ERI - Warrants Saga

Roboticfx · 26 Re: ERI - Warrants Saga Fri Feb 03, 2012 12:23 am

Roboticfx

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hariesha wrote:

sanjaya351 wrote:Dear all,
Pls let us know will there be any change in the future about this issue - May be some connected parties taking legal action ?
Will it Trade again ?
If not why People are collecting it ?

Experts your comments ?

It's really interesting if someone goes to courts. In Sri Lanka the problem is so far no one challenged the blunders, either by the companies or regulators. In this case, all set of events were questionable. (Please refer my earlier comment.) I think people should come forward and challenge these decisions. Otherwise the confidence in the market will be lost. Look at last twelve months. All of a sudden SEC decided to restrict credit. Some investors got affected as they sold or forced to sell. But couple of months later they relax the rules. Who is responsible for the damage? Shouldn't we really worry about the consistency of the regulator?

Some commissioners publicly said, market is overvalued. But the same people promoted the market in rural areas, and put all the innocent people in trouble. If they are thinking the market is overvalued, why they promoted it to the less savvy people?

Unfortunately, our domestic people are afraid to talk against these by keeping their backbones straight. There are several reasons also. 'white-van fear' is one. Other is the accommodation of abundance is needed to work against them along. One person cannot involve full case lonely and it is impossible. We cannot see a such trend in Sri Lanka even in politics also. One starts something such as a court case but nothing to heard after 2-3 weeks. Although status of our motherland is like this, the normal situation in countries like UK, US is totally inside out of ours. Smile

greedy · 27 Re: ERI - Warrants Saga Fri Feb 03, 2012 2:39 am

greedy

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hariesha wrote:

greedy wrote:Warrants can be either "In the money" or "Out of the money" at the exercise date. But, if all companies which have issued warrants to public start to extend the exercise date when they find out that warrants are out of money.... then what is the point? This will lead warrants/share options to lose its basic characteristics.

I guess the minority ordinary shareholders and the holders of Warrants 2014 and Warrants 2015 have a point to take this matter to some commercial courts (If I'm not wrong.. some legal experts will know).

P.S. I'm not affected by GREG's saga

I am also not in favor of extensions. But at the moment all the warrants in the market are "Out of Money". These extensions started with W1, and if it's not allowable, SEC should have taken it as a policy decision or as a rule, which will effective for future warrant issues. But at the moment directors can recommend to shareholders and warrant holders to extend the life of warrants. If shareholders and warrant holders can approve it by passing a resolution in an EGM, under current regulations it's valid they do have every right to do so.

Major shareholders of a Company can pass any sort of resolutions at a EGM/AGM. In this case too, GREG has passed a resolution as Lionhart holds more than 90% of the voting rights. However, there is protection for the minority shareholders under the Companies Act... called "Minority Protection" I guess this is still available in the new companies Act. I'm not a legal expert so I may be wrong in this case.

soileconomy · 28 Re: ERI - Warrants Saga Fri Feb 03, 2012 4:07 am

soileconomy

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Quibit wrote:I am sure GREG may have the same destiny of VANIK, it's debentures and warrants. Only time will tell us!!!!

.
I may further add something ,
Lionheart may exit even at very low levels .may be their cost is less than Rs 10 .
Ultimately our retailers will hold till it gets wind up.
Not to get panic ,but to think further .........

hariesha · 29 Re: ERI - Warrants Saga Sun Feb 05, 2012 10:01 pm

hariesha

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soileconomy wrote:

Quibit wrote:I am sure GREG may have the same destiny of VANIK, it's debentures and warrants. Only time will tell us!!!!

.
I may further add something ,
Lionheart may exit even at very low levels .may be their cost is less than Rs 10 .
Ultimately our retailers will hold till it gets wind up.
Not to get panic ,but to think further .........

This is the best thing that can happen to GREG. If LIONHEAR decided to exit from GREG, it will be a PR boost for the share. For them to exit somebody has to buy. ISN'T IT BEING A SILVER LINE? I am sensing it now. May happen.

Market Sucker · 30 Re: ERI - Warrants Saga Tue Feb 14, 2012 10:39 pm

Market Sucker

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Quibit wrote:I am sure GREG may have the same destiny of VANIK, it's debentures and warrants. Only time will tell us!!!!

is it going to happen Question

Chinwi · 31 Re: ERI - Warrants Saga Wed Feb 15, 2012 5:30 pm

Chinwi

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Market Sucker wrote:

Quibit wrote:I am sure GREG may have the same destiny of VANIK, it's debentures and warrants. Only time will tell us!!!!

is it going to happen

Yes and No.

Wanik reached 120/- and did sliding down to (~) 1.50 in its long journey before its demise.

It had Warrants and unsecured debentures( issued @ 100/- ) both gave total losses to holders when they were nullified.

I feel fate of GREG warrants holders is going.... to..... be.... the..... s a m e . Embarassed

BUT GREG will be there as they have assets not under threat at the moment. (Am I correct ?)

Vanik used debenture money and all their cash in the acquisitions and leasing business in very aggressive manner and lost the balance.

GREG issued millions of warrants just to suck our money without much need or plan to use that money in their business , hence [ I think ] there is no threat to the current position of the company even when the warrants got cancelled.

mono · 32 Re: ERI - Warrants Saga Wed Feb 15, 2012 6:39 pm

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Greg is potential undervalued right now. it has 22rs in NAV. The concern here is that all its assets are in form of shitty companies.

Can someone tell me what's happening with the kabok mine. I know they sold it late 2010, but this country saw nothing of that investment.

rijayasooriya · 33 Re: ERI - Warrants Saga Wed Feb 15, 2012 7:01 pm

rijayasooriya

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Some people hate GREG because they have lost millions with trading.So that GREG is the most hammered share here.

I do not think GREG is going to end up like Vanik.Do not forget this company established in 1910 and Listed in 1970.Of course as mono has mentioned it's bussiness is not transparent and they are doing lot of jilmart---like kadok mine project.But they are doing these type of things for ages.Another point to highlight is still their main shareholder is Lion heart---according to some it is another jilmart company.

Regarding issuing of rights and warrants CSE has become a factory for those.SEC should look in to these issues but I do not think they will as their job is to protect cunning companies and a few manipulators.

seyon · 34 Re: ERI - Warrants Saga Wed Feb 15, 2012 10:40 pm

seyon

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mono wrote:Greg is potential undervalued right now. it has 22rs in NAV. The concern here is that all its assets are in form of shitty companies.

Can someone tell me what's happening with the kabok mine. I know they sold it late 2010, but this country saw nothing of that investment.

Yes they sold that investment and reported as Investment in Associate Classified as Held for Sale Rs. 2,196,196 Balance Sheet. As per my understanding still company did not bring the sales proceeds to SL due to requlatory approval

Look at the notes to financial statement ( Page 19)

Duringtheperiod,theboardofdirectorsofthecompanyhasagreedtosellEnvironmentalResourcesLimited(ERL)acompanyincorporatedintheBritishVirginIslands,toPhotonGlobalLimited,BVI,who'sultimatebeneficiarybeinganassociateofLionhartInvestmentLimited,themajorshareholderofthecompany(ERI),subjecttoregulatoryapprovalfromtheControllerofExchangeandtheMinistryofFinance.AccordinglyithasbeenclassifiedasInvestmentinAssociate Held for Sale in the interim financial statements.

Why the requlators is so reluctant to allow the inflow of USD...... Very big question ???