NEXTNATION - Market Darling or Just Goreng

For the past one week, the counter had seen tremendous trading volume, both ordinary shares and warrants. Speculations are rife that this counter will be the next market darling, rumours indicating a target price above 30c. It touch a high of 18c on 3rd Sept with 175.65 million shares traded before trending back to a low of 11.5c. What are the reasons that caused the recent price movement ?

On business development end, the Group recently announced on 30th August that its wholly owned subsidiary, Nextnation Datacity Sdn Bhd (NDSB) had on 29 August 2012 entered into a Memorandum of Understanding ("MOU - valid for 12 months") with PT Graha Tunas Makmur (PTGTM) to collaborate with the objective of jointly developing all that piece of land identified as Lot P58 held under HSD 7817 PT 42830, Mukim Dengkil, Daerah Sepang, Selangor Darul Ehsan, measuring approximately 5.906 acres ("the Land"), in an exercise to be led by NDSB (hereinafter referred to as the "Proposed Collaboration"). NDSB had entered into a Sale and Purchase Agreement with Cyberview Sdn Bhd on 10 April 2012 for the acquisition of the Land.

The Proposed Collaboration is to enable to parties to study and evaluate the commercial feasibility of a joint development of the Land into a mixed property development, incorporating a proposed data centre, corporate office and other commercial and retail space that can be supported by prevailing market demand in the Cyberjaya area, which is estimated to have a gross development value of approximately RM80 million. This project, if successfully executed, should provide the Group group with an opportunity to further enhance its business and contribute positively to the Group's financial in the near future.

Nextnation Datacity Sdn. Bhd, had on 5 September 2012 accepted a banking facility of RM14.82 million (“Banking Facility”) from CIMB Islamic Bank Berhad (“the Bank”), to part finance 80% of the purchase priceof RM18,523,105.92 for the acquisition of a piece of a vacant freehold enterprise lot held under P58, HS(D)28897, PT42830, Mukim of Dengkil, District of Sepang, Selangor Darul Ehsan.

On trading front, Fast Global Investment Limited is seen to be taking some profits during the past few days, which could raised some concern among investors.

3/9/2012     Disposed 67,000,000 warrants and ceased to be substancial shareholder
3/9/2012     Disposed 5,000,000 ordinary shares
28/9/2012   Disposed 500,000 ordinary shares
27/8/2012   Disposed 3,341,400 ordinary shares
27/8/2012   Disposed 1,479,000 warrants
24/8/2012   Disposed 3,000,000 ordinary shares
24/8/2012   Disposed 1,000,000 warrants

Below shows the major Shareholders and their Shareholdings as at a particular date.

• Tey Por Yee holds 95,837,500 ordinary shares (inclusive direct and indirect interest) - based on announcement dated 9/8/2012
• See Poh Yee holds 86,410,000 ordinary shares (inclusive direct and indirect interest) - based on shareholdings disclosed on Reports and Financial Statements dated 30/4/2012
• Fast Global Investment Limited, Singapore (incorporated in Anguilla) holds 35,856,000 ordinary shares as at 3/9/2012

The following are some organizations who had taken up Private Placement on the Group's shares this year.

• PT Nusantara Rising Rich, Indonesia holds 29,500,000 ordinary shares and 44,250,000 warrants as at 4/7/2012 (Shares acquired via Private Placement on 26/6/2012)
• Telecity Investment Limited (incorporated in British Virgin Islands) holds 28,000,000 ordinary shares and 42,000,000 warrants as at 12/6/2012 (Shares acquired via Private Placement on 1/6/2012)
• Nutox Limited, Hong Kong (incorporated in British Virgin Islands) holds 32,016,600 ordinary shares and 48,024,900 warrants as at 25/5/2012 (Shares acquired via Private Placement on 17/5/2012)

To all punters and investors alike, market darling or goreng is insignificant as long as the share price goes up. As the chinese saying, the cat that catch the mouse is a good cat, irregardless whether it is black or white.