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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.
I have in my hand a little piece of paper which means peace in our time said Andalas (ADL) boss Dave "the rule breaker" Whitby as he announced yet another great deal for his company. But like all the other pieces of paper that he has waved in front of his labotomised army of groupies led by cardboard box dwelling sheep shagger Justin the Clown, it is just a worthless piece of paper - just like an Andalas share certificate. Hat tip to Brokerman Dan for that joke.
Today's "deal" is an agreement with the state owned construction and engineering company PT PP Energi. Great. Fabbo. Crack out the coke and hookers. Except that there is no mention of who is going to fund what and that is a little bit of an issue as Andalas is clean flat broke.
In late May the company raised £600,000 at 0.1p. On July 28 - that would be in eleven days time - it must repay a £400,000 loan from February which, with fees, will set it back of £550,000. The net proceeds from that last placing will be c £550,000.
Before that placing Andalas had sod all cash and plenty of unpaid bills. It thus has negative net current assets and is burning cash. It was trading whilst insolvent AFTER the placing. And it is even more insolvent now.
Forget about all the hot air and shite from the paid shills on how exciting this latest deal will be. Perhaps look back at all the other exciting deals Andalas has announced but which have come to nowt. Or look at the vast amounts of cash that Dave Whitby has taken out of Andalas via his Corsair vehicle and directly.
Quite simply Andalas is bust and this is a ramp before another bailout placing. Some poor saps were paying as much as 0.14p earlier today as paid shrills and naive mug punters jerked off on the potential of this announcement. The shares are now back at 0.09p-0.1p as the grim reality starts to sink in. If you were suckered in by this ramptastic press release and feel pissed as having lost almost 40% of your cash within hours the folks to harangue with an abusive phone call, the roll call of shame are:
David "The Rule Breaker" Whitby, +62 21 2783 2316
Sarah Wharry & Craig Francis, Cantor Fitzgerald (Nomad & broker) 020 7894 7000
Jon Belliss, Beaufort Securities, (Joint Broker) 020 7382 8415
Frank Buhagiar & Susie Geliher, St Brides ( Financial PR) 020 7236 1177
Go on give them a call. You have lost a stack of cash and these folks are the only ones making a good wedge out of this crap company. Call them and tell them what you think of them?
The bottom line is that it is placing ahoy. If you own the shares sell now and if you really want exposure call Jon Bellis at Beaufort to say that you want to take part in the next placing which will be at a huge discount. Shall we say 0.06p or perhaps lower. But the smart call is just to sell and don't come back.
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