Sunday 22 January 2017 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares


Cloudtag: An Open Letter to Cairn Financial - when will you quit as Nomad? Now?

By Tom Winnifrith, The Sheriff of AIM | Tuesday 20 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.


It is an open secret in the City that Cairn Financial will, at some stage, cease to act as Nomad for Cloudtag (CTAG). And given that the AIM listed company has lied to investors on a serial basis and also committed securities fraud no other Nomad will take this account on. As such, when Cairn quits, the shares will be suspended and a month later booted off AIM. That will preclude any more fund raisings and so will mean shareholders lose everything as the company goes bust. This situation is unfair on investors and so I have written to Cairn. That is because I am just a nice guy.

To Tony Rawlinson & Liam Murray Cairn Financial
re the fraud and publisher of lies, your client Cloudtag

Gentlemen.

I wish you and your family's a merry Christmas. Since your client Cloudtag has committed securities fraud and lies to investors on a serial basis I understand that as an honourable Nomad you must be wishing to quit this account. Indeed, at a mercenary level, we all know the damage that a continued association with Cloudtag is already doing to your business at Cairn.

I know that you must at some stage therefore quit. And so do some folks in the market but not, I fear, all. There are some investors out there who are still buying shares on the assumption that there is no threat to the listing. Since I know you to be honourable Gentlemen and also that you are too smart to commit commercial hari kiri, this is clearly not the case. But fear not. It is Christmas and in this, the season of goodwill, I have a suggestion.

Simply tell Cloudtag that it is on notice of three months as per the standard Nomad contract and then announce to the market that it is on notice. At that point those of a limited IQ still owning the shares may think that another Nomad will act for the fraud ( none will) but at least all will be aware of the downside risk and as such the market will be seen as more transparent and thus orderly.

There is no need to thank me formally. I wish you and your families all the best for this Christmas week.

Best wishes

Tom Winnifrith
The Sheriff of AIM


Filed under:


Never miss a story.




This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.


More on CTAG


Comments

Comments are turned off for this article.




Site by Everywhen