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By Tom Winnifrith | Sunday 27 May 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 March 8 2018 I revealed how low life Nomad Northland had banked a fat fee for recommending that its client Eqtec ( EQT) take out death spiral financing from a proven fraudster. Worse still, the deal Northland thought fair was bound to destroy the share price as I explained at the time. Last week it got worse and the negligence of Northland is now almost criminal.
On Friday it was announced that:
EQTEC received on 24 May 2018 a conversion notice pursuant to the Unsecured Loan Note Facility announced on 28 February 2018 for the principal amount of £100,000 to be converted at 0.3p per share into 33,333,333 new ordinary shares in the Company.
Upon issue, the new ordinary shares would comprise 2.29% of the enlarged issued share capital of the Company.
The Company has been notified by the Loan Note Investor that the current conversion took place to cover an existing open short position that the Investor had taken in the Company's shares and that it will allow sufficient time for the debt discussions noted in the announcement made by the Company dated 23 May to conclude, and during that period the Investor will not convert any further bonds or take any new short positions in the Company's share capital.
Steve Moore's updates on AIM short positions show that on 29 March the short in Eqtec was 0.55%, a month later it was 0.7% and on 18 May it was 1.37%. Clearly since then - assuming the fraudster was up to date with his FCA filings - he has been bashing out stock, crashing the share price, until on Thursday he was able to close the short in one go by converting a loan note. The price in march was c1p. for most of April it was more than 0.5p, 0.3p marks the all time low.
How could fhe fraudster who runs death spiral provider James E Sandhu of Bercheva, fail to coin it in?
And how can Northland justify its fees for arranging this Godawful deal? The shares have now bounced to 0.68p. There are still c £1 million of loan notes outstanding. Rinse & Repeat.
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