By Tom Winnifrith, The Sheriff of AIM | Friday 7 May 2021
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.
Three sorts of investors know that trading at Bidstack (BIDS) is far worse than the company had hoped for and that it now faces a gargantuan cash crisis putting its very survival in doubt: clients of Stifel, those who can afford a Bloomberg terminal and readers of this website. Thanks to the company ignoring AIM Rules 10 & 11, most investors are seeing their savings die of ignorance. I have again written to the Oxymorons at AIM Regulation urging them to force an immediate statement.
Ref Bidstack- why URGENT statement needed now!
I write again regarding Bidstack PLC where you are meant to regulate its affairs with the suggestion that you really must force it to make a statement now. On 22 April it repeated 2021 trading guidance given on 26 march viz:
“As set out in the Annual Report and Accounts, the Board expects that revenues for 2021, while materially greater than 2020, will continue to be significantly second half weighted.”
So most investors would take that to mean sales of £9 million. But as clients of Stifel, readers of ShareProphets and those who can afford a hugely expensive Bloomberg terminal know, as of 20 April the company was guiding via its house broker that 2021 sales would be just £4 million. There is thus a false market in the shares.
The Stifel forecasts reductions also have another implication. They suggest that the company, which has almost zero cash as I write, will need at least £13.5 million in new equity to survive past Christmas 2022. Although there are now Stifel 2023 forecasts, the assumption is that even more cash will be needed then. Once again, if you are not a customer of ShareProphets, Bloomberg or Stifel, you will be unaware of this funding black hole.
It is clear that Bidstack has breached AIM Rules 10 and 11 in the most flagrant of manners and I hope that “pour encourager les autres” you will very publicly censure the company for this transgression. But more importantly, I urge you to force a statement so that those mug punters buying shares in the secondary market are not doing so while unaware of the shocking deterioration in trading versus budget and of the quantum of the looming balance sheet black hole.
I urge you to take very immediate action with regard to this second matter.
As ever, I remain,
Your obedient servant
The Sheriff of AIM
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