Currently in a trading halt pending an acquisition where its due to come out either monday or tuesday.
Shares - c861m
Cash - $3m
MC - $5.1m
EV - $2.1m
Extremely cheap shell. And we now know a deal is imminent.
Top 20 shareholders includes Chapmans, Peter Proska and Peter Wall.
Directors are all Chapmans - screams a Tech. Acquisition of some sort.
Recently the Chapmans VAMP IPO was pulled due to the high valuation of $40m which struggled to raise the funds.
In the AFR recently Moelis who were conducting the deal revised down the VAMP valuation to $20m.
This was in the AFR and subsequent to this article a placement was conducted by CMY at a premium which included a tonne of free options which i assume is in proceed to the vendor (coincidental this CMY placement at a premium to the market price occurred after the VAMP IPO fell over?)
CMY currently has 861,927,274 shares outstanding post the recent placement with options.
A $20,000,000 VAMP valuation/861,927,274 = $0.023 share price. This represents a 284% return on the current trading price of 0.6. I remind you that that CMY traded at 2c post consolidation in October when there was only speculation of a deal.
2.3c would exceed the 2c ASX relisting requirements and therefore a consolidation would not be required for CMY. Note, they consolidated in October last year where the share price ran to 2c but has fallen to a low of .6 since then as no deal eventuated. A lot of stale holders were very negative regarding a previous medical marijuana deal which fell over who have no patience obviously sold at this point.
At 3c it would value VAMP at circa $25.8m. Given the IPO was initially thought to be at a valuation of $40m this would be achievable in my opinion. Hence why this could easily have a PSF type run if it is in fact VAMP. All IMO.
Even if the proposed acquisition is not VAMP i am sure it will be something which is worth watching when the share price is at .6.
Chapmans have a number of private equity holdings under their belt. Skyfii?? Digital Star Media Holdings?? Whizz?? Dont forget they hold a 15% stake in Digital4ge Pty Ltd who were behind Reffind. Digital4ge were the largest shareholder in CMY but sold there holdings in CMY last year (and I do say at 1.8c+ post consolidation at a very decent profit). HOWEVER, this does not mean Digital4ge now completely have nothing to do with CMY. These guys trade in and out of stocks just as much as we do. Digital4ge Pty Ltd may even be looking to list but thats a long shot??
The deal might not be VAMP. It might not be any of the things I have mentioned. But there are too many big hitters in this top 20 for it not to be one to get on. Placement shares to Peter Wall i believe were at 1.1c as well as many other top 20 holders. Therefore at .6c it screams a bargain! Hence why i think this could run extremely hard when it does. All IMO but definitely one to watch and worth a punt. Could easily see 2c very easily given it traded at 2c in October on speculation of a deal.
