(11-05-2013, 05:13 PM)chew Wrote: Hi dydx, Any idea why the rights issue last year if they have the sizeable cash reserve? Thanks.
Before I answer your question, I should first refer you to the following 2 documents which detailed the massive capital restructuring exercise - comprising (1) the payment of a very generous $0.01/share Special dividend on 17Sep12, based on the old capital base of 2074.9m shares; (2) a massive 100-into-1 Share Consolidation completed on 10Sep12, which temporarily reduced the capital base to only 20.749m shares; and (3) an equally massive 12-for-1 Renounceable Non-Underwritten Rights Issue at $0.09/share completed on 15Oct12, which raised the capital base to the present more manageable 269.742m issued shares - Lantrovision undertook and successfully completed in Sep/Oct2012.....
http://info.sgx.com/listprosp.nsf/5ec09b...1000c0752/$FILE/LANTRO%20Circular_FA.pdf [Circular to Shareholders on the corporate restructuring exercise]
http://info.sgx.com/listprosp.nsf/5ec09b...400100eb5/$FILE/LanTroVision-OIS-Casting.pdf [Offer Information of the Rights Issue]
Share price wise, the capital restructuring exercise has improved Lantrovision's status from a sub-$0.05 "penny stock" in the past - in fact, the counter had been traded in the range of $0.02+ to 0.03+ for a long time before Sep2012 - to the present a $0.20+ counter, and has also raised its market cap. by approx. 12% so far.
Dividend payment wise from the perspective of the longer term shareholders, as most of them applied the money from the $0.01/share Special dividend to pay for the new rights shares, actually they have not received any real dividends since the last one of $0.019/share paid on 10Oct2007, even though Lantrovision has been generating profits and accumulating cash most of all these years.
So a 'Big One' coming soon? I hope so.