CEO purchased another 28000 shares on market today…..

Just noticed that the CEO bought an absolute boatload of shares last week. Although they are quite cheap at the moment.

Total of 138,000 shares totalling $13,224 as an on market trade. Not exactly a life-changing amount of cash but the shares are up 18% today.

Maybe something in the works ?

Not sure on views on the Share Purchase Plan - I am considering participating, given what I think is still a great business.

Timely call @Strawman . I have been going over the announcements in the last couple of days and did speak briefly to the CEO. Raise is $1.5m to insto's at current market price (11c). Also $500k to small investors (lower of 11c or VWAP in early November). Further $4.5m raised as debt, with an attaching warrants. This essentially means if the share price hits the warrant exercise price the debt will be converted to equity. 9.5m warrants at 17.5c and 9.5m warrants at 28c - to be exercised in next 4 years (I think a good deal for Pure, but they are also lending to a company that currently doesn't make positive cash flow). Capital markets aren't what they were and you have to take what you can get atm. This is dilutive, but not the worst I've seen. The acquisition makes logical sense and extends both their development capability and will provide an extension to the Locate2U product which hopefully will be where the action is in the next few years. Gives them a good runway to get to positive cash flow. I don't love the raise, but it was somewhat foreseeable and I still think the business is still great despite the expanded capital base.

Holding both IRL and SM and sticking with it.

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.

Thanks @Strawman ,

That was a good interview - sorry I missed it live #daylightsavingsfail. But I did watch it after.

I think it's a great little business, with lots of potential. Only a microcap, but growing quickly and as some really good thinking about how to run the business for shareholders. I agree, that the cash burn is a question, although they do have resources to draw from and may not need another cap raise, depending on how much investment they make in sales and marketing (and R&D), and the uptake speed on Locate2U.

Thanks again for doing this - appreciate it,

Richard

PS - own Z2U IRL and on SM.

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.

• Zoom2u Technologies (Z2U) acquires Local Delivery Shopify App from Enum for $880,000, currently generating ARR $145k
• The acquisition includes all intellectual property associated with Local Delivery and existing customer relationships of around 570 eCommerce businesses in over 45 countries
• “We will use the existing customer base of Local Delivery as a catalyst to expand in global markets including North America and the United Kingdom,” Zoom2u Founder and CEO Steve Orenstein said.

A quick way to acquire customers.... just buy them!