Thursday, September 09, 2010

MaeMode Wants Your Money Again!

Saw the following clip: MAE proposes right issue of warrants

Rights issue of warrant? LOL!

  • PETALING JAYA: Malaysian AE Models Holdings Bhd (MAE) is proposing a renounceable rights issue of up to 45.91 million new warrants in MAE on the basis of one warrant for three existing RM1 shares held in the company on an entitlement date to be determined later.

    It told Bursa Malaysia that it was also proposing a restricted issue of up to 10.24 million new warrants in MAE to the holders of unexercised 2005/2010 warrants on Sept 17 (the warrants’ expiry date) on the basis of one new warrant for three unexercised warrants held on that date. The exercise price of the warrants, which have an issue price of 2 sen, is fixed at RM1 per MAE share. The warrants may be exercised within 10 years from the date of issuance.

    The rationale for the proposed rights issue is to provide the entitled shareholders with an option to increase their participation in the company for the tenure of the warrants. On the restricted issue, it said this would allow the entitled warrant holders, whose existing 2005/2010 warrants were out of the money, to further participate in the company’s equity.

MaeMode last traded yesterday at 50 cents.

Exercise price is fixed at rm1 per MAE share?????



Anyway, here's MaeMode announcement: Malaysian AE Models Holdings Berhad - Proposed Rights Issue.pdf

The rationale of this exercise...

  • a) the Proposed Rights Issue will provide the entitled shareholders with an attractive option to increase their equity participation in the Company during the tenure of the New Warrants; and

    (b) the Proposed Restricted Issue will allow the Entitled Warrants Holders whose existing 2005/2010 Warrants are currently out-of-the-money with an opportunity to further participate in the equity of the Company.


  • an attractive option to increase their equity participation in the Company during the tenure of the New Warrants

Attractive option to increase their equity participation??????



Firstly... remember... exercise price is 1.00. Maemode now how muchie? 50 sen! oO

My last update on MaeMode was on July 2010. What Do You Think Of MaeMode's Prospects? ( recommended woh!)

MaeMode announces its Q4 earnings last month. Here's the updated numbers showing how MaeMode had performed since 2002.

What do you see? Profit dropped. Margins shrunk. Cash dropped. Debts increased. Receivables increased.

Err... and the company said "Attractive option to increase their equity participation!"


Any takers for these rights issue of warrants?

And oh yeah.... from the posting What Do You Think Of MaeMode's Prospects?

some extra food for thought.

  1. 2005, MaeMode had a rights issue. That raised some 31.7 million.
  2. 2008, MaeMode had a 10% placement. That raised some 13.245 million.

2010... we have rights issue of warrants. :D

And yeah... MaeMode would generate some little money for their working capital.

A huge 518 thousand would be generated from this attractive rights issue of warrants.

Here's the chart of MaeMode since 2006.

1. I am a nobody.
2. I am not responsible for anyone's investments.
3. I am not a sotong. :D
4. I am certainly not an independent investment advisor.
5. Since I am not an in dependant investment advisor, I cannot guarantee that you should lose money.
6. Most important, I find no motivation to talk about stock price movements. Yeah, I do not indulge in guessing what a stock price will or will not do. So please spare me all the chats that you think this stock will go down by so much or this stock will soar by so much.


K C said...

what you show on MAE's financial is scary.

Moolah said...

It WAS once a 'LOW PE' stock. :P

Simon said...


Where you got the compilation of history chart since 2006?

Moolah said...

simon: it's from

I hope it's accurate. :/

Simon said...

maemode was used to be my good buy list. Since it is still on the lowest stage.

listed on reuter as well.

Simon said...

Not that chart i am talking..

it is this one...

Moolah said...

that compilation data is manually retrieved from Bursa website. If ever there is any errors in it, do let me know.