NICORP, it is over now !

NICORP made another announcement last Friday after it was requested by the company to be suspended for the day pending announcement.

With the announcement, basically it answered all the excitement created by the counter. For last two week, the share price was up from 6.5 sen to highest of 75 sen, trading on the counter was super-bullish and its also get the query and warning (to investors) from Bursa.

In the latest announcement, NICORP told Bursa that it had entered into a heads of agreement (HOA) with Generasi Cipta to buy 60% of Sagajuta for RM240 mil.

Datuk Raymond Chan is also a director of Generasi Cipta, who incidentally bought 12% of NICORP shares from Crest Energy. Basically it was like a reverse takeover by NICORP.

The announcement includes:-

- To have the par value of NICORP reduced from 20 sen to 10 sen. The reduction of par value will indirectly      raise RM70 mil to set off NICORP losses of RM64 mil as at end of Sep 2011.

- Nicorp to buy the remaining 40% of Sagajuta shares which was not owned by Generasi Cipta.

- Issuance of ordinary shares, irredeemable convertible loan stocks (ICULS) and also free warrants.

- The projects with Sagajuta include 1Borneo Hypermall, 1Sulaiman, 1Gateway and 1Likas.

For details announcement here.

With the announcement, basically it will be the end of Nicorp excitement created for last two week. The next question is how will the market react to this announcement ?