KUALA LUMPUR (May 10): Sand Nisko Capital Bhd shed as much as 20.24% or 8.5 sen to 33.5 sen a share on Wednesday (May 10), after announcing that its unit had entered into a heads of agreement (HOA) with another company for a mixed-use development in Melaka.

At 2.20pm, the property developer and furniture maker's stock had recovered slightly to 34 sen, down eight sen or 19.05% from its closing price of 42 sen on Tuesday. This gave the company a market capitalisation of RM84.86 million.

Sand Nisko's wholly owned Len Cheong Industries Sdn Bhd signed the HOA with Evergreen More Sdn Bhd to express interest in developing three adjoining plots of land in Alor Gajah, Melaka measuring 519.5 acres (210.23 hectares) into a RM1.75 billion project named Meswara City comprising affordable and luxury homes, shops, a cultural village, hypermarket and university, among others.

According to Sand Nisko, it will "review and improve" the project to ensure that it is more viable and marketable, before entering into a final agreement with Evergreen More.

The HOA is valid for six months, with an option to extend it by a further six months.

Evergreen More is 70% owned by Teow Wooi Huat, who is better known as Tedy Teow. The 56-year-old was wanted in Malaysia and had earlier this year been reportedly extradited to China from Thailand for his alleged involvement in fraud and dubious investment schemes.

Sand Nisko, which has been loss-making for the past five quarters, reported a net loss of RM18.44 million for the financial year ended Dec 31, 2022 (FY2022), versus a net profit of RM1.43 million for FY2021, with revenue falling 51.5% to RM27.90 million from RM57.47 million.

Meanwhile, its cash and cash equivalents stood at RM554,311, according to the latest annual report.

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