VR1 (ASX) Ann: Vection Broker Briefing Investor Presentation

Originally posted by mondyinvest: ↑

There has been the odd success but most have been far from that. I did some research on this broker at the time the VR1 capital raise was announced because I'd heard the name thrown with some vitriol online – the more I dug into it the more colourful it got, it was quite a rabbit-hole. The below is drawn from SMH and AFR articles and Twitter posts available online regarding deals Hunter/Evolution Capital did with listed entities. To be clear, I'm not suggesting any wrong-doing by the broker (clearly ASIC allow them to trade) but it seems to me there's a bit of an unfortunate pattern here:

Ardea Resources, set PT of $2.25 by middle of 2019, traded around the 50c range until January 2022, currently at $1.70.
Cellmid (now Anagenics) raised at 22c in May 2020 (a 32% discount to the 30 day VWAP). Has since changed the name and is trading at 4.7c.
CropLogic, IPO’d at 20c, now delisted. There’s a long list of posts by a well-known ASX Twitter critic, he predicted the downfall even before it listed.
Lake Resources, set PT of 55c in March 2018, within a week (!) raised capital at 13.5c, went nowhere for a long time (due to the lithium bear market) and is now wildly successful – but long after Hunter/Evolution’s involvement.
Magnis Energy, raised at 28c in February 2021, there was some fairly unusual price action in the lead up but the Fin put this mostly down to an interview from Alan Kohler: “In the two days after the interview, the company doubled in price, moving from a pre-interview 18.5c to as high as 39c. Nearly half (42 per cent) of the company changed hands, on massive volumes.” In fairness despite the volatility there’s been some success for anyone buying that raise.
Nova Minerals, lightning strikes twice. In November 2020 raised at 17c, a 24% discount to last close. Then in September 2021 did a Sunday-afternoon capital raise at 11c, raising queries from the ASX. Company has since done a share consolidation and is trading at the equivalent of 9.5c.
Prospect Resources, raised at 5c in January 2018, set PT of 14c in April 2018, traded as low as 2.6c (due to the lithium bear market). Now successful, but again – that is years after Hunter/Evolution’s involvement.
Raven Energy, raised at 1.25c in July 2017, set PT of 14c in September 2017 (!), sold their final assets in August 2018, now delisted.
Stellar Resources, raised at 3.5c in March 2018, set PT of 7c in April 2018, stayed in a downtrend until mid-2020.
Strike Energy raised at 11.5c in October 2018, ended up almost halving until mid-2019 when it took off. A rare success story for the broker.
Vection Technologies, raised at 20c in November 2021 – details all known. Pre-raise spike, followed by a heavy dump.

There’s probably more but that’s what I found. I know certain posters here think I'm just another downramper, but this information above is what prompted me to write a gentle warning on the VR1 threads back in November 2021: https://hotcopper.com.au/posts/57949479/single. Dare I state the obvious, the SP has gone -67% since then. It's a powerful lesson to always dig into a) which broker is raising capital and b) how they are being incentivised.

Cheers

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The way I see it, Good companies don't raise with Stephen Silver, however SS is very successful and makes his clients a lot of money.
If they lose on one, he puts them front of the queue on the next. Lose $10k on one, make $80k on the others. With enough clients its easy to do 20% dud raises but still keep everyone happy. That's the business model.

No.	Vol.	Price($)
3	1200460	1.9¢

No.

Vol.

Price($)

1200460

1.9¢

Price($)	Vol.	No.
2.0¢	3718089	9

Price($)

Vol.

No.

2.0¢

3718089

No.	Vol.	Price($)
3	1200460	0.019
4	5200070	0.018
12	1349008	0.017
8	1283415	0.016
10	4326966	0.015

No.

Vol.

Price($)

1200460

0.019

5200070

0.018

1349008

0.017

1283415

0.016

4326966

0.015

Price($)	Vol.	No.
0.020	3718089	9
0.021	500000	1
0.022	1255545	7
0.023	887320	8
0.024	1781000	13

Price($)

Vol.

No.

0.020

3718089

0.021

500000

0.022

1255545

0.023

887320

0.024

1781000

(20min delay)
Last 1.9¢		Change 0.001(5.56%)		Mkt cap ! $25.20M

Open	High	Low	Value	Volume
1.9¢	1.9¢	1.9¢	$16.14K	849.8K

Ann: Vection Broker Briefing Investor Presentation, page-69

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