bhd Pledged Securities Account for GP Autobat Sdn Bhd
Address of registered holder
No. 45-1 & 47-1, The Boulevard, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur, Wilayah Persekutuan

Date interest acquired & no of securities acquired
Date interest acquired 15 Jul 2021
No of securities 249,720,000
Circumstances by reason of which Securities Holder has interest
Subscription of rights shares pursuant to the Rights Issue with Warrants by GP Autobat Sdn Bhd.
Nature of interest
Indirect Interest

Total no of securities after change
Direct (units)
0
Direct (%)
0
Indirect/deemed interest (units)
249,720,000
Indirect/deemed interest (%) 21.58
Date of notice 21 Jul 2021
Date notice received by Listed Issuer 21 Jul 2021

 

23/7/21

Trading volume increased since the llisting of rights shares and warrant A on 21/7/21. However the price is trading at narrow range of 8 - 12.5 sen and WA trading in the range of 1 - 2.5sen.

Seems like there were not much retail participations due to trend of other similar stock like SANICHI.

However big boys could still be gradually selling their rights shares and warrants for some profit around this price, to free up their money from here.

If warrant price = 2sen,
Profit from 469,841,300 warrants = 469,841,300 X 0.02 = RM9,396,826 (11.66%)
Cost per rights share = 0.10 - (9,396,826 / 805,442,371) = 8.83sen

If warrant price = 1sen,
Profit from 469,841,300 warrants = 469,841,300 X 0.01 = RM4,698,413 (5.83%)
Cost per rights share = 0.10 - (4,698,413 / 805,442,371) = 9.41sen

If warrant price = 0.5sen,
Profit from 469,841,300 warrants = 469,841,300 X 0.005 = RM2,349,206 (2.91%)
Cost per rights share = 0.10 - (2,349,206 / 805,442,371) = 9.7sen

The big boys might find themselves holding their shares and warrant for a longer period as many retailers are not willing to buy ad hold loss making penny stock that has just completed share consolidation and rights issue.

Retailers fear is that based on previous cases, it is likely that the directors might repeat the process of frequent fund raising to increase company fund by issuing more shares for ESOS, Private Placement,  Asset Acquisition or Rights Issue.

Rampant issuance of shares will again result in enlarged issued shares (to MULTI-BILLION) and reducing the Earnings Per Share (EPS) as well as diluting shareholding of specially minority shareholders

 

26/7/21

Disposal of PASUKGB shares by JOE Holdings

  1. On 23 July 2021 disposal of 53,410,000 ordinary shares in PAUSKGB for a total consideration of RM5,609,118.20

  2. The Disposal consideration was based on the market price of RM0.10502 per share at the point of disposal.

  3. The original cost and estimated proforma gain from the Disposal is RM5,3410,000 and RM268,118 respectively.

  4. Arising from the Disposal, the shareholdings of JOE in PASUKGB will be reduced from 249,720,000 ordinary shares, 21.58% to 196,310,000 ordinary shares, 16.961%.

 

The Board of Directors of JOE (“Board”) wishes to announce that GP Autobat Sdn. Bhd. (“GP Autobat”), a wholly-owned subsidiary of the Company had on 23 July 2021 disposed 53,410,000 ordinary shares in Pasukhas Group Berhad via open market (“PGB”) for a total consideration of RM5,609,118.20 (“the Disposal”).

Please refer to the attachment for further details.

This announcement is dated 26 July 2021.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3177878

 

 

PRICE CHART AS AT 2/8/2021

Since the listing on 21/7/2021, the price range is between 0.08 and 0.125 which is near to 0.10, the cost of rights share paid by subscribers. Looking at the decreasing volume, it seems like not many retailers are in the game as the big subscribers tried to unload their rights shares to release their fund from here.

Soon, there should be announcements on Changes In Shareholdings to provide more information on the substantial shareholders.

 

 

Please come back for more updates

 

 

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