EMCOM No Longer Majority Shareholder In K-1

Last Updated on Wednesday, 19 December 2012 22:22 Thursday, 22 November 2012 17:03

Written by Rian Scalia

There's been some movement over the past few days in regards to the shares held in K-1, which is a subsidiary of EMCOM.

EMCOM is no longer the majority shareholder in K-1. Yesterday, six million new shares, for six million Hong Kong dollars were issued to LEXI INVESTMENT LIMITED. Essentially, this mean's EMCOM's stake in K-1 is now 0.085%, compared to its previous 51% stake.

So what does this mean? Essentially, it looks like K-1 is trying to raise some capital due to losing a lot of money and have found a third party in LEXI INVESTMENT LIMITED to allocate shares to and get an investment from.

There's also a release on EMCOM's website that details this issue, although it's in Japanese. What I can make out is that K-1 lost a lot of money (which we already knew) and that operating costs exceeded expectations and that by performing the allocation of shares to a third party, K-1 essentially is trying to generate some new working capital to continue operations, and ultimately try and make K-1 successful enough to be able to make money and pay off its debt and the investment. [source]

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