Phorm issues shares to raise cash

Phorm told the Stock Exchange today that it will issue a million shares to institutional investors in order to bolster its dwindling cash reserves. The company is currently concentrating on Brazil and China. It is still under police investigation in the UK for failing to inform BT customers that it was snooping on their …

[Jason Bloomberg]

Re: Who's going to buy them ?

I'd guess anyone who thinks Phorm can overcome the public disgust and legislative restrictions which currently keeps them out of the marketplace.

Don't forget there are ISP's and others who obviously think Phorm is a good idea. There is a potential market out there.

What? You thought investors and backers have ethics and morals?

[John Smith 19]

Phorm. Last of the unflushables.

I hope not.

[Morel's Ghost]

@ AC 08:56

Amid all the salt-the-ground-Kent-Ertugrul-has-walked-over-and-drizzle-it-with-holy-water gnashing you have a fair point. If Phorm can come back with a strictly opt-in version of Webwise with clear and full information about what they're doing, then find enough people who are dumb enough to sign up, then he isn't breaking the law and ought to be able to deploy. Those ifs are dependent on Kent finding a truckload of cash to float his operations long enough to generate a revenue stream - with no possibility of further equity dilution (hence the obviously desperate £2m share issue) and £100m of investor cash already up the Swannee that's going to be next to impossible. I suspect his subscribers are waiting for a white knight (ISP anyone?) prepared to snap up Phorm data-snaffling kit at a bargain basement price. Does anyone think that Kent and his venal pals haven't mapped out an exit strategy?

[Sir Runcible Spoon]

Sir

Don't forget that in order to make that opt-in legal, no opted-out traffic would be able to legally pass through their DPI kit - and that would break their technical model.

[Morel's Ghost]

@ Sir Runcible Spoon

Of course you're right if they're still using their cookie-based opt-out, but Ertughoul's recent Annual Report suggested this isn't the case anymore:

"... technical trials such as those undertaken by BT in 2008 are no longer necessary. It is now possible to ensure that the only data that our system comes into contact with is that of a consumer who has explicitly granted opt-in permission."

Not that there's any reason to trust anything KE says (even when he's saying it under the auspices of AIM reporting requirements) but it looks like he's realised that it's game over for opt-out based snooping. This is probably a moot point, as the deep dark whirlpool where he'd like his operational budget to be will sink him long before he gets to prove his new model. When that happens, it'll be worth keeping an eye on the deserting rats to see what happens to the kit they've developed.

[Anonymous Coward]

Sorry, not correct

you need consent from both parties to a communication. BT's/Virgin's/Talk Talk's customer cannnot give consent on behalf of the other party.

[Boris the Cockroach]

For those

wondering who invests in phorm shares, may I refer you to the whole CDO swap phuck up that many of the investors bought into willingly on the chance of making a $ or 2

[Yorkshirepudding]

rot in silicon hell

that is all

[Sam Therapy]

Agree with many of the previous posters

Die, you scabby bastards. Painfully.

[James Pickett]

Worth

“it will issue a million shares “

That’s not going to raise £2m, then, is it? About £2 if the investors aren’t quick...

[Camilla Smythe]

China now....??11!1?

Chuckles.. ㅋㅋㅋ

Next stop Elbonia.

[An ominous cow heard]

A week later.

It's a week later. They had, according to the calculations, two weeks or so. Are they nearly bust yet or has the white knight arrived?

Are the techies (well, those that remain now that CTO Stratis Scleparis is long gone [1]) ready to relocate to (say) Cheltenham?

[1] Did you know that before he was CTO at Phorm, Stratis Scleparis was CTO at BT Retail, including at around the time of the denied trials... small world, isn't it.