Yeah1 announces plans to take up million-dollar loans
09:00 | 20/07/2019 Print Article
Yeah1 (code: YEG) has just announced a plan of taking out bank loans and guarantee for both the parent companies and subsidiaries after the breakdown with YouTube.
|The shareholder meeting of Yeah1 took place on May 9 |
Yeah1’s management board on July 19 issued Resolutions No.1907A and No.1907B. Resolution No.1907A approves the loan guarantees for the company's subsidiaries, including TNT Advertising Communication JSC ($6 million), Yeah1 Entertainment JSC ($2 million), and Yeah1 Brand Development JSC ($2 million).
In addition, Resolution No.1907B approved the parent company to take up additional loans of VND20 billion ($869,565). Thus, Yeah1’s total loan capital is VND250 billion ($10.87 million), including domestic- and foreign-currency loans.
According to Yeah1’s management board, the loans will be used to supplement floating capital, optimising and expanding Yeah1's production activities.
In the middle of June, Yeah1’s Board of Management approved Resolution No.1406B about setting a provision of $3.6 million for receivables related to the capital transfer at ScaleLab LLC.
As Yeah1’s business performance has been slowing down due to the problem with YouTube, this decision may put them at further risk. Accordingly, as of the end of 2019’s first quarter, Yeah1’s after-tax profit fell by 79.4 per cent due to cost increases, including the cost related to the break with YouTube.
As of the end of July 19, the YEG stock was around VND78,000 ($3.4), one-fourth of the price in June 2018.