QIS Update #1 2014 - January 8th 2014
Included in this update:
- Virtutone Networks announces financing and record monthly revenues, hires VP Finance
- The Virtutone financing is available to QIS Investors – Please call for more information
Happy New Year to all of our investors! We are gearing up for another record investment year and wish everyone the best!
During 2013, the QIS Capital Trading Summary generated a 40% return for the year. The portfolio balance as at Jan 1, 2013 was $58,385 and by the end of the year, it had increased to about $81,535. Over a 2-year period commencing January 1, 2012, the return was just over 63%. This Trading Summary is updated regularly throughout the year and can be viewed at www.smallcaps.ca/trading-summary.
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Virtutone Networks Inc. (VFX:TSX-V)
Current Price: $0.35 (coverage commenced Sep. 9/11 - $0.10)
Virtutone Networks Inc. has entered into an agreement with First Republic Capital Corporation respecting a brokered private placement pursuant to which First Republic will act as Virtutone's agent to sell, on a "commercially reasonable efforts" basis, a minimum of 6,666,667 Units of the Corporation and up to a maximum of 13,333,334 Units at a price of $0.30 per Unit for approximate aggregate minimum proceeds of $2 million and up to an approximate maximum aggregate proceeds of $4 million, subject to the receipt of all applicable regulatory approvals.
Each Unit is comprised of: (i) one common share of the Corporation; and (ii) one half of one common share purchase warrant of the Corporation. Each whole Warrant will entitle to holder to purchase one Common Share at an exercise price of $0.40 for a period of two years from the date of the closing of the Private Placement (the Warrant Expiry Date). If, during the period commencing on the date that is four months and one day following the closing of Private Placement and ending on the Warrant Expiry Date, the daily volume weighted average trading price of the Common Shares on the TSX Venture Exchange exceeds $0.40 for each day for a period of 20 consecutive trading days, then the Corporation may, from time to time, give the holders of the Warrants written notice (the Accelerated Expiry Date Notice) of such occurrence within 30 days of such occurrence, in which case the Warrants will expire at 4:00 p.m. (Calgary time) on the 30th day following the giving of the Accelerated Expiry Date Notice.
The Private Placement is expected to close, in one or more closings, beginning on or about January 17, 2014.
Virtutone has agreed to pay First Republic a cash commission of 8% of the gross proceeds of the Private Placement and to issue to the First Republic broker warrants to a maximum of 8% of the number of Units sold in the Private Placement. Each whole Broker Warrant will entitle to holder to purchase one Common Share at an exercise price of $0.30 for a period of two years from the date of the closing of the Private Placement.
All securities issued pursuant to the Private Placement will be subject to a four-month hold period from the closing of the Private Placement. The Private Placement is subject to approval of the TSX Venture Exchange.
The proceeds of the Private Placement will be used for general working capital and corporate purposes.
The securities offered pursuant to the Private Placement have not been, and will not be, registered under the United States Securities Act of 1933, as amended or any U.S. state securities laws and may not be offered or sold in the United States or to United States persons absent registration or any applicable exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Virtutone Networks Inc. has announced that the company generated over $8.45 million in revenue for the month of December 2013.
December was another record breaking month for us said Jason Allen, Chief Executive Officer of Virtutone. We’ve had a great year in 2013, are looking forward to an even better year in 2014.
Virtutone Networks Inc. has announced that it has appointed Mr. Brent Johnston as Vice President, Finance of the Corporation. Mr. Johnston is a Chartered Account, and has over 15 years of experience in senior financial positions in public and private companies, including Chief Financial Officer of Medwell Capital Corp.
Virtutone also announces that it has issued 300,000 stock options to Mr. Johnston in accordance with the Corporation's shareholder approved stock option plan. The stock options are exercisable at a price of $0.34 per share, expire in five years and shall vest as to one-third of the total amount thereof on each of the first, second and third anniversaries of the date of grant.
QIS Capital: For those interested in participating in the Virtutone financing, please contact us at firstname.lastname@example.org or (250) 377-1182. Virtutone is now running at an annualized revenue rate of over $100 million. This is compared to just $24 million for the latest 9 month results ended October 31, 2013. Management has stated that margins are approximately 4% on this revenue level and that annualized expenditures are approximately $2 million. We expect to see a significant improvement in normalized earnings in the next quarterly report.
Disclaimer: This article is for informational purposes only. The information contained within this article should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The company profiled assumes no liability for the information presented. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. The author(s) owns directly or indirectly 509,500 shares and 125,000 warrants of Virtutone Networks Inc. QIS Capital may have a financial relationship with these companies and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright © 2003 - 2014 QIS Capital Corporation.