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New bailout funding ‘kin starts at Kin Group… though for how ‘kin long?

By Steve Moore | Tuesday 30 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.


And so it ‘kin begins (that and the title should appease Cynical Bear); Kin Group (KIN) “hereby announces that on 26 May 2017 it received a notice of conversion in respect of £100,000 in nominal value of the loan notes which were issued to Belastock Capital L.P. Definitions used in this announcement are taken from the company's announcements dated 15 May 2017”

The loan notes have been converted at 0.1p per share (“the closing bid price for the company's ordinary shares on 26 May”), with also a warrant issued over a further 100 million new shares “with an exercise price the lower of 90% of the lowest closing bid price for the company's ordinary shares for the three consecutive trading days ending prior to service of the relevant exercise notice; or 0.125 pence per share”.

The conversion shares will take the issued share capital to, wait for it…. 1,831,366,968 shares! And remember this is funding “to raise up to £1.125 million” - with a £0.315 million first tranche and following £0.27 million tranches expected to be issued 60 days after the previous tranche.

More concerning though, I also noted amongst the conditions of the bailout funding; “the closing bid price of the company's ordinary shares (as reported by Bloomberg) not being below £0.001 (0.1 pence) for any five consecutive trading days on or prior to the relevant issue date”. Since then it’s sunk to the noted 0.1p!

The funding structure suggests downward pressure will remain – and what’s plan B? Now where’s that ‘kin bargepole.


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