Pinnacle Technology Group (PINN) has announced valid demand for 345% of its pitiful open offer to existing investors and that it's set for completion of its uber private investor screw…
As a reminder, on 22nd January the company announced a placing of 108,392,857 new shares - comparing to a current 59,182,558 shares in issue - at 4.2p each. This included that directors would feast on 14,428,571 of the new shares and that shareholder MXC Capital (in which Pinnacle Executive Chairman Gavin Lyons is a Partner) would increase its holding by 49,697,549 shares to 56,766,275 shares.
The prior news flow had included ‘Cloud Security Agreement with Baxters’ (4th September, shares closing at 7.875p), ‘New sales team to drive O2 for business’ (2nd October, shares closing at 7.125p) and “the appointment of Gavin Lyons as Executive Chairman… his experience of buy and builds and track record of achieving transformational growth will be a powerful asset to the company” (7th December, shares closing at 9p and later in the month exceeding 16p). The shares closed 21st January at 12.5p, and so this now tucking into shares at 4.2p would be effectively taking the **** out of those excluded who, influenced by the prior news flow, had bought at the noted much higher prices. But it seemed not to worry as it was stated that “the directors recognise the importance of pre-emption rights”. However, this was then followed with “the company is proposing to raise up to £0.25 million (before expenses) pursuant to the open offer”. This equates to just 5,918,256 shares– making a complete mockery of the ‘recognising the importance of pre-emption rights’ statement!
Whilst a scaling back exercise is thus now undertaken in respect of the open offer to ensure that the crony capitalists can take all of the cut-price shares that they want, Gavin Lyons takes the **** in commenting “we are pleased with the support shown by our shareholders through the open offer”. However, the transactions are now set for completion – with Lyons adding “the acquisitions of Ancar-B and Weston conclude the first steps in our buy and build strategy providing 'IT as a service to the UK SME market'. Alongside the board, including Ian Winn who has now joined, I look forward to ensuring the organisation is focused on creating both customer and shareholder value”.
So far they’ve just shown they’re focused on taking value for themselves and the p**** out of the small private investor.
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