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  1. #11
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    Quote Originally Posted by moosie_900 View Post
    And by that method also spend much, much more on listing on the market when they generate relatively small revenues p/year, thereby racking up debt? I don't see the Mad Butcher and VIL as very "sneaky" and have been relatively successful so far!
    NZX needs to address this issue.

    Companies need to be able to do a relatively cheap compliance listing (rather than backdoor listing) and then to SPP, etc as required. The issue with this is how do you get liquidity without founders selling out (which is a bad look).
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  2. #12
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    Quote Originally Posted by CJ View Post
    NZX needs to address this issue.

    Companies need to be able to do a relatively cheap compliance listing (rather than backdoor listing) and then to SPP, etc as required. The issue with this is how do you get liquidity without founders selling out (which is a bad look).
    A NZAX listing can be done reasonably cheaply.

    Problem is lack of interest from brokers and investors until the company has done the hard yards and delivered - i.e.. ATM, PEB and BFW.

    The NZX was supposed to review the whole issue of backdoor listing years ago after the Plus SMS debacle but in true NZX fashion, decided profit from listing fees was more important than the damage done to investors.

  3. #13
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    Quote Originally Posted by Balance View Post
    A NZAX listing can be done reasonably cheaply.
    I admit I haven't researched but why would you choose a back door listing if you can list a nice fresh company onto the exchange?

    Edit: thinking about it quickly, I assume these dormant shell companies have tax losses built up which would provide some value but assume these would be forfeited due to loss of continuity when bring in the new shareholders.
    Last edited by CJ; 21-05-2013 at 09:18 AM.
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  4. #14
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    Quote Originally Posted by CJ View Post
    I admit I haven't researched but why would you choose a back door listing if you can list a nice fresh company onto the exchange?

    Edit: thinking about it quickly, I assume these dormant shell companies have tax losses built up which would provide some value but assume these would be forfeited due to loss of continuity when bring in the new shareholders.
    Exactly.

    Look at who are behind the listings.

    We have in NZ, a Stock Exchange which puts profit above all else.
    Last edited by Balance; 21-05-2013 at 09:24 AM.

  5. #15
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    Quote Originally Posted by moosie_900 View Post
    Looks like we have a price capper at 1.5. Probably selling down for increased liquidity to bring more shareholders into a future capital raising just like SNK. Buyer beware!
    Increased liquidity?

    More like trying to get the hell out!

  6. #16
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    Quote Originally Posted by moosie_900 View Post
    lol, depends which glasses you are wearing
    Glasses of someone who has seen it all before.

  7. #17
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    Quote Originally Posted by moosie_900 View Post
    Does anyone follow this company who can give a quick summary of the accounts.

    I had a quick look - have they raised any capital since March? If not, it must be soon as they have negative working capital and are very cashflow negative.

    Does their growth story justify a capital raising?
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  8. #18
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    Quote Originally Posted by moosie_900 View Post
    Yes, they allotted another !100,000,000 shares at 1.25 cents in addition to the 800,000,000 they already have. Getting a bit ridiculous now...

    No doubt they will be raising capital again this year as well...
    Look at Seadragon and cry.

    Only 1.23 billion shares.

    And that's after a 100 for 1 consolidation in 2002.

    Which means there's really more like 123 billion shares on issue when adjusted!

  9. #19
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    Quote Originally Posted by moosie_900 View Post
    Christ almighty, that's insanity!
    Nothing insane about it. It's deliberate and strategic.


    They will keep doing share splits and consolidations to keep the share price looking 'cheap' to suck the punters in.
    Last edited by Balance; 14-06-2013 at 09:03 AM.

  10. #20
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    Quote Originally Posted by moosie_900 View Post
    Yes, they allotted another !100,000,000 shares at 1.25 cents ...
    No doubt they will be raising capital again this year as well...
    Based on 2013, that cash is only enough for a year so you are probably right
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