Many penny stock companies are using internally generated funds as well as share margin financing to invest in other penny stocks. 

Are they making profits or losses from the investment? Where are the directors willing to risk company funds on these investments ?

Many questions arises as there have been huge losses incurred (realized or unrealized) by some of these penny stock companies.

I am in the midst of compiling a list of low-price penny stocks that invested in other penny stocks. Updates will be posted whenever they are ready. Potential ones could include Mtronic, Fintec, Xox, Netx, Kgroup, Dgb

1.  PERMAJU INVESMENT IN STOCKS

As At 23/7/21

Upon completion of the exercise, based on the share split and bonus ratio, PERMAJU should have the following:

** PNE PCB had a Share Split exercise and bonus issue of warrant B that was completed on 25/11/20.

1.  PNE PCB = <32,000,000> + <12,000,000>  = 44,000,000 shares
2.  PNE PCB-WB = 14,666,666 warrants

1A.  PERMAJU INVESTMENT IN MTOUCHE TECHNOLOGY BERHAD (stock code 0092)

The Board of Directors of Permaju (“Board”) wishes to announce that Iconworld Resources Sdn. Bhd. (“Iconworld”), a wholly-owned subsidiary of the Company had on 10 June 2021 acquired 185,050,000 Rights Shares together with 92,525,000 Free Warrants in MTouche Technology Berhad (“MTB”) for a total purchase consideration of RM18,505,250.00, which is representing approximately 19.97% of the existing total number of issued shares in MTB (“the Acquisition”).

Kindly refer to the attachment for further details.

This announcement is dated 14 June 2021.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3166462

1B.  PERMAJU INVESTMENT IN PNE PCB BHD (stock code 6637)

With reference to the announcement dated 16 November 2020, the Board of Directors of PERMAJU wishes to announce that its wholly-owned subsidiary, Iconworld Resources Sdn Bhd, had on 17 November 2020 acquired additional 6,000,000 ordinary shares of PNE at RM1.23 per share (“PNE Shares”) for a total cash consideration of RM7,380,000.00 (“Consideration”) from open market.

Together with the 16,000,000 of PNE Shares announced on 16 November 2020, PERMAJU now has aggregate of 22,000,000 of PNE Shares, representing 12.43 % of issued shares of PNE. The total purchase consideration for the entire 22,000,000 PNE Shares is RM27,060,000.00 (“Aggregate Investment”).

This announcement is dated 17 November 2020.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3105720

The Board of Directors of Permaju wishes to announce that its wholly-owned subsidiary, Iconworld Resources Sdn Bhd, had on 16 November 2020 acquired 16,000,000 ordinary shares of PNE, representing 9.05% of issued shares of PNE, at RM1.23 per share (“PNE Shares”) for a total cash consideration of RM19,680,000.00 (“Consideration”) (“Investment”) from open market.

Please refer to the attachment for details of the announcement.

This announcement is dated 16 November 2020.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3105407

1C.  PERMAJU INVESTMENT IN MERIDIAN BHD (stock code 5040)

The Board of Directors of Permaju wishes to announce that its wholly owned subsidiary, Iconworld Resources Sdn Bhd, had on 22 October 2020 acquired 100,000,000 ordinary shares of Meridian, representing 16.97% of issued shares of Meridian, at RM0.26 per share (“Meridian Shares”) for a total cash consideration of RM26,000,000.00 (“Consideration”) (“Investment”) via Direct Business Transaction.

Please refer to the attachment for details of the announcement.

This announcement is dated 22 October 2020. 

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3098780

2.  LAMBO INVESTMENT IN STOCKS

As At 23/7/21

** SINARAN (formerly known as KSTAR, stock code 5172)

*** In Dec 2020, FOCUS had completed a Multiple Proposals consisting of SHARE SPLIT and RIGHTS ISSUE OF ICPS WITH WARRANTS. The shareholdings would have changed and it is not able to compute the market value until the actual shareholdings and the number of ICPS and Warrants are confirmed.

2A. LAMBO INVESTMENT IN SINARAN (formerly known as KSTAR) (stock code 5172)

• The Board of Directors of LAMBO wishes to announce that its wholly-owned subsidiary, Oriented Media Holdings Limited in Hong Kong, had on 15 September 2020 acquired 90,000,000 ordinary shares of K-Star Sports Limited (“KSTAR”), representing 19.78% of the issued and paid up capital of KSTAR, at RM0.135 per share (“KSTAR Shares”) for a total cash consideration of RM12,150,000 (“Consideration”) (“Investment”) from open market. This announcement is dated 15 September 2020.

• ​Refer to earlier announcement dated 15 September 2020, the Board of Directors of LAMBO wishes to announce that its wholly-owned subsidiary, Oriented Media Holdings Limited in Hong Kong (“OML”), had acquired additional 34,600,000 ordinary shares of K-Star Sports Limited (“KSTAR”), representing 5.43% of the issued and paid up capital of KSTAR (“KSTAR Shares”) for a total cash consideration of RM7,958,000 (“Consideration”) (“Investment”) from open market. This announcement is dated 26 March 2021.

Unrealized loss = 20,108,000 X (0.162 – 0.08) = RM1,648,856

Follow the link to check on NON RELATED PARTY TRANSACTIONS :

https://www.bursamalaysia.com/market_information/announcements/company_announcement?keyword=NON+RELATED+PARTY+TRANSACTIONS&cat=&sub_type=&company=0018&mkt=&alph=&sec=&subsec=&dt_ht=&dt_lt=#/?category=all

2B. LAMBO INVESTMENT IN FOCUS DYNAMICS GROUP BERHAD (stock code 0116)

The Board of Directors of LAMBO wishes to announce that its wholly-owned subsidiary, Oriented Media Holdings Limited in Hong Kong, had from 6 July 2020 till 10 July 2020 acquired 22,796,600 ordinary shares of Focus Dynamics Group Berhad (“FOCUS”) at averace price of RM1.1253 each (“FOCUS Shares”) for a total cash consideration of RM25,653,013.98 (“Consideration”) (“Investment”) from open market.

This announcement is dated 13 July 2020.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3068113

In Dec 2020, FOCUS had completed a Multiple Proposals consisting of SHARE SPLIT and RIGHTS ISSUE OF ICPS WITH WARRANTS. The shareholdings would have changed and it is not able to compute the market value until the actual shareholdings and the number of ICPS and Warrants are confirmed.

However based on the purchase price, closing prices and the price movement of FOCUS in 2021, it is very likely that the company will end up with massive losses in the investment.

3.  JOE HOLDINGS INVESTMENT IN STOCKS

As At 23/7/21

3A. JOE INVESTMENT IN PASUKGB (stock code 0177)

The Board of Directors of JOE (“Board”) wishes to announce that GP Autobat Sdn. Bhd. (“GP Autobat”), a wholly-owned subsidiary of the Company had on 15 July 2021 subscribed 249,720,000 Rights Shares together with 145,670,000 Free Warrants in Pasukhas Group Berhad (“PGB”) for a total purchase consideration of RM24,972,000.00 in conjunction with PGB’s rights issue exercise, which representing 21.58% of the existing total number of issued shares in PGB (“the Acquisition”).

 Please refer to the attachment for further details. 

This announcement is dated 21 July 2021.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3176839

4.  KANGER INVESTMENT IN STOCKS

As At 23/7/21

*** Net Shareholdings = 33,574,733 - 21,277,633 = 12,297,100

**** Net Amount Invested = 16,240,377.50 - 9,997,561.26 = 6,242,816.24

Recent Announcement by TECHFAST 

CIRCULAR TO SHAREHOLDERS IN RELATION TO THE

1. PROPOSED RENOUNCEABLE RIGHTS ISSUE OF UP TO 909,204,618 NEW ORDINARY SHARES IN TECHFAST ("TECHFAST SHARE(S)" OR "SHARE(S)") ("RIGHTS SHARE(S)") ON THE BASIS OF 2 RIGHTS SHARES FOR EVERY 1 EXISTING TECHFAST SHARE HELD, TOGETHER WITH UP TO 454,602,309 FREE DETACHABLE WARRANTS IN TECHFAST ("WARRANT(S)") ON THE BASIS OF 1 WARRANT FOR EVERY 2 RIGHTS SHARES SUBSCRIBED FOR, ON AN ENTITLEMENT DATE TO BE DETERMINED AND ANNOUNCED LATER ("PROPOSED RIGHTS ISSUE WITH WARRANTS"); AND

2. II. PROPOSED DISPOSAL OF THE ENTIRE EQUITY INTEREST IN TECHFAST PRECISION SDN BHD ("TPSB") TO LU ENG SHEAN FOR A DISPOSAL CONSIDERATION OF RM6,100,000 ("PROPOSED DISPOSAL") (COLLECTIVELY REFERRED TO AS THE "PROPOSALS")

This announcement is dated 16 Jul 2021.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3175895

4A. KANGER INVESTMENT IN TECFAST (stock code 0084)

The Board of Directors of Kanger wishes to announce that the Company, had from 19 October 2020 until 5 February 2021 acquired and disposed the ordinary shares of Techfast from the market.

Please refer to the full announcement as attached.

This announcement is dated 26 March 2021.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3142758

ACQUISITION TRANSACTIONS

DISPOSAL TRANSACTIONS

5.  METRONIC INVESTMENT IN STOCKS

As At 23/7/21

5A. METRONIC INVESTMENT IN SANICHI (stock code 0133)

The Board of Directors of Metronic wishes to announce that the Company had on 24 May 2021 acquired 62,500,000 Rights Shares together with 31,250,000 Free Warrants in Sanichi Technology Berhad (“STB”) for a total purchase consideration of RM5,100,000, which is representing approximately 4.45% of the existing total number of issued shares in STB.

 Kindly refer to the attachment for further details.

 This announcement is dated 1 June 2021.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3163285

6.  NETX INVESTMENT IN STOCKS

6A. NETX INVESTMENT IN KSTAR (now known as SINARAN (stock code 5172))

Total loss = RM3,328,826 to the Group (as per company announcement on 3/2/21).

COME BACK FOR MORE UPDATES