Vashion   

RTO by Red Flag Holdings

Dear Cheongsl,

You really have a sensitive sense of share market movement. I strongly agree with you in this point!!!

 

Second round of bulls for penny shares will be coming soon after the cheong of blues, as those get out of blues will be ready to vest on the penny again to drive it up.

 

Not be supprise this will move again towards .035 and .04

 

The RTO would give Red Flag 49.82% of Startech's enlarged issued share capital, assuming full conversion of the loan stock.

 

Lissington Limited will subscribe for 100,000,000 ordinary shares in the company at $0.01 a share for a total subscription price of $1,000,000 in cash. The new shares would constitute 10.45% of the resultant enlarged share capital. It has an option to subscribe for up to 300,000,000 option shares.

 

Electronics contract manufacturer Startech Electronics Ltd said it will acquire 100% of Hong Kong-incorporated Red Flag Holdings for $8.5 mln in a reverse-takeover deal. Startech will pay for the acquisition through combined issuances of $3.5 mln worth of new shares and $5.0 mln worth of redeemable convertible unsecured zero coupon loan stock.



The acquisition is conditional upon Red Flag posting a profit before tax of $1 mln this year and $2 mln next year. Upon completion of the deal, Red Flag will hold 49.82% of Startech's enlarged issued share capital, assuming full conversion of the loan stock.



"The directors believe that the acquisition will enable the company to gain an immediate foothold to an established distribution network to tap into the fast growing consumer apparels market," Startech said in a document released to SGX.



Red Flag, through unit Shenzhen Louis Gianni Costume Co Ltd, is engaged in managing, distributing and retailing mid-to-high end apparel for men under the "Louis Gianni" brand name. The group operates 70 stores in various parts of China.