VPC - Daily Discussion, page-1369

Is it really in trouble? Or is the SP just not at fair value? Revenue is growing at a decent rate, yes not BIG 50% QoQ, but an average 25-30% QoQ growth for the last four quarters is not terrible!

Perhaps Russell wakes up thinking things are going swimmingly well, but I'll update the market more regularly on things like sales once the register is a bit tighter and those loyal retailers hanging in there will be rewarded.

Meanwhile the Sophs allocation was heavily oversubscribed and Merchant Funds (a large existing institutional holder) and Jindalee (Connected institutional holder) are sitting patiently licking their lips with the $1m underwriting. That's 8% of the register! Merchant don't mess around - anyone that followed 1PG will know this!

If a Company is in serious trouble you don't get a heavy oversubscription and a strong underwriting by instos.

Yes we have taken a dilutive CR, but another was inevitable anyway with current growth rates meaning we would run out of cash just before becoming CFP.

So, instead of raising for WC in 3 months time, we have raised for a strategic investment which will should significantly accelerate revenue growth. Agree some of this raise may be used for WC purposes, but if we raised purely for WC in 3 months time, would this be better than raising now and getting the (hopeful) kick in revenue growth?

The more I look and research the NF deal and relationship the more opportunities I am coming across for Velpic. All it would take is one US government client taking up VR training to get the excitement back into this stock.

Cheers,
TT