By Steve Moore | Wednesday 15 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.
Having in December announced “an additional loan facility of $1 million on similar terms to that of the existing $3m facility, which is fully drawn… to cover short term working capital needs around the company's new business contracts”, OneView Group (ONEV) has now announced an additional $300,000 loan “to cover short term working capital needs”. Hmmm!
The company notes this latest loan, with a 1% arrangement fee and 1% per month interest, “is expected to be repaid in the next three months from anticipated cash receipts”, but the shares have responded further lower – to a current 3.5p.
I consider this reaction unsurprising – with already indebted and seemingly burning through a further $1 million since December to require a further bailout loan, not exactly an attractive investment profile!
Additionally, the December further $1 million loan meant to have been for short-term needs around new business contracts and, having noted on originally reviewing (and warning on the shares) that there was clearly precious little forward visibility here, don’t exactly inspire confidence in cash receipts actually repaying the latest loan in the near term.
With the financial position here making the visibility one even more troublesome, my stance remains bargepole/sell.
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