Got a feeling they'll stick with the brand building and raise...

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AusSmallfry

105 Posts.

11/01/18

21:55

Post #: 30240416
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Originally posted by Quinten ↑

Yea it does look that way unless they can pull a rabbit out of the hat.
As i mentioned, they changed their strategic direction shifting from a model that appeals to asx investors (monetisation from day one of app release) to raise capital here, and then changed to "wait, we will build a global brand first" and monetise later. That model doesn't suit the asx hence the sell down. They should've stuck with the original plan or go back to the US as a private company hoping to get some VC fund like the rest of US tech co. Hell they might get lucky and raise $50mil to fund them the next few years and build a brand at a loss like other big tech co.

But now they're stuck here and probably regret taking this route. They even mentioned they're looking to source strategic investments from overseas because they know how to value an app company on engagement metrics and not revenue. So why come onto the asx, appeal to investors that monetisation will be on day one, show a full featured gamification app in the presentations here and then totally change the mentality to a private US tech co funded for few years by VCs?

Maybe it's the US advisory board that changed the Australian director's mind. Don't think Dion has much experience on the asx too. Their background seem to be based on VC funding mentality...who knows what happened...

Anyways it will be interesting to see how management will now takle this problem. I've already posted my thoughts on how they can try and turn around the company. And so far with the new monthly comp starting the app is STILL NOT UPDATED. Got a feeling they'll stick with the brand building and raise capital overseas ditching asx investors. Let's see if their plans are better than mines...

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Got a feeling they'll stick with the brand building and raise capital overseas ditching asx investors. - how would this work?

MSM Price at posting: 4.7¢ Sentiment: Hold Disclosure: Held
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