Just before everyone gets too excited we need to remember every promise that has happened in the past. Yes, we all like the look of the presentation and its great to see some positive commentary around the future of the organisation and its potential opportunity but how is this any different than before? Yes it looks like things are heading in the right direction however the main issue for existing holders today is that nobody is buying, so there is zero realised value. Even if these changes result in turning additional profits there are 3 issues which will continue to impact holders and the share price moving forward:-
1. 1-100 Share Consolidation;- now this has only occurred as nobody (including employees) are unable move their existing shares and due to having more than 6.5 billion shares on offer the company is restricted from completing any more capital raising. This removes the incredible opportunity MOT was but at least now give everything some value.
2. Raise Equity for Cirralto acquisition; So we fix the share holding down to 65,000,000 and now we issue another 132.5 million new Motopia shares to cirralto shareholders. Understand their issue is at the equivalents of $0.04 but flooding the market with more than double the holding has to be a major concern to all holders. (maybe I have this part completely wrong but 132.5mil x $0.04 = $5.3mil)
3. Reduction in share price;- Even before any profits can be raised there will be a number of investors that just want out and the consolidation of shares, the further dilution through capital raising and the acquisition will just cause further erosion the share price.
Maybe I have this all wrong but this does not sit well with me but DYOR and GLTAH
MOT Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held