Market Speculation Regarding Recent Placements (NZAX: VML)
29th January 2015
VMob Group Limited – Market Speculation Regarding Recent Placements (NZAX: VML)
VMob Group Limited (VMob) is aware of media and market comment about the participation of certain VMob directors in its recent private placement capital raising, the completion of which was announced to the market on 26 January 2015. This comment has speculated on inferred or actual allegations of insider trading against the participating directors.
VMob and its directors are concerned about the ill-informed nature of these comments. There is no question of insider trading by VMob or its directors or anyone else in relation to the recent private placement. The Financial Markets Authority (FMA) has confirmed this to VMob.
VMob received legal advice on the private placement process which, as previously announced to the market on 11 December 2014, involved negotiations with interested parties to raise the desired capital. Those parties were mostly made up of high net worth individuals and institutions. Some of those parties were keen that VMob directors also participate in the capital raising to demonstrate their confidence in the company and further align their interests with those of other shareholders.
The participation of directors in the private placements is entirely appropriate. It is expressly allowed, and catered for, under the NZAX Listing Rules. The new insider trading rules in the Financial Markets Conducts Act 2013 do not apply to the issue of new shares by private placement (refer clause 20 of Schedule 1 to the Financial Markets Conduct Regulations 2014). This was also the case under the previous insider trading rules in the Securities Markets Act 1988. The FMA has confirmed to VMob that it is not investigating or making any enquiries of VMob regarding insider trading involving the placements. The FMA has made some routine information requests regarding the private placements and VMob will provide such information.
VMob is entirely confident that it and its directors have complied fully with all legal and compliance requirements, including under the Companies Act 1993 and the NZAX Listing Rules, regarding the undertaking and announcements of the private placements.
VMob remains focussed on implementing the recently announced global agreement with McDonalds and executing further deals in its pipeline as it continues on its growth path. VMob will continue to keep the market informed of further material developments in its business.
The VMob mobile engagement platform uses in-store beacon functionality, mobile vouchers and mobile loyalty to increase store traffic, improve in-store experience and build loyalty. All app content is tailored specifically to each shopper by our big data platform, running on the Microsoft Azure network, using a combination of historic information and live data points such as location, weather and nearby events. VMob is based in Auckland, New Zealand and is listed on the NZX Alternative Market (NZAX: VML).
VMob has already achieved success in worldwide markets with strong partnerships and clients including McDonald’s in the USA, Netherlands, Sweden and Japan, Exxon, Anheuser Busch, Telecom New Zealand, Telkom Indonesia, Loyalty New Zealand, and Yellow Pages.
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