Overheated Amedia

Last week, it is still well above RM1 level. It keeps on achieving new high for the past 2 months. Its chart shows a beautiful uptrend. It has a good earning record. It is ready to be transferred to main board.

Now, it is at RM0.34 level, fell 70% in just one week.

Even the announcement of proposed 1:1 bonus issue plus free warrants could not save Amedia's share from going further down. Why? Probably overheated stock, fried to too high level.

This is the risk and volatility of stock market.

      Amedia: Olympic 10m platform diving gold medalist

Amedia proposed bonus shares and free warrants:

• Proposed bonus issue of 250,800,000 new ordinary shares of RM0.10 each in AMEDIA (“AMEDIA Shares” or “Shares”) (“Bonus Shares”) on the basis of one (1) Bonus Share for every one (1) existing AMEDIA Share held at an entitlement date to be determined later (“Entitlement Date”) (“Proposed Bonus Issue of Shares”)

• Proposed issue of 250,800,000 free warrants (“Warrants”) on the basis of one (1) Warrant for every one (1) existing AMEDIA Share held at the same Entitlement Date as the Proposed Bonus Issue of Shares (“Proposed Free Warrants Issue”)

• Proposed increase in the authorised share capital of AMEDIA from RM50,000,000 comprising 500,000,000 AMEDIA Shares to RM100,000,000 comprising 1,000,000,000 AMEDIA Shares (“Proposed Increase in the Authorised Share Capital”)