StratechSystems   

Letter to Shareholders

What i heard was Dr. Chew himself bougt up loads of the rights issued and increased his stake. Any views and impact on the company or share prices if it's true ?

 

PROFIT

Consequently, the Group registered a net profit of S$151,000 in the first half, compared to a loss of S$3,706,000 in

1H2006.

Will price up?????

 

the best is for him to quick, then middle east co RTO can go ahead.

 

those holding the right issue, it going to expired on 11 oct 2007. the conversion price of the right to mothersahre is 0.055.

 

Announcement made by Co. today. See link.

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_17AFCBE58C0E98CD4825736B005E2ECC/$file/MediaStatement.pdf?openelement

Although the charges on Dr Chew (Ex Chmn) is personnal, if found guilty, the penalty can be a fine of $1,000 or 1 yr jail or both. If he is jailed, he will not be able to perform his duties in the company. From what I heard, the top management is really hands on. His absence from the company will definately have an impact on the ability of the Co's recovery to profitability.

Not vested.

 

they need to hire right ppl for right job to solve their current problem.

 

Hi Pension, as far as I could see, this company only can propose a project, but no one can be implemented.  They have a lot of project, but look at the detail.  It was big, but the detail is small. 

This company is different with whatever company he joined in.  I'm agree he is good.  But not good in this company.  This company was founded by him.  But after that, a lot of issues happened.

About the detail, I don't want to offence him.  Scared tough.  ha ha ha. 

No matter how good he was, let market judge him through this counter.  Have you ever seen it's moving up? :D

 

techsys,

Not vested .........no plans to do so.

Posted in this thread only because of news article.......to highlight to forumers in case they are unaware.

 

techsys, i heard their president Mr chua ah leng was from scs, before scs he was from ...... from  frontline ....... from ncs subsidiary of singtel, they employ him because he has good potential to boost up the company porfit, how come you say no project.

 

Hi shplayer, I don't think this counter worth to vest.  This is IT company with no project.  Only has some project in the past and maintain them.  And one more thing, it has more debt then prospect.  If you want the list, I can give it to you.   My rating: Not Worth To Vested In.

The owner sounds brutal for me too ... ha ha ha ... Let's out of the scene ...  there are lot of better stocks outside.

 

StarLine,

If a shareholder accumulates from the open market and/or married deal and crosses the 30% mark, he has to make a GO at the last transacted price. Recent case is Chuan Hup.

If he wants to avoid a GO, then he must not trigger the 30% threshhold....case in point, J Gokongwei of UIC.

Pension,

If he is sentenced to jail, I am pretty sure the stock will be affected. I think a person who has been jailed may not be director of a public company....not sure of this....perhaps someone can confirm?

 

if he is sentence to 1 year jail, what will happen to the counter????

 

Hi, shplayer.

"Under SGX rules, shareholders with more than 30% stake in a company will have to make a mandatory general offer (GO) if they increase their stake by >1% within a 6 mth period. "

Just want to check with you.

Whether or not one shot buys more than 30% stake in a company, a person will have to make a mandatory general offer (GO), right ? Can a person choose not to make a GO ?

So if a person do not go for the mandatory general offer, that person will not be able to buy more shares of that company from the market ?

Thanks.

 

Report in the ST last Saturday.......Chairman Dr Chew is charged in court for assault on the bailiff's locksmith for acting on bailiff's instructions to pick the lock on Dr Chew's residence to serve him summonses on an unrelated matter. If found guilty, he can be jailed for up to 1 year, fined up to $1,000 or both.

Will this affect the response to STRATECH's rights issue?

chunjing,

To answer your question on B.

Dr Chew and his wife lent the co. $4mil on and interest free, unsecured basis. In this rights exercise, they will subscribe for their rights using the loan to offset as payment. This will work out to be about $3+ mil. I think they have also undertaken to utilise the rest of their loan to take up any unsubscribed rights.

Under SGX rules, shareholders with more than 30% stake in a company will have to make a mandatory general offer (GO) if they increase their stake by >1% within a 6 mth period. This rights exercise may trigger this GO ruling for Dr Chew and his wife. Therefore, the whitewash resolution indemnifies them from having to make a GO.

So, the answer to your question is there will not be a GO as a result of this rights issue.

 

A. 

The proposed renounceable non-underwritten rights issue of up to 173,722,494 new ordinary shares in the capital of the company (The "Rights Shares") at a proposed issue price of S$0.055 for each rights share, on the basis of one (1) rights share for every four (4) existing ordinary shares held as at the books of closure date, fractional entitlements to be disregarded (The ''Rights Shares"); and

B.

The whitewash resolution for the waiver by the company's independent shareholders of their right to receive a mandatory takeover offer from the principle shareholders, their concert parties and any other parties acting in concert with them, from the remaining issued shares in the capital of the company not owned or controlled by them, as a result of their subscribing for shares under the rights issue.

may i know what does this mean? is it a must to sell them back the shares at $0.055?