By Tom Winnifrith, The Sheriff of AIM | Monday 17 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.
For the second time in a week we have seen share options exercised at AIM listed Norfolk MySQUAR (MYSQ) - this time it is 1.875 million warrants exercised at 5.5p which will add £103,125 to the coffers. that is kind of handy for this cash guzzler which is close to running on fumes. But this is a spoof.
These warrants were issued on 1st August 2016 to those who had backed a £455,000 placing at 3.5p. They have a three year life so there is no rush at all to exercise them. They will not lapse until, August 1 2019!
Moreover the share price today is 4.25p-4.35p! It would be perfectly possible to build up a £80,000 holding by buying shares in the market so why on earth exercise out of the money options! Instead someone with no time based reason to exercise has done so and booked himself an immediate paper loss of £20,000. that is insanity. Well it is not. It is a spoof. Remember Cloudtag (CTAG) the H1 2017 fraud of the year?
In many ways MySquar is the new Cloudtag. One similarity is just how incredibly stupid are its UK shareholders. Cloudtag used to make great play of how it constantly raised money at a premium to the share price. that persuaded Bulletin Board Morons to buy in the secondary market so pushing the stock price up allowing more death spiral funding. It can work for a while.
So no doubt the morons are impressed at this investment at a 25% premium to mid? Someone is so keen on MySQUAR that he or she seems keen to make that leap of faith. It is all bollocks and is straight of of the fraudster's playbook. If I had any doubts that MySQUAR was a Norfolk heading for 0p they have been banished now.
Sell - target 0p.
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