Ann: Application for quotation of securities - VMT, page-11

Investor presentation:

The rights issue was necessary because as reported in the early release of the Q3 report the companies main market , Europe, had collapsed, sales down 65% on PCP and wasn't expected to recover quickly.

Reasonable to assume that if there was any material change to this or materially significant positive news coming from emerging markets it would have been reported,


A few observations from the sidelines.

* Worth noting that all the directors took up their full entitlements and aren't able to participate in the shortfall without shareholder approval. If the directors have the financial strength to participate, and that became a necessity, share holders given their rejection of the opportunity to participate themselves, would have no reason not to vote in favour.

* The dearth of sellers doesn't provide any support to the disillusioned investor theory. Probably more a case of shareholders regretting their inability to participate.

* The shortfall was predictable given the current difficult environment that prevails in debt and equity market

* The shortfall isn't a significant part of the net assets so may not be of any real concern in the big picture.

* the $4m debt facility that was raised was unsecured so the existing and new factories remain available to provide security if debt becomes a preferred option.


Placing the shortfall:

IMO if raising the full amount on offer was imperative they would have priced the rights in conjunction with an under writer or strategic investor who had an appetite to take up the shortfall.


Timing of the shortfall closing date:

Interesting to note that the closing date on the shortfall has been set at January 6th 2024 which gives time to release a half year profit forecast and remove all uncertainty about the extent of the current downturn in the European Market and its effects on profitability and cash position in the lead up to the deadline that has been set..

Strategic Investor. Who might it be?

The shortfall could of course present an opportunity to invite a new strategic investor onto the register on attractive terms.

VMtT have a track record of pleasantly surprising. Charged have cash?

We can but hope that the fact there was no underwriter involvement is a strong indication that we aren't in for a dump to short term players who will want a quick exit and cause us to be subjected to the games people play in that space.

Getting out on the pump and back in at the end of the dump could be a good result.