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Bloody Hell - another Wishbone Placing as Beaufort Securities shows naked greed

By Tom Winnifrith | Thursday 27 October 2016

Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. 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.

Just when Wishbone (WSBN) shares were getting going again after the last placing conducted by Belfort Securities to their spiv share flipping bucket shop mates, here we go again. Boy my morning has started well: not only do I have to suffer more laziness and abusive emails from my lazy, greedy bitch of a selfish bitch of an ex wife but this as well. I want to go back to bed.

Wishbone says that it has raised £400,000 (before expenses) through a placing via its broker, Beaufort Securities Limited, at a price of 0.8p. Not only is Belfort getting at least £20,000 in commission as a reward for calling a couple of bucket shops offering them shares at a whapping 20% discount to the offer, but it is also being issued with 3,076,923 warrants with an exercise price of 1.3p with a life of two years.

Ordinary folks were paying more than that less than 6 weeks ago before Belfort decimated the share price with its two bucket shop placings. They were paying hard cash. Belfort gets one way bet warrants. For nothing. This is just a blatant transfer of wealth from the 99% to the 1% and is wrong at every level.

Richard Poulden, my friend, any broker will raise cash for you by calling a few bucket shops to offer stock at a vast discount. There is no skill in offering folks free money is there? This is the easiest work on this planet. Only Belfort demands warrants in this way and its greed is unseemly and dilutive for the rest of us. Why do you tolerate this? Why not tell Belfort to surrender all its warrants or face the sack as you switch to any other broker?

The cash raised will be used to support PLC costs until the Black Sand trading operation - which is supported by debt - becomes profitable. That should be soon and I gather that there will be a trading statement early in January Frankly I would welcome one rather sooner.

I look forward to the trading statement to update us on progress and welcome Poulden's remark that "this concludes our current round of equity raising".

The shares have predictably collapsed by 17% to 0.8p-0.9p as Belfort's disgusting low life clients flip, selling on a T+ basis ahead of them getting the shares in two weeks time. I look forward to the next trading statement and will hold on until then as but it is hard to say that this episode makes me happy.

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