TSK - TASK Group Holdings

[Plutus]

Hey Plutus, there's only a thin veneer between an anonymous handle and being outed.

Some might think a little more about whether it's a clever strategy to keep sticking the borax to a shareholder who is perfectly within their rights to buy or sell their shares whenever they choose to do so. It might not be convenient, but some may be relishing the opportunity to accumulate lower for longer.

So, I take it that you attended the AS meeting. I couldn't this time and am waiting for the video. What's your insights?

cheers
BAA

Insights - the preso said it all really. CEO very focussed on the big picture, Chairman focussed on the governance and strategy. Oh, and they should pick a better venue for the AGM next time - took me a phone call to find it.

[Baa_Baa]

Yep, NXT seems a poor choice, fortunately VMob have decided to do down the NZX route.

My view is that VMob's solution is very sticky. It sits in between the marketing strategy & programs, the back end CRM's and the up stream Apps/IOT devices. It will display via it's big data analysis and dashboards whether and how much the customers are converting their marketing programs into increased business revenues, by driving foot traffic, up selling and cross selling. VMob's solution is so deeply embedded in the fabric of their customers marketing programs, it is a lens on the customers marketing performance. It isn't likely, imho to be easily or readily extracted.

As for strategic investors I'd beg to differ that the NZ insto's would be the good source of capital. I think VMob are a bit more astute and are focused on securing investors who have a footprint in their market of IOT, Big Data, Mobile and Retail ... and big money to back their confidence. This they alluded to in Phil's address to shareholders. The focus shifted firmly to growth.

One day we'll look back on $5m cap raise as a rounding error. They carefully crafted a 25% capital raise ceiling in their previous cap raise/shareholders resolutions. They've hidden nothing from shareholders, saying they need to raise capital to get through to the ASX listing. Whether or not it's the ASX, they have about 2.5 months to raise $5m, which I calc at about 17% dilution, offset by promises to grow share value.

We'll see about all that, however we're riding a frisky pony here with enormous potential and I think they have massively over achieved and exceeded even the most optimistic shareholders expectations of even one year ago.

[klid]

Have read it all. (p.s. https://www.google.co.nz/search?q=retarded - I of course meant the second meaning not the literal age based meaning that you're seemingly assuming.)
They're basically saying that they reckon they should be valued a lot higher, so that's basically what they're saying.

Anyway I think all that is good, but it's not clear to me whether they are doing this capital raising because they absolutely have to or because they want to - they mention having a requirement to do and then allude that they will use it to ramp up things in the U.S... I don't mind either way given that they had previously assumed raising some capital from the ASX listing it's just a little unclear about the detail behind it. AMCR is quite close to last loss figure.

[mikeybycrikey]

Anyway I think all that is good, but it's not clear to me whether they are doing this capital raising because they absolutely have to or because they want to - they mention having a requirement to do and then allude that they will use it to ramp up things in the U.S...

I'm pretty sure they are raising cash because they have to. Basically all of this year they've been surviving on about three months cash.

On p 33 of the presentation, it says they've got $2.05 million in cash and have cash burn of 700k per month. So that looks like they're still working with three months cash.

Revenue and ACMR might have increased significantly, but with headcount going from 24 to 65 in the past 16 months, so have expenses.

[Baa_Baa]

I'm pretty sure they are raising cash because they have to. Basically all of this year they've been surviving on about three months cash.

On p 33 of the presentation, it says they've got $2.05 million in cash and have cash burn of 700k per month. So that looks like they're still working with three months cash.

Revenue and ACMR might have increased significantly, but with headcount going from 24 to 65 in the past 16 months, so have expenses.

Not forgetting that Microsoft have chipped in to the finances as well, although we don't know precisely how much, I understand that a "seven figure sum" was mentioned, without share dilution of shareholders equity.

This will defray costs and they've stated the purpose to accelerate sales and product development, I presume it's not out of the question that Microsoft will continue to 'invest' in the rapid growth of VMob.

[Monty]

I have been looking at the numbers for VMob. I know the cash burn rate is high, and understand the rationale for the high burn rate. I guess the ACMR of $4.5m might take a while to build up - but build up it will. Id love to see the ACMR continue to grow and maybe reach $8-9m by the end of the year. But is this possible?

I suspect it is off the back of the McDonalds Global and in particular the USA launch we have seen exponential growth from a very low base. So Vmob are going to need to secure some very large clients to continue this growth. I was hoping some months back that there might have been further announcements. Ikea while good is not enough. But then procurement processes in massive organisations is a difficult and time consuming exercise.

but I wanted to look at some of the numbers again. in earlier posts I have done some back of envelope calculations.

They say that VMob has 20m people using their Apps
there are 17300 mcdonalds stores (and 20,000 places in total - pg 32 of presentation)
We know clients include Esso (Mobil) Ikea and 7-eleven. (they really need a few more I think)

but on page 29 they outline the pricing solution

I have run the numbers based on low end estimates but using their own numbers (and there may be an upside to these numbers.

price solution	low end
description	income	units	revenue month	Revenue annual
customers	$4,000	20m	$80,000	$960,000
core service	$18	20,000	$360,000	$4,320,000
Internet of things	$5	20,000	$100,000	$1,200,000
Loyalty	$5	20,000	$100,000	$1,200,000
BI + Analytics	$5	20,000	$100,000	$1,200,000
				$8,880,000

Am I missing anything here, or is VMob on the cusp (using their own information) of breaking even?

[Harvey Specter]

As for strategic investors I'd beg to differ that the NZ insto's would be the good source of capital.

Agree but there is a hierarchy and an NZ Insto with a long term view is better than someone just wanting shares at a discount so they can flick.

[Plutus]

Agree but there is a hierarchy and an NZ Insto with a long term view is better than someone just wanting shares at a discount so they can flick.

Chair Norman is known to have seriously good connections in the investor world and probably part of the reason he is there. The CEO won't want to be diluted, so think all the right tensions are there for a fair capital raise.

[axe]

The CEO won't want to be diluted, so think all the right tensions are there for a fair capital raise.

Welcome to the forum Plutus. The CEO has diluted at nearly every capital raise over the last 24 months. You can see from these two SSH notices.

SSH: VML: SSH Notice: Sharbo Limited
VML
30/06/2015 16:39
SSH
NOT PRICE SENSITIVE
REL: 1639 HRS VMob Group Limited

SSH: VML: SSH Notice: Sharbo Limited

Disclosure of movement of 1% or more in substantial holding or change in
nature of relevant interest, or both

Date of relevant event: 29 June 2015
Date this disclosure made: 30 June 2015
Date last disclosure made: 30 January 2015

Substantial product holder(s) giving disclosure
Full name(s): Scott Bradley, Rebecca Bradley, Sharbo Limited

For this disclosure,--
(a) total number held in class: 17,281,095
(b) total in class: 66,494,449
(c) total percentage held in class: 25.99%

For last disclosure,--
(a) total number held in class: 432,227,361
(b) total in class: 1,468,406,587
(c) total percentage held in class: 29.44%


as at 16:13:42, Tuesday 18 February, 2014 (NZDT)
SSH: VML: SSH Notice - Sharbo Limited
Date of relevant event: 23 December 2013

Date this disclosure made: 18 February 2014
Date last disclosure made: 4 December 2013

Substantial security holder(s) giving disclosure
Name(s): Scott Bradley, Rebecca Bradley, Sharbo Limited
Contact details: Scott Bradley - Mobile 021 722 556 - Email
scott.bradley@vmob.co


For this disclosure,--
(a) total number held in class: 415,727,361
(b) total in class: 1,263,268,816
(c) total percentage held in class: 32.89%

For last disclosure,--
(a) total number held in class: 414,147,361
(b) total in class: 1,212,221,163
(c) total percentage held in class: 34.16%

Why do you think he will not want to be diluted in the next raise?

[axe]

Here is another one for you.

Date this disclosure made: 4 July 2013
Date last disclosure made: 22 August 2012

Substantial security holder(s) giving disclosure
Name(s): Scott Bradley, Rebecca Bradley, Sharbo Limited
Contact details: Scott Bradley - Mobile 021 722 556 - Email
scott.bradley@vmob.co

Summary of substantial holding to which disclosure relates
Class of listed voting securities: Ordinary shares
Summary for: Scott Bradley, Rebecca Bradley, Sharbo Limited
For this disclosure,--
(a) total number held in class: 412,767,361
(b) total in class: 945,865,146
(c) total percentage held in class: 43.79%

For last disclosure,--
(a) total number held in class: 412,767,361
(b) total in class: 780,566,771
(c) total percentage held in class: 52.88%

Going back to 2013.