getmoreshares, there is no mystery as to why it was so low and contained a generous warrant:
Nobody was willing to pay much higher. It was the best deal AGP was able to get for VERB.
Why? Because VERB has failed to show that they have anything of value. The partnerships are all easily obtained. The integrations are all just add-ons that people have to pay for and requires massive selling efforts (don't believe me? why haven't the thousands of Netsuite users oranically generated sales yet?). And the software is just relative positioning of javascript elements on top of html videos, built mostly by low-paid groups in foreign countries. And great sounding advisors who collect easy money/shares are a dime a dozen on the OTC.
But more important than anything else -- the thing 'smart' longs are afraid to really think about -- nobody wants to pay for the product. Despite Marketo showing great enthusiasm, despite so-called 'jaws dropping' by Oracle executives, despite thousands of clients of digital marketers having access to drip campaigns using the interactivity for nearly a year, their revenues havne't grown at all - they have declined.
Real investors - not otc hopefuls - look at results and VERB has failed in spectacular fashion to deliver any.
There is a reason for this: The only interactivity that a lot of people will respond to is just a link. And ANYBODY can overlay a video with a link, or put it next to the video.
Sound Concepts has far more potential, but nobody - it appears from the financials - is actually paying for their app. Adding interactivity or some metrics on who has watched a video is not likely to make much difference, as we've already seen that business model not work.
The ecosystem and social media and add-ons will definitely increase the exposure and some sales will come, but no professional institution is going to value that much without clear metrics.
So, they used a reasonable PS ratio on the mostly low-tech revenues at SC to derive a very low price.
Why? Because that's all they believe it is worth.
My philosophy is to just be honest and balanced, and let the market decide if it agrees or not.
