S-Chips- why hoard cash?

@Joes - What a coincidence haha. I don't own any C Sports shares and don't chase counters merely because of share buyback.

most interesting in terms of SGX tightening on fund-raising by S-chips.

I copy and paste here part of the Sinopipe announcement where it says it is required to disclosure :

(i) background of the Subscribers, their specific track record and their roles in the Company;

2

(ii) why the Company needs to issue shares to the Subscribers, whether there will be any fees payable for referring and assisting the Company in securing contracts, whether there has been any transactions with the Subscribers in the past and whether there will be future transactions with the Subscribers in the future;

(iii) the reasons why the Company is still raising funds which will result in significant dilution to existing shareholders when it has a positive working capital of RMB344.10 million (derived as current assets less current liabilities) and cash and cash equivalents of RMB90.736 million as at 31 March 2011; and

(iv) the intended use of the funds.

hi yeh,
for which company was that query to ?

Another rascal: Celestial Nutrifoods.


The Provisional Liquidator’s investigations have also revealed significant transfers to external parties of the Company’s cash holdings in the year, and in particular in the six months preceding the appointment of the Provisional Liquidator, at a time when the Company, in the Provisional Liquidator’s view, appeared to be insolvent (given the indebtedness to bondholders which was immediately due and payable). In this regard, approximately SGD16.7 million was paid to a company incorporated in the BVI who has not responded to the Provisional Liquidator’s correspondence but who, based on the advice of the Company’s Chairman, is a supplier to one of the Company’s PRC Subsidiaries. The Provisional Liquidator is currently inquiring into the above transfers.