@Buckland thanks for your constructive response! I don't think I...

@Buckland thanks for your constructive response! I don't think I missed the above, reason being, we do not have enough detail yet to be exact but only to assume.

my response to your first point.

1/ If Dropmysite is such a great company why do they want to list on the ASX
Easy answer, they need funds

Fair question IMO yes one of the main reasons private business go public is for funds, no body said Dropmysite is like Apple, IBM etc. ... we all know the risks behind start ups but what I do believe is Dropmysite has proven itself to be a start up company with a lot of potential, signing contracts with the likes of the worlds largest hosting company GoDaddy

GoDaddy is a publicly traded Internet domain registrar and web hosting company. As of January 2016, GoDaddy was said to have had more than 61 million domain names under management, making it the world's largest ICANN-accredited registrar.

Dropmysite has also been in business with GMO internet japan since 2013, if Dropmysite was not a good service why keep them for so long?

Dropmysite Pte Ltd, a leading website, email and mobile backup service, today announced that it has forged a strategic partnership with GMO Cloud West, a part of Japan’s largest Internet Company, GMO Group, to provide its Dropmysite website backup and recovery service to GMO Cloud West’s cloud hosting services WADAX customers as the WADAX Website backup option. Through this partnership, GMO Cloud West customers will now be able to automatically backup and recover their website and database from the cloud on demand following unplanned outages or other disruptions of service.

Again the following company has partnered with Dropmysite and still are using them. Why?

HostPapa web hosting announces new backup solution in partnership with Dropmysite Pte Ltd.

Oakville, ON, Canada; December 16th, 2014 – HostPapa Inc., a global leader in web hosting services, has just upgraded their online backup and disaster recovery offerings to Dropmysite, an industry leader in backup solutions. HostPapa’s customers around the world will now have seamless access and control to their website and database backups.

My point is a start up business will reach a point at some time were the sector is growing so fast, the company will need funds to expand.

Another benefit of going public is being listed on the stock exchange is spreading the risk of ownership when the company is in a phase of growth and most importantly free publicity.

so to answer your question, wanting to be listed on the stock exchange does not mean the business is crap.




2/ Do you think that the current owners are going to hand over there business for nothing
Again an easy answer no they will not, they will want to retain at least a controlling interest in the new company - so how many shares will need to be issued to them.

The answer to that is offcourse not!, if you compare EXM to other listed shells that have taken acquisitions, EXM if one of the few with so little outstanding shares which means for the business of interest to take control less shares need to be issued.

lets just says 400 million shares are issued for 51% control 780 million shares issued TOTAL, whereas other shells like RYG, SRT etc. have had them issued shares before they even started the IPO

So at 0.0.12 at lets even say 800 million shares on issue would give a market cap of 9.6 million and with consolidation and the raising of $3 million your working out is pretty close at $11.7 million market cap.

I'm betting that Dropmysite current revenue would be at least half of that so I still think this is a good deal if it goes through, but until we have definite revenue figure this is all just speculation.

Penny stocks are a Gamble and I'm betting on this one