Zoom2U is in a trading halt:

As I mentioned in a Straw last week following our interview with the CEO, this was always a possibility given their cash burn and balance sheet.

It's a shame they need to do this at the current market price -- eg if they want to raise $5m, that's an extra 37m shares that need to be issued (about 21% of the current shares outstanding). And usually you need to entice the market with a discount too.

Still, will wait to see exactly what the details are before making any judgement.

A few quick notes following our meeting with founder and CEO Steve Orenstein.

First off, thanks @rh8178 for suggesting the business. I thought it was pretty interesting.

I thought Steve was very impressive. Clearly a successful and capable entrepreneur having built Connect2Field in 2010 and sold to Fleetmatics (NYSE:FLTX) just three years later.

He has 25% of the company, and seemed to be very product and customer focused. Also made some very sensible comments in terms of capital management (it's the return, not the spend that matters most).

They seem to have really gained momentum -- a result of having (quite cleverly) nurtured and accelerated a solid network effect.

Sales are obviously growing very strongly, and it seems very noteworthy that enterprise level customers are being onboarded (Bunnings, Decathlon etc). There's also a very strong tailwind in terms of industry dynamics, and I think they will prove to be a very appealing offer to Uber drivers and the like who are looking for additional sources of revenue.

Cash burn is an issue -- even if the money is being put to good use. I suspect they will need to raise cash in the next year or so even though Steve is very cost focused.

It's on my watchlist.