Second time at the altar and groom walks. $1.15 down 80% on the news.
After a 20:1 reverse split on 4/25 that’s equal to $0.05 a share for pre-split shareholders, or an all-time low.
First was a canceled secondary in May of 2017 – where the Company noted it had “..successfully raised more than $45mm in equity and debt securities privately over the past few years.” Now this external problem with their Indian subsidiary, which blindsided the Company.
Things were looking rather bright, including a $5 million raise in February of 2017 and then the current rights offering which had subscriptions of $7.4 million and then boom – legal issues, delaying the completion of their 10K and Nasdaq Listing.
In an 8K and press release, they made note of these legal issues having the effect of not enabling the company to file its 10K (which is required for the Nasdaq listing) in a timely manner, so presumably rather than leaving shareholders hanging in the wind, they decided to terminate its rights offering and return the $7.4 million in funds to 218 investors.
So where does that leave the Company? The only thing we know for sure is no one we know, knows for sure. Is it lights out?
Have they been spending money under the assumption they were about to bank $7 million any day – leaving themselves extra vulnerable to cash crunch? All micro caps are risky but this chain of events makes them extra, extra risky. So sad.
Any lesson to learn? Since this was such a blindside, the only thing we can think of lesson wise is to always diversify. 80% hits are never pleasant, but if one issue only represents 5% of your risk portfolio (1 of 20 stocks), you just move on, like we are.
MoneyOnMobile Announces Termination of Rights OfferingPress Release.
DALLAS, TX and MUMBAI, INDIA / ACCESSWIRE / August 22, 2018 / MoneyOnMobile, Inc.(OTCQB: MOMT) announces that it is terminating its rights offering and returning funds to investors. MoneyOnMobile’s escrow agent received gross proceeds and subscriptions of $7,417,818 into escrow from 218 investors.
Upon closing of the rights offering, the Company would have issued to these investors 1,236,303 shares of its common stock. The closing of the rights offering was subject to MoneyOnMobile’s Common stock being successfully listed on the Nasdaq Capital Market Exchange. As of July 17, 2018, MoneyOnMobile had cleared all the requirements for the listing on Nasdaq except for the filing of its annual audited 10-K report. At this time MoneyOnMobile does not believe that periodic report can be completed in a timely manner due to Indian shareholders challenging MoneyOnMobile’s control of its subsidiary My Mobile Payments Limited (MMPL).
Management has learned of numerous unauthorized, illegal actions by MMPL’s Board of Directors which violate various investment and shareholder agreements in place. We are pursuing extensive legal actions to reverse such actions. We believe our legal case is strong and should prevail, however, there is no specific time frame for an ultimate conclusion. Therefore, MoneyOnMobile is terminating its rights offering and returning the funds to investors.”We could no longer in good faith hold investor subscriptions in escrow, without knowing when the end to this offering would come. We are obviously disappointed with this outcome and shocked that our local partners would mount this challenge in direct violation of our investment agreements, which they have confirmed many times as part of our annual audit process.” said Harold Montgomery, chief executive officer and chairman.
About MoneyOnMobile, Inc.
MoneyOnMobile, Inc. is an India focused mobile payments technology and processing company offering mobile payment services. MoneyOnMobile enables Indian retailers to use mobile phones to accept payment for goods and services or transfer funds from one person to another. It can be used as simple SMS text functionality or through the MoneyOnMobile application or internet site.
Safe Harbor Statement
This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-K filed on July 6, 2017. Forward-looking statements include statements regarding our expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” and “would” or similar words. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.
Investor and Media Relations Contact:
Past performance of other companies added to Institutional Analyst’s various newsletters or otherwise mentioned in its research reports, newsletters or communication is no indication of future performance of any current of future companies mentioned. This publication is a Corporate Profile and may not be construed as investment advice. This profile does not provide an analysis of the Company’s financial position and is not a solicitation to purchase or sell securities of the Company. Readers should consult their own financial advisors with respect to investment in this or any company covered by the Reviews. An independent financial analyst should verify all of the information contained in this profile with the profiled company. Institutional Analyst, Inc. the parent company of the Internet Stock Review is an investment research and public relations firm and associated firms, which has been compensated from the Company with five thousand dollars and five thousand restricted shares. In preparing this profile, the Publisher has relied upon information released from the company, which although believed to be reliable, cannot be guaranteed. This profile is not an endorsement of the shares of the company by the publisher. The publisher is not responsible for any claims made by the company. You should independently investigate and fully understand all risks before investing in this and any company profiled or covered by the publisher. The majority of startup companies have factors, which create an uncertainty about their ability to continue as a going concern. These concerns are typically related to dilutive of toxic financing (or lack of), competitive environments, lack of operating history and operating at loss levels which is typical of most start-ups. These statements can be found in their most recent 10Q filings and should most definitely be read. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this profile are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products or services, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company’s filings with the securities and Exchange Commission. Email: firstname.lastname@example.org