Society Pass was riding high earlier this year, after announcing they had successfully spun off one of its holding companies NusaTrip (NUTR), into a publicly traded entity. Near the same time, they announced they were in the process of spinning off another portfolio company, Thoughtful Media onto a public traded exchange.
There was a delayed round of applause (six weeks), and then a sudden recognition and understanding, of what Society Pass wants to do when it grows up. Which is to acquire stakes in additional yet to be announced SE Asia based start-ups, groom them, and then sell, or have the start-up listed on a publicly traded exchange – all with Society Pass retaining a sizeable stake. Sheer brilliance, if they could pull off the gameplan.
The shares and gameplan entered into a brief but explosive love-affair on Wall Street. Before the actual spin-off was completed, it was merely a gameplan or dream. Then it suddenly became a reality and the shares traded as high as $6.28 on record volume of 209 million shares. A curiousity of what they could next acquire, and spin-off in the future, came into the minds of investors. What if they could incubate and take public and additional three or four companies? What would things look like, if they incubate 20 or 25 more companies?
Can You Say Spike in SOPA’s Volume?
With the completion of just one IPO, Society Pass transformed from a SE Asia high-tech wannabee, into ‘mover and shaker‘ status, in the SE Asian tech community! Game-on.
In its most recent instance (NusaTrip), Society Pass turned a $5 million acquisition and grooming investment in NusaTrip, into a $56 million stake in a public company, at the time of the IPO.
That same stake (14 million shares at time of IPO) later grew to from a $56 million value, to more then $126 million. Then with little fanfare or explantion (or blame we might add), NusaTrip’s shares were halted from trading, along with nine other recent IPO’s.
Read More Here: Eight Recent IPO Companies Halted for Trading, in the Past Month.
We met with management recently, which did a presentation at the Wall Street South investor conference. Our question, and the question from many institutional investors at the presentation was, “when can we expect NusaTrip to begin trading again?”
As a reminder, the quote from the SEC was “..potential manipulation in the securities of NUTR effectuated through recommendations made to investors by unknown persons via social media to purchase the securities of NUTR, which appear to be designed to artificially inflate the price and trading volume.“
Managment’s answer: “We really don’t know. For real.” And that’s where we stand today. A bit of a quandry, we’d say.
At last look, both Society Pass and Nusatrip had plenty of cash and assets.
Society Pass Balance Sheet
Nusatrip Balance Sheet
Then add to the balance sheet the 14 million share stake that Society Pass has in NusaTrip worth $126 million, versus its market cap of $8.5 million and quandry comes back to mind. Or we should say at one time, worth $126 million.
Another important thing to remember, is when the the shares of a publicly traded company are halted, the business doesn’t come to a grinding halt.
Society Pass is still open and operating, NusaTrip is still open and operating, and Thoughtful Media is still open and operating. And they are all reporting good, if not record breaking numbers.
For the record (or as a reminder), Society Pass Incubates or Accelerates start-ups, with the expressed goal of grooming their portfolio companies, to the point of sale or spinoff, to monetize their investment.
Think of Society Pass as the next Y-Combinator..
Southeast Asian start-ups are often described as the beating heart of a region in transformation. They thrive in a landscape where youthful energy meets rapid digital adoption, creating fertile ground for innovation with the belief that technology, can leapfrog traditional barriers to growth.
What makes SE Asian start-ups especially inspiring, is their ability to blend global ambition with local ingenuity. Whether it’s fintech platforms bringing banking access to millions, or e-commerce ventures connecting rural artisans to global markets.
Ultimately, Southeast Asian start-ups represent hope and possibility. They show that innovation is not confined to Silicon Valley or Beijing (home to over 46 publicly listed AI companies) it can flourish in Jakarta, Ho Chi Minh City, Manila, or Bangkok.
Yesterday Society Pass announced they will now be looking into acquiring stakes in AI related companies and AI Datacenter related companies in SE Asia, Europe and North America. They will be filing an S-1 to raise a few million, to add to their war-chest, to get off to a quick start’
Press Release: Society Pass Incorporated (Nasdaq: SOPA) Rolls Out M&A Strategy
The common stock to be outstanding after this offering, are expected to be 8,160,319. They estimate that they will receive net proceeds of approximately $2,625,000, from the sale of the shares of the securities offered. At a $1.36 that would translate into a market cap of $11.4 million. A mere pittance compared to the potential, once (if) things get back to normal.
The description in the S-1 filing state:
Our plan to enter into AI-driven software and network infrastructure businesses, as well as to invest in data center and telecommunications operators, involves execution challenges. Identifying suitable acquisition targets, negotiating favorable terms, and completing transactions in a timely manner may require substantial financial and managerial resources.
Furthermore, following such acquisitions, integrating acquired AI-driven software and network infrastructure into our current operations could be complex and costly, particularly given differences in technology platforms, corporate cultures, and regulatory environments.
In addition, our management team has limited experience operating businesses in these new sectors, which may increase the risk of missteps in strategic decision-making, operational execution, and integration efforts. Failure to successfully execute this strategy could materially and adversely affect our growth prospects, competitive position, and financial performance.
One wild card, Society Pass some time back, received a warning letter from NASDAQ that their shareholder equity had fallen below the $2.5 million requirement. They cured that. But here’s a notice we’ve never seen before:
“The Company currently is subject to a Mandatory Panel Monitor for a period of one year from the date of the compliance letter. If, within that one-year monitoring period, Nasdaq finds the Company again out of compliance with the Equity Rule, the Company will not be permitted to provide Nasdaq with a plan of compliance with respect to that deficiency, and Nasdaq will issue a Delist Determination Letter without giving the Company cure or compliance period pursuant to Nasdaq Listing Rule 5810(c)(3). If we fail to meet the applicable Nasdaq requirements in the future and Nasdaq determines to delist our common stock, the delisting could substantially decrease trading in our common stock and adversely affect the market liquidity of our common stock; adversely affect our ability to obtain.”
Another day, another little worry.
We’ll be back with more..
For more information on Society Pass, please visit:
Website at https://www.thesocietypass.com or
LinkedIn at https://www.linkedin.com/company/societypass or
Facebook at https://www.facebook.com/thesocietypass or
X at https://twitter.com/society_pass or
Instagram at https://www.instagram.com/societypass/ .
Cautionary Note Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the completion and timing of closing of the offering and the intended use of the proceeds. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “project”, “plan”, “intend”, “believe”, “may”, “will”, “should”, “can have”, “likely” and other words and terms of similar meaning. Forward-looking statements represent Society Pass Incorporated’s current expectations regarding future events and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those implied by the forward-looking statements. Among those risks and uncertainties are market conditions, including the trading price and volatility of Society Pass Incorporated’s common stock and risks relating to Society Pass Incorporated’s business including the Company’s ability to develop and successfully change its business model and the Company’s ability to identify new investments and spin-off acquisitions. Cleint, Institutional Analyst has been retained SOPA with a combination of cash and equity for ten-thousand dollars per month, for a one year period.
Media Contact:
Raynuald LIANG
Chief Executive Officer
ray@thesocietypass.com
