P99

P99: Following a favourable conclusion of its one-year legal battle against Asia Brand Group and Liu Yanlong, over the default of a profit warranty in Oct 2013, P99 is now a shell entity, with a cash pile of Rmb52m ($0.0511/share). To recap, the group acquired Asia Brand via an issue of 44.3m P99 shares in 2011. Pursuant to a final arbitration award, the shares were transferred and sold to third-party investors for $2.7m (Rmb12.6m). Following the completion, Asia Brand will no longer be considered a subsidiary. The company intends to apply with SGX to maintain its listing status. If successful, P99 will have one-year grace period to acquire a new business or have its listing status removed. At the current price of $0.083, investors are paying a $6.9m premium for the Catalist shell entity as compared to Mainboard-listed Jaya's $13.6m.