By Tom Winnifrith, The Sheriff of AIM | Tuesday 7 March 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.
For years Advanced Oncotherapy (AVO) has ramped its shares to get away placing after placing with ramptastic investor presentations. But that was before I started asking all those horrible questions for which there was no answer. and Winnileaks started obtaining toxic leaked emails. Last night the company had a presentation in London. It has another in Zurich this morning. Warning Swiss folk and tax dodgers quotes about the London chinwag include "everyone left unhappy" and from a long term bull "I am just throwing in the towel." The shares have crashed by 23% to 36p bid so far today. The target for me remains 0p. But for those folks going to the Zurich meeting here here are 15 questions Advanced can't or won't answer:
1. When did you realise that you could not secure non dilutive funding and would have to use a Bracknor death spiral instead. For how long did you sit on information that there was no non dilutive funding (as you had promised) available?
2. Do you not realise that this death spiral will crush your share price? What will you do when it goes below the 25p nominal level?
3. Given that you are in breach of a condition - as stated in RNS - of the Metric loan, how sure are you that the Metric will not be called in within days? How would you repay £11 million?
4. Net current assets are - I reckon - post drawdown obn Tranche 1 of Bracknor but with fees payable post GM of £740,000 - in the region of zero. What are net current assets? how close are you to insolvency if the tumbling share price puts a stop to Bracknor drawdowns?
5. Why did you not alert investors to the fact that Sinophi was set to pull its orders - all of your order book - ahead of the open offer, given that you were aware of the risk?
6. Is your Nomad ot unhappy about your failure to disclose the Sinophi divorce in a timely and accurate manner?
7. Why did you insist via RNS that Sinophi would firstly place your kit in alternate hospitals and then that it had no contractual ground to withdraw when you ended p paying it to go away? Were you not misleading investors?
8. Wen did Sinophi first alert you that its end user customers had concerns about failure to deliver on the timescales they had been promised? Was it not before the 30 September placing? can you provide emails to substantiate what you say?
9. You talk of jam tomorrow orders - so what has happened to those Letters of Intent with Spire Healthcare you announced in 2013?
10. Have you asked the authorities to investigate former NED Lord David Evans for dumping all his shares in a closed period and as Advanced prepared for its September 30 placing. Did Lord Evans know that a placing was on the runway as he sold? If you have not reported him why not?
11. Even if Metric does not ask for its money back, the slow pace at which Bracknor is managing to convert loans to shares implies you will be lucky to raise the £13 million projected via that route. But even if you do, and I don'y think you can, given your capex needs, dire working capital position, and bloated PLC costs will you still not face a material shortfall in 2017?
12. Yesterday you announced "Discussions are also ongoing surrounding an agreement to supply a LIGHT system alongside Circle Health's planned new-build hospital in Birmingham." But have you not already announced years ago a LOI with Circle. Why the delay?
13. Sinophi alleged that you misled end customers with regard to delivery timetables and that you do not even have a working prototype. Is Sinophi lying or is it correct?
14. How do you justify the bloated fees and "perks" paid to your board in light of Advanced's years of non delivery and ongoing cash crisis?
15. My target price is 0p by Christmas. What is yours? If it is materially higher than now why are you not filling your boots with shares?
Never miss a story.
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments are turned off for this article.
Search ShareProphets |
Stock market news |
Recent Comments |