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By Tom Winnifrith, The Sheriff of AIM | Wednesday 7 March 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.
When MySquar (MYSQ) misled investors to get away a £1.2 million fund raise in on July 31 2017 it said it would never have to raise cash again. Well it did not take long for a change of mind from the holocaust denying fraudsters did it? And this fund raise announced today is dodgy as hell, yet another mega red flag. So lets go through the lies and spoofs in order up to the latest spoof.
At the time of the clearly demonstrated securities fraud ( oops I meant placing organised by the late lamented Beaufort Securities) MySquar insisted: "As previously notified, the Company achieved run rate operational break even at the end of June and does not expect to require additional funds for current operations. " Except of course we discovered in October that as of 1 July Mysquar was running at a horrific loss as non-core related party sales dried up, something it should have announced before the placing but did not which makes it guilty of fraud.
In January the spawn of Satan, that is to say MySquar's PR man Damien McCrystal, was in contact with the fraudsters journalists of choice Ben Harrington who duly ran stories that MySquar sort of confirmed suggesting that it had received a bid approach from an un-named party which it had rejected. Whatever, the shares raced ahead. A week later Harrington suggested that a major Chinese internet player was looking to take a stake. The shares roofed it to almost 4p. They have since halved as nothing has happened.
Instead, today we have learned that MySquar has drawn down a £2.11 million death spiral. Actually the proceeds are only £1.899 million but lets not quibble. MySquar can pay interest on the loan notes at 5% and repay or it can convert into shares under the usual death spiral formula which means that whatever price Atlas Capital Markets Limited dumps shares it is in the money. And dump it will.
So why does MySquar need the cash? Primarily this is for an unspecified acquisition which may or may not happen but also " for expected development capital and general corporate purposes." But hang on Henry... back on July 31 2017 after that £1.2 million heist ( oops I meant to say Belfort Placing and Securities fraud) MySquar insisted that it "does not expect to require additional funds for current operations." But now it does. I guess a lot can change in seven months, particularly when a company is run by holocaust denying fraudsters.
The shares are off again today at 1.9p-2p. At some stage the morons who own this stock will tire of being lied to and will start selling. Meanwhile the death spiral provider will be converting and selling fast too, as regulatory pressures out East as well as here in London start to mount. Since there can be few stupid enough to buy the shares this is a massive sell. The target, when the fraudsters have run out of other people's money, is 0p.
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