Matex International

[beau]

Matex International has been granted an extension of time to meet the watch list requirements as they plan to transfer to Catalist.

FURTHER EXTENSION OF TIME GRANTED TO MEET WATCH-LIST REQUIREMENTS 

On 3 March 2016, the Company had submitted an application to the SGX-ST for a further extension of time until 30 June 2016 to satisfy the requirements for removal from the Watch-list (the “Application”), on the basis that the Company is proposing to undertake a transfer from the Mainboard of the SGX-ST to Catalist, the sponsor-supervised listing platform of the SGX-ST (“Proposed Transfer”). Accordingly, the extension of time is required in order for the Company and potential sponsor to go through the necessary process and procedures including submission of the transfer application to the SGX-ST. The Company had stated in the Application to the SGX-ST that it believes it will be able to demonstrate to potential sponsors:

1. (i)  the Company’s ability to operate as a going concern;
   
2. (ii)  that there are no ongoing investigations or special audit; and
   
3. (iii)  the Company’s compliance track record and adequacy of internal controls.

http://infopub.sgx.com/FileOpen/Watchlis...eID=392693



At a price of 2.6 cents, they trade at 0.16 NCAV. This is a 27 year old home-grown Singaporean company, but this valuation puts it worse than the valuations of the S-chips on the SGX.  I understand that there is large negative sentiment and uncertainty about the RTO, but does this justify the current valuations?


Even if they do not meet the watch-list requirements and delist, isn't it reasonable to assume that the mandatory exit offer will be much higher than the current price of 2.6 cents? Could this be an opportunity?

[beau]

"Accordingly, the Company will not be proceeding with the proposed reverse takeover."


"The Board refers to the Company’s announcement on 4 March 2016 in relation to Company’s proposed transfer from the Main Board of the SGX-ST to the sponsor-supervised listing platform of the SGX-ST (“Proposed Transfer”).
The Company is in the process of selecting a continuing sponsor."


http://infopub.sgx.com/FileOpen/1_LAPSE_...eID=396458

[beau]

Small insider buyback by Executive Director Tan Guan Liang.

http://infopub.sgx.com/FileOpen/_Form_1_...eID=403128

[cyclone]

From Mainboard to Catalist

Matex International Limited  wishes to announce that the Company has today obtained the approval in-principle from the Singapore Exchange Securitites Trading Limited ("SGX-ST") in relation to the Proposed Transfer of Listing from the Main Board of SGX-ST to the Catalist Regime.

[beau]

In the recent announcement, Matex has registered a profitable recent half year and also successfully transferred to the Catalist and exiting the watch-list.

As a result of the above, the Group registered a profit before tax of $0.5m for the half year ended 30 June 2016 as compared to loss before tax of $1.7m for the previous corresponding period.

The Company has gotten the approval from the Shareholders for its listing transfer from Main Board to Catalist during its Extraordinary General Meeting held on 1 August 2016. The effective date of transfer was on 8 August 2016 and on the same day, the Company was removed from Singapore Exchange Securities Trading Limited's (“SGX-ST”) watch-list pursuant to the Transfer.

http://infopub.sgx.com/FileOpen/MIL_Half...eID=416697

[beau]

I just cannot comprehend why Matex Intl is trading at such low valuations. Perhaps because this is a 5m nanocap that no one cares about.

Still, this is an absolute classic cigar-butt stock, except that things are actually looking up for Matex Intl. I feel that the small time value investor could have a worthwhile punt on this.

[chew]

Just took a casual look. It's business looks like it's breakeven at best. Haven't looked into what goes into its PPE but I wouldn't put any value on its inventories and what discount is appropriate on its receivables? More worryingly its cash is down to under 2 mio. I also wonder about management after its failed RTO into a questionable mining business.

[thinleyw]

Based on the little research I've done it seems that management comes of as questionable and/or incompetent. The capital raise in '13 was only for insiders and was at a 10% discount to NAV (diluting minority shareholders). In addition to this risk, there seems to be a legal liability, delisting from SGX risk and liquidity risk (high debt). Due to the leverage, minority shareholders are likely to get squeezed again assuming a downturn in profits.

BTW what is the CATALIST SPONSORED REGIME?