The Jiangsu Ofpay payments (as far as I can make them out anyway, because it's not easy).
$51 million from existing liquidity. How can this be? The 30 October financial report showed cash on hand as $3.5 million AUD. So where did the rest of the money come from? The report also showed no loan facilities available, or bank overdraft. It also showed they lost $3.7 million AUD in the last quarter. Another quarter like that would leave them broke, let alone being able to raise $100 million for the acquisition of Jiangsu Ofpay. There looks like some really strange stuff going on here, and it's almost impossible to understand. Millions of dollars look like they are appearing out of thin air. Where is this existing liquidity?
A $30 million loan from the CEO's (Amalisia Zhang) entity (Grand Ease holdings). She (effectively being NNW) can have the loan repaid at 7% per annum or from shares at 14c.
A placement of approximately 92 million shares to 3rd Party investors (at 10c), the identity of whom is not known, although we are told they are unrelated.
And $17 million from NNW's China subsidiary (effectively the CEO Amalisia Zhang's contacts, I suppose).
What is the China subsidiary?
Who are it's board members?
What is the subsidiary company structure?
Who are the shareholders and what is their percentage?
Perhaps there is a group of wealthy financiers behind Zhang, in any event, someone seems to be able to grow money on trees here, and harvest it whenever required.
I have a small holding, more out of intrigue than anything else. Why are these people actually listed on the ASX, they have managed to raise $100 million without going to current shareholders. A bewildering array of circumstances continues to foster inquisitiveness about this company's structures and activities.
Gw
NNW Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
