Thursday 27 April 2017 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares


Cloudtag - Why selling the warrants will be a bigger challenge for L1 Capital than Loan note conversion shares

By Tom Winnifrith, The Sheriff of AIM | Tuesday 14 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.


If one looks at the volume of shares traded in the fraud Cloudtag (CTAG) in the last four months (from LSE’s AIM statistics) you can see that almost half the shares in the company changed hands in the month of December, reflecting the run up to existing launch of new exciting product at CES show in Las Vegas (hmm sounds rather familiar didn’t that happen in 2016 as well?).

 

Trading Value

£000

Shares

Market Cap

£m

No of shares in issue

October 2016

18,676

107,462,102

58.01

407,062,033

November 2016

10,130

103,217.220

30.50

420,746,535

December 2016

21,328

214,929,747

40.21

454,115,766

January 2017

9,719

144,979,744

22.11

465,461,920

The challenge for L1 Capital is the drop off in volumes that have occurred in January 2017.How long will it take to shift the over 50 million unexercised L1 warrants especially given absence of new trade shows and absence of ramptastic announcements that it used in December 2016?

Cloudtag’s annual results must be published by 31 March 2017.These will show more losses given absence of any sales and a horrific level of cash burn evidenced by various share placings in the year. They will also need to include statements about the company’s propsects of remaining a going concern.

It seems to me that L1 are likely to want to press on with sales before liquidity shrinks even further as more bad news looms.


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