Then Censof announced a partnership with ABSS to tap into GST ready software for SMEs enterprises. The tie up with them is to take advantage of government funding for SMEs to be GST compliant.
Its in house GST compliant software generally distributed to government agencies, expects a sales spike in the GST segment as the implementation deadline approaches.
As of Dec 2014, it has rm1 million in its orderbook for the GST software systems alone, from its existing clients. Most of its agencies are equipped with the system and what they need now (Dec 2014) is to upgrade it. The fee could range from rm100000 to rm500000 depending on the size of the organization.
Censof serves 80 government agencies but only four are upgrading their systems.
Reference is made to the announcements on 12 November 2014, 14 November 2014, 17 November 2014 and 15 December 2014 in relation to the Proposed Private Placement. For consistency, the abbreviations used throughout this announcement are the same as those previously defined in the earlier announcements.
On behalf of the Board of Directors of Censof, AmInvestment Bank Berhad is pleased to announce that the Company has fixed an issue price of RM0.4150 per Placement Share for the first tranche of the private placement, comprising 20,000,000 Placement Shares.
The issue price represents a discount of approximately 9.82% to the five (5)-day volume weighted average market price of the Company’s Shares up to and including 23 January 2015 of RM0.4602, being the market day immediately preceding the date of this price-fixing announcement.
not sure if its correct, but looks like censof is issuing right issue at 0.415 per unit, but didnt mention what is the right issue ratio in the announcement (need someone expert to correct me if i'm wrong)
Censof is offering 20 million shares at 0.415 for private sale. This is often taken up by financial institution or investment firms. The offer price is at a discount of 9.82% at the time of price fixing.
Private placement means they have special arrangement between them. This transaction has to be reported to the authority as well, hence the filing. This usually means the buyer (likely an institution) is supporting this stock and expects it to go higher than the current market price. They usually have private agreement not to dump the stock so quickly. Its all insiders job... In a more negative view, this is one of the ways they manipulate to push up the stock.
If things are so rosy why not sell it as a right to the share holder? Anything can happen in our market. Just look at it as a neutral to negative event. Acutally if it is so rosy why not sell it higher? There are many ways to rasise capital. Private placement is not very transparent in this respect.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
caven101
911 posts
Posted by caven101 > 2015-01-09 09:42 | Report Abuse
censof climb back already...any good news?