On April 24, 2013, we closed a private placement of our ordinary shares transaction under which we entered into a Securities Purchase Agreement with certain institutional accredited investors. In connection with this transaction we issued an aggregate of 16,529,412 ordinary shares at a price of $1.50 per share resulting in net proceeds to us of $23.1 million . A substantial portion of these proceeds were used to satisfy our obligations to former shareholders and key employees of MIG.
While we anticipate generating positive operating cash flow for the year, this positive cash flow is not expected until the third quarter of 2013. As a result, we may need additional financing during the next three months to provide sufficient operational liquidity. This additional financing may be facilitated through the issuance of equity or debt. If we need such additional financing, there can be no assurance that our efforts to find such financings will be successful, or on terms favorable to us.
Our ability to continue as a going concern is dependent upon (i) HSBC not exercising its right to accelerate our obligations under the revolving credit facility (ii) our ability to maintain sufficient liquidity to meet our obligations arising from normal business operations when they come due and (iii) our ability to generate profitable operations in the future.
fooledby: like beta, just wanted to thank you for quoting a VERY relevant portion of the new 6-K. Certainly sounds like the next raise is only weeks - or even days - away.
One of the things I find really discouraging about being a Velti long is the quality of person VELT seems to attract, at least as evidenced by this board. I know YMBs are no culture center, but too many of the folks that write here are just rude lowlifes with IQs that match the PPS.
My bad, I didn't see this till now. Good reporting . It was filed 2 days ago and they clearly do say they may need more money since the cash flow picture will only turn positive late in 3Q, which means they will need it. Rats! Oh well, I shall wait to buy the next lot. Thanks for the heads up! Ross has really mis-managed the fundraising by diluting the heck out of the stock at these low prices. He should have done the first one when the stock was in the $5s and they would be done with it and diluted only 10% - instead of 40% and counting by waiting till the last minute! I guess every guy has a weakness and this is his....