Eratat Lifestyle

Bestworld
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Platinum Member

13 years 3 months ago #5086 by Bestworld

Replied by Bestworld on topic Re:CHINA ERATAT

Great move by the management!! Get the fund in to generate interest in this company, valuation will then be adjusted UP!!

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Bestworld
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13 years 3 months ago #5094 by Bestworld

Replied by Bestworld on topic Re:Re:CHINA ERATAT

Share price surged after placement......management definitely made the correct decision!

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sky123
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13 years 3 months ago #5110 by sky123

Replied by sky123 on topic Re:Re:Re:CHINA ERATAT

No venture, no gain. Happy new bunny year to all:)

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Joes
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13 years 3 months ago #5116 by Joes

Replied by Joes on topic Re:CHINA ERATAT

erelation, I have thought about your question relating to rights issue (instead of new share placement to CMIA & amfraser).

I looked thru the AR and i think a good reason is, the chairman has 36 m warrants - he has to come up with about S$11 million to exercise the warrants in 2013. Boy, it is a lot of dough, isnt it?
So why do a rights issue and he has to cough up a few more million $??? If he priced the rights at 15-20 cents..... it's tough to cough up that kind of money. U agree?

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pine
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13 years 3 months ago #5118 by pine

Replied by pine on topic Re:CHINA ERATAT

This comment by ethan999 from CNA forum is a reasonable one:

.....unlike weak placements to random retail shareholders, this was a strategic placement done for big time committed investors (CMIA) and will be joining the board and contribute to management.

A total of 63 million shares were purchased - under such circumstances it wouldn't have been feasible for them to buy from the open market without being forced to push up Eratat's share price astronomically considering the average daily volume is only a few million, which of course wouldn't be in line with a fund's mandate to maximize profits for its shareholders and use its clout and leverage to negotiate for the best possible price in such scenarios.

Considering this was a strategic business partnership in which CMIA would be actively participating in management affairs, the fact that CMIA got their shares at a slight discount seems to only be fair and a common practice of goodwill among business partners.

And as earlier mentioned, yes the fact that the fund is willing to become a major shareholder, along with the fact that they are probably also privy to internal information on the results and prospects of Eratat bodes very well for Eratat in the long run.

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Bestworld
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13 years 3 months ago #5123 by Bestworld

Replied by Bestworld on topic Re:CHINA ERATAT

Closed above it placement price again!

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