Reference is made to an article titled “What’s brewing at SMTrack and a few other companies” which appeared in The Edge on 10 January 2022.
The Board of Directors of the Company (“Board”) wishes to clarify that the Company is in early stage of discussion with the companies concerned mentioned in the article of which no agreement has been reached and the date of the signing of agreement has not been confirmed at this juncture.
In the event any decision or agreement is made in relation thereto, the Board will make the necessary announcement in compliance with the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad accordingly.
Involve issuance of new type/class of securities ? No Types of corporate proposal Private Placement Details of corporate proposal SERSOL BERHAD ("SERSOL") PRIVATE PLACEMENT II No. of shares issued under this corporate proposal 10,000,000 Issue price per share ($$) Malaysian Ringgit (MYR) 0.3230 Par Value($$) (if applicable) Malaysian Ringgit (MYR) 0.000 Latest issued share capital after the above corporate proposal in the following Units 269,278,000 Issued Share Capital ($$) Malaysian Ringgit (MYR) 28,399,557.000 Listing Date 22 Mar 2022
================= Price holding steady Issue price per share ($$) Malaysian Ringgit (MYR) 0.3230 PP investors immediately profit from market price of 0.405\F0 Directors have more money in company fund to utilise
Retail shareholders have to wait for directors to show profits from business to make money from stock price appreciation. Be prepared for more fund raising from share issuance to ESOS and PP
SERSOL BERHAD ("SERSOL" OR "COMPANY") I. PROPOSED BONUS ISSUE OF SHARES; AND II. PROPOSED FREE WARRANTS ISSUE (COLLECTIVELY REFERRED TO AS THE "PROPOSALS")
(i) proposed bonus issue of up to 457,786,000 new ordinary shares in Sersol (“Sersol Share(s)” or “Share(s)”) (“Bonus Share(s)”) on the basis of 1 Bonus Share for every 1 existing Sersol Share held by the shareholders of Sersol whose names appear in the Record of Depositors of the Company at the close of business on an entitlement date to be determined later (“Bonus Shares Entitlement Shareholders”) (“Bonus Shares Entitlement Date”) (“Proposed Bonus Issue of Shares”); and
(ii) proposed free warrants issue of up to 152,595,333 free warrants (“Warrant(s)” or “Warrant(s) B”) on the basis of 1 Warrant for every 6 existing Shares held by the shareholders of Sersol whose names appear in the Record of Depositors of the Company at the close of business on an entitlement date to be determined later (“Proposed Free Warrants Issue”).
Please refer to the attachment for further details of the Proposals.
================= Good or bad ?
A reason for operator to fry up Not many things are free in this world Looks more like the making of another low price high NOSH (billion shares) penny stock.
My opinion is that share dilution does makes it more liquid for con players. If company is profitable and has growth, there is not need to print papers. Remember printing papers costs sens but by pumping thereafter with volumne, makes WHO rich ? Can it be YOU ? Answer is obvious....
most are afraid of private placement announcement. but theres a catch. PP announcement most of the time company already found investor already just need paperwork to be done. the catch is. Con man companies, which dont have core business and doing MOU proposal. PP is just Printing Paper money to dump. good value companies that has core business thats another story but its a double edge sword good thing = investor that really want in can get Large volume @cheap price, compare to buying off open market thats slow + expensive. bad thing = company has cashflow problem it may sound similar but its 2 different thing. 1 is like you need their expertise + their commitment the other is you just want their money aka AIRASIA haha PP goreng up still failed in the end
Interesting strategy by the directors. Announce Bonus Issue with free warrants. Lots of small flies jump in to scoop up the shares. Then announce a serial of small additional listings to disguise the PP announced under additional listing also. Without knowing it, those chasing the bonus issues already scoop up all the shares of the PP holders. Good luck.
=============== Multi year loss making company Directors not capable to increase company fund via main business Directors might propose more fund raising via shares issuance to PP, ESOS to increase company fund and resulting in dilution of shareholders equity % and EPS
Just wait to see when will NOSH hit 1 BILLION shares in near future
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