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Cloudtag - Why selling the warrants will be a bigger challenge for L1 Capital than Loan note conversion shares

By Tom Winnifrith, The Sheriff of AIM | Tuesday 14 February 2017

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

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?).


Trading Value



Market Cap


No of shares in issue

October 2016





November 2016





December 2016





January 2017





The challenge for L1 Capital is the drop off in volumes that have occurred in January 2017.How long will it take to shift the over 50 million unexercised L1 warrants especially given absence of new trade shows and absence of ramptastic announcements that it used in December 2016?

Cloudtag’s annual results must be published by 31 March 2017.These will show more losses given absence of any sales and a horrific level of cash burn evidenced by various share placings in the year. They will also need to include statements about the company’s propsects of remaining a going concern.

It seems to me that L1 are likely to want to press on with sales before liquidity shrinks even further as more bad news looms.

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