- In recent years, the VONEX sales revenue has been growing at CAGR of ~ 23% which is sustainable without additional funding. Additional funding from the IPO will permit additional projects, which will accelerate this growth and provide good news and a more positive sentiment.
- Subsidiary companies (hosted cloud PBX) are profitable since FY 2016. Vonex group is already very close to break-even which will prompt profits early on after the listing.
- Oper8tor expenditure is R&D which will be returned via rebates to the company, offsetting any fears of high expenditure on this project and the financial impact to the group’s performance.
- The Oper8tor project is a major attractor to a large group of investors / existing holders. The commencement and reporting on completed stages will create excitement within the market.
- Existing shareholders from 2 years plus ago, would have largely written off their stock. General sentiment is to hold on to it and see what happens. These long-term holders have been consolidated by 10-1, so there is no early profiteering on offer for the existing register at current prices. A large number of major shareholders placed in escrow.
· Post listingcapital management to reduce the cost of maintaining the register, which mayinclude unmarketable parcel buy-back and placement of buy-back shares toinstitutions.
· Constant news flow is expected and this is expected to beoverwhelmingly positive. The active NBN migration in Australia is a reality forthe next 36 months, so this is not a business that will list and then proceedquietly. This will provide ongoing success updates.
· The business also plans to expand the wholesale white labelbusiness internationally. This will likely be done by partnering toachieve quick growth.
· The business is well positioned to acquire other businesses(where that make sense). This will bolt on strong and assured growth.
· Campaigns to promote the stock are scheduled for on marketsupport after the IPO. This includes the inclusion of an attractive 1:4offering of ASX listed options.
Vonex has contracts inplace with representation for PR, IR and other media channels with lengthy (butoptional) commitments post the IPO.