Wednesday 23 August 2017 The one stop source for free breaking news, expert analysis, and videos on AIM and LSE listed shares

Inspirit Bailout Placing - tell me there was no market abuse here: look at the chart

By Tom Winnifrith | Wednesday 3 May 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.

Look at the daily chart below. Tell me there was no insider dealing or market abuse going on here. It is that of Inspirit Energy (INSP). And then at 2.10 PM we finally had two announcements.

First up the jam tomorrow.

Further to the share price movement today, Inspirit confirms that it is in discussions with Argentarius ETI Management Ltd about structuring a fixed interest bond instrument for the Company of up to £2 million. No money has so far been raised in relation to this instrument and the Company expects to make further announcements in due course.

Whatever. So given that Inspirit is running on fumes we were also told that it has raised £215,000 gross at just 0.125p. Hmm with the shares zooming to 0.2p I guess some folks will be forward selling hard into that.

The horseshit then followed:

The funds raised will allow the Company to finalise the accreditation process and commence field trials with field trial partners as well as providing working capital for the Company's continuing development.

In addition to the above, the company will be issuing further 34,000,000 shares to satisfy other professional fees.

In addition, John Gunn, the Company's Chairman and Chief Executive Officer, is Chief Executive Officer has proposed to invest a further £35,000 by subscribing to 28 million Ordinary Shares at 0.125 pence each.

The Company also confirms that excluding the Placing, it currently has cash resources of approximately £73,000.


Okay so lets call that £220,000 net. But with cash down to £73,000 but no mention of trade payables it is a slam dunk cert that Inspirit had negative net current assets before today. So lets translate the horse from above. What Inspirit means is

"With negative net current assets even before FD Nilesh Jagatia goes to his local Sainsbury's with the company credit card later today, the placing will keep the lights on for another couple of months at the boiler room."

What's not to like? Sell.

Filed under:

Never miss a story.

This area of the 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 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 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 and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

More on INSP


Comments are turned off for this article.

Site by Everywhen