mm2 Asia

[Behappyalways]

Cathay Cineplexes owner on its financial struggles: Interview with mm2 Asia founder Melvin Ang
https://m.youtube.com/watch?v=J757O5SQQv0

[CY09]

https://mothership.sg/2025/09/cathay-cin...s-refunds/

Cathay Cinemas has gone down, MM2 has written off this segment. It is likely MM2 shareholders will get anything in the liqudation after creditors and liqudator fee.

What's next are the value of its 2 other subsidaries Vividthree, Unusual and the local movie production. It's 2 listed segments are loss making while the content, movie production seems to have 5 million in net profit if no impairment. It might be advisable that MM2 starts to sell off its Unusual managment and Vividthree stakes (40 million worth based on market cap and its relevant stae)and use it to pair off its debt at parent company level.

From there, use the local movie profits to slowly repay its $170 million in debt. Its a company teethering on large debt, small profits and weak cashflow. Company has done several rounds of equity raising but might need one to two more rounds to stay solvent

[CY09]

https://links.sgx.com/FileOpen/mm2%20Asi...eID=890939

An impairment of about $120 million was done for its past movie production (which includes the propaganda films of Ah boys to men franchise by Singapore's MINDEF)

Negative net liabilities of $219 million of which consists about $60 million in borrowings from UOB Bank. Existing shareholders will likely see massive dilution as MM2 tries to seek a restructuring. Personally, I rather the entire company goes down and CEO Melvin, and Osim Group does an entire write down of their tens of million put in. It's a worthless Singapore movie production company which has not created much good titles

[CY09]

https://links.sgx.com/FileOpen/mm2%20Asi...eID=896625

A S$15 million equity injection to raise just S$12 million for the purpose of partially repaying its S$100 million debt would require issuing shares at approximately 0.0918 cents per share—a price that is even below the SGX's minimum permitted trading price. Such a recapitalisation would result in severe dilution for existing shareholders, effectively wiping out much of the remaining value of their holdings. Long-term investors, including institutional shareholders such as OSIM's V3 and StarHub, would see their investments almost entirely eroded.

For founder Melvin Ang, the outcome is markedly different. Following MM2 Asia's IPO, he had previously monetised part of his stake through share sales to private investors. Although he subsequently reinvested capital to increase his ownership and has drawn a multi-million-dollar annual remuneration package over the years, he has nevertheless realised several million dollars in personal proceeds since the IPO. In contrast, long-term shareholders who remained invested have experienced a near-total destruction of shareholder value, with only a small fraction of their original equity remaining.