Hai Leck

[cfa]

If the Chengs take all the warrants and convert it into OS, it will cross 90% , GO for minorities.

[valuebuddies]

If the Chengs take all the warrants and convert it into OS, it will cross 90% , GO for minorities.

They can sell the warrants whose underlying is the share price.

[valuebuddies]

Any buddies knows what would happen to the warrant holders if privatisation took place?

[ghchua]

For out of money warrants, they will normally pay you a token $0.001 per warrant.

For in the money warrants, it will be the difference between the offer price and the warrant exercise price. For example, if the offer price is 40cts and the warrant has an exercise price of 33cts, they will pay you 7cts per warrant.

[cfa]

This is a question that ponders me , if the Chengs wish to take private, why should they keep issuing warrants ?

[dydx]

This is a question that ponders me , if the Chengs wish to take private, why should they keep issuing warrants ?

i guess the answer is quite clear!

Even though Hai Leck is full of cash - for a long time already! - the Senior Cheng still believes and wants to take in more public capital to grow the company capital base further and his financial empire. Clearly he believes in having many more shares issued over time through successive warrant issues is the way to go to grow Hai Leck's capital base and financial empire, or he may have just taken it some smart alec's advice in this regard.

I guess at the end of the day, investors must ask hard questions like:
(1) How good is Heck Leck's existing business in terms of its longer term economic characteristics and growth potential?
(2) How good are the Chengs as managers in realising the potential of the business and allocate the company's capital over time?
(3) Are the Chengs willing to share the fruits of the business - including through dividends - with the minority shareholders, or are they more thinking about using dividends to entice minority shareholders to convert their warrants prematurely, so that Hai Leck will be able to take in even more capital from them?

Clearly, the above hard questions need hard answers before serious investors would decide to engage Hai Leck.

[valuebuddies]

If Cheng intention is to increase the capital of the company to grow his empire, why not considering a share-based right issue rather than warrant? Moreover with the consideration of 0.1c per warrant, how much would the company received?

I still think that the Cheng's intention is to profit from the warrants which they are looking forward to own almost all of them because of their undertaking (with the conversion price of 33c, how many people wanted to pay that 0.1c?).

If Hai Leck do well in the next 5 years and share price rises, then the Cheng might partly sell off the warrants for profit and to increase public floats. With the profit from the warrants, Cheng will be able to convert the rest of warrants into shares so as to maintain their majority ownership.

I think there are still intangible benefits being assisted entity, so I am assuming that no privatization yet.

[valuebuddies]

First day trading for the rights which ended with 4.9c. Considering the exercise price of 33c, this means the breakeven price for the rights buyers is 37.9c. Who else are buying up the rights except the Chengs who might have insider news?

[Jeff]

when will the warrant expire?

[propertyinvestor]

The Board of Directors of the Company wishes to announce that, as at the close of the
Warrants Issue on 6 May 2014 (the “Closing Date”), valid acceptances and excess
applications for a total of 2,289,651,999 Warrants were received. This represents
approximately 1139.19% of the total number of Warrants available for subscription under the
Warrants Issue.

Based on the total number of issued Shares of the Company of 401,980,500 Shares
(excluding 640,000 treasury shares as at the Books Closure Date), 200,990,250 Warrants
were available for subscription under the Warrants Issue.