By Tom Winnifrith | Thursday 1 June 2017
Disclosure: Financial Investigative Media Limited, which is not owned by Tom Winnifrith but by a trust for his dependants, owns shares in companies mentioned in this article. 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.
Wakey wakey Michael Sinclair and the other tossers who run Advanced Oncotherapy (AVO). Time to get out of the luxury gym ( membership fees paid by grateful shareholders) - you need to be issuing a statement don't you? Bracknor? 10 days? Capital Reorganisation? Ring any bells? Come on, call your useless PR man Paul Queenie McManus and tell him to stop promoting the Eden fraud and get a release ready for you.
You will remember that if the share price if Advanced closes below 27.5p for 10 consecutive days then under the terms of the agreement with death spiral provider Bracknor, the company is obliged to hold an EGM to approve a reduction in the nominal value of its shares by at least half from 25p. That will allow Advanced to issue shares at below 25p to keep the death spiral going.
Pro tem - with the shares at 20p-21p Advanced is operating a little work around whereby it issues shares for Bracknor to dump at 25p but compensates it with a cash payment to ensure that it can dump and still turn a profit even with the shares at way below 25p. This is clearly a farce and if AIM Regulation were not such dozy mothers they would have put a stop to it already.
We were never told whether the 27.5p 10 day trigger point was mid, bid or VWAP but that is academic now because, as at yesterday, Advanced breached even on mid. Of course the new nominal value does not have to be 12.5p because with the death spiral in full swing the shares will not be above that point for too long. So to avoid the need for another EGM a few weeks after the one Advanced should have announced today but has not, Bracknor might as well suggest a nw nominal of 2.5p. Given that Advanced will probably run out of cash in late summer even 2.5p will not hold for that long. But its a start.
Once the announcement is out it will be clear to even the most idiotic of Bulletin Board Moron that the shares are going to crater so expect a new share price collapse. On that basis the shares remain a storming sell at 20p and my target remains 0p.
But meanwhile Dr Sinclair where is the fucking RNS you overpaid useless piece of excrement? How do you keep an idiot in suspense? Dr Sinclair will be announcing the bad news for his shareholders later.
Never miss a story.
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