SINGAPORE (Oct 9): IPCO International, the company linked to John Soh, the alleged mastermind of the 2013 penny stock crash, has announced it is actively looking to raise funds from a third-party investor via a placement or rights issue.

See: Perhaps it should've been called the 2013 great penny stock manipulation

This comes after another Soh-linked company Innopac last night announced it was selling 8.4 billion new shares to investors.

See also: Innopac selling 8.4 billion new shares to investors; plans to cut loose troubled units

In particular potential investors are interested in IPCO's three entities, Capri Investments, ESA Electronics and Hubei Zonglianhuan Energy Investment Management (HZLH).

Capri is currently working with Jones Lang LaSalle and John L Scott to sell or develop its land in Seattle. After land improvement and subdivision, each lot is slated to have a market value of US$80,000 to US$100,000. Valuation of Capri’s land is at US$9.45 million, and has “pre-approved” funding of its engineering expenses for the next 12-18 months by financial institutions of US$700,000 to US$800,000. Additionally legal action has been taken to pursue the US$2 million owed by HeHome Development for the balance of sale proceeds of the 96 land lots sold in 2015.

ESA has performed well despite difficult trading conditions, and is now looking to expand production outside of Singapore. This is to achieve higher production levels to meet future demands.

“ESA is financially strong to provide on-going management fees to the company and it has the ability to declare dividends to all its shareholders,” says IPCO in a statement.

HZLH provides a utility service on a concession basis, and has a good rapport with local governments and banks. “Its banks are unlikely to ‘call-in’ loans without a long notice period as this may cause disruption to civic services. Banks in China do recognise such concession type arrangements as it is an increasing popular way for local governments to fund infrastructure projects,” says IPCO.

HZLH has been profitable in the last seven years of operation, holding 30-year gas supply concessions in four Hubei townships. Three of the four townships is seeing a significant build-up of pipelines to consumer, commercial and industrial customers. The company’s profitability is set to grow in tangent with population growth of its subscribers.

“The fourth concession Guangshui is in its ramp-up stage. This township has a large industrial users and is expected to exceed the other 3 concessions in terms of revenue and cashflow,” says IPCO.

“Being listed on China’s New Third Board, HZLH has in place a vehicle to raise additional finance in this market if required. HZLH is in discussions with financial institutions in China which showed positive interest in the financial backing of HZLH should it require funding,” it adds.

Later in the evening of Oct 9, the company announced separately that  it will apply for its shares to resume trading.  "The Board is satisfied that Company is able to reasonably assess its financial position and will make a formal application to the SGX-ST for resumption of trading in the shares of the Company," states Innopac. Trading of the company's shares have been halted since June 4. It last traded at 0.2 cent.

Soh, who has been held in remand for almost two years, has been slapped with 189 charges, mostly for stock manipulation but also for cheating and witness tampering.

Quah Su-Ling, former CEO of IPCO and who is said to be romantically involved with Soh, has been hit with 178 charges.

Goh Hin Calm, a former interim CEO of IPCO, faces six charges for abetting Soh and Quah.

Both Quah and Goh are out on bail.


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