It acquired a 50.1% stake in a US company called Procurri that became operational only in April 2013.
Procurri must be some wonder. It contributed S$5.0 million (18%) to the DeClout’s total revenue in the first half of 2013. Just three months of operations from April to June 2013.... does that mean in 12 months, the revenue could be about S$20 million?
This is some amazing new business involved in data centre relocation and related services. I didn't know they are so hot.
Of course, the next important question is: Got profits or not?
The answer is not clear at this point. In fact, Procurri could be suffering from start up costs, etc. DeClout suffered a $2.2 million net loss in 1H2013.
Share price tanked in response to the ...
* Proposed buy-back of 23.0 million shares at S$0.315/share via an off-market equal access offer.
Market thinks this is an ineffective way to use the S$7.2 million from Acclivis divestment to "reward shareholders".
I think a much better idea is to announce that the company would commit $7.2 million to buy back shares from OPEN MARKET at MARKET PRICES over a period of 6 months. That would drive the price up gradually to beyond 25 cents, I am sure.
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