How long until breakeven, page-6

A pump and dump does not make sense, in my opinion. Why would the directors put their own money in at 5.7 cents if they weren't sure they were going to profit on it? The placement involved directors, other existing investors (BlueRoom), and new investors. It is not the insiders who are dumping. It seems like retail investors panic and sell their stock. And maybe some broker who is short on the ASX manipulates the share price.

I think it is the market crash that has been happening over the past few months that got Newzulu on the wrong foot. There are only about 160 million shares on the open market granted the insiders do not dump. Again, why would they? They just put in lots of cash at 5.7 cents. As fast as it falls as fast it could go back up.

Regarding capital needs, the placement was done to cover the Octiplex acquisition cost and to have a better cash position in general, to cover a few more months or quarters. It may have been done early because management saw the market crash, so they decided to take the earliest opportunity so they would not have to do it even cheaper. I did complain about the placement price originally, but seeing the risk they took I understand now that they had to give themselves the discount.

And given they find agreement with (a/several) strategic investor(s) there will be no more need for further placements.

I added today. Whether or not that was a sub-optimal decision will be seen within a few months or years. Rocket or blank? We'll see.