This article was recently published on www.nracapital.com and is reproduced with permission

Kevin Scully, executive chairman of NRA Capital. NextInsight file photoCHINA ANIMAL HEALTHCARE shares hit a recent high of S$0.29 yesterday.

There is still no firm announcement on its possible delisting although its 10 April 2013 announcement on a fund raising exercise with Lily Nederland Holdings BV for S$120mn provides the much needed funds for the exercise.

The subscription price for the new shares and warrants is S$0.30 which is also the indicative exit offer price of China Animal of S$0.30 should it decide to proceed with its delisting plans. 

Given that these plans are now likely to proceed with the requisite funding now in place, and with the exit price just 3.44% higher than yesterday's price of $0.29 - there is little further upside for existing shareholders.

Investors who are not prepared to go through the proposed delisting exercise should and when it is triggered, should considering selling their shares in the market now.

With limited upside to the share price which is now capped at the indicative exit offer price, I am removing China Animal Healthcare from my Stock Pick lists.  I had recently added the stock to my Stock Picks when the share declined to S$0.24.

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