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Re: [sharechat] ASX: MUL - Multiemedia UPDATE


From: "Cristine Kerr" <criskerr@optusnet.com.au>
Date: Mon, 23 Feb 2004 09:00:46 +1000


 
MUL - ASX Announcement this morning:
 
Acquisition of IP Access International
 
Multiemedia Limited is pleased to announce the signing of a Letter of Intent to acquire US based IP Access International including their North & South American Satellite business and global network and customer base.
 
Preliminary due diligence has been undertaken ...... Further due diligence will be undertaken ....... over the coming weeks, with a view to executing the definitive Purchase Agreement within 60 days.
 
........... consideration for the acquisition is part shares and part cash and earnings per share in Multiemedia are expected to increase as a result of the acquisition.
 
Intention to Pursue NASDAQ Listing: As part of its strategy to expand its worldwide network and to access the US Institutional and Retail shareholder base, Multiemedia has secured sponsorship from the Bank of New York to establish a Level 1 American Depositary Receipt (ADR) Program that is expected to lead to the trading of its ADR's in the US Over the Counter market with the ultimate intention of trading on the NASDAQ Exchange.
 
Directors of Multiemedia will investigate an appropriate schedule and strategy for further development of the ADR program to the benefit of all shareholders.
----- Original Message -----
Sent: Thursday, February 19, 2004 10:41 AM
Subject: Re: [sharechat] ASX: MUL - Multiemedia

MUL - Multimedia (not yet edited):
 
Total Shares Issued: 1,140,605,652  (Very high - will impact liquidity)
 
1) Price:
 
Reached .006c April 2003 so there could be long term holders out there who could afford to go close to this and still be in front.
 
Also, has only been travelling in the 6-12c range since around September2003 so there is some danger from those who bought well under these prices between Feb02 and Aug03, however; one would think if they were going to get out, they'd have already taken advantage of recent increases SO my best guess is there would be some stability/support around 6c.
 
2) 10.2.04 announcement - new issue: 1M shares are payment for consulting services
 
3) 14.1.04 - significant contract signed with Airworks on behalf of major Airworks client, Woolworths - conditional on certain commercial criteria - based on satellite broadbank to 700 Woolies stores - includes additional hardware sales opportunites - hailed as vote of confidence in NewSat solution which went live Oct03 (could be commercial criteria have been met so the build up could be related to this announcement)
 
4) Director share purchase: Clinton Starr 20/1/04 - disposed 802,809 for $47,595 in January, 6/2/04 - disposed 2.5M for $209,668 in Feb, shares remaining 25.5M, so disposal did not represent a large percentage of his total holding but an opportunity to take advantage of increased share price.
 
5) 6.1.04 - USA Dept of Defence now live in Iraq - opening of Middle Eastern/African NSS6 beam - first customer US Dept of Defence went 'live' - successfully implemented a hub that enables broadband to over 30 countries - Multimedia's Newcastle based space facility is considered to be one of the most advanced VSAT communications Hubs in the world with both the Aust and middle eastern services operating simultaneously
 
6) 16.12.03 - two tranches of options were issued a) 35M @ 10.5c b) 55M @ 8.75c (exp 1.12.08) were allocated
 
7) Change of Directors Interest Notice: 4.12.03 - John Walker - acquired 83,333 $5K, sold 25,000 $2.5K - held after change 643,333
 
8) Change of Directors Interest Notice: 4.12.03 - Adrian Ballintine - acquired 166,666 $10K - held after change 31,008,976
 
So far, with the exception of number of shares and number of options on issue in terms of liquidity, all very, very positive.
 
9) 3.12.03 - allocation of shares as result of SPP (share purchase plan) - a) 249,999 @ 6c and b) 15385 @ 6.5c
 
10) More director share change announcements - not yet viewed
 
11) 13.1.03 - delivers broadband - WaveCall, the world's leading provider of Maritime Satellite Voice and Data Services has selected Multimedia's NewSat services to exclusively deliver broadband to ships at sea within Aust coastal waters utilizing SeaTel's state of the art antenna system. Service available during first quarter 2004.
 
12) 14.11.03 - Chairman's address to shareholders: very positive - refers to VSAT as having extraordinary potential
 
13) 1.10.03 - full year accounts $16,027,818 net loss in 2002 was quite high but was reduced by 30 June 2003 to $5,623,809. As at 30.9.03 company had liquid funds of $1,696,375. Events subsequent - $4.25M capital raised through clients introduced by Findlay & Co Stockbrokers. Reduced costs, supplier relationships improved and broadened. Director's shares as at 30.6.02 - 63,483,977. Total liabilities were $7,264,224 and without recent financials it is difficult to ascertain current revenue, debt, (and possibly profit) levels.
 
The wise and cautious would wait for release of financials before committing. This does not mean that everyone will wait for this as a look at the buyer volume tells us that there is anticipation in the air. Perhaps an anticipation of a half-year report.
 
A) Suffice to say  the release of positive/optimistic financials would push this higher. Loads of potential if they keep up this progress.
 
B) Providing cash burn is OK, debt has remained stable or has been decreased, and sales are continuing to come in, it should remain relatively stable but this would depend on market sentiment, i.e.; it appears the market is anticipating good news. Because Mr Market is very sensitive, he doesn't like it when his expectations have not been met. This could cause some volatility, which is a higher risk when liquidity is an issue due to higher total share volumes.
 
C) Anything outcome other than A) or B) is likely to cause a sell off.
 
Regards,
Cris

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