Craft Print

Craft Print: ($0.047) Proposed actions may result in change of control Counter saw a surge in share price and volumes, gaining over 200% since last Thursday's close, following two agreements which the company entered: 1) Issue convertible bonds (CBs) and options to Shi Jiangang and Sam Kok Yin; and 2) Private placement to Soh Gim Teik, Lum Tain Fore and Tan Hui Har. The series of actions may potentially raise aggregate net proceeds of up to $25.4m, which Craft Print intends to use for acquisition of new businesses (65-75%) and working capital (25-35%). Further, upon full conversion of CBs and exercise of options (only after the 1st year anniversary from the bonds issue), we note that Shi will have controlling interest of 47.75% on the enlarged share base. This would require him to make a mandatory general offer for the remaining shares at $0.05 according to SGX ruling, which he does not intend to apply for a waiver. According to search results, Shi has a background in real estate and urban development and management. As at 31 Mar, Craft Print has a NAV of $0.093. We do not rule out any possibility that the loss-making printing company may be transformed into a totally different company in future.