SinoCloud Group Limited (formerly: Armarda Group Limited)

[cyclone]

SinoCloud Group Limited formerly known as Armarda Group Limited.

PROPOSED PLACEMENT OF AN AGGREGATE OF 1,377,000,000 NEW ORDINARY SHARES IN THE CAPITAL OF THE COMPANY AT AN ISSUE PRICE OF S$0.0035 PER NEW ORDINARY SHARE 

Some excerpts from the placement announcement : http://infopub.sgx.com/Apps?A=COW_CorpAn...uddies.com

The board of directors (the "Board" or the "Directors") of SinoCloud Group Limited (the "Company", and together with its subsidiaries, the "Group") wishes to announce that the Company had, on 16 October 2015, entered into a placement agreement (the "Placement Agreement") with four (4) placees as set out in paragraph 2 below (each, a "Placee" and collectively, the "Placees") in relation to the placement of an aggregate of 1,377,000,000 new ordinary shares of par value HK$0.001 each in the capital of the Company ("Placement Shares") at an issue price of S$0.0035 ("Issue Price") for each Placement Share, raising gross proceeds of approximately S$4.82 million (equivalent to approximately HK$27 million based on the exchange rate of HK$5.60 : S$1.00) (the "Proposed Placement").

The Issue Price of S$0.0035 represents a premium of 75% to the volume weighted average price of S$0.0020 per share of the Company ("Share") based on trades done on Catalist board of the SGX-ST on 15 October 2015, being the full market day on which Shares were traded up to the date on which the Placement Agreement was signed. The Issue Price was arrived at on a willing-buyer, willing-seller basis. In agreeing to the Issue Price, the Directors have taken into consideration, among others, the general market conditions and the value of the existing issued Shares.


<not vested>

[BRT]

i’ve been searching for a pure data center play on sgx and came across this co. apart from this and keppel dc reit, are there others? sinocloud numbers are quite ugly, altho the co is supposed to be turning around. over the last 5 years or so the co has done placements a few times. some other pointers:
-it only has one data center in china, guiyang. so the group’s performance is highly dependent on that dc’s performance.
-last i read, it’s not fully occupied or leased out (ie still has significant capacity to spare).
-owners of the dc became SSHs of the group through somewhat messy corporate action
-some SSHs cashed out, others sold to fellow SSHs

interestingly at 0.001, the share price cannot actually go lower, unless the co decides to consol n give it room to fall.