I just noticed something about this. In the interim report HML state "On 8 August 2016 the Company acquired 25% of the issued shares of JB Financial Group Ltd (JBFG) (formerly JB Broking Ltd), a newly established company. During the half year the Company injected $6,250,000 additional capital into JBFG and increased its ownership to 35.5%."
I find this confusing, because it reads as though the $6.25m was on top of the initial investment in August (so the total investment was more than $6.25m.) But this also seems odd, because (1) I thought it wasn't until the EGM in October that the Amendment of investment Guidelines to enable the purchase of unlisted securities went through, and (2) all unlisted securities are valued at cost at about $8.3m in the interim report, and the above statement seems to suggest that HML paid rather more than $8.3m (unless the 25% holding in August was picked up at a ridiculously low price).
Actually, $6.25m for about 10% of JBFG is not that inconsistent with the claimed valuation of $83m for JBFG.
Maybe their English is a bit sloppy in the interim report?
Anybody??
HML Price at posting:
$1.69 Sentiment: None Disclosure: Held
