MUL - Multiemedia Limited

[lescent]

Re: MUL - Where to from here?

The Dilution....a Tragedy in 5 Parts by MUL.

Well, long suffering fellow MUL shareholders, the heavy dilution has started.

Only recently MUL got $2,000,000 from and investor and now it needs
ANOTHER $525,000 for working capital. Where the hell did all the money go !!!!

The cash burn rate is phenomenal and seems to be a bottomless pit with
no profitability in site.

Imagine picking the lowest MUL share price day in YEARS to dilute the shares on issue by another 35,000,000 shares to raise just $525,000 - it beggars belief. The Board must expect the share price will collapse further and are eagar to get as much ino the till as quickly as possible.

If the shareholders don't vote accordingly at the General Meeting in June - then we deserve everything that's going to happen to us as we go down quicker than the TITANIC.

 

[Blitzed]

Re: MUL - Where to from here?

This is crazy to say the least, and doing it on friday the 13th.

Well for my 1 cent worth I think that they will give some good news before the GM....

either that or they are making monkeys of alot of people. (shareholders)

(I dont hold, never have but interesting to watch at times.)

 

[markrmau]

Re: MUL - Where to from here?

I live in the constant fear that one of the companies I have shares in will make an announcement after the bell on Friday afternoon.

 

[dmargon]

Re: MUL - Where to from here?

i agree with zoop!
Posted By: zoop In reply to: 5346
Posted on: 14/05/2005 06:13:33 AM Post: 5347
Prev Post Reply | Back To Board Next

I think there is a lie in the GM statements.
If MUL dont need to ask the shareholders to issue new shares then why are they asking approval retrospectively.
This is a waste of money for something that doesnt need to be done!
or maybe its an **** protection exercise!

i think this is the shareholders chance.
we should vote NO to the resolution, and get the directors buy back the shares and take them off the market!

they have s.c rewd us enough!

 

[u300314]

Re: MUL - Where to from here?

If you have got any Brains you will attend the meeting.

The directors normally will respond to any questions from the floor and it is the only way to get can a real perspective on where the company is at and its future prospects.

Also gives you the opportunity to make your own assessment on management, rather than speculating about the rumours and misinformation that are spread on a lot of these forums (Hopefully Ballantine will be able to return from sick leave to attend - luckily his sickness still enables him to sign ASX releases).

My guess is that Mul directors are aware (maybe even monitor) a lot of issues/speculations raised in the various internet forums (Company Update in April looks like an example) and are using the meeting to update on the various events they have been hinting at.

Hopefully for those still holding MUL the meeting will provide the news we have been waiting for. In the meantime, the share price will probably continue to fall back to where it was 2 years ago as some investors will want to realise tax losses and short term pundits exit (albeit recent falls have been on relatively low turnover).

 

[lescent]

Re: MUL - Where to from here?

I Agree with u300314 - we should ALL attend the General Meeting

.........and VOTE NO...NO...NO...NO....to the questionable resolution.

I haven't missed a meeting since 2001, and the ineptitude of the Board has escalated during that time.

It's EXTREMELY Interesting that Ballintine and the MUL Board have
called a General Meeting BEFORE they have to announce MULs half yearly AND full year results as at 30 June, 2005.
THINK ABOUT IT SHAREHOLDERS.

THINK about the Timing - how suspect is it !!!!!!!!!!!!!

EVERY MUL shareholder should be ready to join the shareholder group that's going to dump the Board and Senior Management AS SOON AS MUL advise
they've MISSED their FORECASTS as stated, restated and reconfirmed by Ballintine.

Also, MUL shareholders, if Chuck Ellison II is going to come from the USA for the meeting, then that's going to cost shareholders more than $6,000 just for his airfare because he travels business class. I guess that's why MUL has needed to raise another $525,000 last Friday to help pay for this USELESS expense and more useless cost excesses by MUL.

One thing u300314 is very WRONG about however, is his assertion about misinformation on this and other chat sites. This forum has been brutal in the accuracy and validity of its comments about MUL - for months.

Ballintine, Walker, and Ellison (if he shows up) are going to be roasted alive at the AGM - and I for one want to be there to ask about 10 interesting questions re. the full details of the $10,000,000 Equity Financing Deal; what MUL intends to do when it's share volume reaches 2,000,000,000 PLUS the approx. 300,000,000 options it has already issued; where's the solicitor's advice from MULs lawyers proving that they are going to successfully defend the $46,000,000 Supreme Court claim against it that goes to TRIAL on 3/10/05; why has Ballintine stated 3 times that MUL will have a net profit of $12,800,000 by 30/6/06; how did the Clinton Starr fiasco occur; why is the GM being held BEFORE MUL has to announce its results........................
heck, i've only just scratched the surface............

VOTE NO...; VOTE NO...; VOTE NO...; VOTE NO...; VOTE NO...;

 

[Knobby22]

Re: MUL - Where to from here?

The share issues show what I said some months ago.
Their cashflow situation is dire.

It is very possible that the company could go into liquidation shortly even if they make a profit due to their cashflow.

I think it is amazing they have convinced so many people to work for them for shares rather than cash.

It will be necessary for shareholders to agree to the resolution to keep the company operating.

In my opinion, the reason for the Annual Meeting being early is that the company has not got the cashflow to hold an extraordinary meeting and an annual meeting a few months later.

This is truly a company that needs a miracle. It is fighting to it's last to survive. Perhaps it shows that these profits are appearing and real maney may be made if they can get over this bump.

Disclosure: Still don't own any, unlikely ever to.

 

[lescent]

Re: MUL - Where to from here?

You're right Knobby22, MULs cashflow condition MUST be DIRE....that's why we MUST ALL.......

.........and VOTE NO...NO...NO...NO....to the questionable resolution.

I haven't missed a meeting since 2001, and the ineptitude of the Board has escalated during that time.

It's EXTREMELY Interesting that Ballintine and the MUL Board have
called a General Meeting BEFORE they have to announce MULs half yearly AND full year results as at 30 June, 2005.

THINK ABOUT IT SHAREHOLDERS.

THINK about the Timing - how suspect is it !!!!!!!!!!!!!

EVERY MUL shareholder should be ready to join the shareholder group that's going to dump the Board and Senior Management AS SOON AS MUL advise
they've MISSED their FORECASTS as stated, restated and reconfirmed by Ballintine.

Also, MUL shareholders, if Chuck Ellison II is going to come from the USA for the meeting, then that's going to cost shareholders more than $6,000 just for his airfare because he travels business class. I guess that's why MUL has needed to raise another $525,000 last Friday to help pay for this USELESS expense and more useless cost excesses by MUL.

One thing u300314 is very WRONG about however, is his assertion about misinformation on this and other chat sites. This forum has been brutal in the accuracy and validity of its comments about MUL - for months.

Ballintine, Walker, and Ellison (if he shows up) are going to be roasted alive at the AGM - and I for one want to be there to ask about 10 interesting questions re. the full details of the $10,000,000 Equity Financing Deal; what MUL intends to do when it's share volume reaches 2,000,000,000 PLUS the approx. 300,000,000 options it has already issued; where's the solicitor's advice from MULs lawyers proving that they are going to successfully defend the $46,000,000 Supreme Court claim against it that goes to TRIAL on 3/10/05; why has Ballintine stated 3 times that MUL will have a net profit of $12,800,000 by 30/6/06; how did the Clinton Starr fiasco occur; why is the GM being held BEFORE MUL has to announce its results........................
heck, i've only just scratched the surface............

VOTE NO...; VOTE NO...; VOTE NO...; VOTE NO...; VOTE NO...;

 

[Blitzed]

Re: MUL - Where to from here?

heck, i've only just scratched the surface............

Lescent, please keep scratching around but don't catch fleas .

I like reading your posts and if all these things come to be....this thread will make a great book.

 

[tech/a]

Re: MUL - Where to from here?

Isnt it amazing how its the directors fault this and the directors fault that why this why that.

Why on earth does anyone hold shares and KEEP holding shares in a company like this??????????Frankly your committing a crime to yourself much greater than anything the directors can dish out!!


SIMPLY WALK AWAY

 

[dmargon]

Re: MUL - Where to from here?

well lescent seems a bit rabid, but he obviously has a list of questions that he wants answered.
so why dont we make this news goup work a bit.
why dont we log here some questions we would like to ask (lescent dont go overboard! )
we can then organise them, and then il ask the top 5 in the meeting, if someone else wants to come and ask some of the questions we can split them.
we are shareholders and should be unemotional and logical about this, get the informatioon we need to make decisions that we need to make. hey, sometimes one makes a bad investment, sometimes one makes a good one, and sometimes if you make a bad investment you can fix it by solving the problem, be it the removeal of a director, or the infusion of (even more) cash or whatever, or simply to bugg out..

so submit your questions people!

d

 

[dmargon]

Re: MUL - Where to from here?

a couple fo questions i would liks to ask:

given the statement to the asx that the GM was not required, why did ballentine chose to waste company money on such an unnessary expenditure, give the companies obvious financial predicament.

how can the chairman substantiate his position, given his responsbaility to protect shareholders interests given the demise of the share price in the last year from 12c to 1.5c. - by failing to do anything, he might be liable...

how can ballentine justify, his position as ceo, the requirement for so much new money into a company that was supposed to be making a profit by now.

what is the purpose of chuck ellison?

any more questions people?

 

[Knobby22]

Re: MUL - Where to from here?

What are Muls future capital requirements assuming things go as planned?

 

[u300314]

Re: MUL - Where to from here?

The reason they need shareholder approval for the issue of these recent share issues, is so they don't have to go get approval from shareholder if they want to issue any more shares shares over the next 12 months ( which they are likely to do given the facility with the US Fund Manager).

It remains to be seen, whether that's a good or bad thing.The directors have always responded that the reason for issuing these shares (as they have been doing over recent years ) is that they believe it is better that raising debt or diluting cashflow (again this is open to debate whether this is a good or bad thing).

FYI I have done some research on the two main allotee of shares , subject of the general meeting and identified in the explanatory memorandum.

Captain Starlight Nominees 60,000,000 shares - owned by Findlay Stockbrokers (not the first time)
Mr Anthony Poci 20,000,000 shares - one of Mul's existing top 20 shareholders (also top 20 Lake Oil).

From my experience I would expect that the directors would already have the proxies to approve the vote.

However, I would be interested if any one has some factual information that can assist in determining the mid-to-long term prospects of MUL, eg. who and what is the acquisition ( someone must have heard something from associates with their sols Deacons or bankers NAB), the status of Airworks (woolies employees), the $ benefit of some of these Middle East Contract (from my count Seaton [ormer Trade Ambassodor?] has now brought three good contracts to Mul or the level of business being recorded by some of MUL's reselles (HBIS scheme, Wavecall, Falconstream, etc).

Besides some detailed info on the proposed acquisition (due before 30/6/05 and my bet IP Access International) and the sale of MTD, there are some basic questions that need to be and will be asked at the GM.
1. what sales have been achieved since 31/12/04
2. how do they compare to the projections
3. What profit is going to be recorded Y/E 30/6/05
4. How does the profit compare to projections
5. Is the company in line to achieve Y/E 30/6/06 projections ( if the company can achieve its 2005 and 2006 projections the price will rise significantly)
6. When (and who) will the proposed two new independant directors be appointed.
7. What is the status of the $46m Supreme Court claim due in October (plaintiff Switchcorp - a company that has never traded with assets of some $7,000). That question will be asked on behalf of Lescent (as he is not a shareholder and as such can't attend the meeting; his only interest in MUL it seems is to protect the 9,429 shareholders).

If you have any other questions you want raised let me know.

 

[dmargon]

Re: MUL - Where to from here?

good start u300314.
although i think that 1 to 5 are basically the one question, and something that i hope they would state up front rather than having to answer a question about it!

with regard to 6, mayybe we could ask and what is their purpose, and how can we be assured they will fulfil their dutues.

point 7, as you know i cant comment on that one. (and maybe you shouldnt either)

d

 

[lescent]

Re: MUL - Where to from here?

Great idea dmargon.

You've seen the questions i'd like answered on my previous post.

Also, u300314 must know something i don't as I am most definitely a MUL shareholder so I certainly don't know who he thinks I am.

I really look forward to your compilation of questions closer to the meeting
date so that we can see how open the MUL Board are to probing and/or fudging.

It's still important that shareholders Vote NO>>>NO>>>NO>>>NO to the resolution. :goodnight

 

[dmargon]

Re: MUL - Where to from here?

lescent, we are trying to be constructive here.

he does have an interesting question though, which made me read your post a bit better u300314.

how did you get the info on the top 20 shareholders, id love to find that out.

how did you find out about the three ME sales, i only found 1 on the web and asx.

how do you know who lescent is? id sure like to find out who you are, i on the other hand havent hidden my identity, or my desire for a profitable successful MUL, as well mas my frustrations with MULs management in not managing the share price better, while continuing to issue new script. - as far as issuing new script vs debt, i doubt that a bank would lend money to MUL until it could show profit and a reliable management, both of which dont seem to exist. the number of shares was identified as an issue a year ago by the chairman, and all thats happened is that even more shares have been issued. at this rate we will need to see a 500 to 1 share consolidation, after a profit has been seen, to sop up some of the shares, and even then that still means that there will be a squillion shares out there. itt just kills the companies credibility. and of course the magements credability is out the window.

to me it looks like the management went into a venture without knowing the costs or risks and have been iussuing script to cover themselves until the model works. not very prudent management. - ive complained once or twice before, with a footprint that newskies has, mul can only sell in iraq? what about india, asia, or australia? the only response to this, in my opinion, must be that they bought something covering more than halfs the world population (and priced that way) they couldnt service or manage with the skill set they have, so they concentrated on a pimple of coverage hoping it would pay off for the whole white elephant.

of course i dont have all the info that you obviously have, but to anyone that looks at this it would seem this way.

i agree that the directors wouldnt go to a vote unless they thought they had the numbers, based on previous non voting of shareholders, but that doesnt mean that there isnt a lot of grumpy shareholders that might cause a problem. and of course the email thread about getting no votes toggether would probably make the directors try to lock in more votes, like any democracy...

very interesting times.
d : (i love these emoticons)

 

[brerwallabi]

Re: MUL - Where to from here?

MUL just like a candle there might be a flame but in fact its going out.

 

[dmargon]

Re: MUL - Where to from here?

what is your question to the GM brerwallabi?
d

 

[u300314]

Re: MUL - Where to from here?

Sorry Lescent, I thought from the tone of your March postings that you would have sold your holdings. I would be interested to know why your still holding.

Dmargon
Hopefully the following will assist your queries.
1. If you click on the writer's ID you view all their previous postings, etc.
2. Page 49 of 2004 annual report discloses the top 20 shareholders - Poci is listed as the eight biggest shareholder.
3. Run his name through Google and Yahoo and you will find he was a director of Lake Oil and is still a shareholder.
4. I have been trying unsuccesfully to find a way to get details of the current top 20 to see, who's has been buying and selling. I know it can be done because that bloke who tries to buy shares on the cheap does it.
5. Company search shows the people behind Captain Starlight
6. If you read some of the early ASX announcements and do some searching thru the Web you will find Seaton had a large involvement in getting
a) 6/5/05 Middle East TV (the one your aware of)
b) 24/8/04 Meeryl Co in Iraq and Global Communications in Eqypt

7. The last two contracts were won whilst his was still in his position of Senior Trade Commisioner, Dubai and his name comes up on other contracts won (however the level of his involvement is not as clear). His previous position would have been a pretty comfortable, well-paid government position and the fact that he has decided to leave to join Mul (small struggling and loss making company) gives me the impression that he believes long term prospects are strong.
8. Besides Iraq, Mul has contracts in Iran (Central Bank and the Embassy), Sudan (Redcross and Sudatel), Switzerland (Hempel) and Sth Africa (Callsat Telecom) - I have also come across in searching, that they are providing services for a number of other business, schools, etc.

On a positive note, the notice for the general meeting has arrived in today's mail, together with "Multimedia News 16/5/05" (it doesn't appear to be on their Website yet). There are some interesting comments/info, including:
- "airworks is now generating substantial profits
- "airworks has just completed a national trial in 100 Woolworth petrol stations"
- "over 230 HiBis approved contracts have been signed (looks like mainly thru resellers)

In my opinion, this is extremely good news as Airworks was the major uncertainity in Mul achieving its sales/profit projections (particularly in light of the SMH article).