We’re all excited to get Mowjow listed and the shares traded. Here is a thorough update on this process, as well as the launch of our long planned Series B round of financing.
Nasdaq has a spread requirement
Public listing at a recognised venue like the Nasdaq OMX First North implies several criteria to be fulfilled.
When we met with Nasdaq last autumn we were presented with a minimum spread requirement of 300 shareholders; each of whom must hold a minimum of €500.00 worth of shares in electronic positions. At the outset, this criteria seemed easily within reach, taking into account our large shareholder base of about 600 shareholders.
To be tradeable on the Nasdaq exchange, the Mowjow shares are required to be electronically registered in Euroclear Sweden (same as VPS in Norway). The ownership of the shares in Euroclear is directly related to a corresponding securities deposit account for each investor. Nasdaq’s spread requirement is assessed from Euroclear statements. Therefore we must satisfy at least 300 shareholders boarded into such electronic positions.
In order to facilitate this in an easy and feasible way we decided to enroll all our shareholders into securities deposit accounts with our certified adviser Mangold. However, after making our way through this process for several months, we’re left with 200 out of our 600 shareholders successfully registered. We feel the situation to be a bit gridlocked, and we don’t expect registrations to increase significantly from the existing shareholder base.
We’ve decided to park all shares belonging to shareholders without securities deposit accounts into a single purpose company that will function as an investment fund with limited rights of disposal. We’ve established Mowjow Nominees Limited in London for this purpose.
It’s time to move on!
Series B starts today
We’ve developed Mowjow substantially since last autumn when we carried out our Series A round of financing. With an improved gaming platform ready to launch, as well as several successful transactions in the industry, the outset is just amazing.
We’re regularly being approached by investors showing interest. We want to capitalise on the opportunity in order to attract additional shareholders to meet the spread requirement, as well as to raise more capital to facilitate working capital and guarantees. We’re therefore starting our Series B round of funding today.
And we can do so with a statement from me:
"I understand that all of the delays have been frustrating; I feel it every day. By way of a gesture of goodwill, therefore, I’ve decided to compensate all shareholders that have paid more than €0.50 per share with free shares, taken from my own private holding, in order to average their share price at €0.50. This applies to about 100 shareholders and will be effectuated over the next few weeks. I hope this will be welcomed and appreciated".
We’ll kick off the Series B with a special offer for the first week of only €0.50 per share. From Saturday March 15, 2014, the price will be increased to €1.00 per share. Following this strategy, I feel, will give everyone a great opportunity to purchase additional shares or to recruit new investors.
Over the past few weeks, we’ve been developing good international relationships with a series of valuable people, whom will participate in this Series B round, as well as be instrumental in recruiting a massive player base to Mowjow.
The special offer is open to our existing shareholders and a few selected new marketing partners and their key allies.
The availability of shares at this price is limited and we will close this offer on whichever comes first; end date or volume.
We’ve also updated our videos and pitch, please see here.
With this I feel we’ve been decent and fair given the delays and I hope you’re satisfied. We also hope you’ll help us in making this new round of financing a success. The faster we get the required shareholders, the faster we'll be able to list. We are working toward successfully listing in April.
If you have any inquiries please contact either me directly or Cato Lyngstad at any time.
Have a nice weekend!
Founder, Chairman & CEO of Mowjow
Email: [email protected]
This newsletter update originally appeared on March 8, 2014.