Three years before Lionhart Investment a UK based fund, took over this company shares for 7/= per share, taken over the controlling interest. This had 17.3 million shares issued quantity. They acquired 72.5% shares of walk and greig shares in June 2007 from brown and company. After that they increased their share ownership more than 90 percent. From that day onwards when we analyze this situation, the fact that we are able to see is that they issued 1 for 1 right issue at 20/= on 2009 January 5th and raised money around 347,721,600 million to the company with a issued quantity of 34,772,160. Few months later they issued 3 for 1 right issues at 20/= each, with 2 warrants for 1 right issue on 2009 April 24^th. Which can be converted in to shares in 2010 and 2011 for 22/= and 24/= per share respectively. From the 3 for 1 issue they had a issued quantity of 104,316,480.

1 for 1 right issue = 34,772,160

3 for 1 right issue = 104,316,480

Share quantity after 3 for 1 right issue = 139,088,640 

v  New cash flow = 2,086,329,600

v  Future cash flow

2010 warrants = 104,316,480 × 22 =2,294,962,560

2011 warrants = 104,316,480 ×24 = 2,503,595,520

From the second right issue the company raised over 2 billion to the company. And also they changed their name to environment Resource Investment PLC. The company raised LKR 347,721,600 in its first right issue completed on 25^th march 2009. It seems to be that their target is to increase the share capital and to bring foreign capitals to the company and take over several companies in the Colombo stock exchange or any other companies in foreign countries.

Sometimes, the issued share quantity can be over 1 billion issuing more right issues. In this process they have a opportunity to bring foreign funds to their company. And they can invest that money in the Colombo stock market or any other foreign stock market and also in other profitable ventures in the world. From that they can increase their wealth. And from that point gradually their share price will increase. At this situation many foreign funds will want to purchase these shares in the future. So then the demand for this share will increase.

If this company increases their share capital, there will be lots of shares to be purchased. They are building liquidity and market capitalization which suits the capacity of the outside world investors. Because most of the foreign investor’s doesn’t want to purchase shares of small companies, as a result 2 facts have to be fulfilled. It is high liquidity and market capitalization. When these 2 facts are completed the huge fund investors will tend to purchase these shares. Normally many foreign funds investing a minimum share value of over 1 dollar. In order to full fill this requirement the company should purchase more valuable assets in to the company using their capital in the near future. Then automatically GREG share price will increase over 100/=, if things happen similar to this. Today trading price of GREG is 34/=.

If we are monitoring this situation at Greg, we can consider that these are the infrastructures which are being created for the long run journey. My personal opinion is that, within 5 years Greg will be the most exciting and wealthy company in the CSE. Sometimes they might be able to purchase the ceylinco group assets or hotel sector companies, big buildings in the cities or may be power projects and also banks and insurance sector. Especially there is a probability that this company can purchase loss making small listed companies which belongs to the ceylinco group or any other companies belonging to the CSE and restructure them.

If you are a long term investor it is better for you to keep an eye on the shares of Greg. If u invest 100,000/= today, their will be over 1 million growth in your wealth within 10 years.

But if you are a good trader, you have to follow technical buy every support level and sell every resistance. Then you will be able to earn a huge amount of money.