Oh dear, oh dear, oh dear. If it was not enough that the fine firm of EY (formerly known as Ernst & Young) resigned as Finablr’s auditor amid the shocking revelations over undeclared debts owed by fully-listed but suspended since March 2020 Finablr (FIN), we learnt last week that replacement auditor, PKF Littlejohn, threw in the towel last week. To lose one auditor might be seen as a tad careless, but to lose a second with no accounts published in between times is truly shocking.
Tern (TERN) shareholder Lloyd Leckerman argued in his fan mail of yesterday that I penned an article on his beloved POS AIM stock every day. Not to disappoint Lloyd I serve up six more red flags for him to ignore. But first…
I start with a recount of what is my longest training walk yet as I build up to the 33 mile Rogue Bloggers for Woodlarks stroll on May 25. As you think of me wading through mud and dog pooh, gosh I loathe selfish dog owners, please make a donation to this great cause HERE. Then I look at Interserve (IRV) and dumb bleaters and at Metals Exploration (MTL), Tim Blackstone's fave hound, and why its latest bombshell surely calls for a change in the AIM casino rules when it comes to Nomad Resignations.
The court filing below hangs Frontera (FRR) in its own words. It makes it clear that it is in default on the Outrider loans so is likely to lose all its assets. It also lays bare its failure to secure external funding throughout the past nine months and its now utterly parlous financial state. The shares should be suspended first thing Monday. If not they will utterly collapse. If you have ignored my repeated warnings and can sell Monday do so at any price. And this document may trigger another FCA investigation.
In August it was announced that Cenkos was buying the Nomad operations of Smith and Williamson, with completion expected in November after due diligence had been done on Smith & Williamson’s Nomad clients. On Friday, at no-one-is-watching o’clock (natch – 6.09pm!!) AIM-listed Arricano Real Estate (ARO) announced that Smith & Williamson had served notice that it would resign on 23 November 2018. Talk about Red Flags at Night!
I have already covered results from Falanx (FLX) in bearcast but there is one matter than niggles me in the annual report – the “resignation” as a director of CEO Stuart Bladen. Let me explain…
In a terse statement today, IDOX (IDOX) has fessed up to the reason why auditors Grant Thornton quit the gig. Deloitte has now taken on this poisoned chalice, heck anything for a fee boys but they should be warned. Grant Thornton says it handed in its notices because of “challenges during the conduct of the statutory audit of the financial statements for the year ended 31 October 2017 strained the working relationship with the Board.”
ShareProphets AIM-China Filthy Forty play Asian Growth Properties (AGP) has announced that is it throwing in the towel on its AIM listing, and is to dispose of its assets and return the cash to shareholders. This is expected to amount to about 48p per share – to add to the huge dividends paid out over the last couple of years. It is, in many way, a startling result although the reasons behind the delisting cast a pall of shame on the AIM Casino and thus the London Stock Exchange.
Following my run for the hills at the weekend, we learn today from AIM-listed Nyota Minerals (NYO) that the former chairman dumped another line of stock last Wednesday (informing the company on Thursday) – 25 million shares. His holding – which started as 90 million shares in lieu of director’s fees – was down to 55 million. Since it is now below 3% he’s free to dump the rest without bothering the RNS system.
AIM-listed Rurelec (RUR) updated the market last Thursday that its currently crocked power generation plant held in its JV Energia Del Sur in Argentina may get fixed rather sooner than first feared – even if the proposed repair sounds a bit of a Heath Robinson affair. Good news. The slightly more disconcerting news is that the Companies House website is showing an Auditor’s Resignation filing as being processed and available in five days.
Having dished up a ghastly profit warning on the last trading day before Christmas, China company and NEX- (the lobster-pot formerly known as ISDX) listed Miloc Group (ML.P) has announced the termination of the appointment of its Corporate Adviser, Grant Thornton, with effect from 6 March 2017. We’ve covered this one before (see HERE if you fancy a good giggle) as its FY15 accounts were pure comedy and the history of its listing on London’s sub-junior market has been a festival of Red Flags for this purveyor of Traditional Chinese Medicines. Sadly, it looks as though the joke may soon be over.
A shockingly disappointing statement from Autins Group (AUTG) this morning, a share that has only been on AIM for five months. It smells all wrong to me and raises serious questions for a few parties, particularly the CEO, Jim Griffin, or should I say, ex-CEO, as he resigned with immediate effect this morning too.
Yesterday’s staggering RNS from CloudTag (CTAG) has already been covered brilliantly in the CloudTag Bearcast special with Tom Winnifrith at his acerbic best – an absolute must-listen - but I have a couple of other observations and am unable to leave the L1 conversion notice date lie alone just yet!
No great surprise after the Metal Tiger (MTR) / BMR Group (BMR) takeover debacle but this morning, Metal Tiger announced wholesale changes to its Board as I felt it was inevitable. Worth taking a closer look and trying to understand what it means for the business from here.
Following the strange goings-on last Friday, which I covered HERE, with the disappointingly low offer for Metal Tiger (MTR) by BMR Group (BMR), it has all come to a quick end with a couple of announcements on Monday and Tuesday this week, but surely Borelli’s position at Metal Tiger is now untenable.
As a child of the ‘70s and ‘80s, I used to love the I-Spy books, so thought I’d liven up a potentially dull preview of Boxhill Technologies’ (BOX) forthcoming interims by writing it in the style of an I-Spy book.
Of the original 40 AIM-China companies we identified as our ShareProphets Filthy Forty, the steady attrition has seen that number whittled down to just 17 companies. The period either side of the reporting deadline for calendar 2015 numbers (30 June) saw further departures, but last year’s interims deadline saw a queue for AIM’s Death Row develop. How are we looking this time?
AIM-listed China and South East Asia play Galasys (GLS) has seen a stunning procession out of the door of late. One NED last December, the Company Secretary (not yet replaced) and Registered Office (not yet replaced) last week, another NED twelve days ago, the Nomad and Broker last week, and now yet another NED today. Surely there is no way back for the company now – yet the company’s RNS today was apparently signed off by WHI as Nomad and Broker!
Not a great surprise for any seasoned observer but yet another disappointing RNS from Xtract Resources (XTR) this morning. Surely it is time now for Jan Nelson to hang up his mining helmet and head off into the sunset….well, to a new role at MTI anyway.
Having warned on profit in February – as reviewed HERE, today there is an AGM update and a “Directorate Change” announcement from industrial chains and related power transmission products company Renold (RNO). Let’s take a look…
Oh dear. One of the traits of the China Frauds is that so often the precursor to the wheels coming off the subterfuge is the resignation of the finance director. And so this morning’s announcement from ShareProphets AIM-China Filthy Forty play Haike Chemical (HAIK) that its Chief Financial Officer stepped down on Monday with immediate effect “for personal reasons” is a stand-out Red Flag. So is the tardy announcement.
I’m bringing this BOX set to a close with a set of questions for Lord Razzall to answer that summarises the plethora of issues raised in my various articles on Boxhill Technologies (BOX). Shouldn’t take him too long to answer over his roast beef and I reckon any more than 5 incorrect answers and he should do the decent thing.
I smiled at Nigel’s piece on FastForward Innovations (FFWD) yesterday asking a similar question as I’m beginning to wonder whether I’m doing the Nomad’s job at Boxhill Technologies (BOX) too. Having raised the issue about the winding-up petition before the RNS on Thursday, there was also a further RNS that day about the shares held by SmartePay Limited which I first raised in February and again last weekend.
The more I dig into the chaotic world of Boxhill Technologies, the smellier it becomes. Having spent the last 24 hours trawling through reams of information sent through to Shareprophets, I can only echo Tom’s clarion call to shareholders from his Bearcast yesterday – SELL!
Another day, another one-way trip to the chamber of no return. Asia Ceramics Holdings plc was formally given the heave-ho this morning to make it the nineteenth member of the ShareProphets AIM-China Filthy Forty to leave the Casino. Tomorrow we hit twenty – the half way mark – as it is the turn of Auhua (ACE) to join leave the world’s most successful growth market.
We have today penned an open letter to George Osborne regarding the ever-growing scandal of the ShareProphets AIM-China Filthy Forty. Mr Osborne, you will remember, is keen to see greater links forged between the London and Chinese markets. Under the circumstances we are deeply concerned about this and call for a full investigation.
The ShareProphets AIM-China Filthy Forty was launched on 15 August 2015, just 197 days ago, as a way of tracking what a concentrated stinking cesspit this mini-sector of the Casino was. At the time, already ten of the forty had left world’s most successful growth market for a variety of reasons: two had been booted off the Casino for failing to publish accounts, a further five had been booted off after a Nomad resignation and no replacement appointment, and three had delisted in, cough, the best interests of shareholders. One further company was, at the time, suspended as its Nomad had quit but the one month grace period to find a new one had not yet expired. (That duly became the next AIM-China execution).
It is hard to keep up. We called Auhua “Clean is my middle name” Energy (ACE) as the 21st AIM delisting/suspension on the ShareProphets AIM-China Filthy Forty as its Nomad steps down effective first thing on Monday, but at no-one-is-watching o’clock last night up popped Asia Ceramics (ACHP) to say that its Nomad had resigned. So Auhua will have to settle for 22nd place.
Shares in ShareProphets AIM-China Filthy Forty stock Auhua "Clean is my middle name" Energy (ACE) are down another 28% this morning after the company confirmed that it has not yet been able to sign up a new Nomad to replace Grant Thornton which steps down with effect from Monday morning. As such Auhua will become the twenty-first company of our Filthy Forty to have left the Casino or be suspended.
Shares in AIM-listed DQ Entertainment (DQE) are down 35% to 1.125p mid (last seen) as today's close-of-play deadline for the company to find a replacement Nomad or see the shares suspended looms large. Is this the last chance to salvage one of Tom Winnifrith's bags of crisps?
Aside from the imminent suspension of AIM-listed DQ Entertainment (DQE) as its Nomad resigns today, shares in ShareProphets AIM-China Filthy Forty play Auhua "Clean is my middle name" Energy (ACE) shares are also on the slide once again.
There’s trouble at t’mill. AIM-listed Galasys (GLS) is turning into something of a soap-opera as boardroom infighting has spilled into the public arena. Quite what happens next remains to be seen, but as things stand shareholders cannot be certain who is actually running the company. According to AIM, Galasys’ country of operation is China. It is a holding company registered in Jersey, with its main assets rolled up into a BVI vehicle.
It was announced yesterday at 11.32am that the CEO of AIM-listed Rurelec (RUR), Mr Mark Keegan, had walked with immediate effect. Having only been on the board since late July this year, and with the first RNS released which bore his name as CEO having been on 13 October this year this looks to be an ominous development - not to mention the well-chronicled tale of financial and other woes besetting the company.
Disgraced International Mining & Infrastructure (IMIC) has today announced that it has managed to raise more cash ($22 million) by issuing yet more bonds. The answer to debt is not more debt, especially when you are not generating any cash. But when in a hole…just dig deeper.
AIM has this morning announced the quiet execution of the fourteenth member of the ShareProphets AIM-China Filthy Forty, Camkids (CAMK). Still on Death Row we have Geong (GNG) which tomorrow will have been without a Nomad for a month so we expect another execution at 7am on Monday. Also scheduled for lethal injection shortly is China Rereun (CHRR) which lost its Nomad 24 days ago, and Vmoto (VMT) is going for a "best interests" delisting. This reads terribly badly for the LSE - and not a single one of the Nomad resignations has been explained.
ShareProphets AIM-China Filthy Forty member Auhua Clean Energy (ACE) reported this morning that its Non-Eec Chairman, Mr David Sumner, has walked. His replacement, Mr Raphael Tham seems to have already stepped into the role. Oh dear.
The spread betters could be having a field day. Four more of the ShareProphets AIM-China Filthy Forty now on Death Row following Nomad resignations in just four weeks. Three in the past week: if this continues the whole lot will have gone by Christmas. But back to the question – which will be next? For some clues, we just have to look at what happened yesterday. Anyone still holding Jiasen (JSI) or JQW (JQW) is, in my view, certifiable.
There are numerous reasons why the AIM casino system of regulation based on Nomads fails miserable to protect investors from lying and fraudulent directors. But one major failing is what happens when a Nomad resigns and to demonstrate this I have got my hands on the letter sent by Fox Davies when it quit as Nomad to Sefton Resources (SER) in September 2012 and am delighted to share it with you. Private & Confidential it is marked. Well not any more chaps!
A difficult few days, I fancy, over at Cloudbuy Towers. Last week Chairman Ronald Duncan had a margin call from Equities First Holdings LLC (EFH) which prompted an RNS stating that Mr Duncan would settle in cash. Then on Wednesday of this week came an after-hours RNS stating that the Interims had been delayed. This morning AIM-listed Cloudbuy (CBUY) finally released those interims (which were not all that pretty) and then promptly followed up with the announcement that the Nomad had quit with immediate effect. Consequently the shares are now suspended. This has implications for Mr Duncan’s EFH package. It is hard to know where to start!
On Monday, I published a public call for the AIM Investigations Team (AIM Regulation) to investigate the Platinum Partners loans scandal. This morning, we heard that Peter Landau and Anthony Eastman (directors at the time the loans were entered into and throughout the period they weren’t reported) have stood down from the company. Range claims that this is “part of a corporate restructuring initiative”, but the timing doesn’t look like a coincidence to me. If I am correct, then today I want to take the opportunity to applaud AIM Regulation for moving swiftly.