*** SEC FILING: FORM F-3 --------- VELT is heading for disaster Possibly Bankruptcy
ALERT: READ THE FILING
Points of Disaster:
1. We may need to raise additional capital to meet our ongoing capital commitments and to fund our operations.
2. The report of our independent public accounting firm for the year ended December 31, 2012 includes a reference raising a substantial doubt about our ability to continue as a going concern.
3. We have identified a material weakness in our internal control over financial reporting which could, if not remediated, result in material misstatements in our financial statements.
4. We have in the past and may in the future fail to comply with our financial covenants under our credit facility with HSBC.
Per the filing, Page 21, certain of the selling shareholders (who were part of the $1.50 purchase) have or will begin to sell their shares immediately following the registration of these shares.
And who knows what will be of the additional dilution shares paid to MIG:
• 5,670,311 ordinary shares issuable to the former shareholders of Mobile Interactive Group Limited (“MIG”) as acquisition related consideration pursuant to the Company’s acquisition of MIG.
Nice review of the building problems. It's now show me time, does management plan to turn around things to benefit current shareholders? It's going to be tough as a bleeding startup is more dangerous for shareholders than management.