SINGAPORE (Nov 16): ISR Capital is pushing ahead with its planned acquisition of a stake in a Madagascar tantalum concession, even though it is now tacked with a vastly lowered valuation of just US$48 million ($65.1 million) from more than US$1 billion estimated earlier.
See: Third independent assessment puts 'most likely value' of ISR Capital's Madagascar concession at US$48 mil
In an after-market announcement on Thursday, ISR Capital says it will submit an application to the Singapore Exchange to issue and list about 674.8 million shares.
And even before ISR can complete the tantalum deal, it has announced plans to diversify into engineering services by taking a 25% stake in a company called Straits Hi-Rel.
Under ISR’s revised agreement with REO Magnetic, the seller of the tantalum stake, it will pay $4.52 million by issuing this same amount of shares at 0.67 cent each.
The original agreement calls for ISR to pay $40 million for the 60% stake by issuing new shares at 10 cents each. On Thursday, ISR shares closed at 0.5 cent, down more than 96% year to date.
Last year, ISR shares surged by some 4,000% after it announced the planned acquisition of this tantalum concession. The company is later said to be linked to alleged penny stock saga mastermind John Soh Chee Wen, who has been held since Nov 2016 and whose next court hearing to decide if he should be given bail, will be on Feb 21 next year.
See: SGX to allow ISR Capital to resume trading on March 6; shares said to be manipulated by John Soh
See: Penny stock saga mastermind John Soh remains under remand as argument over bail hearing continues
See: ISR Capital hits new high of 23 cents, up 3,700% year to date
See: ISR Capital to acquire REO Magnetic’s remaining 40.1% stake in Tantalum Holding for $26.73 mil
“The company will make further announcements to update shareholders on material developments regarding the Proposed Acquisition, and further details will be provided where appropriate,” says ISR’s executive chairman Chen Tong in the Thursday statement.
