mm2 Asia

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#81
Rainbow 
mm2 asia@7.2
Going concerns
https://links.sgx.com/FileOpen/Clarifica...eID=674820
https://links.sgx.com/FileOpen/Unmodifie...eID=674564
[Image: uc?id=1dILau5x6aixrRYzhIigXXc0Jb2iu_s-G]

Stay home and stay safe, everyone.
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#82
Just as the recovery is on the horizon, mm2 is throwing in the towel and selling its cinemas for half or more of its purchase price. Given its financial situation, they probably had no choice to this fire sale. If they had tried to sell this last year, they might have gotten a better price. Like most stockholders in the red, they were probably hoping for the pandemic situation to get better sooner rather than later.

Crowds will eventually be back in cinemas when things return to normal, so it looks like a pretty good deal for the buyer.

With the benefit of hindsight, mm2 levered at the wrong time for this acquisition, and it is close to costing them everything. A good reminder that the use of leverage -- whether on a corporate or personal level -- should be carefully considered, and that even the smart users can get burned.

https://www.straitstimes.com/business/co...properties
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#83
https://links.sgx.com/FileOpen/20211208%...eID=693693

Spin off dreams is dashed. Cinema business is not improving much when currently government mandates only a 50% capacity.
Expect more cash burn while the CEO and mgmt enjoys a basic pay package, the company is worth more dead than alive.
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#84
(28-07-2021, 11:39 AM)karlmarx Wrote: Just as the recovery is on the horizon, mm2 is throwing in the towel and selling its cinemas for half or more of its purchase price. Given its financial situation, they probably had no choice to this fire sale. If they had tried to sell this last year, they might have gotten a better price. Like most stockholders in the red, they were probably hoping for the pandemic situation to get better sooner rather than later.

Crowds will eventually be back in cinemas when things return to normal, so it looks like a pretty good deal for the buyer.

With the benefit of hindsight, mm2 levered at the wrong time for this acquisition, and it is close to costing them everything. A good reminder that the use of leverage -- whether on a corporate or personal level -- should be carefully considered, and that even the smart users can get burned.

https://www.straitstimes.com/business/co...properties

Looking back at the SPA agreement in Aug, the 6mil deposit was already not refundable in cash and would be converted to shares based on 8cents.

This conversion is higher than the current market value and the last rights issue in April 2021. This is a good deal for now.

mm2 Cinema Sale On Hold

• Kingsmead Properties converts $6m deposit into mm2 shares at 8 cents

https://links.sgx.com/FileOpen/20220103%...eID=696437
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#85
(03-01-2022, 10:53 AM)weijian Wrote: Looking back at the SPA agreement in Aug, the 6mil deposit was already not refundable in cash and would be converted to shares based on 8cents.

This conversion is lower than the current market value and the last rights issue in April 2021. This is a good deal for now.

I think you meant that conversion price at 8cts is higher than current market value and last rights issue? That's why its a good deal.
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#86
(04-01-2022, 12:36 PM)ghchua Wrote:
(03-01-2022, 10:53 AM)weijian Wrote: Looking back at the SPA agreement in Aug, the 6mil deposit was already not refundable in cash and would be converted to shares based on 8cents.

This conversion is lower than the current market value and the last rights issue in April 2021. This is a good deal for now.

I think you meant that conversion price at 8cts is higher than current market value and last rights issue? That's why its a good deal.

hi ghchua,
Yes, that was what I meant. Thanks for spotting it!
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