Alpha Growth Plc (ALGW) has finally had FCA approval of its Prospectus for the Placing that occurred 10 months ago in February 2021. The FCA is supposed to ensure that any Prospectus issued complies with the rules but it is apparent from a quick read that the Prospectus has not been properly updated throughout the document as many of the references are considerably out of date. It looks like someone at the FCA just wanted to remove the Prospectus from his or her to do list prior to the Christmas holidays rather than subject the document to appropriate and proper scrutiny or perhaps it was simply signed off after a long Christmas lunch. I cite below some examples of where the document hasn’t been properly updated.
Alpha Growth (ALGW) announced today that it had appointed Arden Partners as broker to the company (replacing disgraced Pello Capital) and the Bulletin Board Morons reacted positively marking the shares up 11.5% at the time of writing to 3.35p, valuing the company at a quite ludicrous £14 million.
Friday saw the publication of Alpha’s (ALGW) second interim results albeit no Prospectus has yet appeared on the FCA register of Prospectus almost 8 months after the placing occurred. I show below why the results need to be restated dramatically.
Almost seven months after its acquisition of Providence Life Assurance Company Limited which was announced on 11 February and completed on 23 March 2021, Alpha Growth (ALGW) still hasn’t managed to issue its Prospectus to permit the trading of the 187,500,000 placing shares issued on 15 March 2021 to fund the acquisition. This hardly inspires confidence that the enlarged group has the appropriate financial reporting expertise and resources appropriate to run its business which now includes a Bermudian regulated business.
I first commented about Alpha Growth (ALGW) on 8 April 2021 and the absence of a Prospectus in respect of its issue on 8 March 2021 via a placing of 187,500,000 shares at 2 pence per share. The placing represented over 77.8% of existing ordinary share capital of Alpha prior to the placing. The broker which organised the placing was Pello Capital which, as of Friday, is operating under restrictions imposed by the FCA, that is to say it cannot write any business at all other than allowing clients to transfer out cash and shares to other brokers.
Alpha Growth (ALGW) is a company listed on the (Sub) Standard List of the LSE main market which specialises in the longevity asset space. Its shares at time of writing are off 17% which values the company at £18 million. For a company which reported turnover of just £90,264 and a loss of £223,971 in its last interim results, this is baking in a lot of hope value for its managed fund and its recent life insurance company acquisition.
Another shocker from the Sub Standard list and once again Pello Capital, the broker formerly known as Cornhill, home to some real low-life scumbags, the sort of imbeciles who troll you on Facebook, is involved. That is a red flag for starters.
In today;s bearcast I discuss Alpha Growth (ALGW), Advanced Oncotherapy (AVO) and Optibiotix (OPTI) as well as Spain, the latest crisis in the special place in hell that is the EU.
Alpha Growth (ALGW) is running on ‘vapours.’ It hasn’t got a pot to piss in. Cash on hand is probably close to £170,000. Its auditor has issued a ‘Material Uncertainty’ as to viability going forward as a going concern. The Company has ‘fessed up that it has no revenue and will need funds. What is not to like?