I foresee danger ahead. esp. warrant holders. With so high premium, it will not be favourable for warrant holders to convert to mother shares in order to be entitled for the rights. Further more the co have recently completed the rights issue and are now calling for another rights @ 0.40. The recent pumping of shares was probably to fix a high right issue price.
The silver lining for the shareholders and the warrants holders is that TSHS seems going to invest even more money into this company. First, he is going to undertake the whole rights issue that he is entitle to. Currently he has 767,040,000 shares in the company thus he will undertake 383,520,000 rights with indicative price of 40 sen a shares which works out to be RM 153.4 Million. Then he will acquire the entire 727,272,727 shares that issues to one of the vendor for the proposed acquisition as a way of payment at 55 sen a share which amounts to RM 400 Million. Total money that he is going to pump into the company will be RM 535.4 Million. It is certainly a very big investment. He must really believes in this company.
When shares issue right issue, the warrant exercise price will be reduced accordingly la.. This author know or dunno? Where got after exercise the warrant still remain the same exercise price? Mati lor like that..hahahahahhah
Hi Cheaterecoworld, if u care to read carefully, i din mentioned that the exercise price remain the same after the right issue, but u need to convert with the existing exercise price in order to be entitled for the rights issue. If you choose not to subscribe then surely the exercise price will be revised down but your shares in the company will be diluted. Do get your facts straight before u decide to criticize others. Thanks!
@RandomTrading...very interesting & thank you for highlighting. Who are behind these 2 companies????? 'Incorporated in Aug 2010 with only 2 directors with a share capital of USD 100. The commentaries part even stated that the auditors has declared in emphasis of matter relating to the losses, shareholders' deficit, net current liabilities recorded and breach of covenants/terms of bank loans.'
Hi rikki, I guess we can never know who are those behind the scene and how these 2 director with only USD 100 share capital company comes to own the 100% legal rights of a company worth USD 350 Million (based on the purchase price). It must be godly kind of investment.
when shareholders shy away from this counter, it will be the end of it....exit pn17 or not is not important anymore . more important is not to lose all your hard earned cash in this suma....look very obvious that this one not a workable idea by asking more monies from shareholders by way of rights and warrants.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 3929 views | 4 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
rikki
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Posted by rikki > 2014-08-29 00:43 | Report Abuse
I foresee danger ahead. esp. warrant holders. With so high premium, it will not be favourable for warrant holders to convert to mother shares in order to be entitled for the rights. Further more the co have recently completed the rights issue and are now calling for another rights @ 0.40. The recent pumping of shares was probably to fix a high right issue price.