I think the shares will test new lows. They are likely to have to report significant writedowns on the value of their investments in the 2nd quarter. Assuming there is no change in their shareholdings as announced in the 2013 annual reports of the 3 listed companies, a quick calculation suggest that the write down may be in the region of $9.5 mil.
As always, I stand corrected. I still intend to watch from the sidelines.
1. LionGold - 31st Mar: 15cts, 30th June: 8.4cts, difference: 6.6cts multiply by 82 mil shares = $5.4 mil
2. ISR - 31 Mar: 7.9cts, 30 June: 5.7cts, difference: 2.2cts multiply by 58 mil shares = $1.28 mil
3. Chaswood - 31 Mar: 8.5cts, 30 June: 6.6cts , difference: 1.9cts multiply by 146 mil shares = $2.8 mil
2nd Quarter results show a revenue of $2.3 mil and a loss of $5.3 mil. The write down in the quoted securities was at $7 mil.... less than what I calculated. Probably because I assumed that there had been no change in the number of shares in the related companies. Interestingly, in the P&L statement, it shows other expenses (fair value loss on financial assets) at $5.4 mil. Not sure how this tallies with the $7 mil. Any accountants out there who can educate me?
I think note 2b relates to its investments in its own funds and these have appreciated by $3.7 mil.
Guess it is difficult to do any deals when one's share price is testing new lows. The acquisition was to be done by the issue of 43.252 mil shares issued at 6.2cts and the current share price is 3.2cts.
Announced today that Balhetchet Caesar Kevin sold 3.5 mil shares on 3rd and 4th of Nov for $104,250 ( average price of 2.98cts each) bringing his holdings to 59.366 mil shares or 5.41%.... My understanding is that below 5%, he need not declare anymore.
When there is a big seller around without a corresponding big buyer, the market equilibrium usually shifts towards more downside for the share price. As an investor or a punter, we should never fight the market..... unless of course, we are the big guns.
As expected.... Really pity the existing shareholders...... I would not be surprised that shares head towards 1ct and lower.....
The Board of Directors of Asiasons Capital Limited (the “Company”, and together with its subsidiaries, the “Group”) wishes to announce that the Company has on 6 April 2015 entered into a non-legally binding term sheet (the “Term Sheet”) with Advance Capital Partners Asset Management Private Limited (the “ACPAM”) in connection with the issuance by the Company to Advance Opportunities Fund (the "Subscriber") of 1% unsecured equity linked redeemable structured convertible notes due 2018 (the “Notes”) with an aggregate principal amount of up to S$25,000,000 in three tranches (the “Proposed Notes Issue”).
Conversion Terms and Price
The Notes shall be convertible into new ordinary shares in the share capital of the Company (the “Conversion Shares”) subject to the terms and conditions of the Subscription Agreement and at a conversion price determined in accordance with the terms and conditions of the Notes in the following manner:
(i) Tranche 1: 80% of the average of the closing prices per share on any three consecutive business days during the 45 business days immediately preceding the relevant conversion date of the Notes;
(ii) Tranche 2: 85% of the average of the closing prices per share on any three consecutive business days during the 45 business days immediately preceding the relevant conversion date of the Notes; and
(iii) Tranche 3: 90% of the average of the closing prices per share on any three consecutive business days during the 45 business days immediately preceding the relevant conversion date of the Notes (the “Conversion Price”).