RHM is undervalued. 26 Jun 2015 12:22
The Board of RHM (AIM:RHM) announces that the Company's wholly owned subsidiary, RedHot Media International Limited ("RHI") sold 40,000,000 ordinary shares of RM 0.10 in PUC Founder (MSC) Berhad ("PUCF") at a price of RM 0.1313 per share on 24 June 2015 and 10,000,000 ordinary shares of RM 0.10 in PUCF at a price of RM 0.1300 on 25 June 2015, on Bursa Malaysia's ACE Market (the "PUCF Share Sales").
The total gross cash proceeds of the PUCF Share Sales for RHM are RM 6.55 million (approximately GBP 1.11 million*), with the net cash proceeds of the PUCF Share Sales being RM 6.53 million (approximately GBP 1.11 million*). The Company intends to use the net proceeds from the PUCF Share Sales to implement its Investing Policy (as defined in the Company's circular published on 14 April 2015) and for general working capital purposes.
Following the PUCF Share Sales, RHI holds 443,168,402 ordinary shares in PUCF, which represents 41.58% of PUCF's issued share capital, and 36,215,840 warrants to subscribe for new PUCF shares.