Xro - xero

[Peitro]

Very surprised that the deal did not include a non-compete clause, Drury has stated that

"(Giving Winkler a working role in the compnay is) a board decision once we have approval. Personally I would love to have Craig involved as much as he can."

I cannot see any reason why Winkler will not take up a position, which is a massive coup for Xero.


I am also surprised at the size of the capital raising - they are obviously going to take a very aggressive approach from here with a high burn rate

[CJ]

What % does this give the new guy and what percentage does Rod Drury (and the other founder) hold.

With two significant owners, you have to hope thier vison for the future is the same.

[nwood]

How will this new issue effect the SP with a 38% increase in the number of shares.

When is their next report due out?

[Stranger_Danger]

I suspect the share price will be reasonably solid now, for the forseeable future. Raising all that cash makes a real difference.

Despite all the bluster and spin about raising money from a position of strength and not having any bank debt (well, duh, no bank would have lent to them!) the reality is despite their progress, without a raising they would have been out of business in 6 months.

With the raising, the prospects change significantly and they should hit profitability well before the money runs out, even with aggressive growth.

For a company at their stage of development to raise that amount of money in this market is a real achievement and one can only admire the way it was done.

[CJ]

Guys look at the share price movements and volumes before the announcements.

This is the most obvious inside trading seen in recent memory.

People should go to jail for this. Where is the NZX, what is its point if it is not investigating this?

They announced the hook up with Telstra just prior to the new issue which could explain part of it?

There should be a please explain though

[Ponda]

XRO have announched this morning details of their Share Purchase Plan

[Peitro]

No limits on quantities reported? weird

[Ponda]

I thought that generally with a SPP that there is a limit of shares that you can purchase, i.e. you can only buy a maximum of $5,000 worth, regardless of how many shares that you actually own. This way it benifits the 'mum and dad' shareholders and stops the big institutions from getting their mitts on to huge amounts.
Also with other SPP's that I have been involved in, you are advised if it's on a 'first in, first served' basis or a scale back.
I have not been able to locate any further documentation in respect of this offer.
Maybe it is still coming.

[Ponda]

Thanks for that link.
Very informative.

[nwood]

The SPP will enable each eligible New Zealand based shareholder to apply for new Xero
shares up to NZ$5,000 at NZ$0.90 cents per share. The total amount to be raised from the SPP will not be capped and Xero will be accepting all applications (up to the maximum
amount of NZ$5,000 per eligible shareholder in accordance with the NZX Listing Rules).
The SPP will give Xero shareholders the opportunity to participate in the capital raising
and to increase their shareholding in Xero.