> All the big AIM fraud exposés
> 300 articles and podcasts a month
> Hot share tips
> Original investigations by our experienced team
> No ads, no click-bait, no auto-play videos
By Nigel Somerville, the Deputy Sheriff of AIM | Monday 24 December 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.
AIM-listed and permanently on the edge of insolvency RM2 (RM2) has announced some good news. Well, sort of: the executioner is still booked, but at least the taxman is off its back.
We know that the latest fundraise by this Woodford dog (from Woodford, natch) will only see the company through to April. At that point it will be looking for more cash from the Woodford money tree – cash that Neil Woodford hasn’t got, and in any case we think either the bank or the FCA is holding back his purse strings. So we can pencil in a visit from the executioner next April or May, unless Santa brings some serious cash down Neil Woodford chimney.
But the good news is that:
RM2 (LSE-AIM: RM2), the sustainable smart pallet innovator, is pleased to report that following the positive reconsideration of a VAT claim by the Luxembourg tax authorities against the Company, the Company's 2018 consolidated audited annual accounts will reflect a reversal of the previously disclosed accrual in the Company's most recent accounts for this amount of USD 721,824.90. There is no cash impact as a result of this ruling.
Right, so RM2 doesn’t have to pay $721,824.90 in VAT to the Luxembourg tax authorities. Well that’s jolly good – but given the there is no cash impact it means it will still run out of cash next April.
It does help with regard to current liabilities, so the balance sheet will be a little better. But, as I say, RM2 will still run out of cash by April so really nothing much has changed.
And we are not offered any indication over the potential contracts under discussion. Given that the company will be out of cash and its fairy godmother seems to be struggling too, who would sign a contract with it?
As such, this is all non-news and RM2 remains an outstanding sell.
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 |
Site by Everywhen