"that the capital raising will be less than it might have been had the VMob still be making losses"
I am not sure what you are even saying here BAA. Do you know that VMob are no longer making a loss?
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Good things to come... watching and waiting...
http://www.marketwatch.com/story/us-...lts-2015-04-22
Don't make the mistake that this is actual revenue. Actual revenue for the year probably may not even be $1.5m.
This is certainly a good announcement though. Good to see a real bump in subscription revenue following on from the new contracts and hopefully it continues.
Hi axe,
To boil it down, there is a transitional period between the old law and the new law. At the moment, the law says that insider trading is illegal. However, for a limited time only it is not illegal if you do it by way of placement.
During the transitional period the laws that normally apply to an insider with information who acquires shares does not apply until the end of the transitional period. VML refers to this when they say:
VML says the law would apply but for the transitional period. VML finds it entirely appropriate to make use of this.Quote:
The participation of directors in the private placements is entirely appropriate. It is expressly allowed, and catered for, under the NZAX Listing Rules. The new insider trading rules in the Financial Markets Conducts Act 2013 do not apply to the issue of new shares by private placement (refer clause 20 of Schedule 1 to the Financial Markets Conduct Regulations 2014). This was also the case under the previous insider trading rules in the Securities Markets Act 1988. The FMA has confirmed to VMob that it is not investigating or making any enquiries of VMob regarding insider trading involving the placements. The FMA has made some routine information requests regarding the private placements and VMob will provide such information.
Do you find it entirely appropriate? :D
Baa
I think that VMob might be making losses for a couple of years yet, hence the need to raise capital. But 2-3 more contract announcements and that may well change especially as the big international retail organisations are undoubtably being chased for a VMob platform.
McDonalds was a game changer for VMob as today's result demonstrates, but this remains a company that has yet to get the attention of the big companies and funds that will really put pressure on he share price. I have no doubt that day will eventually come
It's a pretty sad reflection of the expected ethical standard of the people behind VMob that so many people on this forum are expecting that the upcoming private placement is going to involve a transfer of wealth from current holders to insiders and their mates.
I would rate it as a virtual certainty but I'm hoping it doesn't happen.
A good friend of mine contacted the company a day after the pre-IPO was first announced.
My friend asked to participate in the pre-IPO capital raising. Surprisingly, VML did not respond.
I wonder where else VML finds its pool of investors? You know, the ones to issue discounted shares to. How does VML find them if VML do not respond to direct correspondence making inquiries? :D
Perhaps your imaginary friend isn't wealthy enough, or didn't attend the Wholesale Investor & CMB investors breakfast, or oddly enough VMob didn't take seriously a random contacting the company by correspondence asking to participate in the pre-IPO capital raising, or something else, at the eleventh hour when they would have already lined up the money.
I do wonder as well why it's a surprise that VMob would do a private placement when they've not hidden the fact that they have been courting large private investors for months. And the ethics bandwagon has been well trodden, it is perfectly within the rights of the Board to seek funding from whomever they choose, whenever they choose. That will change with the ASX listing though.
And by the way, personally I've always found them to be very responsive and helpful when I've contacted them.
It'd be funny if the share price fell below 0.8 cents, making the who share consolidation a waste of time :D