Monday, November 09, 2015

Company Warrants Expiring in 2015 - Actions Needed

I need to remind myself all the outstanding company warrants that are expiring in 2015 in my portfolio which I will need to take action. I will update this list accordingly as I go along so that I won't forget about them.

METECH INW150627, Expiry Date: 27 Jun 2015, Exercise price = $0.02, Conversion ratio 1:1 - Warrants expired worthless.
WE HOLDINGS LTD W150805, Expiry Date: 8 Aug 2015, Exercise price = $ 0.003, Conversion ratio 1:1 - Warrants exercised and converted to shares.
WE HLDGS W150827, Expiry Date: 27 Aug 2015, Exercise price = $0.03, Conversion ratio 1:1 - Warrants expired worthless.
HEETON W150903, Expiry Date: 3 Sep 2015, Exercise price = $0.70, Conversion ratio 1:1 - Warrants expired worthless.
ASIATIC W150925, Expiry Date: 25 Sep 2015, Exercise price = $0.0175, Conversion ratio 1:1 - Warrants exercised and converted to shares.
SINARMASEW151118, Expiry Date: 18 Nov 2015, Exercise price = $0.10, Conversion ratio 1:1 - Warrants exercised and converted to shares.
GRP LTD W151127, Expiry Date: 27 Nov 2015, Exercise price = $0.08, Conversion ratio 1:1 - Warrants expired worthless. (For CPF Investment Account)
LIONGOLD W151217, Expiry Date: 17 Dec 2015, Exercise price = $1.1717, Conversion ratio 1:1 - Warrants expired worthless.



Blogger Chanel said...

Hi, Wish to ask for your advice:
What can we do with the Metech warrants? What does it mean? If we exercise, we buy Metech shares at $0.02 each? Current price is much lower at around $0.004... Many thanks.

4:13 AM  
Blogger ghchua said...

Hi Chanel,

If I didn't remember wrongly, those Metech warrants came with the rights shares as I didn't bought those warrants from the market.

Unfortunately, this company had been one of the biggest loser in my portfolio since Centillion and of course Citiraya days. Although the company did make very small profits in some years, it had not recovered from those days and their rights issues throughout the years didn't help at all. More cash injected but company still have not recovered.

I guess the chance of those warrants being exercised is very low. Yes, you need to pay $0.02 each to exercise those warrants and convert to shares. As you have observed, its current share price is much lower than the warrant exercise price and therefore we could only hope for the best. Obviously, if the company share price cannot trade at 2cts and above on warrant expiry date, we should not do anything and let the warrants expire worthless.

Anyway, the market is already telling you that the warrants are worthless. There are no buyers for the warrants even at 0.1cts.

10:00 PM  
Blogger Chanel said...

Hi Ghchua,

Sorry to bother you again, as I have no knowledge of Metech because it is one of the many penny stocks in an estate account of a deceased family member, which I'm helping to look at...

Metech has a corporate action again. It appears like Metech is asking shareholders to buy new shares + warrants, & exercise price is higher than current market price...? Please help to give your views about this. Thank you so much!

2:16 AM  
Blogger ghchua said...

Hi Chanel,

Metech has done another rights issue again! It is a case of having too many rights issues for the past few years. The reason for doing the rights issue is really mostly to fund general working capital. The company is still burning cash as it can been seen from the cash flow statement. They lost $10.7 million in FY2015. Yes, they are back in the red after making small profits in FY2013 and FY2014. It doesn't help that their US operations had incurred significant costs which pull down their margins. It seems that the past few years of restructuring efforts and capital injections doesn't bear fruits at all and it is back to square one.

Obviously, the market doesn't like the rights issue as the "nil-paid" rights, Metech Intl R had no buyers even at 0.1cts.

I will not be subscribing for the rights issue. I do not wish to put in more money into this company unless they can show me that they could turn around their business in a good way.

8:57 AM  
Blogger Nik said...

Any concerns on the recent proposal by Fortune REIT to move from SGX Primary board listing to HongKong?

I have no idea on what this could mean and would appreciate your thoughts.


6:12 PM  
Blogger ghchua said...

Hi Nik,

Fortune REIT will maintain a secondary listing on SGX, while their primary listing will be on HKSE. Therefore, what this means is that you can still trade your shares on SGX, but they are not subjected to SGX listing rules and will only be subjected to listing rules in HKSE.

Personally, I don't quite like secondary listings because their shares are not so liquid and also the primary regulatory role is on HKSE. Though there is still shareholder protection, companies that have secondary listing on SGX normally don't hold their AGMs in S'pore. Also, their announcements on SGX doesn't follow SGX's format and sometimes can be quite messy.

Having taken the above into consideration, I will vote against the proposal at the upcoming EGM.

6:40 PM  

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A self-directed investor, looking to invest for retirement needs and bypass all those expensive financial planners/insurance agents. Investing is fun, profitable or most important of all, knowledge gained is useful for the rest of your life!

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