QUOTE(Jordy @ Jul 3 2019, 11:09 AM)
Their main business will definitely not gulung tikar, but one is investing in its subsidiary companies now. It could be an empty shell company that people are investing into, which promises to take over the outlets from the owner once the funding is closed. The question is, why do they need to go through the hassle of setting up more than 10 subsidiary companies and restructure the whole company by breaking them down, for an investment plan which is merely valid for only 3 years? They could've allowed investors to buy into their main business that owns all the outlets, and then buy-back the investment 3 years later at the agreed return rate.
Remember Steven's Tea Garden (the subsidiary company of the so-called famous Steven's Corner) which invited the public to invest into its new revamped business? If my memory served me well, the business did not even last for a year, and I don't know of the story thereafter.
The more the merrier, as they say. It is supposedly to be an "equity crowdfunding", so there should be equity stake attached to the amount being raised. As long as they have more equity to sell, they could increase the amount to be crowdfunded.
my understanding is:Remember Steven's Tea Garden (the subsidiary company of the so-called famous Steven's Corner) which invited the public to invest into its new revamped business? If my memory served me well, the business did not even last for a year, and I don't know of the story thereafter.
The more the merrier, as they say. It is supposedly to be an "equity crowdfunding", so there should be equity stake attached to the amount being raised. As long as they have more equity to sell, they could increase the amount to be crowdfunded.
when investors made their investment, their monies go into the empty shell subsidiaries
once the tenure matured, the big boss behind winding up the empty shell, after transferring the assets to the main company
since the agreement only exists between investors and the empty shell sdn bhd, the main company behind got no liabilities to take care of the losses incurred
this happened to many Guaranteed Return Rate GRR scheme promised by developers