LAS VEGAS, Jul 24, 2007 (BUSINESS WIRE) -- VendingData Corporation (VNX : vendingdata corporation com new
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VNX3.90, -0.15, -3.7%) announced today that it will release its 2007 second quarter financial results before the market opens on Wednesday, August 15, 2007 and will host a conference call and simultaneous webcast at 10:30 a.m. EDT on Wednesday, August 15, 2007. Both the call and webcast are open to the general public.
The conference call number is 212/676-5360 or 415/904-7382; please call five minutes in advance to ensure that you are connected prior to the presentation. Interested parties may also access the live call on the Internet at www.vendingdata.com/investors; allow 15 minutes to register and download and install any necessary software. Questions and answers will be reserved for call-in analysts and investors. A replay of the call can also be accessed for thirty days on the Internet at www.vendingdata.com/investors.
Now I will apply my skill at copying and pasting to Vendingdata.
The SECURITIES PURCHASE AND PRODUCT PARTICIPATION AGREEMENT ( http://sec.gov/Archives/edgar/data/1004673/000089256907000947/a31070ppre14a.htm#120 ) mentions "Capital Raising:"
"(d) The Company shall use its commercially reasonable best efforts to raise additional capital (the 'Capital Raising') as soon as practicable after the date hereof and in any event prior to December 31, 2007, in order to repay all amounts owing to Elixir for EGMs purchased pursuant to Section 5.2(a) (the 'Elixir Payables') as well as any amounts owing pursuant to the 8% Notes. Elixir shall use reasonable commercial efforts to assist the Company in the Capital Raising. In the event the Capital Raising does not occur or is not sufficient to repay the Elixir Payables or purchase EGMs hereunder, Elixir shall continue to provide trade credit to the Company for its purchase of EGMs hereunder. Elixir Payables shall bear interest at an annual rate of 8%, compounded annually, commencing January 1, 2008."
Will Vendingdata use debt or equity to raise capital?
"... Without limiting the generality of the foregoing, until the Closing, except as contemplated by this Agreement or as required by applicable Legal Requirements, neither the Company nor any of the Subsidiaries shall, without the prior written consent of Elixir:
(d) except for intercompany indebtedness between the Company and any Subsidiary or between any of the Subsidiaries of the Company, (i) incur any indebtedness (except for borrowings under any existing credit facility incurred in the ordinary course of business consistent with past practice) or (ii) enter into any financing arrangements or modify the terms of any existing indebtedness or financing arrangements or (iii) prepay any interest on any indebtedness;
(j) issue, sell, grant options or rights to purchase, pledge, or authorize the issuance, sale, grant of options or rights to purchase or pledge any of the shares of the Company or any Subsidiary, other than (A) shares of Common Stock issued upon the exercise of options or warrants outstanding as of the date hereof, or (B) shares of Common Stock or Common Stock Equivalents sold at a price of $2.65 per share or greater; provided, however that in the event of any sale pursuant to clause (B) hereof, a corresponding increase shall be deemed to be made to the number of shares of Common Stock issuable pursuant to the warrants set forth in clause (i) of the definition of �New Warrants� such that, immediately following such increase, Elixir�s percentage ownership of voting securities of the Company, on an as-converted, fully-diluted basis (and assuming no sales of voting securities by Elixir), is not less than 75%;"
The agreement nearly seems designed to put Elixir in the position of (trade) creditor of VNX.
If I had two nickels left to rub together and thought VNX such a good long-term investment that liquidity was not a consideration, I would approach VNX about a PIPE. If you want VNX shares, why not get a good price and strengthen the company's balance sheet at the same time?
Do I detect some "bunching"?... ;-)
VWPT may be an 'interesting story in itself' - but it's a sad story for long shareholders today. Low of .62 today (so far).
When either VNX, Elixir, GPIC, or PGIC releases some PR then we'll have something on-topic to talk about. Speaking of which... since you are not interesed in if the company is profitable or not - do you think the quarterly announcement will have a positive, negative, or no significant effect on VNX share price?
Hey PJ---although I love your copy and pastings--lol--can you take the long stuff on VWPT to thier board? http://messages.finance.yahoo.com/mb/vwpt
This board is going to get busy-IMHO-in the future and I wouldn't want anyone to confuse the two.
Have a nice day---VWPT is an interesting story in itself.
In the 03/31/07 VWPT 10-Q ( http://sec.gov/Archives/edgar/data/919794/000093041307004335/c48446_10q.htm ) is:
"Strategic Partnership with DG FastChannel
On May 7, 2007, in connection with the investment by DG FastChannel, Inc. of $4.3 million of the $5.3 million raised in the private placement referenced above, the Company announced that it had entered into a strategic partnership with DG FastChannel, Inc., the leading provider of digital media services to the advertising and broadcast industries. DG FastChannel will integrate its media services platform with the Company�s Unicast advertising solutions technology to launch its latest advertising industry innovation by deploying a next-generation platform for managing and delivering both traditional and interactive advertising."
In Note 10 of the DG FastChannel 03/31/07 10-Q ( http://sec.gov/Archives/edgar/data/934448/000110465907038683/a07-11379_110q.htm#NotesToUnauditedCondensedConsolid_061210 ) is:
On May 7, 2007, DG FastChannel, Inc. (the 'Company'), purchased 10,750,000 common shares of Viewpoint Corporation ('Viewpoint') in a private equity placement at a price of $0.40 per share, for an aggregate amount of $4.3 million. Reflecting the Company�s and other investors� investments, Viewpoint has approximately 81,587,000 million shares of common stock outstanding with the Company owning approximately 13% of Viewpoint�s outstanding shares. As part of the transaction, Viewpoint issued the Company, and other investors, warrants to allow them to increase their equity stake in the future.
Further, the Company entered into a strategic relationship with Viewpoint pursuant to a Reseller Agreement by which the Company will integrate its media services platform with Viewpoint�s Unicast advertising solutions technology. This Online Video partnership with Unicast will enable brands and advertisers to turn their traditional and broadcast video assets into cutting-edge display ads that are pre-certified across thousands of websites. The Company has determined that this agreement is not a 'material contract' for purposes of Item 601(b)(10) of Regulation S-K."
There's SPDE, too. At $0.60/share, its market cap is about $9.6 million, and the 03/31/07 balance sheet ( http://sec.gov/Archives/edgar/data/1002520/000116923207002364/d71954_10q.htm#a1 ) has:
Cash and cash equivalents $8,936,287
United States Treasury bills $4,988,200
Marketable securities $370,795
Total current liabilities $982,411
(no other liabilities)
The problem is that management may succeed in finishing it off. I have a courageous buy order in at 50 cents.
VWPT taking ~ 25% beating today on moderate volume....down from the 1.07 price when you reccomended it on 7/26.
Sorry to see that for you.
1. What's the reason for the drop? I can find no PR or anything on a quick browse through the MB
2. IYO, Is today's .80 PPS the bottom or do you think there will be some margin selling later in the week?
3. Is there a danger of delisting again? (or do you think that VWPT will get back up above the 1.00 threshold as quickly as it fell below it)