SINGAPORE (Feb 5): Malaysia-based Anchor Resources, which was listed in March 2016 as a gold miner, has changed its business model in the hope of stemming its losses. At the same time, with an eye on the slew of upcoming infrastructure projects in Malaysia, the company, whose assets are all in Terengganu, has diversified into granite production.

On Aug 21, it completed the acquisition of a granite company called GGT Manufacturing for $103 million. The acquisition was paid by issuing 712.2 million new Anchor Resources shares at 14.5 cents each. The deal was first announced in June 2016, when the company’s shares were trading close to that level. Since then, the shares have tumbled to just 4.5 cents.

Following the acquisition, Anchor Resources has more than one billion shares outstanding, up from just 310 million previously. Its market capitalisation is now $46.7 million — less than half the value at which it acquired GGT.

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