Aussino (delisted 20th Dec 2013)

Welcome to our forums Casey.

Running ShareInvestor in the past has given me access to lots of people in the industry. Suffice it is to say that the companies that provide convertible loans are most unlikely to be 'long term investors' even though this may be the impression that they want you to have. It is quite easy to verify as you can look through all the companies that had issued convertible bonds and see how many of the issuers hold on to their shares after converting. While investigating, do look at the share price performance over the period of the convertible loan.

To understand more, do read this section of my book: pertama.freeforums.net/thread/236/pledged-shares-convertible-bonds

Also read thoroughly the link that I have provided on this Hong Kong site .

Thanks for the pointers!

Aussino's book value is almost 0. In fact, they would be in -ve equity if we were to extrapolate FY2013 results into 1Q14 (Sep 13).

If SGX were to delist the company now, shareholders will get nothing. It's a wonder that the stock was trading at 7c+ prior to the latest announcement.

I read this as a last ditch attempt to extract residual value from the listing status.

I would not be surprised to see the shares crash further today.....

---------------------------

(1) Update on Watch-List Status – Delisting Notification

Further to the announcement dated 23 August 2013, the Board of Directors of Aussino Group Ltd (the
“Company”) wishes to update that the SGX-ST has today via its letter dated 21 November 2013
(“SGX Letter”) rejected the Company’s application for an extension of time to comply with Rules 1314
and 1315 for removal from the Watch-List.

Pursuant to Practice Note 13.2 of the Listing Manual, Paragraph 3.2 states that the SGX-ST may, if
the circumstances warrant it, grant an extension of up to 12 months if the Company satisfies at least
one of the requirements under Rule 1314(1) and has achieved healthy cash flow from its operating
activities (based on the latest consolidated financial statements). However the SGX-ST noted that
the Company has recorded negative cashflow from its operating activities for its most recent financial
year ended 30 June 2013 and has a market capitalisation of below S$40 million. Notwithstanding the
Company’s fundraising proposals, there is uncertainty as to whether the Company would be able to
meet the requirements of Listing Rule 1314 for removal from the Watch-List at the end of extension
period requested. In view of the SGX-ST’s rejection of the Company’s application, the Company will
be delisted.

(2) Exit Offer pursuant to Rules 1306 and 1309 of the Listing Manual

In the SGX Letter, the SGX-ST has also notified the Company that pursuant to Listing Rule 1306, the
Company or its controlling shareholder(s) must comply with Listing Rule 1309, which requires the
Company or its controlling shareholder(s) to provide a reasonable exit offer to shareholders (“Exit
Offer”). The SGX-ST will grant the Company an extension of time for the Company or its controlling
shareholder(s) to make an Exit Offer. The Company is required to advise the SGX-ST of the Exit Offer
proposal as soon as practicable and no later than one (1) month from the date of the SGX Letter.

Trading in the Company’s shares will continue until 5 p.m., 20 December 2013 and trading will remain
suspended until completion of the Exit Offer and the delisting.

The Company will seek relevant legal and financial advice and will inform the shareholders on the
status of the matter from time to time.

By Order of the Board
Joanne Chow
Director
21 November 2013

Aussino has 303 mil shares. Even if it goes down to 1ct, its market capitalisation will still be around $3 mil. With its stated NAV at $1 mil, I will not be surprised if it falls below 1ct as the date for delisting draws nearer. 

I really pity all those minority shareholders, especially the 578 new shareholders between 17 Sept 2012 and 1st Oct 2013. The moral of the story is that investors should be very careful not to climb on board purely based on MOUs or any proposed acquisitions, especially so when the majority shareholder was selling into the rally. Anthony Lim sold 61 mil shares at around the 14cts level compared to the current share price of 1.9cts. 

My goodness. Worse than I thought....

AUSSINO GROUP LTD

(Company Registration No.: 199100323H)

_________________________________________________________________________________


UPDATE ON DELISTING
_________________________________________________________________________________


The Board of Directors of Aussino Group Ltd (“Company”) (“Board”) refers to the announcement on
21 November 2013 in respect of the delisting notification issued to the Company by the SGX-ST
(“said Announcement”). All defined terms used herein shall have the same meaning ascribed
thereto in the said Announcement, unless otherwise defined herein.

As stated in the letter from the SGX-ST dated 21 November 2013 containing the aforesaid delisting
notification, amongst others (“SGX Letter” or “Delisting Notification”), the Company or its controlling
shareholder(s) are required to provide a reasonable exit offer to shareholders (“Exit Offer”). The
Company is required to advise the SGX-ST of the Exit Offer proposal as soon as practicable but no
later than one (1) month from the date of the SGX Letter.

Upon the receipt of the Delisting Notification, the Company had immediately sought to explore various
options to provide shareholders with a reasonable exit alternative. In particular, the Company had
sought to solicit expressions of interest from major shareholders of the Company as well as third
parties to make an exit offer for all the shares of the Company, in view of the impending delisting of
the Company (the “Delisting”). However, the Company has not been able to procure a reasonable
cash exit alternative for the shareholders, and is of the view that it is not realistic to expect an exit
offer to be made, for the reasons set out below:

a. The Group has been loss-making since 2009 and have recorded negative cashflow in recent
years. As announced on 11 October 2013 in relation to the Company auditors’ disclaimer of
opinion, the Group incurred a net loss of $8,040,574 and had cash outflows from operating
activities of $1,131,556 for FY2013. As at 30 June 2013, the Group and the Company’s total
current liabilities exceeded the total current assets by approximately S$153,000 and
approximately S$3.23 million respectively and the Company had capital deficiency of
approximately S$3.26 million. In view of the aforesaid, the Company is not able to procure
any cash exit offer from any shareholder who has the financial ability to do so nor is the
Company able to procure any third party investor to make such a cash exit offer.

b. To date, the Company has not received any other firm exit offer proposal from any party since
the Company announced the receipt of the Delisting Notification.

The Board intends to seek shareholders’ approval in respect of authorising the Board to either (i)
consider and explore the possibility of commencing a winding up of the Company, or (ii) pursue and
explore fund-raising options to recapitalise the Group’s operations and working capital needs, and if
deemed necessary placing the Company under judicial management pending completion of the said
recapitalization (“Proposals”). The Board will recommend the Proposal (ii) above based on factors
including the fact that demand for the Company’s products is still healthy and the Aussino brand
name remains strong, notwithstanding the Group’s current financial situation. A circular setting out
details in this regard, the Board’s recommendation for Proposal (ii) above and basis thereof, will be
despatched to shareholders in due course.

Trading in the Company’s shares will continue until 5 p.m., 20 December 2013 and trading will remain
suspended until completion of the delisting.

Shareholders are advised to exercise caution in trading their shares in the Company. There is
no certainty or assurance as at the date of this announcement that the Proposals will be
completed or that no changes will be made to the terms thereof. The Company will make the
necessary announcements when there are further developments in respect of the
Proposals. Shareholders are advised to read this announcement and any further
announcements by the Company carefully. Shareholders should consult their stock brokers,
bank managers, solicitors or other professional advisors if they have any doubt about the
actions they should take.

By Order of the Board

Joanne Chow
Director
18 December 2013

infopub.sgx.com/FileOpen/Aussino-DelistingUpdate18Dec2013.ashx?App=Announcement&FileID=268189

The market did give Aussino shareholders a last chance to get back some money but many do not know how to make use of it.

Chart pattern gave strong signal earlier...it's called 逃命坡 = Run for you life