The Stock Exchange of Thailand (SET) has issued a warning to investors, urging them to consider attending the annual general meeting (AGM) of More Return Plc (MORE) on Friday, while thoroughly reviewing the proposed capital increase of 30% of the company's capital.
This comes as the high-profile stock manipulation case involving MORE remains under investigation by the Department of Special Investigation, with multiple individuals implicated.
According to the SET, MORE's board proposed a capital increase by offering 2.15 billion shares or 30% of its paid-up capital.
The plan, scheduled for a vote at Friday's shareholders' meeting, is to secure funding for future business operations.
The newly issued shares could be allocated through a rights offering to MORE's existing shareholders, to specific persons via private placement, or as a public offering.
The SET requested MORE clarify its capital increase plan and provide details on how it intends to protect shareholders' rights, the bourse said in a statement.
"This information is crucial for shareholders to evaluate the proposal," noted the SET, adding investors can study the disclosures published by MORE on Feb 19-20, March 21 and March 28 for more details.
The SET said MORE shareholders should carefully review all related information on the proposed capital increase, especially the pros, cons, benefits and potential impacts.
Investors are encouraged to attend the AGM and ask the board and management for clarifications to ensure their vote is well-informed, the statement noted.
On March 21, MORE clarified certain financial statement items for 2024. The auditor flagged concerns regarding an advance payment for the Grand Ratchada project, which has shown no progress, and construction costs for the Loud Club, whose property will revert to the landowner at the end of the lease.
These two items totalled 259 million baht, accounting for 26% of the company's total assets, potentially affecting MORE's financial health and operational performance.
MORE has been under intense scrutiny since mid-2023, when the Securities and Exchange Commission (SEC) filed a criminal complaint with the Economic Crime Suppression Division and the Anti-Money Laundering Office against 32 individuals involved in an 800-million-baht stock manipulation scheme involving MORE shares.
The total financial damage is estimated at 4.5 billion baht. According to the SEC, the offences took place between July 18 and Nov 10, 2022.
The investigation revealed the accused were connected through personal relationships, shared financial interests, and coordinated trading activities and agreements designed to mislead the public about the pricing and volume of MORE shares.
Key individuals charged include former major shareholder Apimuk Bamrungwong and three members of the Phornprapha family.
The SEC concluded its investigation and submitted the case to the public prosecutor, who formally indicted Mr Apimuk and 42 co-conspirators.
The MORE case is considered one of the largest Thai stock fraud scandals in 30 years, severely damaging investor confidence in the Thai capital market.
The legal process has progressed slowly given the complexity of gathering evidence and the large number of individuals involved.