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Hot Topic Hawke’s Bay
Hot Topic Hawke’s Bay
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FMA still seeking clarification from VMob

FMA confirms it is not looking into insider trading specifically.

Duncan Bridgeman
Thu, 29 Jan 2015

The Financial Markets Authority says it is still seeking clarification from NZX-listed VMob [NZAX: VML] around its market disclosure after the software company issued a statement today saying its directors have been wrongly accused of insider trading.

In its statement VMob said its directors were concerned about “ill-informed” media and market comment about the participation of certain directors in its recent private placement capital raising.

The company went on to say there was no question of insider trading by VMob or its directors or anyone else in relation to the recent private placement.

The FMA had confirmed this, VMob said.

“The FMA has made some routine information requests regarding the private placements and VMob will provide such information.”

On Wednesday the FMA said it is looking into disclosures by VMob relating to a $2.17 million private share placement announced shortly after a global deal with fast food chain McDonald's.

VMob said it 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 directors participated in the capital raising to demonstrate their confidence in the company and further align their interests with those of other shareholders,” the statement said.

Asked to comment on VMob’s statement, FMA spokesman Andrew Park said the regulator did not normally comment on inquiries or requests for information in secondary markets. “In this instance the issuer, VMob, has chosen to make a statement.”

“FMA confirms it is not looking into insider trading specifically - since there is an exemption from the usual insider trading rules for new issues of shares. However we continue to seek clarification on certain matters as we are reviewing the chain of events more generally.”

It's understood that the VMob directors participating in the placement were existing shareholders, chairman Phil Norman and founder and managing director Scott Bradley.

VMob, which software platform allows retails to offer discount vouchers that consumers can download to their smartphones and redeem instore, with consumers able to search for deals near their location.

The company announced an interim loss of almost $2 million in November on sales of $500,000.

 

Duncan Bridgeman
Thu, 29 Jan 2015
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FMA still seeking clarification from VMob
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