VCI Global Ltd (VCIG) Quote

This news highlights that they were able to secure a loan with an exceptionally low interest rate of just 6%, which is quite rare in the commercial sector. It also suggests that they have presented a solid and credible business opportunity to investors, convincing them to offer such favorable lending terms. Additionally, they are taking steps to protect the investor's interests and prevent stock dilution. Previously, they had to raise working capital through acquisition offers and growth initiatives, but those days are now behind them. The 10M buyback and insider buyer indicated their focus is on boosting the stock price and building trust with their loyal shareholders. IMHO:))

This is excellent news and might not require conversion. Here are the details:

VCI Global Limited (the “Company”) entered into a securities purchase agreement with Advanced Opportunities Fund I (“AOF”) whereby it issued a Senior Convertible Note in an amount of up to $1,000,000.

In my view, this is GREAT NEWS because (“AOF”) is providing them with a million dollars upfront at just 6% interest.

A Senior Convertible Note is a type of debt instrument that allows the holder to convert the debt into equity (typically common stock) at a LATER DATE, usually at a predetermined price.

Companies issue senior convertible notes to raise capital without IMMEDIATELY DILUTING THEIR EQUITY. It’s often an attractive option for companies needing funds but not wanting to issue more shares right away.

Senior convertible notes typically have lower interest rates than regular debt, making it cheaper for the company to borrow. In this case, they pay only 6% of the Original Principal Amount calculated from the Original Issue Date until the Maturity Date.

A Senior Convertible Note typically has specific terms and conditions that dictate when and how it can be converted into shares, and these terms usually include a time frame or vesting period before the noteholder can convert their debt into equity. This prevents immediate dilution on the open market.

Conversion Period: The note usually cannot be converted immediately after issuance. There is often a "lock-up" period or a specified date in the future when conversion is allowed. The conversion price is typically set at the time the note is issued, often at a premium to the current stock price. This ensures the company gets some benefit from the conversion as the stock must perform well for noteholders to gain significantly.

In my view, here are the key points of the purchase agreement with Advanced Opportunities Fund I (“AOF”):
The Company agrees to pay Advanced Opportunities Fund I (the "Holder") $1,000,000 by March 2, 2025, or earlier if required or agreed upon in writing by both parties. Interest will be paid on any remaining balance of the loan according to the terms.

Under this Note, the difference between (a) 6% of the Original Principal Amount calculated from the Original Issue Date until the Maturity Date and (b) any payment of interest made prior to such date with respect to such principal amount.

The company will pay interest on the outstanding principal of the Note as follows:

First 3 months: 4% of the principal will be paid immediately after the Note is issued.
4th, 5th, and 6th months: 4% will be paid on the first of each month (Dec 1, 2024; Jan 1, 2025; Feb 1, 2025).

Interest can be paid in cash or in shares of Common Stock at 90% of the average price from the last 5 trading days before each payment date. If paid in shares, the Holder must notify the company, and the shares will be delivered to the Holder’s account.
Any early repayment of the principal will include the remaining interest to compensate for the Holder’s potential loss of profit. This agreement doesn’t cover any additional fees or costs for actions taken if the company defaults. IMHO:)))

Bottom line: A Senior Convertible Note is not an offering or toxic dilution. It’s essentially borrowing money from an investor at low interest, with the option to repay by March 2, 2025.

This indicated they couldn’t issue new shares during the buyback. Legally, a company cannot mislead investors by claiming to buy back shares while secretly selling them, as this would be considered fraud and is prohibited by securities laws.

Additionally, would you lend one million dollars at low interest if you believed the company wasn’t performing well?

When people don't fully understand the filings, they tend to panic unnecessarily. This is actually great news for the company. IMHO:)))

https://www.otcmarkets.com/filing/html?id=17822625&guid=uwL-kpJ1tsVpVBh#ea021375901ex4-1_vciglobal_htm

Company disleading again ? They just filed form 6-k

For warrant conversion.

What this new form 6-K

More conversion ?

At the same rate growth net earning profit for 12 months is 13.5M divide that by 86M O/S = .1569

EPS= $15.3 ÷86M = 0.15697 or approximately 0.16

Since the company is involved in consulting and AI business. The typical P/E ratio for consulting/AI companies is 20 giving 10 that is extremely low which is more practical.

Value per Share=EPS×P/E ratio

Value per share = 0.16X10=1.6
Value per share = 0.16X20=3.2

Probably why the company insiders own 50% of the outstanding...they know they are about to turn the tables on these shorts with strong fundamentals, very little debt, massive revenue growth, and solid net profits....IMO
With the reduction in the ATM offering size, a $10M buyback, and the CEO increasing his shareholding by 15.27%, it's clear the company is taking serious steps to stop the bleeding, as the shorts currently have full control over the stock price. But nothing goes straight down forever eventually, it will rebound. In our case, with strong fundamentals, very little debt, massive revenue growth, and solid net profits, the stock is poised to rise and sustain higher levels.

The part highlighted in bold is the part I like...from what I see in these micro nasdaq stocks is that they don't seem to care about negative marks from a reverse split...but put a hurt on their own pockets is a different story I would imagine...LOL
LOL:))) When insiders control preferred shares, they typically have control over voting rights, so a reverse split (R/S) wouldn’t significantly affect them. However, in our case, it's entirely different. The insiders hold more than 50% of the common ordinary shares. A reverse split would hurt them more than anyone else. Moreover, a reverse split would also leave a negative mark on the company’s history.

LOL:))) When insiders control preferred shares, they typically have control over voting rights, so a reverse split (R/S) wouldn’t significantly affect them. However, in our case, it's entirely different. The insiders hold more than 50% of the common ordinary shares. A reverse split would hurt them more than anyone else. Moreover, a reverse split would also leave a negative mark on the company’s history.

With the reduction in the ATM offering size, a $10M buyback, and the CEO increasing his shareholding by 15.27%, it's clear the company is taking serious steps to stop the bleeding, as the shorts currently have full control over the stock price. But nothing goes straight down forever eventually, it will rebound. In our case, with strong fundamentals, very little debt, massive revenue growth, and solid net profits, the stock is poised to rise and sustain higher levels.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175031525

New 52 week lows … hot dumpster fire

Ha ha...now I got an answer to why you made this comment, "This also explains why they don’t have a history of reverse splits."...because I knew that not offering preferred shares wouldn't necessarily prevent a reverse split but now it makes sense."
No preferred share is one of the reasons I feel very confident about this investment. Since the insiders hold over 50% of the outstanding shares, they have a strong incentive to avoid a reverse split.

No preferred share is one of the reasons I feel very confident about this investment. Since the insiders hold over 50% of the outstanding shares, they have a strong incentive to avoid a reverse split. While they might dilute shares to acquire companies or for working capital, my research indicates that the current offer has ended, which is why they’ve announced a $10 million buyback.
Keep in mind A company cannot legally mislead investors by claiming to buy back shares while dumping stock. This would be considered fraudulent activity and is strictly prohibited by securities laws and regulations.
In the past, they released news and then diluted shares, which created a pattern that allowed short sellers to target the stock whenever news was announced. Now, even with the buyback announcement and the CEO acquiring over 15% of the company's shares, no one takes them seriously. It's sad to see such manipulation, especially when the stock is trading near its net profit value.

PE Ratio of 10 = $VCIG @ 1.60 on EPS .16 FYE

EPS 6 months = .08. Expecting .16 to .20 for the year end results. JMO

"Director's fees" and "Other operating expenses" need to be "better controlled" for optimal EPS performance...😺..."Legal and pro fees" also...

Thanks for the info, powerbattles. $VCIG

Interesting to know...had to read up on it...I never really thought about some companies not having preferred shares and only the common...after reading I come to find out that issuing preferred shares can be more complex and costly than common shares. Also, companies might prefer simpler financing options like common stock or debt...Issuing preferred shares can sometimes affect a company’s financial metrics in ways that are less favorable compared to other financing methods.
VCI Global Ltd (VCIG) does not appear to have preferred shares, as the company primarily offers ordinary shares traded on the Nasdaq exchange

VCI Global Ltd (VCIG) does not appear to have preferred shares, as the company primarily offers ordinary shares traded on the Nasdaq exchange. This also explains why they don’t have a history of reverse splits. The company’s investment of up to $30 million in Talking Data is significant, worth more than twice the company's current market cap. If Talking Data successful IPO that could lead to a dividend of up to $0.50 or potentially even higher.

This is all the company’s fault. In the past, they would release news and then dilute shares, which created a pattern that allowed short sellers to target the stock whenever news was announced. Now, even with the buyback announcement and the CEO acquiring over 15% of the company's shares, no one takes them seriously. It's sad to see such manipulation, especially when the stock is trading near its net profit value.

Right now, the market cap is $12M That is a joke.

The Frankfurt Stock Exchange (FRA) is one of the largest and most prominent stock exchanges globally and does experience significant short-selling activity. However, that doesn’t imply insiders are shorting their own stock. Short selling is a common practice on major exchanges worldwide.

In case you're still uncertain, just two weeks ago the company announced a 10M share buyback, and the CEO, Victor, increased his stake by 15.27%. So, the idea of insider shorting is simply unfounded and nonsense.

I noticed this trades on the Frankfurt exchange which is a favorite for insider shorting.

Thank you.

It hit .23 this morning.
Do you know how high stock trades at PM?

Do you know how high stock trades at PM?

People are either overlooking or unaware of the massive development opportunities ahead. Building a 35-megawatt bitcoin and the construction of AI computing data centers is a game-changer, and the value of these projects alone should easily push us above the $1 mark.

1 - VCI Global anticipates securing a 30% share of the mined Bitcoin. The project aims to mine over 2,000 Bitcoins within five years, which, at the current market price of over $65,000 per Bitcoin, would value the total mined Bitcoin at around $130 million.

2 - In phase one of this partnership, with Emerging Hub Limited. Developed a 35-megawatt Bitcoin mining farm projected to yield over 500 Bitcoins by the end of the first year.

3 - Plan to build artificial intelligence (AI) computing data centers.

4 - Groundbreaking AI Computing Alliance (“AICA”). a collaborative initiative led by Enlight Corporation and Super Micro Computer, Inc. (NASDAQ: SMCI) and other alliance partners including Fortinet, Inc., UNIC Technology Corp., Bingo Group Holdings Limited, J&V Energy Technology Co., Ltd., Red Building Capital, ZoobeTek, iSpan International Inc., and Bulky Animation Studio. This alliance will jointly establish AI Computing Centers (AICCs) and advance the AI ecosystem.
Bullish

Read the news from June 10, 2024: the company announced plans to develop next-generation AI computing data centers for the upcoming industrial revolution. Read the news by July, they had made the decision and taken action to execute the plan. This clearly shows they're serious about building and expanding the business.
https://v-capital.co/newsfeed/

I can't believe the stock is down on GREAT NEWS. Today I decided to double down my holding because the fundamentals here are too strong.

Agreed

Getting ready for a move up I am thinking...pre market bounce is peanuts to what is coming IMO

$VCIG Undervalued by 5x minimum JMO 😺

Another contract announced

And if this goes down anymore I will just buy more with them.
At this stage, it appears they've HALTED the dilution process for investment purposes. However, there's still room for optimism. If they manage to repurchase those shares at a low cost, it could turn out to be a savvy move, essentially allowing them to make money at no interest while investing and expanding. Let's hope they act swiftly to buy back those shares cheaply and benefit everyone involved. Imho.

44%...57%...151%...183%...and 25% of growth in every sector of the company it appears to me!...wow!
4 - Achieved an impressive total revenue of $13.7 million for the six months ended June 30, 2024, marking a 44% YoY growth.

5 - Gross profit experienced growth of 57% YoY reaching $12.9M for the six months ended June 30, 2024.

6 - Consultancy revenue experienced a remarkable 151% YoY surge, reaching $11.2 million for the six months ended June 30, 2024.

7 - VCIG’s fintech segment revenue experienced an impressive 183% YoY growth.

8 - Net income surged to $5.4 million for the six months ended June 30, 2024, reflecting a remarkable growth of 25%.

Yeah Yeah I remember reading that the other day on their website news.
here is that news release: https://ir.v-capital.co/articles/events/VCI-Global-acquires-large-stake-in-a-US-1-1-billion-valuation-AI-technology-company
3 - An investment in TalkingData Group Holding Limited (“TGHL”) of up to $30,000,000.

Nothing like a share buyback!
2 - Announces US$10 Million Share Repurchase Program.

He knows something is my guess....LOL
3 - CEO Increases Shareholding by 15.27%, Expresses Strong Confidence in Company’s Growth

That is like 75% knocked off....wow!
1 - ATM Offering Size Reduction $14,205,937 to $3,500,000.

$VCIG .1635 Here are eight key factors indicating strong company performance, suggesting that the ATM Offering Size Reduction may signal the end or near the end of dilution.

1 - ATM Offering Size Reduction $14,205,937 to $3,500,000.

3 - CEO Increases Shareholding by 15.27%, Expresses Strong Confidence in Company’s Growth

2 - Announces US$10 Million Share Repurchase Program.

3 - An investment in TalkingData Group Holding Limited (“TGHL”) of up to $30,000,000.

4 - Achieved an impressive total revenue of $13.7 million for the six months ended June 30, 2024, marking a 44% YoY growth.

5 - Gross profit experienced growth of 57% YoY reaching $12.9M for the six months ended June 30, 2024.

6 - Consultancy revenue experienced a remarkable 151% YoY surge, reaching $11.2 million for the six months ended June 30, 2024.

7 - VCIG’s fintech segment revenue experienced an impressive 183% YoY growth.

8 - Net income surged to $5.4 million for the six months ended June 30, 2024, reflecting a remarkable growth of 25%.

$VCIG .1635 Here are eight key factors indicating strong company performance, suggesting that the ATM Offering Size Reduction may signal the end or near the end of dilution.

1 - ATM Offering Size Reduction $14,205,937 to $3,500,000.

3 - CEO Increases Shareholding by 15.27%, Expresses Strong Confidence in Company’s Growth

2 - Announces US$10 Million Share Repurchase Program.

3 - An investment in TalkingData Group Holding Limited (“TGHL”) of up to $30,000,000.

4 - Achieved an impressive total revenue of $13.7 million for the six months ended June 30, 2024, marking a 44% YoY growth.

5 - Gross profit experienced growth of 57% YoY reaching $12.9M for the six months ended June 30, 2024.

6 - Consultancy revenue experienced a remarkable 151% YoY surge, reaching $11.2 million for the six months ended June 30, 2024.

7 - VCIG’s fintech segment revenue experienced an impressive 183% YoY growth.

8 - Net income surged to $5.4 million for the six months ended June 30, 2024, reflecting a remarkable growth of 25%.

Correction In the last 12 months, VCI Global had revenue of $23.55 million and earned $8.98 million in profits.

Yes, o/s 86 million, the float for VCI Global Limited (VCIG) is approximately 42.92 million shares. Institution $37K.

Did you know that in the last 12 months, VCI Global had revenue of $12.37 million and earned $6.16 million in net profits? That equal to earnings per share was $0.16. These are solid facts, and I’m surprised the stock is still trading at such a dirt-cheap level.

Honestly, I’m very happy to pick up these cheap shares and have bought a significant amount.

We're trying to understand why the share price keeps falling. Since I consider this stock an investment, I carefully analyze the documents and filings. From my review, it seems that dilution is the main issue.

The “ATM Agreement”) with H.C. Wainwright where the company can sell its shares directly to the public through a broker (H.C. Wainwright) at prevailing market prices. Under this agreement, the company had the option to raise up to $14,205,937.

On July 23, 2024, the company filed a document called a "prospectus supplement" to update the terms of the ATM agreement. This document amends the original terms by reducing the maximum amount the company can raise from $14,205,937 to $3,500,000. This change is referred to as the "ATM Offering Size Reduction.
As of the filing date, the company had already sold 2,147,230 ordinary shares under the amended ATM agreement. These sales generated a total gross revenue of $1,456,009. So, the company has $2,043,991 remaining to be raised under the reduced ATM offering limit. In July, the average price per share was around $0.50, which means converting approximately 4 million shares—a relatively small number. This, combined with the recent announcement of a share buyback and the CEO increasing his holdings, suggests that dilution should be coming to an end. Imho.

See May 2024 HC Wainwright ATM
https://dilutiontracker.com/app/search/VCIG
Under page S-2 ATM offering.
https://app.quotemedia.com/data/downloadFiling?webmasterId=90423&ref=318494925&type=HTML&symbol=VCIG&cdn=2ec1ddb1fd28f3f4644531128db16d2a&companyName=VCI+Global+Limited&formType=424B5&formDescription=Prospectus+%5BRule+424%28b%29%285%29%5D&dateFiled=2024-08-05

Bottom line. Yes, the company has been diluting its stock by issuing new shares for quite some time. They've conducted nine public offerings in just the first six months of 2024. It seems this strategy was chosen to prioritize short-term gains for the company over the interests of investors. By using the funds raised from these offerings rather than taking on debt, they aimed to pursue what they believed would be more profitable ventures.

At this stage, it appears they've HALTED the dilution process for investment purposes. However, there's still room for optimism. If they manage to repurchase those shares at a low cost, it could turn out to be a savvy move, essentially allowing them to make money at no interest while investing and expanding. Let's hope they act swiftly to buy back those shares cheaply and benefit everyone involved. Imho.

Yes I believe the Outstanding Shares is at 86 million right now...low for a company that has a 10 million buy back, CEO increase on shares, 44% yearly increase, net income surging, acquisitions and partnerships....geeez!...why at these prices?

Sites verifying my OS information:
https://fintel.io/s/us/vcig
https://www.barrons.com/market-data/stocks/vcig
https://www.wsj.com/market-data/quotes/US/XNAS/VCIG
https://stockanalysis.com/stocks/vcig/statistics/

$VCIG is poised for explosive growth. Low share structure. The Insider holds 41.17%. Last week they announced a 10M buyback. 2 days ago, the CEO Increased Shareholding by 15.27% of the company’s total outstanding shares. On top of that, the company reported a 44% year-over-year increase in revenue, a 57% rise in gross profit, and Net income surged to $5.4M reflecting a remarkable growth of 25%.

Furthermore, VCI Global Acquires Large Stake in a US$1.1 Billion Valuation AI Technology Company. (TalkingData) is one of Asia’s largest providers of big data analytics and AI-powered solutions, serving major global brands such as Google, Yahoo, L’Oréal, PepsiCo, and Nike. TalkingData is backed by prominent investors, including China Resources Capital (“CR Capital”), Softbank’s SB China Venture Capital (SBCVC), corporate.jd.com/home, VMS Asset Management, Northern Light Venture Capital, among others. This stock is a keeper for me.

I added more as well. Awesome discount and a great bargain deal.

I am seeing that we are trading at a 1p/e?

Had to take some .163

Company has multiple partnerships. Check out the line up in recent news releases: https://v-capital.co/newsfeed/

I’m excited about this AI play, especially since the company has already achieved a net profit of over $5 million in the first six months. At this rate, they’re on track to reach net profits of $15 to $20 million by the end of the fourth quarter. Imho:))
Loved this old news. VCI Global Acquires Large Stake in a US$1.1 Billion Valuation AI Technology Company
https://finance.yahoo.com/news/vci-global-acquires-large-stake-122900599.html

With the current extension until Dec 30 2024 and another 180 days if needed is basically 9 months to get this back over a dollar and I also like that it has been announced the company has sufficient funds for a year of operations
Cash and cash equivalents amounted to $1.2 million for the six months ended June 30, 2024, representing a decrease of 62%, compared to $3.3 million for the six months ended June 30, 2023. The Company believes this amount, along with planned actions, will be sufficient to fund operations for at least the next 12 months. To improve liquidity, the Company plans to enhance the collection of outstanding receivables totaling $30.1 million as of June 30, 2024, and reduce general and administrative expenses.
Link of this reading: https://ir.v-capital.co/articles/events/VCI-Global-announces-44-revenue-growth-in-its-financial-results-for-the-six-months-ended-June-30-2024-announces-US-10-million-share-repurchase-program-over-2-years

That $30M is not a small chump change. Furthermore, they have until December 30, 2024 to regain compliance and an additional 180 days to regain compliance or be subject to delisting.

In accordance with Nasdaq Listing Rules, the Company has 180 calendar days, or until December 30, 2024, to regain compliance with the Minimum Bid Price Rule. If at any time before December 30, 2024, the closing bid price of the ordinary shares is at least $1.00 per ordinary share for a minimum of 10 consecutive business days, the Staff will provide written confirmation that we have achieved compliance with the Minimum Bid Price Rule and the matter will be closed.
If we do not regain compliance with the Minimum Bid Price Rule by December 30, 2024, we may be eligible for an additional 180-day calendar period to regain compliance or be subject to delisting. Our business operations are not affected by the receipt of the Notice. We intend to monitor the closing bid price of our ordinary shares and may, if appropriate, consider implementing available options, including, but not limited to, implementing a reverse share split of its outstanding ordinary shares, to regain compliance with the Minimum Bid Price Rule.

Crazy that they have outstanding receivables of $30 million... a better collection program would be great...nice to have receivables but at the same time it would be nice to have the cash back in company hands for operations.

The next earnings should be huge. As of June 30, 2024, the company has $30.1 million in receivables (money owed to the company by customers or other parties). The company plans to focus on improving how it collects this outstanding amount. This could involve more aggressive collection efforts, revising credit terms, or improving invoicing processes to ensure that these receivables are paid more quickly.

To improve liquidity, the Company plans to enhance the collection of outstanding receivables totaling $30.1 million as of June 30, 2024, and reduce general and administrative expenses.

It appears that we are not just at the 52 week low but the all time low...they will have to let this break.
This stock is a keeper. I added a lot more today at the low of 017's. I think someone is pushing to hold it down for more cheap shares. Right now, Classic manipulation at its finest. The MM scumbag refuses to raise the asking price, no matter how many shares get purchased at that level.