Cable car hype

Just a little more info that was omitted from the previous blog to satisfy the space constraints of a tabloid blog.  

Mount Wellington Cableway Company Pty Limited (MWCC) draws attention to itself by its use of hyperbole and alternative facts. And that what gives the show a Mickey Mouse flavour.

Take this from the MWCC website:

Successful Home-Grown Capital Raise

Oct 30, 2015 - Following our decision to not renew a fully-financed deal with Canadian partners on July 1, MWCC set out to raise the balance of sufficient working capital to secure planning approval by offering $1 million dollars worth of shares to local Tasmanian professional investors, complying with the Australian Security & Investment Commissions' Small Scale Offer regulatory framework. 

One million dollars worth of shares may have been offered but how many were taken up?

As at February 2016, Mr Bold’s ordinary shares had a paid up value of $80,000 and five preference shareholders had contributed $210,000 for shares a $1 each.

Almost a year later there was this:

Successful Capital Raise 2.1 Oversubscribed

September 2016: We're delighted to welcome over a dozen new shareholders into MWCC this past month, after a brief 30 day investment window achieved a fantastic 32% oversubscribed result.

Only three new shareholders have entered the register after Feb 2016 not over a dozen. Existing preference shareholders made extra contributions. New contributions totalled $552,500.

Preference shareholders mightn’t get a vote but they should have some influence as providers of financial sustenance.