Move Over Who?: Part II

How? How? How?

The very first year listed after being listed, Karensoft lost money.

Cash in piggy bank was depleting fast.

Loans increased.

And company had troubled collecting their sales revenue as the trade receivables kept on increasing!

Makes you wonder.

Really.

If you were the boss, what would do?

I dunno. I am not.

Company was burning up cash fast. So came April 2004, they announced the following: PROOPOSED PRIVATE PLACEMENT OF UP TO TEN PERCENT (10%) OF THE ISSUED... a private placement plus a bonus issue. Yup, private placements (p/s i think private placements is simply disgusting!) were hot then and Karensoft decided to use it as an alternative to raise cash..

CameMay 2005. (fy 2004 Q1)

Quarterly rpt on consolidated results for the financial period ended 31/3/2004

1.Sales 1.393 million.
2.Net profit 0.036 million
3. Cash 2.826 million (last year, same period they had 6.397 million!)
4. Loans 3.119 million (up from 2.870 a quarter ago)
5. Trade receivables 9.417 million. (up from 8.394 million)

Does it look good?

With the mentioned bonus issue thingy announced in April, Karensoft got hot again in Aug 2004. So hot they got ze UNUSUAL MARKET ACTIVITY thingy again.

A couple of days later, Karensoft reported its earnings (2004 Q2)

Quarterly rpt on consolidated results for the financial period ended 30/6/2004

1.Sales 1.7.09 million.
2.Net profit 0.484 million
3. Cash 2.945 million (improved slightly)
4. Loans 3.574 million (up again!)
5. Trade receivables 10.699 million. (up again!!!! what's the problem dude?)

First tranch of placement shares issued: KRNSOFT-Private Placement of up to 10% of the issued and paid-up share capital in KRNSOFT ("PRIVATE PLACEMENT")

Came Nov 2004. (2004 Q3)

Quarterly rpt on consolidated results for the financial period ended 30/9/2004

1.Sales 1.502 million.
2.Net profit 0.293 million
3. Cash 2.886 million
4. Loans 4.173 million (up again!)
5. Trade receivables 11.790 million. (up again!!!! what's the problem dude?)

December 1st 2004.

KARENSOFT TECHNOLOGY BERHAD ("KTB" OR THE "COMPANY") - PRIVATE PLACEMENT OF UP TO TEN PERCENT (10%) OF THE ISSUED AND PAID-UP SHARE CAPITAL OF KTB ("PRIVATE PLACEMENT"); AND - PROPOSED BONUS ISSUE OF UP TO 41,326,175 NEW ORDINARY SHARES OF RM0.10 EACH IN KTB ON THE BASIS OF ONE (1) NEW ORDINARY SHARE OF RM0.10 EACH FOR EVERY TWO (2) EXISTING ORDINARY SHARES OF RM0.10 EACH HELD ("PROPOSED BONUS ISSUE"); (HEREINAFTER REFERRED AS THE "PROPOSALS").

Karensoft is seeking an extension to their proposed private placement.

Huge implications here. What is wrong? Not laku wor. Why? How come?

In a hot, hot market where placement shares were in such a demand, Karensoft is seeking an extension.





how?... stay tuned.... Part III coming!