I Don't Get It..... This is press release is really good for VELT going forward
They write off Mobclix and close "US Ops" so they can write off all the debt. They sell part of the company to erase all the debt without diluting current shareholders. And now have the backing of GSO which has committed to provide up to $25 million in debtor-in-possession financing, including a $10 million cash injection to support the operations included in the proposed sale. The filing does not include any of the Company's operations in the U.K., Greece, India, China, Brazil, Russia, the United Arab Emirates, or any other jurisdictions outside the U.S. These entities, along with the mobile marketing businesses in the U.S., U.K., and India, are continuing normal business operations. So basically we get a clean slate while owning Velti UK, Greece, China, Brazil, Russia and UAE? I quadrupled my position today as this has become a 500x bagger for the future.
there always "positives" to be found if you look hard enough for them. conversely, one can always find negative things if you look hard for them. at this point, it appears you are not beyond stage 1 yet since you are more concerned with your cost basis than fundamental profitability
I bought 30,000 shares today to average down and will hold until bankruptcy or $1. I can't see any downside left in the stock or any sellers as VELT will now become a trading vehicle and move 100% on a whim. I think GSO backing is a positive; they obviously are not here to lose money. Why would they buy the debt and provide additional money if they are going belly up? More then likely they are the ones buying all the shares today!!! They basically bought the debt and in my opinion all the stock down here for the ultimate bounce next year. Y/Y comparisons will be very favorable next year as all the money losing operations will be scuttled. GSO will obviously take control of the business and make them profitable going forward; Mobclix demise is a winner for us; debt write off is also a winner as well without dilution. JMO we will be over $1 after 1Q of next year.