By Nigel Somerville, the Deputy Sheriff of AIM | Monday 13 February 2017
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.
Shares in ShareProphets AIM-China Filthy Forty play Jiasen (JSI) have collapsed by another 38% today (last seen) after admitting this morning that having called an EGM proposing to cancel its shares from trading on AIM and move to NEX (the lobster-pot formerly known as ISDX) the application has still not been made. This morning’s RNS makes clear that there is a deadline of tomorrow. Oh dear, oh dear, oh dear. Surely it could not be that NEX, which even found African Potash (AFPO) acceptable, has indicated that it doesn’t want the last remaining listed member of the Fujian Four gracing its exchange, could it? Or is it that the company never had any intention of getting onto NEX?
This morning’s statement reads:
In order for the Company to qualify for admission to the NEX Exchange Growth Market by way of a fast-track application process, application will need to be made by 14 February 2017. In the event that the resolution to cancel trading on AIM is passed at the general meeting on 15 February 2017 and admission of the Company's shares to trading on the NEX Exchange Growth Market, or any other stock market, has not occurred, shareholders will no longer be able to buy and sell shares in the Company through a public stock market and liquidity in the Company's shares will be extremely limited. There can be no certainty that the application will be made or that the application, if made, will be successful.
Right, so if the EGM on Wednesday passes the resolution to cancel trading on AIM is passed and Jiasen fails to gets its application to get admitted to NEX via the fast-track application process (or NEX rejects the application if it is made in time) then Jiasen’s shareholders can’t sell out.
What a great time to ‘fess up that the NEX application hasn’t yet been filed: with the EGM being held in the fine Province of Fujian in China, it’s a bit late to be telling UK shareholders now, is it not? One would assume that proxy votes have already been cast on the assumption that the NEX application would be filed on time. What are UK-based shareholders supposed to do now, if they have changed their minds in the light of this morning’s announcement?
As Jiasen hurtles towards securing its berth as the 24th AIM exit of the Filthy Forty, shareholders have just two weeks to claim their bags of crisps. Having listed at 82p per share in July 2014, here we are on the cusp of elimination and the shares are now just 1.25p (last seen) to sell, representing a loss of 98.5% for a company drowning in cash yet which can’t afford the ongoing expense of being listed on the world’s most successful growth market. A company generating cash to add to its already gargantuan cash-pile, but which chopped its dividend. A company which claimed to have in excess of 1500 employees until quietly dropping its claim after we published details of a site visit.
What an indictment of the Casino and all the advisers and regulated firms involved in getting this company listed.
Shame on all concerned ( especially Nomad Cairn of Cloudtag infamy). Hang your heads, fellas, hang your heads.
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