Tag: Placing

London Capital Group. Corporate Jackals. Vote NO at the EGM.

I’ve never wrote a piece on spread betting tiddler London Capital Group (LON: LCG) before but feel it’s time investors became aware of the tricky situation they’ve now gotten themselves into. CEO, Charles Henri-Sabet (double barrelled surname to boot) and his backers at GLIO are between the proverbial rock and a hard place regarding convertible loan stock they used as they attempted to gain control of the Company in 2014. Sabet has been a disaster for shareholders. LCG have cratered by over 75%.

LCG now propose raising approx £14m! See the RNS of the 21^st July ( HERE) and don’t forget to have a good read of their last set of financials HERE An absolute litany of corporate greed.

The trashing of the stock price to 5p set against the Convertible Unsecured Loan Stock (CULS) conversion price of 25p served to put GLIO Holdings Ltd and Sabet in a tricky spot re gaining control of the company (over and above the Board control). The proposal to issue new stock will result in circa 65% & 85% of the enlarged share capital at a price of 5p per share being in their hands. This is nothing but in effect a de facto takeover of the Company yet another cash and grab for the boyos. Screwing current shareholders. Recent results reveal net book value adjusted for intangibles was £8.2m – nearly 10p per share. It is an absolute shocking derogation of duty for non executive directors to wave through a Concert Party who are forking out a miserly 5p And how in the name of God has this got past the FCA? The deal also sees them issue a further potential 7.096m shares to GLIO for the “underwriting “ of the ‘takeover’ (depending on the amount not taken up in the open offer) as well as a further 18.65m “interest”” shares on the CLN redemption. What this proves is total disregard for all stakeholders ,other than themselves!! How has this got approved?

There is no immediate need to raise capital and certainly not at such a piss poor price. The reasons (bullshit) being trotted out? Growing revenues and a commensurate increased capital base requirement. WELL IF THE ‘REVENUES’ ARE INCREASING WHY THE HELL DO YOU NEED TO RAISE CASH?

“Against this background, the Company believes that its Tier 1 capital ratios should be strengthened so that it is able to take advantage of its restructured platform in order to grow and improve its trading results.”

Running a business isn’t difficult, you don’t have to be a ‘Brain Surgeon’ to know that the best way would have been to wait until business has banked the ‘Growing Revenues’ ergo the share price rises and you can raise at a much higher price which is less dilutive. Common sense! The facts behind the capital raise just don’t stack stack up. It stinks. So what’s the reason/s? Maybe this? “Trading in the second quarter, however, has been noticeably weaker due to a lack of volatility and concerns about Brexit, reducing clients’ propensity to trade”. Corporate codswallop! The NED’s should hang their heads in shame. Change is needed here.

Sabet has no regard whatsoever for LGC SHAREHOLDERS the board is populated by yes men, lackeys! Genuine independent oversight does not exist. The board should resign. In the latter’s case, to simply put their name to what is a ‘take under’ at less than the current net book value is shameful. ‘Of course it’s par for the course’ with this board the recent admission that the LCG NED, Frank Chapman was UP TO HIS NECK in yet another ruinous company comes as no surprise. Mr Chapman was a non-executive director of ‘OF Holdings Limited’ (formerly Oxygen Finance Holdings Limited until 5 May 2016), when it was placed into administration on 25 February 2016. According to the joint adminstrator’s statement of affairs dated 11 March 2016, the company as at that date estimated a deficiency to creditors of approximately £342,000. The estimated total deficiency as regards members was approximately £352,000′ What a shambles but it is indicative of the wholesale disregard these fookers have for their own share-holders.

VOTE NO TO ALL RESOLUTIONS ON THE 6^TH JULY.

Issuing stock below their nominal value requires court approval. The EGM is to be held on the 6th July 2015. The scumbags need 75% of the votes on the day in order for the resolutions to pass and the company to be gifted to Sabet and GLIO at a massive discount to book value. If these guys want LCG then they should be willing to pay a premium over net book value of 10p. 12p at the very least!

It’s up to you to kill off this scandalous EGM.

Vote ‘NO’ to all resolutions.

Viva!n

Dan

27 June, 2016
Sula Iron & Gold. Placing’s Aplenty. Another One On The Way?

It’ a sorry tale I tell this afternoon on Sula Iron & Gold (LON: SULA). Sula are a serial failure who over the many years have never attained anything of true value for their share-holders, other than continual dilution and placing after placing. In fact they are little better than a Lifestyle company. I have more gold on my little finger than this lot have ever produced.

Investors need to be aware of exactly how the Board operate and how they continually raise cash and dilute to keep the lights on. Take for instance the recent placing on 10th March 2016. Billed as an existing Institutional/Cornerstone Investor taking yet more stock. We are told in that RNS that the ‘Institution’ also took part in the fundraising in October 2015. How much of the 166,666,664 shares issued in that placing wasn’t disclosed nor indeed was their name. Take a bow Jub Capital. Who in the March 2016 placing took 118,750,000 new ordinary shares at a price of 0.16p per Subscription Share. In addition to 65,312,500 ‘warrants’ were also granted at a price of 0.16p per share. Now fast forward to 24th February 2016 placing. A placing of 181,250,000 new ordinary shares of 0.1p each in the Company at a price of 0.16p per Placing Share. In addition to the Placing Shares, 90,625,000 warrants were also granted to placees at 0.16p per share. How much stock Jub took in the 24th February 2016 placing again isn’t disclosed nor again are they named. What we do know is that they took part.

‘Socialite’ Adam. Institutional Trader NOT Investor

The majority of that stock taken in the above three placing’s has been quietly drip fed into the market and unsuspecting retail investors. And will continue to be sold down. I spoke to the head honcho, ‘Dashing’ Adam Dziubinski, this morning. He confirmed that his company/clients now hold approx.’ 80 million shares. Which begs the question; Just how many shares have they sold into the market? They took part in at least two/three placing’s and have been and continue to quietly off-load Sula shares. You maybe wondering with such a large chunk of Sula why no notifiable RNS has ever been issued. I’ll tell you. The ‘Institutional/Cornerstone Investor’ purchases the stock and splits it into batches under notifiable thresholds for themselves and their ‘Clients’. All quite legal, but extremely disingenuous. This allows them to sell without having to notify via RNS.

Jub Capital are NOT a cornerstone Investor they are trading the stock at each and every opportunity, to make their margins. That isn’t investing it is trading/flipping, below the radar and should be disclosed at the time of their purchases. i.e. they have bought them to trade NOT invest! The playing field needs to be levelled. It is Institutional trading NOT investing and should be declared as such.

In the space of approx. seven months the Sula CEO Nick Warrell has raised ‘in discounted placing’s’ £1,500,000 and if my sources are correct they will place yet again in the not so distant future, probably after the City boyos have sold out their ‘Institutional/Cornerstone holdings’! That placing will again be ‘discounted’. If their share-price stays were it currently rests the placing price will be circa 0.10p.

Fore-warned is fore-armed.

Viva!

Dan

18 May, 2016
Wishbone Gold. Mr Poulden Has No Clothes! Placing Rumours.

I can’t believe that some people are jabbering on about how great Wishbone Gold ((LON: WSBN) are! I totally disagree with the HotStockRockets team, (whoever they are). The company are all but running on fumes! It’s a ‘Hans Christian Andersen’ moment. The Emperor has no clothes. The last set of interims state that they had, as of June 30 2015, circa £108k in cash and cash equivalents. A perusal of the last known balance sheet exposes the preposterous ramping that’s going on. Wishbone are a precious metals trading business and a company that need cash and need it quickly.

The company’s’ run by a chap called Richard Poulden, who operates out of Dubai central. Richard has a beneficial interest in 417,226,971 shares. I don’t know Richard, he’s probably a nice chap, sadly the company he is running is massively over-valued. It’s a dog. The current SP is 0.5p. The market cap is £5,000,000, The question is on what? They’ve stated that they have total assets of £936,393. That figure is wholly miss-leading, and here’s why. The figure is made up of cash & cash equivalents (£108k). Trade/Receivables (£36,821). Investments held for resale (£384,537), which comes to circa £530k. The rest of the assets figure is made up of ‘hot air’ £406,000 of intangible assets. Remember this was as of 30 June 2015, so their cash position will be some what eroded as of 10 months further down the time-line. They are running on sentiment and close to bust.

The recent grandiose statement of the acquisition of Precious Metals International Ltd (“PMI”) and its wholly owned subsidiary, Black Sand FZE (“Black Sand”) in an all share transaction is yet another fantasy story being used to ramp up their share-price. Wishbone intend to give 480,000,000 shares for PMI at a price of 0.27p per share, ergo £648,000. A company that made a loss of £5,564 and has assets of £454 quid! Just slightly more than I currently have in my wallet! It’s a joke!

On a fundamental basis the actual value of Wishbone is listing value, £500k and assets £530k, ergo circa £1M. A shareprice of 0.10p. As for their Aussie assets, unless Richard and HotStockRockets, buy a pick and shovel and INVEST SOME MANUAL SWEAT, then you can right them off. Nil par, no value, zippo! Wishbone Gold are trading at 400% over true value. It should be noted that the last RNS from the company was yet another ‘brouhaha’ over getting into £2,000,000 of debt to keep the company afloat! Who is going to give Mr Poulden £2M? More importantly what is that £2M going to be secured against? The company do not have any thing to secure it! Unless you count the £454 quid in PMI assets….

Wake up. Sell and get out, take your profit and run. As sure as night follows day there’s a massive dilution on the cards here. Indeed, if they don’t place or suck in £2M in debt they will go bust.

With an insanely over-valued share-price it would be insanity for Wishbone to NOT take advantage and place immediately! That placing will be at a huge discount. Placing Ahoy!

Viva!

Dan

3 May, 2016
Bloodbath on the way. CEB/Andalas

$600 Million Dollar Fantasy Man. No wonder he’s smirking!

Followers will recall that we published a piece over the weekend on the sham being perpetrated by the fantasy $600,000,000 man Dave Whitby. You can read that piece HERE.

News has dropped from City of London sources that there’s yet another almighty ‘Kick up the AndalARSE’ on the way for holders of this POS. There’s a massive dilution about to drop. Over £2,600,000 worth of discounted shares at 0.45p-0.50p. That means that shares in issue, if it goes ahead, will be fast approaching 1.5 Billion. God only knows what warrant packages those involved with the massively discounted grab for cash will be.

We do know that Corsair, the private company run by Whitby & his cronies, will trouser approx., 230,000,000 on top of the 31,250,000 shares they’ve already trousered. Punters do not know what other fees in cash Corsair have had? The Reverend Tom Winnifrith has beat me to the line on this. You can read what Tom has discovered HERE

It’s going to be a bloodbath. Those foolhardy enough to have kept holding are now locked into the ticking time bomb that will explode very soon. They’ll need a 130% rise or (and a big almighty non-stop ramping campaign) thereabouts to get back to where it was pre suspension, if they relist at 0.45p/0.5p. Bearing in mind the low quality of the unproved, undrilled, Indonesian gas asset that’s in the pipeline. Value $1,000,000, It’s a case of hope rather than fact that CEB/Andalas will finish the day with a market cap of £20,000,000+. The real post readmission value, is cash at hand, listing value, plus asset. Which is approx. £2.5M. Being generous that equates to an SP of 0.20p or thereabouts.

The Pumpers and Dumpers will be out in force on RELISTING DAY. Remember some of those are sat on massive losses and would eat dog shit live on National television if they thought it would push the SP up.

Stay well clear. It’s a Bloodbath. Get in the popcorn.

Viva

Dan

19 April, 2016
EXCLUSIVE. LGO Energy Placing Book opened today!

On his way out? You’re Fired!

NB. Reblogged. As a warning to what can go wrong when this mob place.

More shocking proof of the disgraceful ramptastic bollox coming out of the now fully exposed Ex Lenigas AIM listed Vehicles’ dropped today via RNS.

Have a good read of the ‘LGO Energy PLC Corporate and Operations Update’ released on 24th Feb’ 2016 then compare it to todays woeful RNS LGO Energy PLC Termination of Offer Period and Goudron update

So as predicted by yours truly the shining white knight riding to the rescue with $20 Million dollars to invest in LGO Energy (LON; LGO) that was at the time capitalised at $15 Million dollars has evaporated. Of course some would say that the mere notion of any ‘savvy’ investor wanting to invest $20 Million dollars in a Company capitalised at $15 Million dollars was a credibility stretch of Grand Canyon proportions. What I would say is this. It is wholly indicative of the way David Lenigas and Neil Ritson and the whole Jermyn Street Mafia run their plays. They stretch credibility using ramptastic notions that always seem to fall away at the last gasp. In other words when the push comes to sign the deal it always falls away.

So what now for the haplesss, witless, Ritson and LGO? There’ only one way forward and that is a massive highly dilutive placing. It’s a SMASH & GRAB £6Million placing. Ritson will be booted out. The whisper is that there’s a book opened up on LGO, which means some one is looking to place and takeover the reigns of power. I wonder who that could be?

Remember BMD

Always gets the info!

Viva!

Dan

16 March, 2016
Exclusive. UKOG. Placing on the way!

NB 1st published on Feb 27 2016. Republished here as a warning.

As ever yours truly has managed to get the info no one else can, on the Horse Hill players. I can exclusively reveal that UK Oil & Gas (LON: UKOG) (As well as others) are lining up a huge placing on the back of their Horse Hill success story. The last piece of the jigsaw fell into my lap this afternoon. Our City sources have confirmed it. It’s a tightly kept secret however we have four different sources all confirming that the Jermyn St bat phones have been buzzing since last week putting out the placing feelers. Not only on UKOG but on most of the HH players. There’s a big dilutive placing being lined up, we believe it could be as high as £10,000,000. UKOG results released today make interesting reading

The current market conditions will almost certainly mean that it will have to be heavily discounted. This shouldn’t come as any surprise to all those who know how the market at this level works. There’s a big promotion going on to get the UKOG SP up to higher levels so they can reap the benefit and place into it. CEO Stevio Sanderson has been doing the rounds on the ‘Promo Circuit’ these are the usual precursors to placing’s. Regardless of what cash they held circa £4.5M in todays RNS. Make no mistake. They’ll go for a cash and grab while their SP is buoyant.

They’ll be seeking to get as much money in as is humanly possible. Like most of the placing’s that come out of the Jermyn St offices, they’ll move very quickly, the placing will be done within 24/48 hours after they give the greenlight.

At current levels the placing would have to be sub 2p on a 30% discount. What that means is that any one holding at these levels will automatically take a kick in the teeth.

News from the site is being tightly managed but we think the Upper Kimmeridge will not flow at Lower Kimmeridge levels. Educated guess possibly up to 150bopd. We did hear that 80-100 bopd had flowed but could not confirm this. Looks to me like they are trying to get the Upper Kimmeridge up as high as possible to keep the good news story going, hence the delay in news. Once they announce phase2 and phase3 they will seek to place.

Remember once all the hullabaloo/news dies down after the flow testing (like most AIM stocks) the Horse Hill players will slowly start to fall in value until the next phase of operations start to hone interest again. Repeat cycle.

Don’t get caught in the cycle.

Viva

Dan

16 March, 2016
The House of Solo. Close to Falling.

It’s looking ever bleaker at the house of Solo Oil & Gas (LON: SOLO) who’ve now spunked away their 2015 placing cash. Punters will recall that they raised £2,700,000 this year via two placing’s. Just what in the name of Jupiter has the cash been squandered on? Maybe the ‘invisible man’ CEO Neil Ritson would like to explain to shareholders?

I’ve never met Neil, never spoken to him or had any kind of conversation via phone or email, so I’m not here to personally disparage a man I do not know. What I do know is that the current falling oil price has certainly had an effect. The Winnifrith preposterous claim he’s a “David Lenigas puppet on a string” holds no weight with me. Neil is his own man. The responsibility for Solo rests firmly on his shoulders and his shoulders alone. This is business and I’m now making it my business. What I am doing is setting out the case that Solo are going to do what their CEO has done through-out his tenure at the company and that is place and dilute for the 19th time and fail to deliver. Then place and dilute a 20th time then fail to deliver….. Reading through their RNS’s from 2010, when Mr Ritson took control, It’s a groundhog day company. Not one I would consider as worthy of researching, or invest cash into until there was a Board room clear out.

Looking tired Neil? You need a rest.

On a fundamental case Solo are as CaliforniaJoe writes HERE ‘running on fumes’ it’s my understanding that with the recent employment of Raylene Whitford (she who spitefully dissipated Sefton’s shareholder cash over a 12 week period to spike the incoming new management team while covertly running a smear campaign recruiting BB Trolls against Seftons requistioners) has been brought in as an oil & gas consultant. Her only claim to fame? 6 Months experience roughnecking on a rig in Canada. Just quite what this girl thinks she can achieve for Solo may become apparent over time. But it’s time that is quickly running out. With estimates varying of between £80k and £200k in the bank at year end 2015, Solo will place and or draw down on their debt facility. That is a 100% certainty.

Any investor holding stock here will receive a massive dilution not only to their holding but the actual cash value of that holding. If I was them I’d be out 1st thing tomorrow morning. The placing when it comes, and come it will, will have to be at a massive discount in-order for the bucket shops to entice the gullible into parting with their cash. It could be a case of Deja vu re’ the disastrous Whitford Novum Sefton placing at 0.065p

Time for Board Room Change.

How long should senior management get to turn a company into a viable business? Neil Ritson is entering his 6th year. One has to beg the question; When will the penny drop that his tenure at Solo is way past it’s ‘sell by date’? Shareholders need results there’s only one thing that can save him. Tanzanian gas production which has been promised and postponed more times than an USA inmate on California’s death row. The difference being that in California they eventually always get the gas to flow! If the gas doesn’t come for Solo then It’s time for a resignation with a new team taking control. If not then shareholders should band together en-masse and vote him out. For far too long CEO’s fill their pockets with shareholder cash while bringing absolutely no value whatsoever back into the pockets of the faithful.

I challenge Neil Ritson to a public platform debate in London on Solo Oil & Gas. I’ll organise it and pay for it. The gauntlet has been thrown. Pick it up Neil and defend your record. Failure to do so will speak volumes.

You maybe a good geologist however as a CEO you need to step away.

Viva

Dan

30 December, 2015