VMT 6.67% 14.0¢ vmoto limited

Ann: Vmoto secures $9.6 million after strong demand in placement, page-50

  1. 29 Posts.
    lightbulb Created with Sketch. 4
    We're talking about investors not acquirers...

    7% discount is way better than the usual 15-20% most placements are at, and it's 3x more than the SPP price. You dont do a placement based on the future value of the company, you base it on the price and on what's best to move the company forward so everyone makes money.

    A 'potential suitor' would be paying a premium because they would take over the company at a valuation multiple or a potential goodwill premium or along those lines etc..

    You guys are being very critical of a small cap that now has $17M in the bank, cashflow positive, and achieving record sales.

    Maybe read a textbook or something on corporate finance if you're not liking today's announcement. Or go invest in a company that is doing raisings at premiums (good luck with that).
    Last edited by pavo17: 13/08/20
 
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