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CloudTag – still suspended, but why no admission of shares this morning? Uh Oh.

By Nigel Somerville, the Deputy Sheriff of AIM | Thursday 15 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.


Oh dear, oh dear. Bad news for bulls of AIM-listed (pro tem) CloudTag (CTAG) this morning – and possibly for L1. Last Friday the shares were suspended with no reason being given, “pending an announcement”. An announcement duly followed (at no-one-is-watching o’clock) telling us that L1 had issued another conversion notice and that it was expected that dealings in the Shares will commence on or around 15 December 2016. The shares, however, remained suspended pending another RNS. Well, we’ve had this morning’s AIM notice but no such admission to trading has been announced.

Of course, with saddos such as Tom Winnifrith, myself and Cynical Bear sniffing around at no-one-is-watching o’clock it was inevitable that readers of this site would not go ignorant of the latest nonsense from the company and Cynical Bear duly served up his analysis of that RNS: that it contained an obvious lie. Tom Winnifrith was more direct: that it was a lie to cover up another lie. He eagerly awaits another chance to reply to a bully-boy lawyer’s letter with his traditional “see you in court, bitchez”. Perhaps Memery Crystal (now 3:0 down against the Sheriff) would oblige.

So why have the new shares not been announced to have been admitted to trading by AIM Regulation this morning? And what exactly is the reason for the suspension? The market has not even been given the benefit of which AIM Rule(s) under which the plug has been pulled.

The cynical might have been wondering whether admission of the shares announced last Friday would have triggered a lifting of the suspension. The uber-cynical might then have wondered whether there had been a disorderly market along the lines of the New World Oil and Gas (NEW) scandal last year (albeit on a smaller scale), where it seemed that a placing which didn’t happen led to a settlement crisis. In that case the suspension was not lifted until 3 days after a new placing and open offer had resulted in enough Golden Tickets being admitted to trading.

But that would be very cynical indeed. Wash my mouth out. In any case, if the suspension was about getting the shares admitted, surely there would have been a bit of a rush for the line on that.

Perhaps it could be the issue that last Friday’s RNS (apart from the nonsense over which day the conversion notice was served and the consequent issue price of the conversion shares as well as the associated warrant exercise terms) was perfectly opaque as to what shares were being issued for what – see HERE. What that Friday night RNS told us was that 19,166,667 shares were to be issued, alongside 19,166,667 which HAD been issued. It also told us that application would be made for the admission of the resulting conversion shares AND exercise shares – a total, therefore, of over 38 million bits of confetti. But the stated resulting number of shares in issue was only a 19,166,667 increase.

So is it the conversion shares or the warrant exercise shares to be issued? It could not be both. Has there, perchance, been a spot of hedging of one’s bets going on? Is it that at the time it seemed that there was a minor little stumbling block in the form of a lack of headroom?

So is the continuing suspension due to any of the above, or is it something else (there is plenty to choose from!)

Hey, Cairn Financial, hapless Nomad to this unfolding car-crash, should we not be having a statement? Under what AIM Rule has the stock been suspended?

Meanwhile, I fancy that the odds of CloudTag ever returning to trading on the Casino are shortening by the day.

As for L1, has it been issued the shares yet? Has it ponied up the next tranche of death spiral cash? Has it already disposed of any yet-to-be-admitted-to-trading shares, I wonder?

And given that CloudTag has already admitted that it will need yet more funding to send to the great central bank in the sky once this funding package has completed (if indeed it ever does), how are the company’s finances doing?

We need a statement as to what is going on. Why have the 19,166,667 new shares not been admitted to trading this morning, as was announced last Friday?

This must be taking up an inordinate amount of Nomad Cairn’s resources. Liam Murray and his crew must surely be wondering whether the retainer is really worth all the grief.

Whatever else, it would appear that the suspension does not seem to be about getting the shares admitted.


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