Published 9 days ago
It was my great privilege to speak at The UK Investor Show this year, along with the illustrious bears and short-selling raiders Lucian Miers, Matthew Earl and Gabriele Grego. For my choice of bear tips, I again went for the easy target of Fastjet (FJET) (down by over 70% since I first mentioned it in November 2015), but my new tip was the rarely-discussed pallet company, RM2 International (RM2).
Published 24 days ago
Slater & Gordon (SGH) spunked £649 million on buying the worthless, fraudulent assets of Quindell (QPP) in 2015, a deal that has seen its shareholders suffer a 99% wipeout. It has now filed a UK High Court claim against Watchstone (WTG), Quenron as was for £637 million and we have obtained the papers and, in a major scoop, publish the Claim in full below.
Published 30 days ago
I thought I would pause before commenting on yesterday’s RNS from Xtract Resources (XTR) relating to the Manica alluvials as I felt it was odds-on that more dilution would come from one source or another following the ramping off the back of it. Surprise, surprise, Yorkville cashed in and announced a loan note conversion today, but let’s take a closer look at the announcements in any event.
Published 37 days ago
On the 15th May announcement from the former Fitbug, Kin Group (KIN) of bailout funding I noted amongst the conditions “the closing bid price of the company's ordinary shares (as reported by Bloomberg) not being below £0.001 (0.1 pence) for any five consecutive trading days on or prior to the relevant issue date” and later questioned how long the funding would continue. The company has now made a “Convertible Loan Notes update” announcement…
Published 64 days ago
Well, well. How do you issue shares at a discount to par? Simple: pay a whopping fee to the subscriber. AIM-listed Advanced Oncotherapy (AVO) has announced another loan note conversion under its death-spiral funding package with Bracknor and a new fee seems to have appeared which might just derail discussions between the company and its auditor as they work on the going concern statement for the forthcoming FY16 results due out by the end of next month. Oh dear, oh dear.
Published 102 days ago
Having featured in the ‘New Year bury bad news stakes’ and with questions having been raised about CFO Nilesh Jagatia, I note shares in Inspirit Energy (INSP) remain in the doldrums following half-year results announced on 31st March. I also note the announcement was made at 9.49am. An attempt to miss the usual 7am RNS scrutiny?...
Published 105 days ago
Just catching up with an after-hours RNS from Xtract Resources (XTR) on Wednesday and although I was hoping for an update on how it is going to finance Manica, it was in fact just more dilution taking the total number of shares to over 34 billion…..with more to come...
Published 125 days ago
CyanConnode (CYAN) is “pleased to announce” a successful equity raise of 1,906,912,392 new shares at 0.17p each. Hang on, haven’t I already heard similar since previously reviewing in August?...
Published 132 days ago
Writing in January on fluid power products supplier Flowtech (FLO) with the shares just below 130p, I noted that there looked potentially interesting value, but also “c.£13 million” of net debt and a downward forecast trend which deterred. The company has now announced a “successful fundraise of £10 million at 120p per share”…
Published 150 days ago
Former AIM Casino disaster story United Cacao (CHOC) has updated the market this morning with regard to proposed changes to the terms of its bonds. If you are a shareholder and didn’t take Tom Winnifrith’s advice to get out, I suggest you look away now for as he predicted HERE it is indeed to be a near wipe-out even if the company survives.
Published 180 days ago
It looked for all the world as though it was curtains for AIM-and JSE AltX- listed DiamondCorp (DCP), but an announcement on Friday sees the company having managed somehow to get a placing away to raise £1 million. Amazingly, with the shares suspended at about 2p pending clarification of financial position in November last year, the placing appears to have been concluded at 4p per share but the issue of warrants on a 1:1 basis, exercisable at just 1p rather takes the shine off that. Even so, the package looks set to raise (assuming full warrant conversion) much-needed cash at an average of 2.5p a share – a premium to the suspension price.
Published 216 days ago
Earlier this week, Xtract Resources (XTR) announced an upcoming EGM to authorise the issuance of a further 9 billion shares, a mere 50% of the current share capital! Sounds like a lot but one needs to have a look again at the last heavily dilutive funding round in November to ascertain whether this is actually going to help.
Published 242 days ago
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…..
Published 287 days ago
Anyone who was buying shares over the last few days in AIM-listed jam-tomorrow investment company Tern plc (TERN) has just been spanked in pretty spectacular style this morning. With the shares having traded as high as 14p just last week, this morning saw a placing to raise £2.55 million (gross) at a whopping 36% discount to yesterday’s closing bid price – and a 50% discount to the peak of last week. Tern seems to be in a bit of a downward spiral with regard to its confetti issues – the previous two placings were at 8p and then 12p.
Published 302 days ago
I tipped Science in Sport (SIS) last month following the announcement of an exciting tie-up with Liverpool FC. This morning sees the release of the company’s interim results, confirming excellent progress made and with good omens for future profitability.
Published 303 days ago
I wondered HERE whether the proposed rescue refinancing of stricken ShareProphets AIM-China Filthy Forty play MoneySwap (SWAP) could get into a spot of bother as the shares were sliding. Now they have slipped below the mooted bail-out price of 0.2c per share.
Published 304 days ago
Fastjet’s (FJET) interims for the first half of 2016, released this morning, are another set of results from the company which are about as bad as they could conceivably have been.
Published 322 days ago
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).
Published 346 days ago
Fastjet has this afternoon announced the result of its general meeting and capital raising. Not surprisingly, given the support of the institutions involved, all resolutions were passed.
Published 355 days ago
ShareProphets AIM-China Filthy Forty play MoneySwap (SWAP) has made no secret lately of its dire financial predicament. The investment case appears to be that it either gets a refinancing (with a new board) and survives – but with the new money coming in at a significant discount, or it does not in which case it is bust.
Published 360 days ago
There would appear to be an increasingly common correlation between CEOs who freely indulge in podcasts, interviews and courting private investors, and those same PIs getting screwed a short while later!
Published 366 days ago
Just when the long-suffering shareholders of Xtract Resources (XTR) thought things couldn’t get any worse, they’ve been absolutely stunned by this morning’s RNS. Well, they say it’s good to get all the bad news out at once, right? Let’s take a look at it in detail.
Published 370 days ago
You can never discount the possibility of a slip twixt cup and lip when dealing with bankers, particularly in these troubled times. Hence the extraordinary announcement from Metals Exploration (MTL) about an emergency requirement for cash just 48 hours after reporting progress at the mine head in bringing gold on stream.
Published 370 days ago
Cyan Holdings (CYAN) has issued an unusual RNS this morning, outlining the shares received by directors and some other employees in lieu of salary and bonuses. As this type of situation is not sustainable in the long-term, one can only conclude that the company’s financial position puts it at high risk.
Published 374 days ago
AIM-listed cancer-buster ValiRx (VAL) has its EGM today at 11.30am at the offices of DAC Beachcroft LLP, 100 Fetter Lane, London EC4AS 1BN. After shareholders voted to reject a resolution to disapply pre-emption rights at the AGM a couple of weeks back, the company has called a new gathering at which shareholders are being asked to vote on it again with management hoping that this time the shareholders get the answer right. Heck, it works for the EU, so why not here? Update - motion passed, shares down.
Published 374 days ago
In a market filled with companies that have wasted a small fortune and haven’t got a lot to show for it, Frontera Resources still manages to stand out from the rest as having taken both to a new level!
Published 377 days ago
I’ve said before that there are plenty of good statistical and theoretical reasons to buy into old companies. Churchill China (CHH) may be a record-breaker for longevity: it traces its origins back to 1795, as it proudly includes in its URL, churchill1795.com. But investors are kept well up-to-date, and today receive a trading update for the six months to the end of June.
Published 378 days ago
Strat Aero (AERO) has announced that “Greg Kuenzel, non-executive director of the company, is stepping down from the board with immediate effect”. This follows just a day after W. Hulsey Smith released a third open shareholder letter to the board. But...
Published 383 days ago
Alexander Mining (AXM) seems to be popular amongst PIs at the moment, but I wonder how much of that actually relates to the performance of the company rather than being linked to the recent placing and warrants!
Published 383 days ago
Friday after-hours saw a no-one-is-watching o’clock proposal released by ShareProphets AIM-China Filthy Forty play Moneyswap (SWAP). IF all goes according to plan then existing shareholders will be diluted very heavily as the bailout money gets most of the equity (at quite a discount to Friday’s closing price). If not then the company goes bust. But you can’t say you were not warned.
Published 388 days ago
Fastjet (FJET) has its AGM and general meeting later this morning, at which the EasyGroup special resolution to oust the Chairman will be put to shareholders. Ahead of that, we have a trading update which confirms the bearish stance held on this website for the past several months.
Published 395 days ago
This morning sees one of the more curious notices of intention to float on AIM. SEC SpA, “the largest independent advocacy, public relations and integrated communications agency in the Italian market”, is seeking to raise €4-6 million.
Published 399 days ago
I first commented on the shocking funding deal between Vast Resources (VAST) and Crede HERE in March with the share price around 0.3p and although Vast managed to get out of the second tranche of funding (and got into bed with Darwin instead), yesterday’s RNS gave a disastrous update on all funding and operational matters – what a doozy!
Published 399 days ago
“CloudTag (CTAG), the company that brings personal monitoring to the health, wellbeing and fitness markets, is pleased to announce an operational update and to announce it has raised £470,000 by way of a subscription for new ordinary shares”. At 6.05p, this now means a market cap here of more than £19.5 million. Hmmm…
Published 462 days ago
It rather seems to have passed folks by but having failed to raise £6 million in a placing he masterminded a month ago (as leaked emails show HERE), Jabba The Hutt is still determined to see dilution on an unprecedented scale - even by his standards - at LGO Energy (LGO). There is an EGM on Monday 18 April.
Published 474 days ago
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.
Published 503 days ago
I’ve been classing AIM-listed SeaEnergy (SEA) as an outright sell since last September (see HERE) at 5.5p bid, but was bearish as long ago as last June at over 12p (see HERE). This has been an accident waiting to happen for months and this morning came the grim news.
Published 504 days ago
You were warned – and following firstly a BearCast by Tom Winnifrith last year and, as recently as yesterday, a warning from myself HERE, hopefully no readers have been caught out by the announcement now from, and suspension from trading of shares in, LiteBulb Group (LBB)…
Published 505 days ago
Branded product developer, LiteBulb Group (LBB) has announced it has completed the sale of its ‘Go Entertainment’ business to members of Go’s senior management team for the princely sum of £1 and reiterated that “the company's current cash position remains tight”. Is it therefore mega dilution or obliteration ahoy here? …
Published 558 days ago
AIM-listed Reabold Resources (RBD), with just £294,000 of net assets as at June 2015 is another of those sub-scale investment companies which would have to be run by Warrne Buffett on steroids in order for it to generate enough money just to keep the lights on. Yesterday at 5.45pm on a Friday, with the shares having closed for the day at 1.25p (valuing this fine enterprise at £3.5 million, according to ADVFN), a no-one-is-watching o'clock RNS announced a placing of 40 million shares at just 0.5p to raise £200,000 - a bit of electricity meter money. Something for the weekend, sir? Yes please - I'll have a nice spot of dilution at a whopping 60% discount.
Published 665 days ago
This morning Lansdowne Oil & Gas (LOGP) was “pleased to announce its interim results”. Looking through the numbers and it is unclear quite what the company is pleased about. With its balance sheet in poor health and cash position a little on the precarious side, Lansdowne looks like it is going to need to raise money and soon. Not that the market seems to care, however. Lansdowne shares were up 6.25%, last seen, to 2.13p. So what might be behind this seemingly misplaced optimism?
Published 757 days ago
There is just so much to say about the restructuring it is hard to know where to start. A good place would be Waseem Shakoor’s piece HERE, but there are concerns that Afren is being, shall we say, less than helpful to its beleaguered shareholders as they decide upon whether to take part in the open Offer as part of the proposed restructuring. Let us take a look at a few statements in the RNS and Prospectus from last Friday.
Published 870 days ago
Afren (AFR) has defaulted as expected, and huge dilution is on its way for shareholders. I'm sorry for all genuine, non-abusive shareholders who are going to lose money in the company . I've been there, and anyone who has been in the market for a long time and claims differently is a liar. The Board of Directors are now duty bound to seek maximum recovery values for its creditors. Bonds currently trade at about 45c.