YESTERDAY, WE HAD TALKED ABOUT HOW THE COMPANY HAD CLEARED OFF “RUBBISH” FROM ITS UNDERLYING BALANCE SHEET AS WELL AS ITS GOODWILL. TODAY, WE WILL STUDY DEEPER INTO THE NEWLY ISSUANCE OF IRREDEEMABLE CONVERTIBLE UNSECURED LOAN STOCK (“ICULS”), AND HOW IT COULD BENEFIT SHAREHOLDERS!
PREVIOUS ARTICLE LINK:
ICULS ARE SIMILAR WITH YOUR ICPS, RCPS, OR EVEN WARRANTS. YOU NAME IT. HOWEVER THE FUN PART ABOUT THE ICULS IS THAT IT WOULD ALLOW THE COMPANY, WHICH IN THIS CASE AGESON BERHAD TO RAISE CAPITAL WITHOUT INCURING INTEREST, SINCE THE ICULS IS ZERO COUPON IN NATURE.
PREVIOUSLY, RHB HAD TRIED TO “ROB” TO COMPANY OFF ITS LAND UNDER ENCUMBRANCE BY ISSUANING A WRIT OF SUMMON TO TIE AGES HANDS. FORTUNATELY, THEY FAILED.
SO TO PERMENANTLY SOLVE THIS PILE OF “RESIDUAL RUBBISH 2.0”, THE SUBSTANTIAL SHAREHOLDER (WHICH IN THIS CASE, THE BOSSES) HAD AGREED TO FOLK OUT THEIR OWN MONEY UP TO MYR 10.9 MILLION TO PARTIALLY SETTLE THE LOAN. HOW DO THEY DO IT? BY ISSUING THE ICULS AND LOCKING THEIR OWN MONEY INTO THE GAME.
DATO SRI LIEW KOK LEONG, DATO SRI CHIN KOK FOONG AND UKAY ONE SDN BHD WHICH ULTIMATE BENEFITOR SHOULD BE DATO SRI LIEW KOK LEONG HAD AGREED TO UNDERTAKE UP TO 1,091,973,744 SHARES OF THE ICULS, AND THE USE OF THE FUND IS TO PARTIAL PAY OFF THE RHB LOAN TO PREVENT THE LAND FROM BEING “ROBBED”.
PEOPLE ARE ALWAYS TALKING, BUT THE MANAGEMENT FOR THE COMPANY TRULY PUT IN THEIR OWN STAKE TO SAVE THE COMPANY!
SO HOW ARE FUNDS BEING UTILIZED?
FROM THE COMPANY’S ANNOUNCEMENT, WE NOTICED THAT MAJORITY OF THE FUNDS THAT ARE CONTRIBUTED BY THE DIRECTOR ARE BEING USED TO REPAY THE LOAN. THIS SENDS A STRONG SIGNAL TO INVESTORS IN WHICH THE MAJOR SHAREHOLDERS ARE BACKING US UP ON THE LOAN!
FOR AGES, THE EXISTING LOAN OF THE COMPANY IS STANDING AT MYR 17.1 MILLION, AND THIS REPAYMENT COULD PARE DOWN AT LEAST HALF OF IT AND PROVIDE AN INTEREST SAVINGS OF APPROXIMATELY MYR 0.6 MILLION PER ANNUM!
MOREOVER, ANY ADDITIONAL SUBSCRIPTION BY ENTITLED SHAREHOLDER (YOU AND ME) WOULD BE UTILIZED TO THE DEVELOPMENT PLAN BY THE COMPANY WITH MBI KEDAH FOR THE MYR 1.24 BILLION GDV PROJECT, TALK ABOUT ULTRA EXPANSION!
TO CONCLUDE, ICULS POSES MINIMAL DILUTION EFFECT AS WELL AS STRONG INTEREST SAVING ADMIST A RECOVERING INTEREST ENVIRONMENT. STAY STRONG WITH AGES, AND TP OF 0.500 IS NOT A PROBLEM AT ALL!
https://klse.i3investor.com/blogs/truthfinder2021/2021-03-19-story-h1542870956-WHY_IS_THIS_NEW_ISSUANCE_OF_ICULS_GOOD_FOR_THE_COMPANY.jsp
