Gary Loh, a former stockbroker who used to control and chair Sunmoon Food Holdings, saw a decrease in his stake in the company.
On July 14, First Alverstone Capital, which is holding the stake on behalf of Loh, sold 20 million shares for some $499,244 to an unnamed entity through a married deal. This works out to around 2.5 cents each. First Alverstone is holding the stake on behalf of Loh. His wife Selena Cheng Koh Min has a beneficial interest in the stake too.
With the sale, First Alverstone’s stake in Sunmoon dropped from 59.7 million shares or 6.61% to 39.7 million shares or 4.4%. As the stake is now below the 5% mark, Sunmoon Food is no longer obliged to make further disclosures when Loh further trims his stake.
Loh was executive chairman of Sunmoon from October 2013 to August 2017 until a new controlling shareholder, Yiguo, a China-based fresh food e-commerce retailer, came on board and Loh became the deputy chairman. Loh was then redesignated as a non-executive director on April 2019 before fully stepping down after his resignation on July 1 to “pursue his personal interest”.
For the fiscal year ended March 31, Sunmoon reported revenues of $42.4 million, up 9% y-o-y. However, losses widened from $608,000 to $955,000, partly because the company sold some of its products at below cost in its key China market because of “depressed overall market prices”.
In its earnings commentary, Sunmoon warns that operating conditions will continue to be challenging because of the slowing world economy. It says it will focus on the export of fresh fruits from China to Southeast Asia and the import of fresh produce to China. The company also says it will continue to sell its two key products: Fuji apple and Pangasius fish. “Barring unforeseen circumstances, we believe that we will be able to see growth in top-line revenues for the financial year,” says Sunmoon.
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Sunmoon Food and Interra Resources
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Drilling suspended
Ng Soon Kai, a former director of Interra Resources, made a quick flip with a substantial chunk of shares of the company he had bought and held for barely two weeks.
On July 13, Ng sold around 5.75 million shares on the open market for about $195,831 or 3.4 cents each. With the sale, his stake was reduced from just below 57.6 million shares or 8.79% to just over 51.8 million or 7.91%. Less than a fortnight before the sale, Ng was in acquisition mode instead. On July 3, he had acquired 5.78 million shares at some $167,894 or 2.9 cents each.
Ng, who left the company’s board recently, first emerged as a substantial shareholder on June 21 when the company disclosed in a filing that he had acquired 3.46 million shares for $99,806 on the open market, raising his stake to 5.01% from 4.48% previously. Since then, he has bought shares on at least two other days. On June 27, he acquired 5.26 million shares for $152,540 or 2.9 cents each while on June 30, he acquired 10.45 million shares at about $292,690 or 2.8 cents each.
On June 7, Interra Resources, which holds stakes in oil production operations, announced that testing of an exploration well in a block at Indonesia’s southern Central Kalimantan did not perform as expected. The well, dubbed KP-1, was operated by an entity called PT Mentari Pambuang Internasional, in which Interra Resources holds a 72.75% stake.
“The well has now been temporarily suspended to allow for the recovered oil samples to be analysed and interpretation to be carried out,” says Interra Resources, adding that exploration costs of the block to date have reached US$13.7 million ($18.16 million), which is above net present value based on an independent review of US$9 million.
As such, the company is making an impairment on exploration cost of approximately US$4.7 million. Even so, at current share price levels, Interra Resources is trading at a historical P/E of 1.65x.
