Fundamentally, I dont see any good news or have I missed out something? The performance of this company is not attractive, if there's no good news, then the price surge will not sustain. Be careful.
Yen Global is still on a valid uptrend despite taking a breather recently. Traders may buy as a bullish bias could be present above the MYR0.48 level, with a target price of MYR0.57, assuming the MYR0.525 level can be surpassed. The stock may drift sideways if it dips below the MYR0.48 mark. In this case, support is anticipated at MYR0.45, where traders can exit upon a breach to avoid the risk of a further correction.
PROPOSED PRIVATE PLACEMENT OF NEW ORDINARY SHARES OF RM0.50 EACH IN YEN, REPRESENTING NOT MORE THAN TEN PERCENT (10%) OF THE ISSUED AND PAID-UP SHARE CAPITAL OF YEN (EXCLUDING TREASURY SHARES, IF ANY) ("PROPOSED PRIVATE PLACEMENT")
The Board of Directors of Yen Global Berhad ("Yen" or "the Company") wishes to announce that its wholly owned subsidiary VLT Wholesale Sdn. Bhd. ("VLT") has on 24 March 2016 entered into a Distributorship Agreement ("DA") with Gemtek Technology Co. Ltd ("Gemtek") for VLT to be the distributor of Gemtek to promote, market and sell the products such as LTE, Broadband, IOT and other telecommunication products in the South-East Asian region.
Gemtak is a company incorporated in Taiwan and listed on the Taiwan Stock Exchange and is principally involved in the manufacture of telecommunication products.
The DA will not have any effect on the issued and paid up share capital of the Company and is not expected to have any material impact on the earnings, earnings per share, net assets per share and gearing of the Group for the financial year ending 31 July 2016. However, it is expected to contribute positively towards the future earnings of Yen Group.
None of the directors and/or major shareholders of Yen and/or persons connected with them have any interest, direct or indirect, in the DA.
We refer to the announcement dated 25 March 2016 ("Initial Announcement") (Reference No. GA1-24032016-00049) in respect of the subject matter.
Unless otherwise stated, the definitions used throughout this announcement shall have the same meaning as defined in the Initial Announcement.
VLT and Gemtek each separately referred to as a "Party" or collectively referred to as the "Parties".
The Board of Directors of Yen Global Berhad ("Yen" or "the Company") wishes to provide herewith the following additional information in relation to the salient terms of the Distributorship Agreement ("DA"):-
1. The product range included in the DA are as follows:
(a) LTE products - Wifi Dongle, Indoor CPE (Customer Premise Equipment), Router, Home Gateway, etc.
(b) Broadband products - VDSL modem, GPON CPE and products, etc.
(c) GIOT (Green Internet of Things) Products - Node adaptor, Asset tracker, Gateway, etc.
Gemtek appoints VLT as its distributor to promote, market and sell the products ("Products") and to provide services for the Products ("Services") throughout the South-East Asian region ("Territory") and VLT accepts the appointment and undertakes to promote, market, sell and provide the same in and throughout the Territory solely upon the terms and conditions in the DA. The DA is on a non-exclusive basis.
2. The DA shall commence on the date of signing of the DA which was on 24 March 2016 ("Effective Date") and continue for a period of one (1) year thereafter ("Initial Term") and shall be automatically renewed on a yearly basis unless terminated earlier as follows:-
2.1 Either party may cancel the DA effective on the last day of the Initial Term, or any renewal term, by serving written notice of such termination on the other Party at least ninety (90) days prior to the effective date thereof.
2.2 Gemtek shall be entitled to forthwith terminate the DA: if VLT commits any material breach, becomes insolvent, assigns or attempts to assign the DA without Gemtek's prior written consent and does any act or omission which discredit Gemtek's reputation and/or brand.
2.3 Gemtek retains the right, in its sole discretion, to upgrade or modify the Products from time to time. In addition, upon thirty (30) days prior notice to VLT, Gemtek may add or delete Products stated in the DA. Upon receipt of any such notice of an upgrade or modification, or upon the expiration of the notice period set forth above for additions or deletions to the Territory in DA, VLT shall cease to market and distribute earlier versions of the Products deleted from the Territory in the DA.
3. Payment
Payment of invoices by VLT shall be made within sixty (60) days upon the receipt of invoices issued by Gemtek.
4. VLT's duties and obligations
4.1 Marketing, Sale and Storage of the Products
VLT shall at all times:
4.1.1 use its best endeavours to promote and extend the sale of the Products and usage of the Services throughout the Territory. In the event VLT is unable or unsuccessful in servicing any account(s) in the Territory for any reason whatsoever, Gemtek after prior consultation with VLT reserves the right to continue servicing said account(s). VLT agrees to permit Gemtek to review all of VLT's promotion and advertising material for the Products and Services. VLT shall not use and shall withdraw and retract any promotion or advertising that Gemtek finds unsuitable;
4.1.2 not directly or indirectly in anyway whatsoever promote, offer for sale, sell, distribute, provide any of the Products of Services outside the Territory;
4.1.3 give preferential treatment, focus and priority when promoting, advertising and displaying the Products or Services in VLT's shop, store, display areas or in any other place for the sale or offering for sale of the Products or Services; and
4.1.4 remain solely responsible for all maintenance and support to any person or company who purchase Products from VLT with regard to the Products. VLT shall, at its expense, further engage and maintain a sales, service and products handling organization in the Territory, staffed with such experienced personnel as are necessary to enable VLT to perform its obligation under the DA.
5. Pricing of the products
Pricing shall only be determined and quoted by Gemtek at the time of each order after taking into consideration the size of the order and the costs of the components at the relevant time.
We refer to the announcements dated 25 March 2016 ("Initial Announcement") (Reference No. GA1-24032016-00049) and 30 March 2016 (Reference No. GA1-29032016-00015) in respect of the subject matter.
Unless otherwise stated, the definitions used throughout this announcement shall have the same meaning as defined in the Initial Announcement.
VLT and Gemtek each separately referred to as a "Party" or collectively referred to as the "Parties".
The Board of Directors of Yen Global Berhad ("Yen" or "the Company") wishes to provide herewith the following additional information in relation to the salient terms of the Distributorship Agreement ("DA"):-
PAYMENT TERMS
Shipping arrangements shall be on a Free On Board (FOB) China/Taiwan basis as set out in INCOTERMS 2010 unless otherwise agreed by the Parties.
Payment of invoices by VLT shall be made within sixty (60) days upon invoice date which is in line with INCOTERMS FOB.
DUTIES AND OBLIGATIONS OF GEMTEK
VLT shall inform Gemtek if it knows, suspects or has reason to believe that the Products are being sold, distributed, advertised, promoted and or marketed by another company in the Territory. Gemtek, upon ascertaining the authenticity of that unauthorized distribution in the Territory, shall be obliged to contact the unauthorized distributor to advise that they are to stop the sale, distribution, advertisement, promotion and marketing of the Products in the Territory.
In any cause of action brought upon by customers of Products from Gemtek distributed by VLT, Gemtek's maximum liability is expressly limited to the amount paid by VLT to Gemtek within the twelve months' period immediately preceding the cause giving rise to the claim.
Gemtek shall be obliged and bound to pay or reimburse for all costs incurred under the provisions of the Gemtek warranty as stated in the printed terms and conditions found in each of the Products brochure or those authorized by Gemtek in a separate writing.
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....
Josephine Ong
1,001 posts
Posted by Josephine Ong > 2016-02-12 10:34 | Report Abuse
51!