We maintain Osim / Ron Sim is running out of options and time, a stance taken since Osim raised $12 mln in Jun ’08 via a rights issue of 136.6 mln warrants at 9 cents each, and exercisable at 35 cents each. The warrants are worthless today.

The latest 2-for-9 rights issue of ordinary shares at 5.5 cents each to raise a meager $6.6 mln for working capital reaffirms the difficulties facing the group, which includes Brookstone, the retailer in the US, whose accounts are not consolidated in Osim’s as it is classified a “Joint Venture”.

(As at end Sept ’08, Osim has borrowings of $79.7 mln, of which $56.54 mln is due within 12 months. 72% of Current Assets consists of Inventories and Trade Receivables.)

The rights issue is not being underwritten, which is hardly surprisingly.

Think about it, this is January, and retailers make money (if at all) in only one-to-two months of the year, and which is 10-11 months away.