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musicMagpie – shares off another 15% and now just 40p to sell – time for a statement?

By Tom Winnifrith, the Sheriff of AIM

1 April 2022 10:59

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It is three weeks until the one-year anniversary of musicMagpie’s (MMAG) IPO at 193p – c/o Peel Hunt – when founder shareholders trousered £93 million dumping stock on institutions. Today, the shares are crashing again, off 15% at just 40p to sell. The spread (10p) tells you something is very wrong. So, what is afoot?

Last week in a series of articles, I showed that the Prospectus contained a monster lie: the CFO-turned-COO was a proven fraudster, and the loss-making business faced growing competition – utterly contrary to what the prospectus stated – which would kill it off. The response?

The wife of the CEO – whose families had made £16 million dumping shares at the IPO – made great play of buying just £300,000 of shares at 52.5p, from an institution desperate to get out. And then there was a presentation at PR firm Mello, without A SINGLE QUESTION OR MENTION of the elephants in the room.

I suggest that a formal response is now needed.

If not, what happens next is so predictable. There are sod-all private investors here and, after my revelations, that will not change. Institutions know there will have to be a placing at some stage – not that this will alter the end game – so will not buy in the market ahead of the bailout. And that means that, as the smarter (these things are relative) IIs look to escape, even small-scale selling will crash the share price.

Amid ongoing silence from Magpie, anyone holding the shares is utterly insane.

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