> Hot share tips
> All the big AIM fraud exposés
> 300 articles and podcasts a month
> Original investigations by our experienced team
> No ads, no click-bait, no auto-play videos
By Tom Winnifrith | Monday 12 February 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.
Milestone Group (MSG) has announced a memorandum of understanding with Seed Media Limited and Martin Heath with a joint venture that is intended to be owned 50.5% by Milestone. The proposed deal has two things in common with the proposed deal with Black Cactus namely that underlying technology to be used is Blockchain and the fact that Seed Media like Black Cactus is technically insolvent and loss making.
A visit to Companies House reveals that Seed Media had accordingly to its unaudited financial statements at 31 January 2017, a deficiency of £1,712,970 in net assets up from £656,801 from the previous year. The company is clearly racking up losses and burning cash and since the year end entered into two charges with Barclays Bank.
On 11 September 2017, the company entered a debenture providing a charge over the assets (not actually that significant at £179,374 at 31 January 2017) of Seed Media. On 27 September 2017 it also provided security over a property in Notting Hill (not owned by Seed Media).
Surely Milestone would want to protect its joint venture by ensuring that the joint venture partner is in robust financial health at the start of the arrangement? Or is it simply so desperate to make announcements that either it doesn’t perform due diligence or it simply ignores the results when it does so?
Of course Milestone is itself 99% of the way to the graveyard at the end of tits up alley so maybe its just that birds of a feather...
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 |