I've been through this in some detail and have noticed a few key...

I've been through this in some detail and have noticed a few key points:

- The initial spin-off was sold to be a dud to investors (so they opt for cash), yet directors fully participated. See forecasts, balance sheet, description of risks and no listing of revenue/profit growth rates for examples, as opposed to the AGM presentation that occurred after the Spin-off.
- The CR had directors fully under-writing the cap raising
- Immediately after the spin-off, they bought the analytics group for RM250k, giving them that same tax free status. The fact that they had this in the works was not mentioned, so investors were forced to work on the assumption that the company's profits would be taxed.

In terms of profits:
- iSentric core units made 1.57m NPBT/NPAT (same, as no tax applied)
- Arte Mobile made 2.2m Net Profit AFTER tax

Given that the group revenues are now covered by this tax free status, the true cash effect of the Arte Mobile acquisition is 2.93m (25% tax, so 2.2m/0.75).
As a result, total profits for the next financial year (assuming no growth or decline) will be 2.93+1.57 = 4.5m

With a Market Cap of 26.22m, no debt and huge operational leverage, it'd be hard for this not to be a bargain. In fact, even if you apply a 25% tax rate to that 4.5m, it's still cheap.

It seems to me management wanted to under-play the strength of this one and take as much stock as they could during the spin-off and subsequent Capital Raising.