Yeah1 (YEG) has just raised 450 billion VND in capital, the general director immediately resigned.

Stocks priced at over 300,000 VND plummeted, just raised an additional 450 billion VND from issuing shares

Yeah1 (YEG), the stock code that once made waves in the Vietnamese stock market with an exorbitant price of over VND 300,000/share. Currently, in the trading session on September 18, 2023, the YEG code is only traded at VND 13,100/share, a decrease of dozens of times compared to its peak.

Yeah1 recently announced that the company has successfully issued 45 million individual shares at VND10,000/share. Thus, the total amount of money that Yeah1 has raised is VND450 billion. The individual shares are priced about 23.6% lower than the market price and will be restricted from transfer for 3 years from the date of issuance.

yeah1 yeg just raised 450 billion dong in capital, general director continuously in office picture 1 — Yeah1 (YEG) General Director just contributed an additional 35 billion VND and immediately resigned (Photo TL)

The above issuance plan was approved at the 2023 annual general meeting of shareholders organized by Yeah1. The amount raised is expected to be used to contribute VND137 billion to 1Production LLC; VND23 billion to Yeah1 Up LLC; the remaining VND290 billion will be used to supplement the company's working capital.

The list of investors participating in the stock purchase includes 15 investors. Notably, many of them are senior leaders of Yeah1 such as: Chairman Le Phuong Thao bought 4.2 million shares; General Director Dao Phuc Tri bought 3.5 million shares...

The CEO just bought shares and immediately resigned.

A recently announced development that surprised many Yeah1 shareholders was that Mr. Dao Phuc Tri, CEO of Yeah1, had submitted his resignation. It should be noted that Mr. Tri had previously purchased 3.5 million shares in an additional issuance to raise capital for Yeah1.

The reason given by Mr. Tri is that he wants to focus on his duties as a member of the Board of Directors, building direction and strategy for Yeah1's international markets.

The resignation of a senior leader right after Yeah1 successfully raised VND450 billion has raised many questions from shareholders, especially when this leader just bought shares at a price 23.6% lower than the market price.

Besides, Yeah1's business situation in the first half of 2023, although it has recovered compared to previous quarters, has not been able to regain its glory a few years ago.

Specifically, in the first 6 months of 2023, Yeah1 recorded revenue of 38.8 billion VND, profit after tax reached 23.6 billion VND, a sharp increase compared to the same period last year. The reason explained by the company is that financial revenue increased sharply with dividends received from subsidiaries.

However, the above results are still too low compared to the peak period from 2018, when Yeah1 achieved a revenue of up to 638.4 billion VND in Q4/2018 and a profit of 48.9 billion VND. Thus, Yeah1 still has a long way to go to regain its previous peak period.

Source