Arion Entertainment Singapore shares surged on Feb 17 after shareholders of the magazine publisher gave the go-ahead for the company to diversify into property and moneylending, marking yet another strategic change in the company’s business.
As at 11.40 am, shares in Arion Entertainment are trading up 27.27% at 1.4 cents, on heavy volume of more than 18 million shares traded. This makes it the 15th most actively traded stock thus far today. With a market capitalisation of $10.27 million, the company’s stock has reached a 52-week high of 1.8 cents and a low of 0.4 cents.
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Shareholders voted electronically at a voluntary extraordinary general meeting (EGM) on Feb 16, held virtually due to Covid-19 restrictions.
All votes cast at the EGM, representing just over 535.27 million shares, were in support of the diversification. The company has a total share base of 933.95 million shares.
Arion Entertainment Singapore is an investment holding company with business activities in Malaysia which is involved in the sale and publishing of magazines and periodicals and events management.
In a circular to shareholders on Feb 1, the company outlined plans to enter real estate brokerage services, franchising, leasing, investment, development, property financing to corporations and individuals, and personalised debt management advisory services.
See: Arion Entertainment, formerly PanPac Media, plans diversification as Covid-19 hits publishing business | Conflicts of interest
In November, Arion reported 1HFY2021 revenue of $493,000, largely from its Malaysian publishing operations, a marginal increase from $477,000 y-o-y. In addition, Arion received $13,000 through the Jobs Support Scheme.
The company reported a net loss of $196,000 for 1HFY2021, from a loss of $407,000 a year before.
Employee compensation decreased by 39.7% to $279,000 in 1HFY2021 as compared to $463,000 in 1HFY2020 due mainly to a decrease in the remuneration of executive director Ng Kai Man, who had voluntarily reduced his remuneration commencing from January 2020.
Cash and cash equivalents as at end of Sept 30, 2021 was $3.4 million as compared to $2.1 million as at March 31, 2021. No dividend was declared for the six months ended Sept 30, 2020 as the group was loss making.
Arion Entertainment Singapore was incorporated in 1994 as Panpac Media Group, and has undergone multiple name changes.
Formerly known as The Lexicon Group, the Group was listed on Singapore Stock Exchange (SGX) in 1997. The Group was renamed to Elektromotive Group in 2011 following the acquisition of Elektromotive Limited (United Kingdom).
On Jan 26, 2017, the Company changed its name to Arion Entertainment Singapore upon the divestment of its 55% stake in Elektromotive Limited.
