Tomorrow, I shall tell you about a young man in despair, naming no names but what it says about this country. Today, I look at Powerhouse Energy (PHE) options and warrants, Zoltav Resources (ZOL), Sensyne (SENS), Supply@ME Capital (SYME), Parsley Box (MEAL), Deepverge (DVRG) and Chill Brands (CHLL).
Advisors should have their interests aligned with those of shareholders. Not so Virdian Capital Partners, announced today as the new strategic advisor to the fraud Chill Brands (CHLL). Strategic advisor my arse, Viridian is a broker and corporate financier. Its remit as a strategic advisor is according to Chill, but the underline is mine: “in connection with capital raising strategy, M&A strategy, development of its board of directors and investor relations.”
AIM-listed Advanced Oncotherapy (AVO) announced yesterday, Friday 3rd September, that funds due in to settle the subscription announced back on 11th August would not be arriving in full for up to an additional two weeks. Yet on 31 August – just three days previously – the subscription shares were due to be issued on Friday. Hmm.
Back on August 17th I pointed out that according to AIM-listed Advanced Oncotherapy’s FY20 Annual Report, all the warrants exercisable at 25p issued back in July 2017 should have expired. Yet the night before, after-hours, the company had announced the exercise of 500,000 of those warrants. Last night the company slipped out an explanation at 6.14pm in its Result of GM announcement.
Sub-Standard-Listed Cloudbreak Discovery (CDL), which rushed its way onto the Standard List only in June as Imperial X (IMPP) before it had even managed to change its name amid a forest of Red Flags, has announced an industrial trough-load of options for directors, PMDRs and other staff. Its nice to be valued, but what about the shareholders?
Here is an odd thing: last night, after hours at 4.48pm, AIM-listed Advanced Oncotherapy (AVO) announced that someone had issued an exercise notice in respect of 500,000 warrants issued back in July 2017 to subscribe for ordinary shares at 25p. Application to admit the shares has been made and admission is expected on or around August 20th. So what, you might ask. And that brings me to Advanced’s Annual Report for FY20.
Location Sciences Group (LSAI) “is pleased to announce that the broker option was significantly oversubscribed by both existing shareholders and non-shareholders”. Hmmm – “pleased to announce” that a £0.35 million option at 0.20p per share was significantly oversubscribed when the closing share price prior to the fundraising announcement was 0.56p? And then “However,”…
Previously writing on Location Sciences Group (LSAI), in March I concluded that the financials together with ‘business review’ uncertainty meant it remained on the bargepole list. Now a “pleased to announce” fundraising, though the company also arguing “the current relative strength of the company’s working capital position”. Hmmm…
Special Purpose Acquisition Companies (SPACs) seem to be the new buzz word in the UK markets at the moment, certainly amongst PIs on social media anyway, and it would also seem that a few AIM company directors are getting involved as well.
After years as a serial AIM dog about which we repeatedly warned, Mountfield Group (MOGP) is now a cash shell c/o a Peterhouse Corporate Finance Special. A recent placing at 0.1975p has allowed many of the spiv, sewer dwelling, clients of Peterhouse to flip their stock for a quick turn. For them and also the advisers who racked up costs of c£300,000 on the £3.1 million placing it is coke, hookers and in many cases warrants all round. Yum Yum. But this is perhaps not a total tale from the sewer.
Of course, I should not, as a loyal shareholder in Wishbone Gold (WSBN), wish to question the incredible quality of the analysis of the company’s evolving story provided by London’s leading mining analyst Mr David Lenigas. However…
Yesterday I discussed the related party nest of snakes financing deals done by Dev Clever (DEV) and its bonkers valuation HERE. Today, in response, a trading statement but it is all smoke and mirrors and there are gaping omissions. It is a shocker.
Cash guzzling POS Iconic (ICON) faces a 15% shareholder wishing to oust the board, OTT, and a legal claim from death spiral provider European High Growth Opportunities Securitization Fund, EGHOF, which it airily dismisses as baseless. It is wrong to do so and here is why.
This morning AIM-listed Catenae Innovation plc (CTEA) has issued two RNSs covering a new joint venture with BHA Medical – to which is it issuing 10 million warrants at 2.5p, and a further 2 million warrants at 2.5p to “other parties”….whoever that may be. Catenae’s shares are up to 2.8p on the news, so BHA and person or persons unknown are already in the money.
If there was an award for the worst performing oil and gas share listed on AIM over the past decade there wouldn’t be a lack of contenders, but Nostra Terra (NTOG) would definitely be in the running!
Good news this morning for AIM-listed jam- (or, rather, gold) tomorrow explorer Conroy Gold and Natural Resources (CGNR) as it has raised a fairly decent amount of cash – £800,000 – at 25p. Heck, if this goes on for much longer the company will no longer be technically insolvent! It might not be already, although I wouldn’t be too sure. So are the shares now a buy?…
AIM-listed Greek resort outfit Minoan (MIN) has released news this morning of the refinancing of its pre-existing debt which used to be held by Hillside. The old lenders have gone and, mercifully, so have the stranglehold terms that came with the deal and in comes a new lender in the form of a outfit called DAGG LLP. The cost has been high, but the end result makes this well worth it.
I had been wondering when further news would come from i3 Energy (I3E) and these week two significant RNSs dropped on the same morning, which ultimately led to shares being suspended for the foreseeable future.
When you combine one of the least successful AIM listed natural resources companies with probably the worst bucket shop brokers around, then you rarely end up with a good outcome.
At every step the last few days have seen Powerhouse Energy (PHE) show everything that is wrong with life among the dregs of the AIM Casino. Today a new chapter but as a reminder....
I see that shares in URU Metals (URU), a company run by John Zorbas which Cynical Bear observed seemed to be more interested in mining its shareholders than digging anything of value out of the ground, have dropped to just 80p to sell. This is in the wake of the disgraceful fundraise at a massive 57.5% discount (which was advertised as a 24% discount) to its previous 200p share price. That is bad enough, but there are implications of far worse to come.
On 20th May (Wednesday this week) 32 million Catenae (CTEA)shares issued at 1p will be admitted to AIM. Given that this company is almost certainly technically insolvent and is burning cash and that the shares trade at 2p+ what do you expect the spivs who backed the last placing to do? Exactly. And when they have finished dumping those pieces of confetti there are 16 million warrants with a 1.25p strike to consider…
These days on the markets there seems to be a willingness by some private investors to just believe any story that is being spun, rather than making any attempt to actually check the facts themselves.
Often pump and dumps only last a matter of a few days or even hours, but occasionally when it is more than just small private investors involved they can go on for a long period of time, and that certainly appears to have been the case with Eurasia Mining (EUA)...
A tiny AIM mining company called Great Western Mining (GWMO) suddenly seems to be getting a bit of attention on social media, and as is so often the case with this type of company this just so happens to coincide with a placing.
Eurasia Mining (EUA) is a company that I’ve been following for the past five years or so, but during that time, other than the occasional spike, the share price has done very little, and up until a few days ago you could have bought for around the same price as when I first covered it. The share price has more than tripled in the last few days though, to a current level of around 1.9p, following news that the company has engaged two large banks to help it assess the possibility of selling its assets and basically becoming a cash shell under AIM Rule 15...
There was much excitement back in April when an Arab sheikh took a stake in ADM Energy (ADME), so it must have come as a big shock to investors last week when news broke that he had sold all of his shares and had resigned as the company president.
Having written a piece just three weeks ago about Highlands Natural Resources (HNR) and the likelihood of it needing more cash very soon, todays news of a placing didn’t really come as much of a surprise to me.
It never ceases to amaze me how willing many private investors are to forget past failures and accept that a complete change of direction in a business is suddenly going to bring success.
Previously writing on Westminster Group (WSG), I concluded last week where’s the cash for that coming from? The shares are currently down to below 13p, but, natch, still avoid / sell. Now the company “is pleased to announce a placing… to raise £1million before expenses together with the issue of warrants”. Surprise, surprise…
Smaller companies often offer promises of imminent revenue streams which cause upward spikes in the share price, but for any longer term appreciation in value they need to actually deliver on the expectations of their shareholders. Currently that would definitely seem to be the case with Eqtec (EQT), which I have been bearish on since the share price was between 1.26p and up to 1.57p, and private investors in this gasification to energy company were quick to point out how wrong I was when there was a brief spike in the share price shortly after my initial coverage at the lower end of that range. So, it has really come as much of a surprise to me that the share price has steadily declined over the few months since then and it now trades at around the 0.84p level to buy...
There has been a lot of talk on social media recently about a petition to ban the short selling of AIM listed stocks - although it currently only has a little over 3,200 signatures, including a few CEOs, and is well short of the 10,000 needed to even get the government to respond – 100,000 are needed for a Parliamentary debate...
I’ve never been a fan of Catenae Innovation (CTEA), but I know that some of the other ShareProphets writers are more bullish on it and that it has been making some progress with its business.
There was much glee amongst certain individuals on Tuesday morning when an RNS dropped from Eqtec (EQT) announcing a contract, and some were very quick to point out that my opinion on the company had been incorrect. That followed my articles here saying that I wouldn’t touch the company, and although the news caused the share price to spike, my opinion on the company is completely unchanged – in fact the news actually reinforced my view!...
Over the weekend I covered a waste-to-energy company called Eqtec (EQT) and surmised that it was going to need funding very soon, and this would most likely come in the form of a discounted equity issue.
I would imagine that most Lionsgold (LION) holders were somewhat less than impressed when news came at the end of last week that its shares were being cancelled.
Back in June I wrote a piece suggesting that Jangada Mines (JAN) would raise further funds at a significant discount, and at the time I was shot down by many, including some market commentators.
Minoan Group (MIN) “is pleased to announce” that it has entered into a conditional agreement for the sale of its travel business – emphasising it will “allow the directors to concentrate their efforts on optimising the value of the group's project in Crete and its monetisation for the benefit of shareholders”. However, the shares are currently significantly lower, at around just 4p…
I note the piece from Hotstockrockets which explains part of what Miles Pelham has been up to. Essentially he has been offloading AIM-listed Obtala (OBT) ordinary shares and picking up convertible prefs (which pay 5%).
AIM-listed Greek resort hopeful Minoan (MIN) has announced yet another extension to its loan from Hillside. The terms are largely the same, but a further 1.7 million warrants at 6p are being issued, and the loan is now on demand, with a long-stop date of 31st August. This is in relation to the announcement last week that the sale of its travel and leisure business is on the way. With a long-stop date of 31st August, one might assume that at long last something is going to happen!
That insolvent Andalas Energy (ADL) is undertaking a placing is no shock. It is insolvent with negative net current assets of at least £400,000 but thanks to some fairly sordid share ramping it has managed to raise a gross £1 million at 0.02p. The ramping of shares in this company with worthless assets is pretty unpleasant but what is laid bare in the news is the sheer greed of City advisers notably brokers Novum – of Jon Belliss and Gavin “I made £750k from Globo - Burnell infamy – and Optiva.
AIM-listed Eqtec (EQT) has announced a funding package this morning. The good news is that short-seller Bercheva - run by a convicted crook - has been given the heave-ho from the death spiral facility, but the replacing loan deal seems to offer great terms to the lender and the accompanying placing is at a 35% discount. So what’s the upside for shareholders?
AIM-listed Advanced Oncotherapy (AVO) announced this morning that Bracknor, the death spiral funder, still had convertible loan notes to swap for shares. This, despite the RNS of 19 July 2017 telling us that the Company does not intend to use the Bracknor facility in the future. As part of these arrangements the Company will issue 7 million warrants to Bracknor. These warrants are exercisable at 25p and may be exercised at any time over the next five years. Anyone would have thought that was the end of the matter. Apparently not.
AIM-listed Advanced Oncotherapy finally got around to updating the market over its Blackfinch loan which matured on 24 March and was secured on its Harley Street premises. But it seems that the company can’t tell the truth!
We still have some warrants in Amryt (AMYT) and I know this is a big year both in terms of clinical trials and also sales ramp up but I admit that I am a bit off the pace on exactly what is going on. So over to someone who is bang up to speed.
I have made the point before but do so again that not all death spirals - or alternative structured financings or whatever the MBA phrase is - are the same. Some can actually help the share price. Some really shaft shareholders royally. All are created in a way where the provider cannot lose but some are just usurious. Why, for instance, has Angus Energy (ANGS) agreed to a deal this week with Bergen which ensures that its investors will get so utterly rogered that no amount of lube can ease the pain.
Blenheim Natural Resources (BNR) has always been one of the more popular shares on the AIM market, but given its performance to date it is hard to see why that is.
Shares in fully listed Interserve (IRV) have shot up on the almost after-hours announcement last night of some scant details of a rescue refinancing. The good news is that someone is putting up the bunce (subject to credit approvals), but at what cost?
Investors who believed all the hype surrounding Greatland Gold (GGP) received a nasty shock this week when the share price collapsed, but for many of us who have been around the market for a while it didn’t really come as much of a surprise.
Whenever you suddenly get a lot of ‘noise’ about some tiny AIM outfit which has recently become a cash shell and raised money via a placing, then I am always very suspicious that it is largely down to the placees and brokers trying to create interest to flip their shares.
Shares in AIM-listed Tern (TERN) seem to have stabilised after the bloodbath of last week, at 2.875p in the middle – having started last week at 4.5p and only in mid-August having completed a hugely discounted placing via Primary Bid at 6.6p. Ouch. This is all in response to the RNS last week announcing that it had signed up for death spiral funding. Yesterday, at 11am, Tern announced that was to issue 800,000 shares from the exercise of a warrant at 3p, and Alliance News picked up the story that Tern Issues New Shares Above Current Share Price To Settle Warrants. Don’t be fooled….
No matter how long you have been around the AIM market, there are often moves which seem to make little or no sense, especially amongst the smaller companies.
Twitter and the bulletin boards were awash with people saying how great the Blenheim Natural Resources (BNR) news was this morning, but having had a good read myself I think they may have been over-egging it somewhat!
I previously wrote on Kin Group (KIN) in August; From dire to ‘kin worse; administrators to be appointed for principal trading business & proposed CVA - including commenting on the company stating “there is no guarantee… will be completed successfully”, with it’s got to be ‘kin joking, right? Is “successfully” what, at best, further mega dilution is? I now note a “Suspension update & proposed share consolidation” announcement…
I have to tip my hat to the various brokers and advisers involved with EVR Holdings (EVRH) that have managed to place £15 million of stock with various UK and US institutional investors today. That’s a great effort with still no sign of the Melody VR app launch and the two founders have managed to cash in £5 million out of that too.
I have a question for Professor Conroy, of AIM-listed Conroy Gold and Natural Resources infamy. Tom Winnifrith tells us that the paperwork for the warrants exercised by him and by his sidekick (which were announced on Wednesday last week) was filed last Sunday. We also learnt yesterday that the cash went straight back out of the kitty to repay Conroy/Jones by settling director loans - apparently ahead of term.
On Friday shareholders in Conroy Gold & Natural Resources (CGNR) will vote on whether to oust chairman Professor Richard Conroy and his sidekick Maureen Jones The dastardly duo are doing everything they can to cling on as the vote will be tight.
With all the “quality” companies waiting until the last possible moment at the end of next week to release their results, I thought I’d do a series of previews this week on some of my favourites starting with the “warrant exercise machine”, EVR Holdings (EVRH) where the only real unknown is what the latest excuse will be for the delayed launch of the app.
The sub scale bank Manx Financial (MFX) admitted yesterday morning that it could do with raising some more capital for regulatory purposes. It had considered a placing but, for some reason, that idea had not flown. But luckily its chairman Jim Mellon had a stack of warrants at 6p outstanding with a deadline for exercise of er...yesterday. With the share price at 8p surely this was a nil brainer for my good friend, the offshore based asset stripper, Mellon?
Echo Energy (ECHO) the overvalued wannabee oil explorer has today announced that it is firing its retained broker Brandon Hill. This is most unusual.
A couple of people have asked me for my views since I called the top for EVR Holdings (EVRH) a few months back HERE, following the recent Microsoft and Sony announcements. Well, the more interesting news to me is a recent interview by the CEO with Music Ally (HERE) which hints at further delays, presumably as it’s taking longer than envisaged for all the connected guys to sell their warrants! Let me explain.
Every AIM company must have a Nominated Adviser, a NOMAD, to retain its listing. A Nomad is an FCA regulated financial adviser which charges an arm and a leg as a retainer to ensure that every RNS issued is 1005 accurate and that the company also complies with all the other AIM Rules. Not, as the LSE has made clear, that there is any downside in breaking all the rules or telling outright lies. That brings us to UK Oil & Gas (UKOG).
When a tiny AIM company suddenly becomes popular all over Twitter and the bulletin boards, and without any real news to justify that sudden attention, then you have to question why it is happening.
Nektan (NKTN) has been surviving on fumes recently but its short-term survival is ensured by an announcement this morning with a loan from its major shareholders and although the future still looks tricky, such support is to be applauded as it keeps hopes alive for the wider shareholder base.
My second piece on insiders cashing in and odd TR-1’s is, very predictably, looking at Echo Energy and, in particular, the two late RNS’s on Friday afternoon which show that the “Cornerstone Investor”, Greenberry plc, is offloading shares and warrants all over the shop and appears to be almost giving them away too – what a charitable sort! Let’s take a look.
I last wrote about Monchhichi (MCC) in February HERE when it completed its underwhelming placing of £2.1 million at the incredible price of 35p and I wondered what it was going to do next. Well, rather than actually invest its funds and generate shareholder value it is has just announced some more financial spoofery last seen at the disastrous Highlands Natural Resources (HNR), It is worth taking a closer look.
My last piece rather naively thought that Echo Energy’s (ECHO) new institutional equity investor, Spartan Fund, or Pegasus Fund as it became, would want to put its funds in at a fair valuation and thought the share price would go down. I was wrong and must assume that it is all part of the connected group of institutions and individuals here that have led to an insane valuation that appears to indicate that the mere mention of James Parsons is worth £100 million. That is nonsense and this is a massive sell.
Having previously suggested future ramparoonies for the company to place into somewhat more limited, Kin Group (KIN, the former Fitbug) “is pleased to announce that it has… agreed to issue convertible unsecured loan notes with a term of three years, to raise up to £1.125 million (before expenses), to Belastock Capital L.P., an overseas based institutional investor”. Hmmm…
Shareholders of Onzima Ventures (ONZ) will be breathing a sigh of relief following confirmation of the acquisition of the remaining 51% of private company N4 Pharma, and meaning that the new entity will relist on AIM. This won’t have come as a massive surprise as the company announced this proposed acquisition back in January, but some still seemed nervous as the announcement went right down to the wire in terms of Onzima either announcing such a deal (which constitutes a reverse takeover) or being booted off of AIM.
Eden Research (EDEN) yesterday released an odd RNS. Not so unusual was a statement of total voting rights. But it also contained a statement of outstanding warrants and options. Was the company trying to bury something whilst the city was watching yesterday’s Budget statement? At the centre of this lies Oxford Capital Limited, which was dissolved and struck off on 31 January of this year.
Premier Oil (PMO) is a company that I have been bearish on so far in 2017, but it has now reached a level where I would consider changing my stance to a buy, or at the very least one to watch closely for when the recent trend changes direction and it starts to bounce.
AIM-listed CloudTag (CTAG) has announced the conversion of the final little bit of loan notes held by death spiral provider L1, at 4.5p. The shares have raced ahead, even though this only marks the half-way point in the share price carnage caused by the package. Indeed, it may not even be half, for the warrant exercise terms are far more favourable than the loan conversion terms (from L1’s perspective).
Shares in AIM-listed purveyor of fictional guaranteed orders for fictional not guaranteed products CloudTag (CTAG) has announced the latest confetti-issue to L1 under the death-spiral loan deal. £300,000 worth of loans converted at 4.5p leaves just £100,000 left over. The shares have shot 15% higher on the news: the BB loons obviously think it’s (nearly) all over. I’ve got bad news there….
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?).
Blenheim Natural Resources (BNR) may have seen a large increase in its share price, but in my opinion it is still one to avoid and was basically insolvent on paper prior to the recent placing, and had been for several months!
The market doesn’t like uncertainty, and that is why Premier Oil (PMO) has been continuing to under-perform in comparison to some of its peers in the oil and gas producing sector in terms of the share price.
AIM-listed jam the day after tomorrow company CloudTag (CTAG) has announced the latest death spiral loan conversion by L1 – this time at just 4.5p per share. Of course, for a company with no product and no orders and which has been, shall we say, economical with the actualitees that is still overvaluing the shares by 4.5p.
Optibiotix (OPTI) held an EGM of warrant holders earlier this week to vote on extending the date at which we must exercise out to 2022 from er...next week. There are really very few warrant holders left.
Tom Winnifrith and Waseem Shakoor were commenting yesterday on where shares in AIM-listed CloudTag were heading. Obviously the end target for a company with still no working product available to sell, revenues of zero and stonking cash-burn is nil. But the focus of attention is the L1 funding package and when it could fall apart.
I just ask a simple question about AIM-listed CloudTag (CTAG) and this pesky financing deal with L1 involving convertible loan notes and associated conversion warrants. Something caught my eye in yesterday’s RNSs from the company, in which it announced yet another loan conversion – and the first (I expect of a great many) warrant exercises by L1.
This morning AIM-listed CloudTag (CTAG) has announced, predictably enough, another loan note conversion by L1. But in what looks to be a bit of a surprise move, L1 has also elected to start on the warrants too, despite there still being loan notes outstanding. But oh dear, what about the dates…..
We cannot hide our disappointment that we go into Christmas with shares in Optibiotix (OPTI) trading at just 61-63p. They really should be far higher and we do expect an exciting re-rate in Q1 2017. We had expected it earlier but were wrong. We won't be this time!
The ‘fessing-up RNS of yesterday leaves a few unanswered questions – so many that I just can’t help but wonder whether what we think we are being told is not actually the same as what we are being told. Let me explain as we “Fiske” the text and wonder whether there had, in fact, been a retrospective alteration to the terms of the loan conversion and associated warrant terms.
And so AIM-listed ClieTag (oops) CloudTag (CTAG) duly ‘fessed up in the wake of my piece yesterday that it had not been telling the truth. Again. But it gets worse, as the company only dealt yesterday with hitherto undisclosed warrant exercise terms. It did still does not clear up the issue of the loan conversion terms and so, unbelievably, yet another confessional RNS statement is needed.
Well surprise, surprise. AIM-listed CloudTag (CTAG) gets its shares unsuspended and a few days later L1 converts another batch of loan notes, as announced in last night's no-one-is-watching o’clock RNS. OK, no great surprises so far – especially in view of the price action since the suspension was lifted. But look at the terms: has there been a a material and previously unannounced change, and if so, when?
It never ceases to amaze me just how much some are prepared to risk on very high risk AIM companies where the odds are against them, and this is a sure-fire way to quickly see all of your money go up in smoke!
Wow! I’d love to have been a fly on the wall over at Cairn Financial as the wording of last night’s no-one-is-watching-o’clock RNS from AIM-listed CloudTag (CTAG) was being, ahem, “discussed.” I wonder how long that lot took to put together….since last Friday? It was a real shocker.
Oh dear, oh dear. Bad news for bulls of AIM-listed (pro tem) CloudTag (CTAG) this morning – and possibly for L1. Last Friday the shares were suspended with no reason being given, “pending an announcement”. An announcement duly followed (at no-one-is-watching o’clock) telling us that L1 had issued another conversion notice and that it was expected that dealings in the Shares will commence on or around 15 December 2016. The shares, however, remained suspended pending another RNS. Well, we’ve had this morning’s AIM notice but no such admission to trading has been announced.
A great call from Cynical Bear appears to have forced a statement out of AIM-listed CloudTag (CTAG) and a suspension of the shares. But close reading of last night’s no-one-is-watching o’clock statement suggests that the announced loan conversion and warrant issue is not all that it seems. I’ll come back to the issue of headroom later, but first there are a few issues which need to be clarified by the company in short order.
Oh dear. Oh dearie me. With the share price of embattled AIM-listed CloudTag (CTAG) still coming down faster than a Waseem Shakoor post on the LSE CTAG BB, the bid price has dropped to just 5.25p last seen. If my maths is right, L1’s outstanding loan notes can’t all be converted until after the forthcoming EGM (assuming that shareholders approve the relevant resolutions). Even then, it looks as though Tranche 2 is in danger of not being convertible if the bid price falls much further. Perhaps the Nomad, Cairn Financial, might wish to have the matter clarified to the market.
Oh dear, AIM-listed jam- (and product) tomorrow (or sometime, maybe) CloudTag (CTAG) closed last night notching up (or, perhaps down) a bid price of just 6.75p per share. This might be causing a few headaches over at L1 Towers as it seeks to convert its remaining £1.2 million of convertible notes from Tranche 1 of its death spiral funding package. My plan to become a death spiral financier on the Casino seems to have hit a nasty problem – that of headroom in already existing share issuance authorities of the investee company running out and leaving me lobster-potted in unconvertible notes. Of course, I can “persuade” the company to increase the authorities, but time is of the essence: I want to offload ASAP and bank my bunce.
Oh dear. They say that no news is good news and so conversely it was beginning to seem that every time AIM-listed CloudTag (CTAG) opened its mouth via the RNS system these days it was bad news. What a come-down from the good old days when it could announce anything it liked and the market loved it. Perhaps the company’s fortunes will change with this morning’s ramptastic RNS, although the reaction seems a tad muted already. Watching this unfold I wonder if my plan for instant wealth as a death spiral financier might hit a snag.
Having included as a ‘Key Point’ in its September-announced half year results statement “Darwin Convertible Loan Note debt reduced during period and eliminated shortly afterwards”, Westminster Group (WSG) is now “pleased to announce” £1.2 million of convertible loan notes… with Darwin! The following updates with the shares currently falling back well below 20p in response...
At 6.15pm on Friday – truly no-one-is-watching o’clock – AIM-listed Vast Resources (VAST) released an RNS detailing the exercise of warrants and consequent issue of equity. It is comedy central. Perhaps readers can explain the 10% commission part…..
As AIM-listed crock airline Fastjet (FJET) hurtles at full speed towards its next funding crisis two warrant exercises catch the eye – one yesterday and the other last week. With the shares trading at around 20p, why on earth would anyone exercise warrants at 31.5p a pop?
My last comment on Wishbone Gold (WSBN) was not exactly positive. The company's shares had raced ahead, in part methinks, down to comments made by me saying I'd not be selling until the shares were closer to 2p than 1p. It then raised £600,000 at just 0.75p with broker Beaufort Securites trousering not just commission but warrants. I write a fairly vicious piece HERE. But we did not sell and at 1p are still holding and hoping for better. I swapped emails with chairman Richard Poulden last week.
Concepta (CPT) has announced that it has issued 464,674 shares following the exercise of warrants - something we warned you about last week. That brings in £34,851 which is frankly neither here not there. Around 10% of that cash came from the exercise of warrants by FIML and my pension fund. Neither are selling at anything like this price although the shares are well up on a 14p offer share tip.
Edenville Energy (EDL) has long been a favourite of small private investors, but ultimately I have to wonder whether it will actually ever get to a stage where its projects come to fruition.
We have been asked a few questions about Optibiotix (OPTI), none wildly important and so let's wrap them up into one article, in Q&A format.
We tipped these shares at a 12p offer - they are now 19.5p-21p but hang on tight. We aim to be selling at 25p+ very soon. But before then an urgent reminder for long term holders: warrants! Deadline 6 October.
When it comes to small AIM companies the appointment of a new broker can often be an indication that dilution is on the way, and I have to wonder if that is the case with Alexander Mining (AXM).
Back on 15 June Highland Natural Resources (HNR) announced what was in essence a covert placing with a spiv share flipper. It was dressed up as something rather different but the failure of that spiv to issue a TR1 shows this laughable pretence up for what it is.
APC Technology (APC) “is pleased to announce that it has conditionally raised £1.1 million (before expenses) by way of a placing of 13,750,000 ordinary shares… together with two warrants for every five placing shares issued”. The market is not as pleased – the following updates with the shares currently more than 16% lower, at 8.375p, on the day…
I was delighted to read this morning’s RNS from AIM-listed cancer-buster ValiRx (VAL): it has ditched the value-destroying funding package with Bracknor. About time too, this has been a disaster for the share price ever since it was announced back in March. With the shares having crashed from 12.5p the day before the package was announced to the current 6.875p (last seen) the damage has been horrific.
AIM-listed jam-tomorrow investment company Tern plc (TERN) released its interims to June 30 2016 this morning. Once again the company has to be commended on the speed with which it gets its numbers out. As expected there is a large paper profit, no cash and the promise of future dividends despite a lack of cash and hefty retained losses. As to the profit…..
Today we are told by Highlands Natural Resources (HNR) that the "institutional investor" that it refuses to name which bought 10 million 25p warrants ( and has an option to by 20 million more) at 1p per share has exercised 5 million warrants. Oooh er missus, now this spiv & chancer, sorry meant Institutional Investor must reveal himself.
I’ll be honest with you, the Sub-Standard Shockers XI squad is always in need of bolstering with its plethora of suspensions, so I was thrilled to see the announcement last Friday of Papillon Holdings (PPHP) coming to the market via the Standard Segment of the Official List. However, I still needed to assess whether it was fit enough to get in to the team.
I highlighted yesterday that it seemed to me that the failure of shareholders in AIM-listed cancer-buster ValiRx to pass a special resolution at last week’s AGM to disapply pre-emption rights cast a bit of a shadow over the company’s funding arrangements. In a move straight out of the EU rulebook on democracy, shareholders are to be given the (ahem) opportunity to vote again in the hope of coming up with the right answer this time.
Shareholders in AIM-listed cancer-buster ValiRx (VAL) rejected a disapplication of pre-emption rights special resolution at the AGM held last Monday. The company said a further announcement would follow “in due course” but since then there has been silence. But it seems that there might be a few implications for the financing of the company going forward.
This morning saw AIM-listed ValiRx (VAL) appoint Beaufort Securities as Joint Broker. This coincided with a quarterly update RNS full of good news and Beaufort included a generous write-up in today’s morning note, with a “speculative buy” rating. All jolly good, but I fear that yet more errors have been made by the company.
Delisted from AIM and so now only listed on the ISDX lobster-pot AfriAg (AFRI) published its FY15 Annual Report the other day. You can read it HERE. There remain plenty of unanswered questions (see HERE) but on one point the Annual Report reveals an extraordinary cynicism in the boardroom as it was before former Exec Chairman David Lenigas departed the scene.
After-hours (natch) yesterday AIM-listed biotech ValiRx (VAL) released an RNS announcing the drawdown of the second £500,000 tranche (of up to eight) of its convertible death spiral funding package with Bracknor. We were also told that half of it had already been converted, with reference made to the terms set out in an RNS of 21 March 2016. But the numbers simply don’t add up – oh, and the company had now admitted that associated warrants will have to be approved by shareholders.
AIM-listed ValiRx (VAL) operates in the biotech space, developing cancer drugs. I’ve been pretty beastly in previous pieces (see HERE) but I am pleased to note that the company has seen fit to address the questions asked over Companies House filings. As pointed out HERE they were indeed wrong and they have now been corrected. Good news. My hope is that the questions over the Bracknor funding deal will now be addressed.
If you didn’t know that the AIM market was highly regulated by the FCA, you could be forgiven for thinking that some companies exist purely to generate fees for the directors and brokers.
Peterhouse, house broker to AIM-listed Tern plc (TERN), yesterday released a note following the announcement of a deal in which Tern’s principal investee company Cryptosoft had acquired the US-based Device Authority Inc in an all-paper deal.
After-hours last night (5pm) AIM-listed ValirX (VAL) announced a second batch of loan conversions under its £4 million (except it is up to £8.6 million) funding deal with Bracknor. It was at just 7.4p so it is no great surprise that the shares are down at 8.625p mid (last seen) having closed last night at 9.25p. But then there are those warrants….does anyone have the slightest Scooby of what’s going on there from last night’s announcement?
In a mad rush given that it could be booted off the AIM casino on Friday, Andalas Energy (ADL) is - according to my sources trying to raise £2 million at between 0.45p and 0.55p - that compares to 1.3p just prior to suspension. Rule breaking low life dirtbag CEO Dave Whitby has engaged commission hungry/ethics light brokers at Cornhill to bring in the cash, promising them market beating commission plus warrants - a package worth several hundred thousand quid if they can stiff their clients and back this issue. For mug punters the maths just do not stack up.
In the he said she said fraud allegation filled pantomime at Strat Aero (AERO) we have a minor distraction today in the form of a placing to raise £400,000 at 1.125p. Hmmmm. Questions, questions.
Yesterday I had a few comments to offer with regard to AIM-listed ValiRx (VAL) and its £4 million (or is it £8.6 million, or is it £8.6 million plus proceeds from exercise of 5 million warrants at 9p?) CUL deal with Bracknor. My fear is that details of that deal offered up in the RNS of 21 March 2015 look (from Friday’s RNS) to have been incredibly lacking. But wandering over to the Companies House website leaves me wondering if the company can’t get simple Companies House filings right, what hope is there for the mechanics of a complex CUL deal to be fully understood and conveyed to shareholders?
On 21 March this year, AIM-listed ValiRx (VAL) announced a convertible loan facility with Bracknor Fund Ltd. It was announced that the company could draw down up to £4 million in tranches of £500,000. But it seems that some of the information given was either wrong or just missing, not to mention a small problem of share issuance authorities which look to be insufficient to seal the deal. Having had no reply to two emails sent to the company, I am assuming that the conclusions I have come to are correct. It is not pretty.
I indicated in part 1 of my results analysis that there were a few bits and bobs in the Tern (TERN) Annual Report which had not made in into the RNS version of the FY15 results. Often it pays, when studying a company’s numbers, to begin with the notes to the accounts and then work backwards from there. And so here are a few things which caught my eye.
David Lenigas, made great play some weeks ago of how he had spent £60,000 buying 15 million shares in AfriAg (AFRI) at 0.4p and 0.45p. With the shares now at 0.24p to sell it was not Jabba The Hutt's greatest trade but the question is why did he do it all?
Tern’s jewel-in-the-crown investee company, Cryptosoft, appointed a new Company Secretary on 24 July this year in the form of Gravitas Company Secretarial Services Ltd. They seem to have had their work cut out, as we shall see. But in the process of filing various amendments to Companies House a few questions are thrown up over Tern’s investment into Cryptosoft. And then it is back (yawn, yawn) to those pesky warrants where is starts to look as though the giveaway was less accidental than first appeared.
Following a series of questions HERE, HERE and HERE AIM-listed Tern plc (TERN) has finally clarified how it managed to allow the holder of warrants exercisable at 4.6p to exercise them at 0.02p instead. I’ve lost count of the clarifications and restatements Tern has issued so far this year, but at least we can start to draw a line under this latest one – although yesterday’s RNS would suggest that Tern’s FY13 and FY14 accounts and results RNSs, and the RNS of 31 July 2013 (which announced the issue of the warrant instrument) were all just plain wrong.
As previously flagged HERE there is some mystery regarding a warrant exercise announced by AIM-listed Tern plc (TERN) on 17 August (see HERE). I wondered where these warrants, which were exercised at 0.02p, had come from. Following quite a bit of enquiry, it is still unclear. What is also unclear is where the responsibility may lie. So this is not an attack on Tern plc, or its Directors, or its Nomad. It is more a case of how the current regulatory set-up has once again failed investors. In this case it is in a small way, but next time?
Anyone following the saga of AIM-listed Tern plc (TERN) will know that the company has had a few difficulties in reporting share issues – see HERE for an example. Yesterday Tern released this RNS which announced the issue and allotment of 641,463 shares as a result of the exercise of 52,823 warrants at 3p a share, and 588,640 warrants which were exercisable at 0.02p per share. The problem is that I can’t find where those 0.02p warrants came from.
Hello Share Shovers. There are alternatives to the old-fashioned trading of shares when it comes to making a bit of money. Some of these ways become a bit more enticing when the old stock markets are a bit soft, as they are now.
This is not my dynamite revelation, I merely set the scene…China fraud Naibu (NBU) floated on the AIM casino in May 2012 at 124p. The shares are now 19.5p. So UK shareholders have lost 5/6 of their cash in less than 18 months. So who are the winners from this farce? Well let me introduce to its Nomad and broker Daniel Stewart. This will appall you and perhaps explains why Daniel Cesspit (which also floated Quenron) is trying not to resign.
Peter Shea is CEO of Daniel Stewart a firm that listed Quindell (QPP), acted as its Nomad and broker from May 17 2011 to January 31 2012 and which was paid handsomely in cash, shares and warrants for its efforts. As Nomad to Quindell it was responsible for ensuring that it did not do things such as hand cash to pals of Rob Terry or lie to shareholders but did it do its job?
The Financial Times today reports that the much heralded Quindell (QPP) deal with the RAC has stalled big time. This is the start of the great unravel for at the bottom of it all is cash. Or lack of it. The FT states:
Cenkos, Canaccord and Daniel Stewart are the three City firms that have made most money from listing Quindell (QPP), advising it and helping it raise cash. For these three City firms Quindell has been an enormous money spinner. And the last published research reports from these three fine houses all advise investors to BUY Quindell stock with price targets a multiple of where the shares are now. But ….