By Tom Winnifrith, The Sheriff of AIM | Sunday 9 July 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.
Booted off the AIM Casino in March for failing to do an RTO on time, Amanda Van Dyke's Glenwick (GWIK) is nothing if consistent: it keeps missing deadlines. Cash is almost certainly zero, or near as damn it, by now but how about an update? So far no news is bad news for this related party infested failed ramp.
You may remember that the broker to Glenwick is Peterhouse which is also the main employer of our former colleague Miss Van Dyke. She then joined the Glenwick board to add er... something. In February of this year Glenwick, already suspended, raised £130,000 gross ( lets call it £115,000 net) from AIM listed Paternoster Resources whose broker is also Peterhouse. And guess who had recently been appointed as a director of Paternoster? You got it in one! Miss Van Dyke. How cosy for all concerned.
The cash position of Glenwick must be utterly dire by now. At June 30 2016 it has net current assets of £1.25 million (cash was a tad higher). Just two months later at least £65,000 had been spunked and cash was down to £1.185 million. It then made a loan of £1.1 million to i3 Energy a start up oil company which it promised would list on AIM In Q4 2016 at which point the loan would convert into shares. So that left £85,000 plus the Paternoster raise in early 2017 so lets call it £200,000 to spunk. But we are now ten months on from August 2016. Let's assume the cashburn did not continue at the July/August rate. But the overhead in H1 2016 was £197,000. Do the math...I put it to you that Glenwick is teetering on the brink of going bust.
Question 1 for Amanda - what is the net cash and net current assets position today?
Question 2 for Amanda - Do you consider that Glenwick is insolvent?
So what happened to that float of i3. Well it sure did not happen in Q4 2016 as promised. One problem is that Glenwick's loan of £1.1 million will be converted into shares in i3 at a 50% discount to the IPO price and those shares will immediately be handed back to the Bulletin Board Morons who make up the Glenwick shareholder list. So why would anyone invest in the IPO knowing that there is going to be £2.2 million worth of shares at the IPO price handed out for free to a bunch of morons who think that holding a share for longer than 24 hours is almost a war crime but who have been unable to trade uber-ramped Glenwick for almost a year. The structure of that deal means that anyone investing in the IPO is bound to take an immediate loss - it is investment hara-kiri.
So how is the IPO doing? Over to Cynical Bear who wrote the other day:
"Things looked relatively promising on 10 May when i3 Energy announced its forthcoming IPO on AIM with a scheduled admission date of 26 May. Sounded great but, unfortunately, on 25 May it announced that the admission date was being moved to 7 June. Ok, just a short delay.
But, on 6 June there was a further announcement stating that it would now be late June; notice the lack of a precise date. Not that it made any difference as it announced on Friday that admission would now be mid-July, again suitably vague. The team here has been trying to raise the necessary funds for a while now and the oil price cannot be helping;
I’m beginning to wonder whether it will ever happen at all."
I should cocoa. Throw in the guaranteed Glenwick overhang which ensures that the share price will crater post IPO and what is not to like?
Question 3 for Amanda - is there a plan B for getting your cash back from i3 whose companies house filings HERE look pretty dormant.
While we are on the subject of i3 I am confused by the statement made by Amanda and Glenwick back in September 2016 when the first investment was made.
i3 Energy's first proposed investment, to be funded by the proceeds of the Convertible, is an acquisition from a major international oil company of a discovered oil field in the North Sea. Glenwick's proposed £1.1 million investment is part of the first tranche of the US$2-5 million private fundraise, which has been successfully completed by i3. Following the closing of this funding round, i3 proposes to undertake an admission of its shares on the AIM Market of the London Stock Exchange ("AIM"), accompanied by an additional fundraise of cUS$45 million, to bring the acquired field to production in H2 2017.
I refer you back to the companies house filings -HERE and ask you to re-read the words that I have underlined
Question 4 for Amanda. Where is the companies house filing relating to the rest of that fundraise? Was it really "successfully completed?"
Question 5 for Amanda: So how much of the $50 million needed to bring this asset into production has been raised as of now?
So lucky Glenwick shareholders may or may not get shares in i3 Energy North Sea as it is now known. What else is in store? There is a second asset that Amanda et al wish to reverse into the Glenwick shell a raft of gold exploration assets in Africa which presumably, since Glenwick is almost bust - needs a fund raise. It is a good job that Amanda gets on so well with the broker Peterhouse. Maybe Paternoster wants to invest or maybe Pires Investments - an investment company whose broker is Peterhouse whose major shareholder is Paternoster - might step up to the plate? Amazingly Amanda is not on its board yet but I wouldn't bet against her joining. So how is the RTO of these assets (Cora Gold) going?
Back on March 3 ( booted off the AIM Casino day) we were told:
"The Board is working closely with Cora Gold and its major stakeholders in order to deliver a successful Cora IPO, targeted for Q2 2017. "
Hmm. We are now in Q3 2017.
Question 6 for Amanda: How about you update us all on the RTO of Cora Gold and bailout fundraise to stop Glenwick going tits up do you have a new timetable? Is it as reliable as that of i3?
Question 7 for Amanda - Given that Glenwick is not listed on AIM and has no cash ( or perhaps worse) & has pledged to give its only asset ( those shares in i3 if they ever arrive) back to pre RTO shareholders why does Cora want to reverse into Glenwick. Why would it give away any of its equity for an asset that under your watch has become patently worthless?
Okay that is enough questions for Amanda. We await her answers and will publish them in full if she provides them. As we wait, perhaps Amanda might care to lead her shareholders at Glenwick in a rendition of our very own ShareProphets national anthem....
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