Tuesday, February 8, 2011

Digiland.... Beware again....

Earlier, I posted about Digiland...

We had Digiland calling for a 'massive' rights issue - a 1-for-1 renounceable non-underwritten rights issue of up to 8,526m new shares at $0.001 per share, to raise $8.25m!

It failed. SGX did right.

Digiland did not give up. They gave placement shares, amounting to $8.2m in total.

A total of 1.7b placement shares was issued to add to the 8.5b float.....

And finally you get new substantial shareholders in
1) Fortune Woods Global Investment Limited (10.8%)
2) Smartful Global Holdings Limited (5.7%)

Rule 1311 of the Listing Manual which states that the Exchange will place an issuer on a watch-list if it records:

(i) pre-tax losses for the three (3) most recently completed consecutive financial years (based on the latest announced full year consolidated accounts, excluding exceptional or non-recurrent income and extraordinary items); and

(ii) an average daily market capitalisation of less than $40 million over the last 120 market days on which trading was not suspended or halted. For the purpose of this rule, trading is deemed to be suspended or halted if trading is ceased for the full market day.

Investors should also note that pursuant to Practice Note 13.2 Paragraph 2.1, the Exchange conducts quarterly reviews to identify issuers to be included on the watch-list. The quarterly review will take place on the first market day of March, June, September and December of each year. The Company will make an immediate announcement should it be notified by the Exchange that it will be placed on the watch-list.


At 8.5b shares trading at $0.005, Digiland's market capitalisation is $42m.
It appears that the placement shares, etc, are all to prop up the market capitalisation to ensure that it will not be put on the watch-list.

With this round of $8.2m injection, the market capitalisation grows to $50m...
Could they be expecting SGX to change Rule 1311 to be $50m soon? Or is something else up their sleeves?

It's quite unimaginable to me for anyone to want to put their monies into a company with 3 years of consecutive losses. I wonder how real the two new investment companies are...

I think something is fishy... Beware...
I wouldn't bet my money on it.


  1. hi wealthbuch, sorry to hijack this post, im actually in a urgent right now . haha.

    do you mind sharing with me what is the Payee Name to enter while applying for the cashier order on DBS ibanking website? i've call up on the warrant but no 1 picks up.(saturday).

    urgently need to get it done before the distribution :D

  2. Hi K-,

    the payee name should be in your Exercise Notice Form.

  3. ohhhhh. thanks JW.. but the problem is i haven got my exercise notice form from the agent :( i guess i only have this coming monday to settle everything by going down personally to both dbs and the warrant agent office. damn :(

  4. Hi,

    you can apply to DBS for the cashier order in the morning and collect it by afternoon.

  5. what is your current view on Digiland which is raising rights?


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