By Tom Winnifrith | Saturday 22 April 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.
This really should have been an ouzo o'clock moment as lying Chris Cleverley, Lord Hain of sleaze and the gang round at the African Potash (AFPO) fraud saw their shares suspended on the NEX lobster pot. But I was a good diabetic and had a Greek salad, medication and water instead. But I am off sick leave this morning because dissecting such unmitigated horseshit brings joy to my heart and is good for the blood pressure and the soul. This is comedy central from lyin' Chris who is still to follow through on his promise to sue me for libel. I can't think why. The Potash statement is in bold, the lie detection service is not. Brace yourself, this is funny.
African Potash announces that, on 11 April 2017, the Company signed a Letter of Intent ('LOI') in connection with the proposed acquisition by the Company of Onshore Energy Limited ('OEL'), a private investment company that invests in unquoted companies (the 'Acquisition').
Okay Lyin' Chris why wait until 4 PM on the 21st April to announce or don't you care about timely disclosure rules any more. Ooops silly me, you never did care did you?
If completed, the Acquisition would constitute a Reverse Takeover under the NEX Exchange Growth Market Rules for Issuers, requiring, amongst other things, approval by the Company's shareholders. The Acquisition would also constitute a related party transaction as Chris Cleverly, Executive Chairman, of the Company is also a director and shareholder of OEL.
Oh really, Lyin' Chris runs OEL. So I guess we should check out its books. It is an investment company you say? The last accounts are to 30 April 2016 and show investments of £50,001 ( nil), cash £112 ( £16,938) but debtors, that is to say amounts falling due within one year of £1,127,563 (£1,088,940). WTF?. Net assets are thus £1,162,383 ( £1,085,828). WTF again!
I called the advisers Peterhouse within office hours to speak to clowns Mark Anwyl & Guy Miller but was told they were not at their desks. I left a message with specific questions and was promised a call back. I called after 5 and was told they had gone home but would be emailed to call me or could I wait until Monday? I said no. Suffice to say the cowardly vermin have not called me back.
Do the debtors ( amounts falling due within one year) recycle, i.e all pay within one year and are replaced with new debtors? I sense not. I bet you these debtors will never pay. As such I put it to you that the NAV is utterly illusory. And what is an Investment company doing having debtors as opposed to er...investments, anyway? I see shares have been issued of late, is this perhaps because the debtors can't, won't pay ( who are they BTW?) and so here is a bit of a cash crisis?
Is not OEL just another worthless piece of Lyin' Chris crap? Almost certainly it is.
In order to progress the Acquisition and provide African Potash with working capital required to maintain its existing operations, the Company is required to raise additional funds. These funds are material in the context of the Company and its current financial position.
Oh you don't say? Potash's last fund raising was a couple of months ago and brought in £26,550 (gross). I noted at the time:
"This company has no business other than issuing shares to pay the bills. It has no sales. It has nothing. It is just one debt ridden lie infested bag of shite. Potash owes c£1 million to the FD's wife Katrina Clayton and has now raised £150,000 (gross) since Christmas. Its auditors said it needed to raise £600,000 to be a going concern."
That audit opinion was in late December and since then Potash will have burned more cash. So the odds are that right now cash is NIL, RIEN, SFA and net current assets are of the tune of MINUS £1.2 million. Doing an RTO will cost at least £200,000 and that will reverse in a business with no cash and whose only real asset is a very dubious debtor book.
Accordingly, African Potash has requested that trading in the Company's shares be suspended pending a further announcement. Such an announcement will be made as soon as practicable.
Really, surely this should be suspended pending clarification. This company is bust and it now plans to reverse in a related party company that is almost certainly worthless. What could possibly go wrong?
The cowards at Peterhouse should not allow more good money to be thrown after bad. Potash has committed serial fraud, its business model is a proven failure and ist CEO is a proven liar. The senior guys at Peterhouse do have a moral compass but I fear that they have allowed two of the vermin rats who work for them ( Miller & Anwyl) too much leeway.
I urge Peterhouse to hand files over to the FCA at once and quit. The joke is not funny any more. They should remember that this is other people's money they might allow to be squandered. Peterhouse has a duty to stop that.
Never miss a story.
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