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MOL Global Extends Gains On Shareholder's Statement

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MOL Global Inc (NASDAQ: MOLG) extended its gains Wednesday, a day after its largest shareholder said he supports the company's management in spite of the company's recent share price plunge.

The Asian-based company traded recently up more than 11 percent at $4.08, after more than doubling in price Tuesday.

"I have the utmost confidence in the management and MOL," shareholder Tan Sri Vincent Tan said. Tan and the Sultan of Johor Ibrahim Ismail hold a majority stake in MOL.

Despite recent gains, MOL is down 49 percent since its initial public offering in October. The company's chief financial officer resigned November 20 for personal reasons after four months on the job amid a delay in reporting quarterly results.

On Monday, MOL's shares fell roughly 60 percent after the company said its third-quarter profits fell 61 percent because of delays in the company's ability to shift its gaming business to mobile platforms.

The company, which operates an online payment system and sells credits for online gaming, also disclosed accounting errors at its Vietnam unit.

With a market capitalization of about $274 million, the company said Monday it would buyback $15 million of its American Depositary shares and its Chief Executive Ganesh Kumar Bangah said he'll acquire up to $500,000 in shares over the next 12 months.

Tan said the departure of CFO Allan Wong "resulted in some unhealthy speculation" and the stock price has been "unfairly punished."

Regarding MOL's management, Tan said he has "encouraged them to continue to remain focused on executing their business plans."

 

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