As you can see the share price of Eversendai has been dropping ever since it started its share placement. The share price will continue to drop until all the 77 million placement shares are sold because the placement price is the 5 days average minus 10 per cent discount. This way of selling is a vicious cycle. It is like a dog is chasing its own tail.
I like to propose a much better way to sell 77 million shares at a much better price.
The company announces to sell to all the shareholders 1 new share for every 10 shares held by shareholders at the 5 days average price with no discount. Every new share will be given one free convertible warrant and the convertible price to be the closing price before the entitlement date.
All the shareholders should be interested to buy the share to get the free warrant which has a 5 years life span. Moreover, the company will receive a lot of cash when the warrants are converted. As I said many a time before, giving out free convertible warrants is like giving out cash to all your shareholders.
In case Tan Sri Nathan does not have enough of money to buy up all his entitlement, he can allow me to buy them because I strongly believe the company can continue to produce increasing profit which is the most powerful catalyst to move the share price.
I trust the Board of directors of Eversendai will consider my proposal seriously. As I believe the board will consider my proposal, I am now buying the share to support the share price.
