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J S Ong, this is not bonus issue of share, but warrant. The company need cash for expansion, whether it is potential, i think u need to understand the business 1st before u invest, there are many info online, which u also can watch from YouTube their management interview
Jeff Chong, then why issue free warrant? You need to understand that some co. use the guise as a reward. By the way, have you analyzed the company's receivables lately? ;)
J S Ong, u are right, free warrant can be a reward for your, if u plan not to convert, which can just sell it anytime. But if u confidence then u can convert it to mother share. It is very depend on each investor strategy. Or u hope the company to do right issue, then ask u subscript? hahaha
Jeff Chong, bonus issue entails cost ya? The cost will be charged to the co. unless Jeff Chong choose to help the co. financially. ;) Anyways, which ever the path the co. takes, it is better that they be more transparent with shareholders.
J S Ong, there is a cost, but when the holder convert it to mother share, the company will get extra funding. In long run, if investors feel the company is good, they will convert. So, the next story is how the company management to push the company to next level, make the conversion looks attractive. Some of the time, the company need to make a balance on expansion (need more funding) and also reward the shareholders. If the company not giving sweets to investors, then the investors will complaint, proposed to give also will have noise. So, at the end, do your own study. If you have more questions, i suggest you to join the webminar that held tonight. Which actually the management did a webminar yesterday night with Rakuten, and another webminar that i attended before that with Kenanga 1-2 months ago. Tonight they have another one with stockbit https://www.youtube.com/watch?v=-JWnLMyDO7E.
Be honest, i can see how the management trying their best to let the investors understand their company business, and also the unique business model that make some of their segment a sure win business, even no matter how many MCO coming. Try to find out yourself.