Impact of Announcements and Events on R3D Global Limited Share Price

This report provides a comprehensive analysis of R3D Global Limited's share price fluctuations, focusing on the period between June 30, 2017, and June 30, 2018, where the share price dropped significantly from $0.045 to $0.01. The analysis explores the impact of key events, including the release of shares from escrow, substantial shareholding changes, the issuance of annual reports revealing continuous losses, dividend policies, and executive appointments. It examines how announcements and media releases correlate with share price movements, considering factors such as investor confidence, market reactions, and the company's financial performance. The report highlights the importance of company announcements and financial performance in influencing investment decisions and provides a detailed overview of the factors that have shaped R3D Global Limited's share price trajectory.

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary issues in accounting
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Executive summary
Purpose of the report is to evaluate the share price of R3D Global Limited and its share price
changes owing to different events those have direct impact on its share price. It is found that the
company’s share price is significantly changed between period of 30th June 2017 to 30th June
2018 and the same has been dropped to $0.01 from $0.045. Major reason for significant drop in
company’s share price was its poor performance and earning capability consecutively.

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Table of Contents
Introduction......................................................................................................................................3
Analysis...........................................................................................................................................3
Movement in share price.............................................................................................................3
Release of shares from Escrow....................................................................................................4
Substantial shareholding by Guildford Enterprise Limited.........................................................4
Changes in shareholding..............................................................................................................5
Issue of annual report...................................................................................................................5
Payment of dividend....................................................................................................................6
Appointment of Mr Daniel as no-executive chairman................................................................6
Appointment as the marketing representative of Horeca marketplace........................................6
Appointment by Ryde technologies.............................................................................................7
Continuous loss............................................................................................................................7
Conclusion.......................................................................................................................................8
Reference.........................................................................................................................................9

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Introduction
Aim of the task is to evaluate the link between the announcements, media release and
various activities of the entity and its share price changes. Different announcements have direct
impact on the share price movement of the company that leads to changes in the market
hypothesis. For this particular task R3D Global Limited will be taken into consideration and the
task will highlight the major events that had great impact on the share price of R3D Global
Limited during the period of last 2 years. R3D Global Limited that was formerly known as
Redchip International Limited is the Australian based company engaged in investor relations
related services. It offers financial media, investor relations as well as research for the small-mid
cap stocks. Further it provides the custom global distribution, publishing and the reporting
platforms for the clients (R3d.com.au, 2019).
Analysis
Movement in share price
Figure 1: Share price movement of R3D Global Limited

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(Source: Finance.yahoo.com, 2019)
The above presented graph is showing the movement of company’s share price for the
past 2 year’s period. It can be identified that the share price of the company is downward moving
till February 2019 however it started moving upward after that and continued its growth till May
2019 after which significant changes were not found till date. However, relevant news,
announcements and media release have significant impact on price movement and the
information is analysed by the existing and potential investors for decision making purposes
(Finance.yahoo.com, 2019).
Release of shares from Escrow
It can be identified that during March 2018 the share price of the company was in
significantly upward moving. Reason behind the same was that on 13th march 2018 the entity in
compliance with the Listing Rule 3.10A of ASX advised that on 23rd March 2018 the entity will
release 23,292.647 restricted fully paid ordinary shares from Escrow. The shares under Escrow
were restricted for the period of 24 months from date of re-quotation of the entity’s securities on
ASX after change in the nature of its activities as have been approved by the shareholders.
Release of the shares from the escrow signifies that the release of shares held by the early
investors or by the directors on which restrictions were imposed against selling for 1 to 2 years.
However, the releases of shares have big impact on the company’s share price (Market Index,
2019).
Substantial shareholding by Guildford Enterprise Limited
On 8th May 2018, Guildford Enterprise Limited became substantial shareholder of the
company through holding 54,43,755 fully paid shares of the company that entitled it to 13.23%

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of voting power. On becoming the substantial shareholders by Guildford Enterprise Limited,
rights of existing shareholders diluted that have significant impact on company’s share price
(R3d.com.au, 2019).
Changes in shareholding
On 8th May 2018, Petra Pacific PTE LTD changed its holding from 62.76% to 50.38%
that is from 25,821,863 shares to 20,728,108 shares. The shares were sold through off-market
sale which took place among 2 parties on terms those were mutually agreed and clearing
corporation and generally the stock exchange is not involved. Various advantages of off market
sales are that the company will be able to raise higher money if it can negotiate on that terms and
the sales can be made to selected investors who are aware of the returns and risk associated with
the securities. Further, it requires least compliance with the regulation (Asx.com.au, 2019).
Issue of annual report
The company generally provides its annual report for the period closing on 30th June
every year. Biggest impact on the share price of the company takes place after it discloses the
earning provided by it that is disclosed through the annual report. Basically, for the last 2 years
performance of the company it can be make out that the company is a loss making company and
is not able to provide positing earning to its shareholder. If it is looked into deeply, it can be
identified that though the company improved its earning capacity in 2018 as compared to the
previous year, it is still not able to provide any positive return to its shareholders (R3d.com.au,
2019). To be more specific, it can be stated that earning per share of the company changed to -
$1.50 cents per share for the year ended 30th June 2018 from -$10.47 cents per share for the
period ended 30th June 2017. Hence the decline in share price during that period is driven by the
fact that the existing as well as potential shareholders were not happy with the earnings made by

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the company and return provided to its shareholders. This can be further established through the
fact that the share price of the company for the period closed on 30th June 2017 was $0.045 per
share which dropped to $0.01 per share on 30th June 2018 (R3d.com.au, 2019).
Payment of dividend
The company has never paid dividend to its shareholders for last 5 years. Some of the
investors are there for whom dividend plays important role for investing in any company as they
prefer to get regular return on their investment. Hence, non-payment of dividend will de-
motivate specific section of investors from investing into the company. It will have adverse
impact on the share price of the company as the investors those prefer to get regular return will
never invest into R3D Global limited (R3d.com.au, 2019).
Appointment of Mr Daniel as no-executive chairman
On 31st august 2017, the company appointed Mr Daniel Yeo Chin Tuan as the non-
executive Chairman for the Remuneration and Nomination Committee. Mr Daniel has more than
25 years of experience in the senior executive role in the wide range of the corporate as well as
commercial roles. Further, he was the CEO of Man Financial Pte Ltd that is now known as MF
Global Singapore. Appointment of an experienced person like Mr Daniel increased the
shareholders confidence on the company that had positive impact on company’s share
(R3d.com.au, 2019).
Appointment as the marketing representative of Horeca marketplace
It can be identified that during April 2019 the share price of the company started moving
upward. The main reason behind the same is that the company was appointed by Horeca
marketplace as the company’s marketing representative for the new e-commerce campaign

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named as ‘Washoku Treasure’ in Australia. The e-commerce supply chain onboards campaign
for Japanese restaurants supplies directly from Japan through using online platform. As a part of
the campaign the company links Japanese restaurants starting with Sydney and onboard them on
the platform of supply order directly with access of thousands of the products from Japan in one
system. Most significant benefit achieved by the company through usage of electronic
marketplace like this platform is ability in connecting thousands of supplies in Japan with
hundreds of the restaurants in Japan. This had significant positive impact on the share price of
the company (R3d.com.au, 2019).
Appointment by Ryde technologies
Another reason of upward movement of shares of R3D Global Limited was its
appointment by Ryde in Singapore for providing the suite regarding investor’s relations and
communications service to Ryde in support with the company’s plan for expansion. Ryde is the
mobility app based in Singapore that has gained more than 80,000 drivers in its platform till date.
The company stated that it is very much comfortable with professionalism as well as expertise
that can be brought by Ryde and they are excited to see that they can work together for
propelling the brand into new markets in future. This had significant positive impact on the share
price of the company as the appointment by a big company like Ryde helped in gaining public
confidence that drove its share pricing movements upwards (Asx.com.au, 2019).
Continuous loss
Apart from the above the turning point for the company July 2017 when the share price
of the company started falling. The incident took place owing to the release of company’s
financial reports where it reported loss amounted to $65,48,482. Owing to the consecutive loss in
2017 after 2016 the shareholders lost their confidence in the company that resulted into

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significant drop in the share price of the company. Major reason behind the continuous loss of
the company was its significantly high amount of payments to the employees and supplies as
compared to the amount received from the customers. It was signifying that the company is not
efficiently efficient to generate income that can be used to meet its daily operational expenses
and providing return to the shareholders (R3d.com.au, 2019).
Conclusion
From the above analysis it can be determined that company’s performance and different
announcements have direct relation with its share price movement. If any investors want to take
any decision regarding investing into the company it can be done through following up the
company announcement and media releases made by it. Hence, it is recommended that the
potential investors shall go though the announcement made by the company before investing into
the company.

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Reference
Asx.com.au. 2019. [online] Available at:
https://www.asx.com.au/asx/share-price-research/company/R3D [Accessed 14 Aug. 2019].
Asx.com.au. 2019. [online] Available at:
https://www.asx.com.au/asxpdf/20180928/pdf/43yrw5t0ptfzrn.pdf [Accessed 14 Aug. 2019].
Finance.yahoo.com. 2019. Yahoo is now part of Oath. [online] Available at:
https://finance.yahoo.com/quote/R3D.AX?p=R3D.AX [Accessed 14 Aug. 2019].
Market Index. 2019. R3D Global Limited. [online] Available at:
https://www.marketindex.com.au/asx/r3d [Accessed 14 Aug. 2019].
R3d.com.au. 2019. R3D Global Appoints Regional Creative Director – R3D Global. [online]
Available at: https://r3d.com.au/r3d-global-appoints-regional-creative-director/ [Accessed 14
Aug. 2019].