Friday, May 14, 2010

A New Stock Is Born: Eduspec Holdings

Many, many, many, many moons ago, I wrote this: Litespeed

Litespeed was listed 22 Nov 2005.
LITESPD-ADMISSION TO THE MESDAQ MARKET OF BURSA MALAYSIA SECURITIES BERHAD ("BURSA SECURITIES")

June 2006:
Quarterly rpt on consolidated results for the financial period ended 30/4/2006
It lost some 9.8 million. (This issue highlighted in the posting
The slow IPO market )

Amazing eh? 6 months after listing, the company said it lost some 9.8 million!!!

And needless to say, some are not happy. Clearly not happy.

June 2007:


  • 18-06-2007: Litespeed down 37% on minority’s wind-up plan

    Litespeed Education Technologies Bhd’s share price fell 37% or five sen to 8.5 sen in early trade on June 18 after three shareholders sought to wind up the company.

    Litespeed opened at 13.5 sen, unchanged. Within the first hour, there were 91,200 shares done at prices ranging from 8.5 sen to 13.5 sen.

    At 10am, it was trading at 9.5 sen, down four sen to 29%.

    The Edge FinancialDaily reported the
    three shareholders had sought to recover some RM10.94 million, being the balance of its listing proceeds, instead of seeing the money put to use to sustain the company.

    Three shareholders of Litespeed Education Technologies Bhd, who had collectively subscribed to 14.7 million shares in a private placement exercise when the company was listed in November 2005, filed a suit last week to wind up the company.

    The suit was filed by Wan Hamimie Ariff, Dr Syed Ibrahim Mohd Ismail and Mokhtar Ahmad.

The reason to wind-up was unreal. The minorities wanted to recover the money Litespeed raising from Litespeed's listing proceeds. Remember company only got listed in Nov 2005!

Here is the announcement on Bursa: LITESPEED EDUCATION TECHNOLOGIES BERHAD ("the Company" or "Litespeed") WINDING-UP PETITION -Wan Hamimie Ariff & 2 Others vs. Litespeed Education Technologies Berhad

  • The Petitioners, namely Wan Hamimie Bt Ariff, Dr. Syed Ibrahim Bin Mohd. Ismail and Mokhtar Bin Ahmad who are shareholders of the Company sought the winding-up of the Company for the following reasons:

    (i) that the Company is unable to pay its debts as they fall due;
    (ii) that the affairs of the Company have not been conducted fairly or justly; and
    (iii) that it is, in all circumstances of the case, just and equitable that the Company be wound-up by the Court.

Few days later: Quarterly rpt on consolidated results for the financial period ended 30/4/2007 - Litespeed said it lost 2.624 million for its fiscal year 2007. (note: company had zero debts and 11.719 million in its piggy bank)

A year later, June 2008: Quarterly rpt on consolidated results for the financial period ended 30/4/2008 - Litespeed said it lost 7.548 million for its fiscal year 2008 - cash balances shrunk to 7.927 million.

Meanwhile the wind-up drags on: LITESPEED EDUCATION TECHNOLOGIES BERHAD ("The Company" or "Litespeed") - WINDING UP PETITION (WAN HAMIMIE ARIFF & 2 OTHERS VS. LITESPEED EDUCATION TECHNOLOGIES BERHAD) - postponed till March 2009.

Sep 2008: LITESPEED EDUCATION TECHNOLOGIES BERHAD (“LET” OR “COMPANY”) - PROPOSED ACQUISITION OF APPROXIMATELY 78% OF THE EQUITY INTEREST IN EDUSPEC SDN BHD (“PROPOSED ACQUISITION”) - PROPOSED INCREASE IN AUTHORISED SHARE CAPITAL - PROPOSED GENERAL OFFER EXEMPTION (COLLECTIVELY, THE “PROPOSALS”)

  • AmInvestment Bank Berhad, a member of AmInvestment Bank Group (“AmInvestment Bank”), on behalf of the Board of Directors of LET (“Board”), wishes to announce that LET had on 16 September 2008 entered into a conditional Share Sale Agreement (“SSA”) with Victory Solutions (M) Sdn Bhd (“VS”) for the proposed acquisition of up to 80% (but subject to a minimum of 70%) of the equity interest in Eduspec Sdn Bhd (“ESB”) (“Proposed Acquisition”).

March 2009: LITESPEED EDUCATION TECHNOLOGIES BERHAD ("The Company" or "Litespeed") - WINDING UP PETITION (WAN HAMIMIE ARIFF & 2 OTHERS VS. LITESPEED EDUCATION TECHNOLOGIES BERHAD)

  • Further to the Company's announcements on 13, 14, 28 June 2007, 3 October 2007, 2 June 2008, 18 June 2008 and 25 September 2008, the Company wishes to announce that the Petition was withdrawn without liberty to file afresh and with costs of RM400,000.00 to be paid by the Company to the Petitioners on 19 March 2009.The withdrawal of the petition would not have any operational impact on the Company but would have financial impact on the Company for the financial year ending 30 April 2009, as the costs of RM400,000.00 would be funded out of the Company’s internally generated funds.

June 2009: Quarterly rpt on consolidated results for the financial period ended 30/4/2009 - Litespeed lost money again. It lost 8.849 million for fiscal year 2009! Cash balances in its piggy bank is left with 1.373 million only!

Are you keeping track of the losses? Yeah, Litespeed has been losing money each single year since its listing.

And yes, as per the posting, Litespeed , the CEO has been busy disposing his shares. Here's one such announcement on Bursa website Changes in Sub. S-hldr's Int. (29B) - Pok Vic Tor

And on the same day, Litespeed announced its 2009 Q4 earnings, LITESPEED EDUCATION TECHNOLOGIES BERHAD (“LITESPEED” or “the Company”) -Announcement pursuant to Guidance Note 3/2006 ("First Announcement")

Yup.. Litespeed enters into GN 3/2006.

But as you can see, Litespeed is still 'fairly clean' as a listed entity. It has no debts. Only problem is, Litespeed cannot make money.

March 2010.

  • Litespeed gets nod to buy 80% of Eduspec
    Written by Max Koh
    Tuesday, 02 March 2010 11:40

    KUALA LUMPUR: ACE market-listed Litespeed Education Technologies (LET) shareholders yesterday approved the company’s proposal to acquire an 80% equity interest in Eduspec Sdn Bhd (ESB) for RM19.8 million in a move aimed at improving its financial performance and expand its E-learning business in the region.

    Under the proposal, LET, a Guidance Note 3 company, would issue a total of 198 million LET shares at their par value of 10 sen each to Victory Solutions Sdn for the 80% stake in ESB.

    At LET’s EGM yesterday shareholders also approved the company’s name change to Eduspec Holdings Bhd.

    ESB CEO Lim Een Hong said the deal would benefit both LET and ESB as they share the same target market and their services were complementary.

    “The acquisition is a good opportunity for LET to expand its customer base given ESB’s existing relationships with schools and students in Malaysia,” Lim said after the EGM.

    He also said that the acquisition would benefit ESB’s expansion plan to spread its ICT learning services to schools in the region, with LET’s existing presence in Singapore. “With the completion of the acquisition, we hoped to continue expand our businesses in Singapore, as well as other countries in he region such as Thailand, Indonesia and China,” he said.

    LET, with a market presence in Singapore, has developed many E-Learning solutions powered by the highly innovative and unique Artificial Intelligence (AI) and was listed in the ACE Market (then Mesdaq market) in 2005.


    This article appeared in The Edge Financial Daily, March 2, 2010.

Full details of ESB was provided in Litespeed announcement on 17 Sep 2008. See word file attached: LET Announcement.doc (It appears ESB is profitable (but it's smallish if you ask me) )



26th March 2010: Quarterly rpt on consolidated results for the financial period ended 31/1/2010. Litespeed cash balances is now left with 289 thousand! Remember in its first fiscal year, Litespeed had some 11.719 million in its piggy bank. Now it's left with just 289 thousand!

Unreal or what?

I know... what. LOL!

A few days later.. a change of name is proposed: LITESPD-Change of Name

And it's now Eduspec Holdings Bhd!

Good or what!

21st April 2010: Quarterly rpt on consolidated results for the financial period ended 31/10/2009 (Amended Announcement)

  • Remarks :
    The Net Assets per share attributable to ordinary equity holders of the parent should read as RM0.0061 and 0.0117 instead of RM0.61 and RM1.17 respectively.

RM 0.0061 ?

The wheels starts rolling...

23rd April 2010: PROPOSED PRIVATE PLACEMENT OF NEW ORDINARY SHARES OF RM0.10 EACH OF UP TO TEN PERCENT (10%) IN EHB

  • For illustrative purposes, based on the proposed placement size of 27,500,000 Shares at an issue price of RM0.10 per Placement Share, the Proposed Private Placement is expected to raise gross proceeds of up to RM2,750,000.

Yesterrday.. 13th May 2010, Eduspec got ... 'promoted'! EDUSPEC - Upliftment of GN3 status

And also: Withdrawal of Winding-Up Petition

Yesterday, Eduspec was trading at 12 sen.

Now it's lunch break. Eduspec last traded at 0.205.

Good or what!

ps: as per its performa, ESB Group is said to be "involved in the provision of information technology (“IT”) Learning and its related activities to primary schools and kindergarten".

Now don't you be nasty and start calling this a kindie stock! :P

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