ShareJunction - Member Posts

x 0

I only trust what i read from the announcement. I could have misinterpret the announcement, but i will need concrete and logical explanation to challenge the language that is used in the announcement. I intended to invest until i see the fine detail .... and will be happy if anyone can explain or contradict what i have interpreted below.

If my intepretation is correct, these anyone one pump up the shares, the investors could borrow to sell it first, and convert their bond. The profit will be higher. As explained below, the bond can be converted any time, and i didn' t see any selling restriction from the announcement.

Conversion

At any time from the closing date, the Bonds may be converte at a fixed conversion price of S$0.128 (" Fixed Conversion Price

-> I interpreted that the bond can be converted from the issuing date

Payment on Maturity

On Maturity Date, and irrespective of whether the Investors have converted their Bonds into Shares, the Company will pay to each Investor an amount equivalent to the principal amount of the Bonds subscribed by such Investor. Such amount will not be payable by the Company where the Investor has already received or is entitled to receive the payments in a Qualifying Exit Event.

-> I interpret this as " Investor can convert their bond at any time, but still get back the principal" . The only exception is based is based on qualifying Exit event.

Qualifying Exit Event

Occur prior to the Maturity Date:

(a) entry by the Company into legally binding agreements for the sale of the Company and/or all or any of the Subsidiaries

(b) entry by the Company into legally binding agreements for the sale of a major asset or business of the Group.

-> I intepret this that only when the company is sold, the company will need to pay the principle

Interest

The Bonds bear interest from the closing date of each tranche at the rate of 8.0% per annum, due and payable every six (6) months in arrears. Interest will cease to be payable on the Bonds in the event they are converted into Shares.

-> If convert the bond, no interest will be given. If can get 90% profit, why take the risk of not converting just for the 8%

Fatm@n ( Date: 25-Jul-2015 12:30) Posted:

This is not logical at all.
You must have misunderstood the condition.
What you understand, is placing $13mil and get back $11.7mil immediately which means only $1.3mil is invested. 18 mths later from $1.3mil, you get $13mil plus 8%.
If this is the case, every mother son will fight to be the investors....
Then the fund shouldn't be only $13mil it could be so much so much more....
Please be sensible....

nngeeh ( Date: 25-Jul-2015 12:15) Posted:

It seems like it ..... the subscriber will get their $13M capital back in 18 mths (regardless of whether they have converted their shares) + shares (after converting the principle at 0.128 per share).

If i' m the subscriber, i' ll convert all my bond at $0.128 as soon as possible and sell it at the current price (say it is still 0.119). Immediately, i' ll get back around slightly more than 90% of their fund - 11.7M. And in 18 mths, they will get back their capital. Then, these 11.7M is actually their pure profit. this is 90% profit.

If i am the subscriber, i will immediately sell the shares to get back 90% of your capital, and wait 18 mths to collect your profit. Their risk is only 10% capital, but profit is 90%. This is a great investment for them .... and for existing shareholders, their share will be diluted, and there is a possibility that the price might drop if these new investors dump first to get back their capital.

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It seems like it ..... the subscriber will get their $13M capital back in 18 mths (regardless of whether they have converted their shares) + shares (after converting the principle at 0.128 per share).

If i' m the subscriber, i' ll convert all my bond at $0.128 as soon as possible and sell it at the current price (say it is still 0.119). Immediately, i' ll get back around slightly more than 90% of their fund - 11.7M. And in 18 mths, they will get back their capital. Then, these 11.7M is actually their pure profit. this is 90% profit.

If i am the subscriber, i will immediately sell the shares to get back 90% of your capital, and wait 18 mths to collect your profit. Their risk is only 10% capital, but profit is 90%. This is a great investment for them .... and for existing shareholders, their share will be diluted, and there is a possibility that the price might drop if these new investors dump first to get back their capital.

sheerluck ( Date: 25-Jul-2015 11:16) Posted:

When I reread this clause, I got he same question as you. Logically speaking, they shouldn' t but the wordings suggested otherwise. This clause is ambiguous to me.

slownsteady ( Date: 25-Jul-2015 07:57) Posted:

3.7. Payment on Maturity On Maturity Date, and irrespective of whether the Investors have converted their Bonds into Shares, the Company will pay to each Investor an amount equivalent to the principal amount of the Bonds subscribed by such Investor. Such amount will not be payable by the Company where the Investor has already received or is entitled to receive the payments in a Qualifying Exit Event.

This means that the investors can convert fully and get the shares, and yet still get back their full capital of 13 mil? This means the interest is 8% per annum plus whatever amount they are able to sell the converted shares at in the market?

x 0

Sorry, i misunderstood. I thought you meant you got 6000 lots from 12c onwards.

edwinjup ( Date: 08-Jul-2015 12:29) Posted:

I dare not bet here....I bet lhn, hmi, Asia medic...

nngeeh ( Date: 08-Jul-2015 11:04) Posted:

Hi Bro, $72K is a huge bet ..... good luck.

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Hi Bro, $72K is a huge bet ..... good luck.

edwinjup ( Date: 08-Jul-2015 10:09) Posted:

Got more than 6000 lots q to buy from 12c onwards...steady

edwinjup ( Date: 08-Jul-2015 10:05) Posted:

My master say..any bad rumour or bad news..cut and move on...that why i cut linc energy even got 10pips loss..and save 5 digits...

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Rights issue again... And worst case, the money is used for legal and not growth.....

RoundRound ( Date: 08-Jul-2015 07:50) Posted:

As expected, long explanation and the continuing fight in court to drag on for many months more, Appeal Court to even Supreme Court, the top court there.

What is very bad is the convertible bonds agreement termination, will see this USD12m not coming in.

QTv probably have to go back to substantial shareholders or even calling for Rights Issues to raise operating fund in the near term.

RoundRound ( Date: 07-Jul-2015 18:46) Posted:

After 3 trading days of Halt, many seems to have forgotten this poor & badly bashed counter.

Let's see what the management have to say tomorrow after 5 long days, and delayed probably by USA's ID Day holiday last Saturday.

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No eye see

edwinjup ( Date: 08-Jul-2015 07:42) Posted:

Halt so long for this updates...lousy mgt....

KepoChicken ( Date: 08-Jul-2015 07:35) Posted:

Announcement out ... very bad clarification.

All is what board believe...pls ask yourself .. how many ppl appeal can success?

Also, bondholder also terminate the agreement... who will trust this company anymore...

tell me

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Maybe .... so that they could pump it even higher than the mothershare price yesterday (rights - 0.07, but mother is only 0.168 at closing).

haruta ( Date: 07-Jul-2015 20:34) Posted:

Maybe they want to have more rights shares?

nngeeh ( Date: 07-Jul-2015 18:27) Posted:

I couldn' t really understand why Ezra would want to do a right exercise of 2 rights for 1 share @0.105 instead of 1 right for 1 share @ 0.210. Ezra will be collecting the same amount of money.

For 1 right for 1 share, the share price will stay above 0.21, and they will not need to worry about consolidation. For the current exercise, after issuing the additional shares, the current share price could be pressured for certain period due to additional shares, and the company might need to do consolidation.

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Some of the shares .. after issuing the shares, the price will stay close to the exercise price for a lengthy period - even though it' s way below the NAV. Just look at Pacific Andes, the price is hovering slightly above 0.6, and for JB Food, the current price is even lower than the rights price.

So, just say after issuing the shares .... and the share price move towards the exercise of 0.105 (if oil starts to move downwards), then they will be force to consolidate 2 Shares to 1 share. So after rights, 1S become 3S, and after consolidation will become 1.5S. They are only enlarging the current share by 1.5x, but if they go with 1R for 1S, Ezra will get the same amount of money, but enlarge it by 2x.

This exercise is causing alot of pain to the shareholders. The price was above $1+ last year. After rights, the NAV is supposed to be above $0.5 but due to this mismanagement cause it to drop to the current level is really pathetic.

KAMAL0883 ( Date: 07-Jul-2015 19:19) Posted:

probably they want to enlarge the company' s size and with just 10.5 cents per right will attract more shareholders to take-up the rights

nngeeh ( Date: 07-Jul-2015 18:27) Posted:

I couldn' t really understand why Ezra would want to do a right exercise of 2 rights for 1 share @0.105 instead of 1 right for 1 share @ 0.210. Ezra will be collecting the same amount of money.

For 1 right for 1 share, the share price will stay above 0.21, and they will not need to worry about consolidation. For the current exercise, after issuing the additional shares, the current share price could be pressured for certain period due to additional shares, and the company might need to do consolidation.

x 0

I couldn' t really understand why Ezra would want to do a right exercise of 2 rights for 1 share @0.105 instead of 1 right for 1 share @ 0.210. Ezra will be collecting the same amount of money.

For 1 right for 1 share, the share price will stay above 0.21, and they will not need to worry about consolidation. For the current exercise, after issuing the additional shares, the current share price could be pressured for certain period due to additional shares, and the company might need to do consolidation.

x 0

Did the BB pump up the price today to trap the retailers at 0.159?

I think it' s not over yet. Just look at Jardine C& C, it has dropped almost $4 since XR. The best bet is to wait until the last 2 days of rights exercise.

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The problem with the rights being underwritten, the company won' t need to defend since it is underwritten as the banks will subscribe if no one wants it ..... and the bank won' t defend it as its able to scoop at a low price (and since they dare to underwrite it, they are confident of the price that they are undertaking). Just look at Pacific Andes .... the banks pick up at low price (0.051 if i still remember it), and the current price is 0.06+.

It' s the shareholder who suffers. Prior to rights announcement, the price of Pacific Andes was above 0.1. Since the mother share drop below rights exercise price, the shareholders didn' t want it (and end up diluting its share). Pathetic scenario.

Hope Ezra is different .... but the trend of price dropping is consistent with others.

GuavaXF30 ( Date: 03-Jul-2015 09:39) Posted:

Ezra under pressure. Not a good indication of response to rights issue.

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The price highlighted below was the movement during rights exercise. Most didn't recover to the pre-rights price. Only Del monte recovered over 0.4 after many months ( it even dropped below the rights exercise price to 0.31 for the initial few weeks after the exercise). That's why most shareholders hate rights exercise.

lglg666 ( Date: 02-Jul-2015 18:51) Posted:

Yeah, it's not looking good at the moment.

nngeeh ( Date: 02-Jul-2015 16:52) Posted:

Most companies that had undergone rights exercise recently had exhibit similar price drop. Even Jardine C& C is encountering similar fate. What makes Ezra different?

Jardine C& C: 35-> 32

Del Monte: 0.40-> 0.335

China Fish: 0.26-> 0.173

Swiber: 0.210 -> 0.160

Tiger Airways: 0.32 -> 0.26

IEV: 0.09 -> 0.071

Yoma: 0.60 -> 0.53

Others: Pacific Andes, GKE, Lorenzo, Lasseters

x 0

DBS and Standard Chartered Bank were the underwriter for Pacific Andes Rights Issue. That has not stopped the Mother Share from dropping below the exercise price during the rights issues. DBS and Standard Chartered Bank have to scooped up the rights. However, the situation for Ezra is slightly different as there is still a gap to the exercise price.

moron101 ( Date: 02-Jul-2015 18:38) Posted:

DBS & CS will defend the mother shares & rights else they may lose out on their underwriting service charges..

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Most companies that had undergone rights exercise recently had exhibit similar price drop. Even Jardine C& C is encountering similar fate. What makes Ezra different?

Jardine C& C: 35-> 32

Del Monte: 0.40-> 0.335

China Fish: 0.26-> 0.173

Swiber: 0.210 -> 0.160

Tiger Airways: 0.32 -> 0.26

IEV: 0.09 -> 0.071

Yoma: 0.60 -> 0.53

Others: Pacific Andes, GKE, Lorenzo, Lasseters

x 0

I think some of the shareholders are already start dumping their Mothershare now ... and will buy the rights at probably 10~20% discount. They will earn from the difference. I guess most will anticipate that the rights will be selling at lesser price. If the mother' s price has already started to go down today.... it' ll might be worst tomorrow. Just my view.

nngeeh ( Date: 02-Jul-2015 14:52) Posted:

The problem is rights is that when there is a gap between the rights and mother share, shareholders will normally sell their mother to buy the rights share. This will cause a downwards pressure .... and eventually, rights price will go further, and so will the mother share. Furthermore, the number of rights share is more than the mother share.

It' s be very interesting tomorrow. If you look at Swiber, it was facing similar pressure even though the number of rights share is half of its mother. For Ezra, this is the reverse. The pressure will be double.

niteowl68 ( Date: 02-Jul-2015 14:43) Posted:

Nil Paid Rts trading tomw... estimated price = closing price minus 10.5c and some comm charges and approx small 5% discount as it it not " ready basis" shares.

Therefore using 16.8c - 10.5c - 0.2c less 5% = 5.8c ... tomw est opening will be from 5.5 to 6c..

x 0

The problem is rights is that when there is a gap between the rights and mother share, shareholders will normally sell their mother to buy the rights share. This will cause a downwards pressure .... and eventually, rights price will go further, and so will the mother share. Furthermore, the number of rights share is more than the mother share.

It' s be very interesting tomorrow. If you look at Swiber, it was facing similar pressure even though the number of rights share is half of its mother. For Ezra, this is the reverse. The pressure will be double.

niteowl68 ( Date: 02-Jul-2015 14:43) Posted:

Nil Paid Rts trading tomw... estimated price = closing price minus 10.5c and some comm charges and approx small 5% discount as it it not " ready basis" shares.

Therefore using 16.8c - 10.5c - 0.2c less 5% = 5.8c ... tomw est opening will be from 5.5 to 6c..

x 0

Will the price move up T+3 (Wednesday) due to buy-in from SGX for those who shorted without script on the last day of CR?

I think the price will move south on thursday.

edwinjup ( Date: 27-Jun-2015 07:57) Posted:

Coming friday will be very interesting.....t+5 & the listing of ezra rights....

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It' ll depends on whethere there is a huge gap between the share price and the rights exercise price.

If there is a gap, many will apply for excess, and might be allocated very very little.

edwinjup ( Date: 26-Jun-2015 16:11) Posted:

For me..I will sell 17.5c now...then sell 50k right at 7c (based on 17.5c)..then buy 7lots rights cum 100 lots excess..lol

virinvictus ( Date: 26-Jun-2015 15:38) Posted:

For discussion: Should I or Shoudn' t I?

Bought 30K at 0.28. Should I sell at 0.175 today and make a small profit?

Calculations:

Bought 30K 0.28
Sell 30K at 0.175
Loss SGD3150

Bought 57K 0.105
Sell 57K 0.175 (assuming this price on 29 July)
Gain SGD3990

Overall Profit: ~SGD700 (minus brokerage, GST etc.)

x 0

Wrong information can cause investors to make wrong decision. The share price goes down is one thing, but supplying wrong information that cause people to cut is another thing.

RoundRound ( Date: 19-Jun-2015 19:00) Posted:

Just joking. If not market very boring last few days. Yes, Catalists no minimum 20c price. But this IEV really suck. I ever bought at around 30c but sold off at cost as I saw their contract wins too little to bring in any decent profit. This counter was once a $1 counter, now worth only 6c

nngeeh ( Date: 19-Jun-2015 18:37) Posted:

IEV is in catalist. Why would it need consolidate? There is no 0.2 min in catalis

x 0

IEV is in catalist. Why would it need consolidate? There is no 0.2 min in catalist

RoundRound ( Date: 18-Jun-2015 22:14) Posted:

When IEV do a share consolidation of 10 to 1, it will become 60c and then there's meat for Shortists to attack till it reach $0.40 loh.... LOL

This is what we can expect from world's No.1 shorting exchange what

newbieliu ( Date: 18-Jun-2015 22:08) Posted:

when would such day come again hu ? i almost frozen to death dy... my cash stuck in here for years dy... keep averaging down faint