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By Nigel Somerville | Sunday 22 April 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.
On Friday at 1.21pm we published a piece asking what was going on with Standard listed AIQ (AIQ). After all, the shares had only just come back from suspension following a disorderly market from when it was first listed in January. But the share were once again rising sharply, and at 115p way ahead of the 8-10p a share of cash that this cash shell had. At 1.55pm the company released an RNS saying that it:
notes the recent significant increase in the Company's share price and confirms that it is not aware of any reason for such movements.
Well I suppose that is slightly better than the ramparoonie it released two days after it listed, when it stated:
Whilst the Company is not aware of any specific reasons that support this increase, however, the size of the fund raise (net proceeds of £3.6m) and the clean nature of the special purpose acquisition company ("SPAC") may have contributed to this rise.
Of course, that original know-of-no-reason statement was followed the very next day by suspension as it became clear there was a disorderly market and a queue of trades were unable to settle. But the company was not aware of that, obviously.
And so this time, do we really believe that the company is not aware of any reason for the shares to be trading at over ten times the cash (and it has no businesses or other assets)?
Judging by last time, anyone fancy a flutter on a suspension on Monday?
This is a complete shambles. It is a disgrace: twice, now, it seems that there is no liquidity and shares worth around 8-10p of cash are being bought by someone for up to £1.50 (which was the closing offer last night). The liquidity and disorderly market were supposed to have been sorted during the three and a half month suspension, but there is little sign of it having had any effect at all.
I said on Friday that the UKLA and the LSE should be ashamed of themselves. I say it again; do they not have modicum of responsibility to protect investors?
But it is not just the lack of stock in the system: who the hell is paying 150p? Surely, surely no UK investor would.
Does anyone remember the ShareProphets AIM-China Filthy Forty play Gate Ventures (GATE) and its very short tenure on AIM?
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