SPY V's PVO

[whatsup]

With the demise of PVO what are the chances of SPY pivking up some of the PVO pieces, they are in the same market and are currently be managed by Ian Bailey who I think was a founder who bailed from PVO after the JV of Cadmus/Advantage as he disagreed with the banding together of these companies.
Watch this space.

[Nigel]

I like SPY. I think they are heading in the right direction, operating at a cashflow positive level and expecting to be proftable within the next financial year. Some good people on board and still a tiny market cap! As well their EFTPOS interests they are also in some exciting spaces, managing NZ's largest WiFi hotspot network amongst others. Check out their website for more - www.smartpay.co.nz

Disc: held

[whatsup]

Game on, GREAT PICK whatsup at .012 2 1/2 weeks ago!!!

[Nigel]

Does anyone know what SPY are paying for this?

[Dr_Who]

Does anyone know what SPY are paying for this?

I was about to ask the same question.. LOL

Probably got it for $1 + $45m debt.

Will SPY need to raise capital?

[moimoi]

doubt it....ANZ will have just rolled the debt over to them.

[whatsup]

moi... I dont think so they will try to get the best price for the assets but there arnt too many buyers around .

[whatsup]

Heading for SPY's all time high from some 4 years ago all in the space of 5 days WOW!!!

[kizame]

Massive swing in the shareprice,back down to .008c Crikey mate.

[whatsup]

Have a look at SPY share trades ,today, some one (I think by mistake ) sold down 2,000,000 shares I think at market and dropped the buy side from .055 down to .008 per share there by tripping all of the soft now histroyic buys, now that the trade has gone the sales are going through normally at .05 again costing someone $70,000 approx,
In 30 years of trading I have never seen anything like this and never will again, unless there is a massive fund raising coming through and they know something that we dont, which cant be too good!!!

[Ayrton]

WOW. Maybe he wrote it in in dollar terms not cents, which would have been expected. a missed placed . could make a big difference.

[nwood]

SMARTPAY SNAPS UP NEW ZEALAND EFTPOS MARKET

SmartPay Buys ProvencoCadmus For $6M

Auckland, 20 August 2009 – Leading Merchant Services provider SmartPay Ltd (NZX: SPY)
advised today that it bought the Payments Division of ProvencoCadmus for $6M to become
New Zealand’s largest EFTPOS company.

Yesterday SmartPay said it had acquired the Payments Division of ProvencoCadmus including
the New Zealand and Australian operations, transactional business and all intellectual
property relating to payments.

Ian Bailey, Managing Director of SmartPay says the purchase was a very good deal and
provides SmartPay with the scale to grow both the New Zealand market as well as key
markets like Australia.

“We were very happy with the purchase of the ProvencoCadmus’ Payments Division for $6M
which will deliver significant value to the SmartPay business. The deal was completed by
an initial payment of $3M in cash with the balance of the purchase price to be paid in
cash in 90 days,” says Bailey.

Bailey adds that SmartPay’s business has more than quadrupled as a result of the purchase
which will boost profits going forward.
“The SmartPay customer base will now be around 30,000 terminals which will yield a
positive and sustainable revenue stream and provide the base for rapid growth,” says
Bailey.

SmartPay’s growth strategy is not over says Bailey.
“We are always looking for exciting opportunities and we have our sights on several other
businesses that will provide further synergies and complement our existing business
model,” says Bailey.

SmartPay will retain up to 50 ProvencoCadmus employees and will move into the existing
business offices of ProvencoCadmus.

ENDS

For further information contact:
Ian Bailey, Managing Director, SmartPay Ltd, Mobile +64 21 664 941
Julien Leys, JML Communications, Mobile 021 655 598, Ph +64 9 358 2828

About SmartPay Limited
SmartPay is a leading provider of integrated merchant services utilising the Internet and
broadband connectivity.
SmartPay’s product set includes:

Telecommunications products and services including Voice Over IP, Broadband, EFTPOS
terminals and secure EFTPOS internet connectivity Audio and video, music, messaging and
media via its Retail Radio product set.

Prepayment products and transactional processing services dominating the Taxi industry in
NZ.

SmartPay Core Products include:

- Wi-Fi – one of the largest networks in New Zealand
- In-store Audio Visual Promotional Systems – Retail Radio
- Internet enabled EFTPOS equipment sales and rental
- Gift Cards
- Secure Internet Payments
- Mobile Top-up
- Calling Cards
- Bill Payment Solutions
- Voice over IP (VOIP)
For more information please see our website – www.smartpay.co.nz

[moimoi]

anyone got a annual report for SPY.?

Did they have $3M on the balance sheet...if not where has the cash come from.?

[nwood]

As at 31 March 2009
Current assets
Cash and cash equivalents $56,000
Trade and other receivables $1,159,000
Inventories $324,000
Total current assets $1,539,000

Interesting.....

[fwu005]

anyone got a annual report for SPY.?

Did they have $3M on the balance sheet...if not where has the cash come from.?

going to be another capital raising ?

[Dr_Who]

The risk have now been transferred from PVO to SPY.

Market cap of SPY $23m with debt from PVO $45m. It will be interesting to see how SPY will structure this deal, cos the debt level is pretty high in any book.

[winner69]

Dr - surely SPY didn't take on the PVO debt?

[D_Pick]

I would expect SPY's debt to increase only by the purchase price of $6m.

The $45m owed by PVO should be the receivers problem.

Todays waiver announcement states that the business was valued by the market at an average market cap of around $10m pre acquisition announcement, and SPY have added a business worth $10m (which they purchased for $6m) in the eyes of the directors. Therefore ball park the market cap should be close to $20m/692.87m shares = 3 cents after factoring in the potential value of the business ($10m) versus what SPY paid for it ($6m).

The interesting bit for me is how/where are SPY getting $6m from to fund this acquisition?? I called the company and they weren't prepared to announce to the market yet how they were going to fund this deal.

As of the last FY balance date a good chunk of SPY's existing borrowings ($4.1m) appear to be from related parties associated with either Directors or major shareholders at relatively attractive interest rates from the lenders perspective (not so attractive from SPY shareholders perspective), between 14.95% and 20%.

[whatsup]

48% increase today whos watching: turnaround story here, from .01 to .042 in 6 weeks not too bad!

[pietrade]

48% increase today whos watching: turnaround story here, from .01 to .042 in 6 weeks not too bad!

The news looks all good - and I'm smiling. Funds better in here than in NWF at the moment.

[D_Pick]

SPY still haven't confirmed how they intend to fund the $6m purchase price?

Today's positive announcement is SPY's first quarterly announcement. Is SPY now reporting quarterly or are they getting investors excited before announcing a rights issue to fund the PVO payments purchase?

.....or do they have a lender who is willing to loan them $6m at 15-20% interest rates. Maybe a directors company, or alternatively I guess ANZ could be in the mix rolling over their position from PVO? The main bank lenders didn't appear willing to finance SPY in the recent past.

Is one positive quarterly announcement the turning point? I would like to think it is, but need a bit more transparency within SPY's announcements regarding funding this latest major acquisition. The 90 day clock is ticking to complete this purchase

[moimoi]

D Pick...given that Mr Maire has picked up the oil automation side of PVO, i find myself wondering if the funds don't come from a placement to the Todd's at 0.02's (or some other non disclosed equivalent) to complete "the purchase".