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Today's Primary Bid offer is Sareum - No thanks it's a dog

By Tom Winnifrith, The Sheriff of AIM | Tuesday 25 June 2019

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.

ShareProphets earns a small commission any time a reader who registered with Primary Bid via ourselves subscribes for one of its offers. For that reason we urge you all to sign up HERE. But today's offer, Sareum, (SAR) is a total dog, as I have noted often enough on this website, so since we have integrity, we advise you to make us no money and avoid this hound like the plague.

The offer is eligible for EIS Relief but to get that you have to hold the shares for three years. The shares are offered at 0.4p - the closing spread was 0.5p-0.6p so that is a 27.3% discount to the mid. Sareum has raised £513,200 in a placing at 0.4p so its clearly desperate for any moolah it can get its hands on.

Just under three years ago after a pre-placing ramp folk were paying 1.5p for these shares The company was floated 15 years ago at 2p. So it is a long term cash guzzling uber dog.

Sareum says it will use the cash "to progress the Company’s TYK2/JAK1 drug development programmes as well as for working capital purposes." Working capital my arse. It will be used as have all the legion of prior placings to fund ongoing losses.

The flippers will forward sell the placing so the shares will slump tomorrow so do not even buy to make a turn like a spiv, as you will not.

So A) Sign up for Primary Bid HERE and B)_Avoid the Sareum offer, which closes at 9PM tonight, like the plague.

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