For subscribers
How two savvy investors of a foreign private company lost $700k
Sign up now: Get ST's newsletters delivered to your inbox
The main investor put in over $560,000, comprising $280,000 of his own savings and loans of $280,000. His cousin chipped in with $140,000.
ST ILLUSTRATION: MANNY FRANCISCO
Follow topic:
- Investors lost $700,000 in an overseas healthcare group due to a deal lacking transparency. Initial rosy projections of a 9% dividend and tripled value attracted them.
- Red flags included higher share prices than previous investors and shares sourced from the CEO, with no guaranteed dividend terms in writing.
- The High Court dismissed their claim, highlighting the illustrative nature of projections and the investors' failure to conduct thorough due diligence.
AI generated
SINGAPORE - Two seemingly savvy investors who lost over $700,000 found out the hard way that failing to check the rosy numbers served up by promoters is often a recipe for disaster.
The main investor, a chartered financial and alternative investment analyst, thought he was onto a sure-fire winner when he was offered a chance to invest in an overseas private healthcare group. He also roped in his cousin, who was a partner in his investment firm.
