SV stock

shogunone

Seems they are selling a block of stock.

 

http://www.aktietorget.se/NewsItem.aspx?ID=57493

 

Also if you are following the stock it fell through the floor today.  I think that is because they are selling 9mill shares.

Slapshot1188

It fell through the floor because they are offering the new shares at 0.36 SEK per.  This is the equivalent of 5 1/2 cents US per share at current exchange rates...   For anyone who said the company was doing fine and didn't need money.. well this should be a real eye opener IMHO.  This is a stunning drop considering it was trading as high as 4.5 SEK at one point...

 

 Two warrants entitle the holder to subscribe for one new class B shares at a subscription price of SEK 0.36 per share in cash during the period from 29 March 2011-13 April 2011.

 

http://translate.google.com/translate?hl=en&sl=auto&tl=en&u=http%3A%2F%2Fwww.aktietorget.se%2FNewsItem.aspx%3FID_News%3D57498%26Language%3D2

Neloth

I wouldn't touch SV stocks with a 10 metric meter long pole

raff01

It was pretty obvious that it was coming. I stick to what I said that MO won't make it past 2011

rhinok

From the link above:

At the board meeting Tuesday February 16, 2011, the Board of Star Vault AB (publ) decided to conduct a rights issue of up to 9.946 million Class B shares, equivalent to 3,580,560 SEK before transaction costs, to strengthen its financial position. Star Vault has received subscription commitments and guarantee the subscription of approximately 90 percent of the issuance and statement of intent representing approximately 10 percent of issuance. The decision is subject to approval at the forthcoming Annual General Meeting on 21 March 2011. Although the public is given the right to subscribe for shares in the issue.

In other words, they need cash..  9.946 million shares @ .36 SEK is ~ $547k USD.  So, it appears they're trying to raise at least 1/2 million dollars.  That's a lot for a small company.

As for the guarantee, it seems like they're saying they have guarantees to purchase ~90% of the shares. If so, then they'll get a nice chunk of cash from the issuance.

Their annual report is due. It should be interesting..

~Ripper

HerculesSAS

This is kind of funny.. they are floating new shares to get some more cash, further diluting their valuation in the company. Since StarVault is run basically by friends of Henrik and his family, I imagine this will probably go forward.

 

That said... I'm just waiting for Henrik to pimp the shares on the MO message boards. He will actively target fanboys to buy up shares.

 

What's going to be even more funny is what will happen after this. StarVault is OUT OF CASH. We all know this. The use of floating the shares is a feeble attempt for them to 'cash out'. Months of effort and there's been little movement on the development front, so my guess (and it's just a guess), is that Henrik and Co are going to float these shares, wait till the capital comes in, take the money and run.

 

Hope I'm wrong, but I work in finance and I've seen it done more than a few times. It's illegal, but hard to prosecute as well. Since these are open shares, investors are taking a 'risk' in buying them, and that's why unethical CEOs get away with behavior like this. While people will poke at me for saying it, I honestly feel that you have a duty to your friends that do play MO to know that this is a *very* possible behavior, and they should NOT invest into SV's shares unless they think it through. If they still want to take the risk, I hope they enjoy losing money, because that's all SV's stock has been doing, dropping like a rock.

SHOE788

If SV were making profit, it seems unlikely that they would sell more stock. Seems to me like a last ditch effort for funding.

cirsyndic

I'm not buying the "guarantees for 90% of shares" story.

HerculesSAS

Healthy companies don't issue more stock, they buy back stock.

And as far as the 90% is already sold.... I doubt it myself because you can't have guarantees once it hits an open market.

Slapshot1188

Originally posted by HerculesSAS

Healthy companies don't issue more stock, they buy back stock.

And as far as the 90% is already sold.... I doubt it myself because you can't have guarantees once it hits an open market.

 Maybe Daddy Nystrom has promised to buy the shares if noone else does...

 

The point is that they are selling these shares at 0.36 SEK... which is a dramatic fall from the 4.5 SEK it was trading at one time.. and I believe it is far short of the original offering price (too lazy to look it up right now).   It will be interesting to read their Annual Report which I believe comes out next week as they will likely explain the need for this action (my guess is debt > income)

HerculesSAS

Originally posted by Slapshot1188

Originally posted by HerculesSAS

Healthy companies don't issue more stock, they buy back stock.

And as far as the 90% is already sold.... I doubt it myself because you can't have guarantees once it hits an open market.

 Maybe Daddy Nystrom has promised to buy the shares if noone else does...

 

The point is that they are selling these shares at 0.36 SEK... which is a dramatic fall from the 4.5 SEK it was trading at one time.. and I believe it is far short of the original offering price (too lazy to look it up right now).   It will be interesting to read their Annual Report which I believe comes out next week as they will likely explain the need for this action (my guess is debt > income)

I doubt it... Henrik's dad dumped his shares already, presumably to inject cash. If he bought shares to inject cash that would just be pointless, he can just hand them the cash directly.

Pimpin-Smurf

There is no liquidity. They are selling stock in a last desperate attempt to make money off of a failed game before they file bankruptcy. One bad decision after another. The majority of American players who played beta never bothered to buy it because the servers in the wrong dam country which has also lead to this failed prediction system and client side hit detection which absolutely destroyed the game.

 

 

http://www.aktietorget.se/QuotesInstrument.aspx?Language=2&InstrumentID=SE0002149369

raff01

wow, stock fell to 0,38 today ! its completely worthless now...the end is near SV, repent !