It seems that they are proposing a 10 to 1 share consolidation and changing the par value of the shares to $0.001. They may also be proposing a renounceable entitlement issue of 3 shares for 1, at $0.003 to raise $3.776m. After payment of expenses, the guarantee and the land the company will have $5.17k in working capital, which means that it will still have to operate out of a phone box (albeit a little larger than the one they should be operating out of now). IMHO this would be followed by a project being injected for shares. Given that it is a holding company this could be a project in any area. Given the quality of the projects that the company has looked at to date you can expect it will be interesting.
I wonder if the existing Shareholders (if they remember that they hold stock) will be queued at the door of the Macao meeting room with their cheque books and pens poised? If you were the directors you would be working to ensure that it underwritten, and that the underwriter wants to take up a sizable parcel (if not all) of the new shares. Of course this could also lead to a new substantial shareholder.
This is almost so exciting that I am sure some shareholders may awaken from their slumber, if only to hope there some liquidity in the stock and they can finally sell out. Others may hang on in the hope that their great-grand children can buy something nice from the proceeds.
AAK Price at posting:
0.1¢ Sentiment: Sell Disclosure: Not Held
