About Vection Technologies
Vection Technologies (ASX:VR1) is a multinational software company that focuses on real-time technologies for industrial companies’ digital transformation. Through a combination of our 3D, Virtual Reality, Augmented Reality, Industrial IoT and CAD solutions, Vection helps companies and organizations to innovate, collaborate and create value.
Vection Technologies Headquarter Location
Suite 1, 437 Roberts Road
Subiaco, Western Australia, 6008,
Latest Vection Technologies News
Sep 5, 2021
Share The corporate watchdog is monitoring ASX-listed Emerge Gaming, which last week revealed 98 per cent of its revenue is derived from Crowd1 Network, a multi-level marketing company that has been the subject of warnings from several international regulators. Emerge Gaming, a small Perth-based company with a market capitalisation of just $30 million, booked revenues of $10.9 million for the year to June 30, of which $10.6 million came through sales of its Miggster gaming platform, a white-labelled “e-sports” program it is responsible for running. Crowd1 packages showing Emerge Gaming’s Miggster platform, that when purchased includes a 12-month subscription to the mobile gaming platform. Miggster, which entices consumers to play rudimentary competitions with a promise of cash prizes, is owned by the multi-level marketing company known as Crowd1, established in Europe, registered in the United Arab Emirates and headquartered in South Africa. It has targeted consumers across Africa, China, Russia and south-east Asia. Crowd1 and its Spain-based parent group, Impact Crowd Technology SL (ICT), have been the subject of consumer warnings from more than a dozen global regulators concerned that they could be a “pyramid scheme”. Like many multi-level marketing schemes, Crowd1 labels itself a “legitimate marketing company” that helps boost the self-empowerment of its members, who earn income based on how many friends and family members they successfully invite to join the company. Advertisement The scheme has copped criticism for coaxing millions of consumers in the developing world into handing over chunks of household savings in return for promises that they could become millionaires by marketing further take-up of Crowd1’s unsophisticated digital products to their networks. Crowd1’s basic subscriptions, which range in price from €299 to €2499 ($480 to $3980), offer personal self-development courses (which have been shown to have copied material freely available on the internet), access to a travel and booking service (based on a white-labelled search engine service available to anyone) and “Crowd1 loyalty points” that can ostensibly be redeemed for more Crowd1 products. All basic subscriptions sign up new Crowd1 members to a 12-month subscription of the Miggster gaming platform, which it values at €69 a year. Crowd1 boasts it has 30 million members globally. Emerge Gaming has disclosed, in a response to a query from the ASX on August 5, that the cash received for running the Miggster program “comes from Crowd1”. ‘Community is the core’ Under the deal struck last September with Crowd1, Emerge Gaming receives $3.10 for each customer that subscribes to Miggster, up to 1 million subscribers. It then receives 39¢ for each subscriber exceeding that. In an August slide deck it noted Emerge receives $3.20 for the first 1 million subscriptions and thereafter 40¢. Advertisement According to its full-year results released on August 31, Emerge Gaming booked revenues of $10.86 million for the 12 months through June. Of that, $10.6 million was through sales of Miggster. The rest was made up of revenue derived from the company’s other gaming platform, MTN Arena, which was launched in July 2020. MTN Arena generates revenue by billing a daily subscription fee against mobile subscriber accounts when they subscribe to the MTN Arena platform. At the Miggster launch, the prizes on offer for players on the platform, paid for by Emerge Gaming, included free Miggster subscriptions, travel vouchers, laptops and smartphones, up to a total value of €65,000 ($104,000). Since then, there have been new deals with ICT where ICT’s net revenue is on a sliding scale depending how many paying subscribers it delivers on Miggster each month. Emerge Gaming has sought to put distance between itself and Crowd1, with a company spokeswoman saying Emerge provides the online tournament platform that Crowd1 may market under a licensing agreement. “This is the extent of our exposure to Crowd1/ICT,” the company said in response to questions from The Australian Financial Review. However, Emerge Gaming chief executive Greg Stevens, who was born and is based in South Africa, appeared as recently as July in a Crowd1 promotional video noting that: “Our community is the core of our product.” Advertisement Crowd1 promotional videos, freely available on YouTube, use actors playing seasoned television presenters on lavish studio sets spruiking the benefits of its products and interviewing “entrepreneurs” who have built up successful income from the platform. The Financial Review is not suggesting Emerge Gaming has engaged in any multi-level marketing, only that it receives revenue from Crowd1, which has attracted attention from international regulators for its activities. One of various online highly produced events held to promote the Miggster platform. In response to ASX queries, Emerge Gaming confirmed that company representatives had “regular engagement” with former Crowd1 chief executive Johan Staël von Holstein before it struck the deal with Crowd1. The Swedish Mr von Holstein resigned abruptly late last year citing health reasons and has not been seen publicly since. The primary point of contact is now the CEO of ICT, Johan Westerdahl, Emerge Gaming said. Only Crowd1 members can sign up to Miggster and then invite and sign up friends or family members to join, for which they receive a credit from Crowd1. The more people sign up, the greater earning power Crowd1 members can achieve. Crowd1 said in August it had signed up 1.8 million subscribers to Miggster. Advertisement Crowd1 members must use the social gaming platform’s invitation tool to invite friends to attend events. If you are not a Crowd1 member you need to “find an invite link to attend”. Since Emerge Gaming announced its Miggster program with Crowd1 late last year, the Australian Securities Exchange has issued Emerge with seven different Query Letters attempting to gain further clarity on the financial relationship between Emerge and Crowd1. At this stage, the Australian Securities and Investments Commission appears not to have taken any ASX referral further, although the matter remains of some interest according to those familiar with the regulator’s monitoring program. A spokesman for ASIC declined to comment, while the Australian Competition and Consumer Commission, which polices consumer scams, referred questions back to ASIC. Plenty of warnings While Australian regulators have taken no action against Crowd1, New Zealand’s Financial Markets Authority has urged consumers to exercise caution when dealing with Crowd1, Peru has banned Crowd1 from raising money in the country, Mauritius’ Financial Service Commission warned consumers about “ponzi / pyramid schemes” and “scams and swindles” in a release urging caution when dealing with Crowd1, the Philippines Securities Exchange Commission issued a permanent cease and desist order to stop Crowd1 from soliciting funds from the public, while South Africa’s Financial Sector Conduct Authority has instructed consumers “to not conduct any financial services business with any individual or entity associated with Crowd1”. Advertisement At least 13 countries have issued similar warnings about Crowd1. A spokeswoman for Emerge Gaming said because of the one-way nature of the company’s relationship with Crowd1, there was no “undue risk” in the operations from the relationship. Emerge said the gaming industry was often marked by growing audience and revenue “through non-traditional marketing channels and direct-to-consumer in-game offerings”, while defending the multi-level marketing model as one not unlike international brands such as supplements group Herbalife and MLM company Amway. Perth-based entrepreneur and serial penny-stock chairman Bert Mondello is the chairman of Emerge Gaming, while another board director, Phillip Re, who shares several board positions with Mr Mondello, is closely associated with Emerge’s auditor, Criterion Audit. Disclosed in the company’s annual report, Emerge Gaming granted nearly $385,000 worth of options for corporate advisory and investor relations services during fiscal 2020-21. This includes a $120,000-odd payment to Regency Corporate Pty Ltd, another entity associated with Mr Re. In addition, it paid $60,000 in consultancy fees to Indomain Enterprises, which is associated with Mr Mondello, and paid $215,000 in software development fees to Technobrave Pty Ltd, a subsidiary of Vection Technologies in which Mr Mondello is a director. Legal fees of $24,000 were paid to Hartness Consulting, which is associated with Emerge director Jonathan Hart. Advertisement In September last year, Emerge Gaming announced it had become a Microsoft Independent Software Vendor, which will give it access to technology and new customers across 61 countries. A spokeswoman for Microsoft said: “We hold our potential partners to high ethical standards as described in our Partner Code of Conduct. While we cannot speak to this particular case, we can confirm that we will thoroughly investigate and take appropriate actions as warranted.” A New Zealand Financial Markets Authority spokesman told the Financial Review it regularly issued warnings about investment scams to protect investors from potential harm. “The FMA’s attention was first drawn to Crowd1 by fellow securities regulators in the Philippines and Mauritius, which have also issued warnings,” the spokesman said. “The FMA shares intelligence with similar regulators as part of the International Organisation of Securities Commissions. “We issued a warning about Crowd1 in the event that the scheme might begin to promote itself to New Zealand investors. At this point, we consider any concerns about Crowd1’s connections to an ASX-listed company a matter for ASIC or the ACCC, rather than New Zealand regulators.” Advertisement Emerge Gaming has recently decided to establish an Australian registered special purpose vehicle, even though it does not offer its platforms in Australia. It told the ASX that prospective offerings involving its joint venture partner, Singapore-based Cloudzen Pte Ltd’s technology, would be considered in the future for Australian consumers. Emerge Gaming also claims that under a local SPV, it has more control over its planned R&D (it is investing $US800,000 [$1.1 million] to customise its Cloud Game Streaming offering), and that it may also gain tax rebates from the government from this investment program. It received $198,000 in research and development tax credits last year. Emerge Gaming also recently entered into a deal with Cloudzen, which is listed by the Singapore Accounting and Corporate Regulatory Authority as a developer of software for interactive digital media. Under this agreement, Emerge has licensed access to five AAA games developed by Cloudzen. AAA is a classification term used for games with the highest development budgets. Emerge Gaming told the Financial Review it was reviewing Miggster’s commercial feasibility for a “tailored Australian offering in the market”, but declined to elaborate on product plans with Cloudzen. Cloudzen’s accounts show it has posted three years of consecutive bottom line losses. Its biggest shareholders are OMG Capital Pte Ltd and Cloudzen Alpha Pte Ltd. Cloudzen and investment firm OMG Capital did not respond to inquiries from the Financial Review. Carrie LaFrenz has more than 10 years' experience as a business journalist having previously covered healthcare, retail/consumer goods, industrials and agribusiness. She is based in our Sydney newsroom. Connect with Carrie on Twitter . Email Carrie at firstname.lastname@example.org Michael Roddan is a Walkley Award-winning senior companies reporter based in Sydney. He is a former business and economics reporter for The Australian. Connect with Michael on Twitter . Email Michael at email@example.com Save
Vection Technologies Team
1 Team Member
Vection Technologies has 1 team member, including current Chief Operating Officer, Gianmarco O.