It is pretty funny that those that are most upset about this aren't holders.
To be clear, I would have preferred this didn't occur. I would have rather seen this continue its run to 50c....which was clearly coming.
However, the stock had almost gone up 300% in the last month. And if I sat on the board I am not sure I would have voted against this. No business can expand globally quickly without sufficient capital, and for a business growing as fast as we have and with as much potential right now available to us we will require CASH.
If the markets collapse over the next few weeks and we end up back at 8c, the board will be criticised for not acting in the best interest of the company during this time.
I am not going to run through all the moving parts point by point. The key points are:
The decision to do this was made during a board meeting held on Saturday.
The company has been very actively approached from multiple parties wanting to get involved.
The management team will NOT make the same errors they made a year ago during that raise.
This raise is being managed by Evolution Capital.
They are raising $15m at 20c per share.
$12m will be new equity.
$3m is a sell down by the CEO who is using these funds to pay a tax bill.
The raised funds will be for general working capital to support organic growth & potential MATERIAL acquisitions to expand the GLOBAL presence.
This raise will NOT be allocated or offered to ANY retail brokers.
This is ALL going to Institutions.
Guys these are the facts as I understand it, I don't have the desire to field 100 questions calling for my opinion...as at the end of the day our opinions are irrelevant. If you do not like this, you can exit on Wednesday.
Unlike so many cap raises where holders can pick up the shares at the discount raise price, and sell on market for the arbitrage, this can not happen here. If you are a seller and you want to own this long term its too big a risk to exit hoping for a lower price in my opinion.
I am 100% supportive of management and this business and think its a 1 in a Million opportunity that will very shortly be trading at $1B Market Cap. I have not sold a single share and will not be selling any anytime soon. Clearly our new insto investors are feeling the same.
10x
VR1 Price at posting:
27.5¢ Sentiment: None Disclosure: Held
