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Kin Group – well that didn’t take ‘kin long; hits bailout funding share price limit

By Steve Moore | Tuesday 13 June 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.

On the 15th May announcement from the former Fitbug, Kin Group (KIN) of bailout funding I noted amongst the conditions “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” and later questioned how long the funding would continue. The company has now made a “Convertible Loan Notes update” announcement.

This notes that the above “condition was not met at the close of business last night”. However, “the directors are pleased to report that Belastock has confirmed its ongoing support for the company and that it is the current intention of Belastock to subscribe for the remaining tranches of the notes as previously outlined”.

Hmmm, “current intention” is far from definitive and I note, in the absence of any other news, the shares have already fallen from more than 0.13p post the initial funding agreement announcement to sub 0.10p – and this with just £0.35 million of an intended £1.25 million of loan notes issued and just £0.1 million announced to have been converted. This is a warning before the other tranches ‘currently intended’ to still be issued (the next (second) tranche due to be issued in mid-July).

The criticalness of the funding to Kin is shown in it stated it is “to fund its general working capital requirements” - and the company looks set to be hoping that Belastock retains its noted “current intention” since future ramparoonies look somewhat more limited.

With that reliance and, at best, it looking like further mega dilution ahoy, ‘kin sell / bargepole.

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