By Tom Winnifrith, The Sheriff of AIM | Saturday 17 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.
You would have thought that having not one but two advisers resign because they would not sign off on its lies, being out of cash, having its shares suspended on NEX after being slung off AIM would be enough to kill African Potash (AFPO). But it appears that the holy water, the garlic, the silver crucifix, the stake through the heart and all the other tools in Van Helsing's bag are not enough. But remember, in the end the Count will die.
So after yesterday's resignation of NEX advisor Peterhouse, Potash held its AGM as if nothing was wrong. Lyin Chris Cleverley, the disgraced CEO happily announced:
African Potash is pleased to announce that all resolutions were duly passed at the Company's Annual General Meeting held earlier today.
As a result, the Company will now move to completion of the agreement to acquire a strategic 21% equity stake in Advanced Agricultural Holdings (Pty) Limited (the 'AAH Agreement'), entered into and announced on 30 March 2017.
Pursuant to the terms of the AAH Agreement, the Company will issue 221,601,740 new ordinary shares of no par value in the capital of the Company in satisfaction of its obligations in respect of the initial consideration due under the AAH Agreement (the 'Consideration Shares').
The Consideration Shares will, on issue, amount to 11.81% of the enlarged issued share capital of the Company immediately after they are issued on or around 19 June 2017. The Consideration Shares and the Subscription Shares will rank pari passu with the existing ordinary shares.
Now and again folks approach us to buy ShareProphets. Natch we always say no. But if we were to say yes we would ask for cash. At worst we might accept shares in a company that was not bankrupt and was listed on a market where the shares could easily be sold. That is becuase ShareProphets has real value. Anyone who sells a stake in their business and accepts that the consideration are shares that cant be sold because they are suspended from a lobster pot market and the company is bankrupt and worthless is inherently accepting that their company is in fact worthless.
So worthless Potash now also owns 21% of worthless AAH. Great!
In normal circumstances the resignation of its NEX adviser would see Potash shares slung off the NEX lobster pot in four weeks. But because the shares were already suspended, pending an RTO with a related party worthless POS, NEX could extend that deadline. If it is to be credible it will not and will sling Potash off the market for good. If Potash retains its quote there is no way the RTO can be signed off by anyone credible so it will just linger like a wet fart waiting for insolvency.
In the end though, like Dracula, death will occur.
Never miss a story.
This area of the ShareProphets.com 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 ShareProphets.com. ShareProphets.com 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 ShareProphets.com 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 ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments are turned off for this article.
Search ShareProphets |
Stock market news |
Recent Comments |