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By Nigel Somerville, the Deputy Sheriff of AIM | Tuesday 9 January 2018
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.
An announcement just out from AIM-listed central and east European property developer Kimberley Enterprises (KBE) that it is proposing to delist from AIM also tells you that the company is utterly worthless. It’s bag of crisps time – if you can sell now and get anything above your dealing costs then that is what you should do.
The market capitalisation is a mere £0.3 million (source: ADVFN) and falling. The delisting proposal (HERE) tells you that:
As at 30 June 2017, the Company had total assets of €3.9 million, total liabilities of €28.0 million and negative net assets of €24.1 million. The total liabilities included a debt of €26.5 million which is owed by the Company to ERD. As at 31 December 2017, the Company's debt to ERD stood at €26.1 million. Consequently the Company's Ordinary Shares have negligible value. ERD indirectly owns 68.35 per cent. of the Company's issued share capital.
That’s as plain as day – it is worthless.
Also in the general meeting being called to approve delisting is a proposal to issue shares – a debt for equity swap is on the cards, so if you hold on you’ll be diluted to oblivion.
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