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SINGAPORE : Singapore-listed Gems TV Holdings has announced plans to cease operations of its wholly-owned subsidiary, Gems TV USA.
That is because Gems USA has been unable to achieve sufficient operational and economic scale in the US market due to the challenging economic environment for the duration of its operations.
In addition, Gems said the increase in the price of gold from the time Gems USA commenced its operations in November 2006 has had an adverse impact on the margins and profitability of the firm.
Gems USA had not been able to fully pass on such price increase to its customers.
The Board will be evaluating various possible options to determine an appropriate exit strategy from the US market and to extract maximum value for its shareholders.
It will consider all reasonable options, including the voluntary winding up of Gems USA and the sale of its assets.
In the meantime, shareholders of the company and potential investors are advised to exercise caution in dealing in the securities of the company. - CNA/ms
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