By Tom Winnifrith, The Sheriff of AIM | Wednesday 7 December 2016
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Amid frantic speculation by the most moronic of bulletin board morons which saw shares in Cloudtag (CTAG) up to 15.5p the company has, for the second time this week, been forced to issue a statement. Regulators are watching this company, which has - of course - committed wholesale securities fraud, like a hawk.
And so Cloudtag says nothing new has happened since Monday. It re-announced that it has received an "indicative, non-binding order from Second Chance for GBP880,000 subject to manufacturing and delivery date being agreed. To date, there have been no further orders and no manufactured stock has been received in the UK. There is no change to the Company's expectation of receiving its first consignment of stock in the UK later this month. The Company confirms that it has not recognised any revenue in respect of this order."
Er... so the indicative order of several weeks ago is still er… indicative. What is the problem with telling the customer when it could deliver. It sounds as if the much heralded first shipment will not be of very many devices, enough to use at a trade show maybe? To say "there have been no further orders" when in fact an indicative, non binding, order is not really an order at all, says just how much of a joke this is.
But the good news is that all this insane share buying by the morons has helped someone:
"Further to the announcement of 28 November 2016, the Company has now received GBP2.08 million in respect of the issue of the Tranche 1 Notes to L1 and the release of the Escrow Amount. Subject to the outcome of the extraordinary general meeting to be held on 12 December 2016, the Company expects to issue the Tranche 2 Notes (being GBP1.8m before expenses). These monies, together with previously raised funding, are expected to meet the Company's immediate working capital needs."
Bonuses all round at death spiral provider L1 Capital.
"It should however be noted that until such time as sufficient revenues are generated by the Company, for which there can be no certainty that this will occur, the Company will continue to require further funding."
Oh, so as soon as Amit Ben Haim has spunked this cash there will be more shares issued. That won't be long then will it? And finally:
"The Company is currently renewing its product brand names and is planning on announcing a new brand name in December."
How about "FitFraud"?
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