Firering Strategic Minerals: From explorer to producer. Watch the video here.
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Just dug this up, does make you wonder about the level of true diligence that AIM and the NOMAD/House Broker actually complete (if any) when a company lists on AIM. Anyway in this short but very sweet film Julian emphasises the very solid financial foundations of CSFS (I know you couldn't make it up could you). Seems like he fooled everyone or he just lied to everyone, can't really believe he got away with this and all the claims he has made throughout 2022 right up to 30 June. Anyway, if you can bear to watch it, here it is:
https://investors.cornerstonefs.com/
CEO Julian Wheatland talks about Cornerstone and its business strategy.
Just click on the play button
Well that's alright then, guess we and the market got this totally wrong last week as Julian says his strategy is delivering value for shareholders using CSFS expertise based on solid financial foundations in the right time and right place.
Hmmmm.......wtf happened then Julian?
Newuncle - good find. It would seem he is a master of deceit. I came here as I am invested in VELA who own £350k worth of shares at the astronomical avg of 54p here! Below is a direct quote from the VELA half yearly report RNS in December 21:
''The most disappointing of these is Vela's investment in Cornerstone FS plc, shares in which were listed on AIM in April 2021 at a price of 61p which at 30 September 2021 were trading at 27p. The Board of Vela has been in discussion with Cornerstone's management and has received explanations for the delays in Cornerstone achieving the plans set out in its admission document. Vela has been encouraged by these discussions and by a research note recently issued by Hardman & Co.''
Unfortunately the VELA BoD are next to useless so I highly doubt they will be questioning CSFS even though VELAs holding of £350k is now worth a laughable £49k.
THG,
Now that's very interesting. So Vela not only expressed their disappointment with CSFS but were give explanations and had discussions (along with the research note) that gave them encouragement at the time.
Exactly, I highly doubt the potential for the SP to get into single digits was discussed! lol
Even in their last updatedVela were not showing any concerns re CSFS:
Key developments in investee companies:
· In January Cornerstone FS PLC reported an annual growth in revenue of 38% (subject to audit) for the year ended 31 December 2021.
· In February 2022 Skillcast Group Plc announced a positive trading update for the year ended 31 December 2021. The Skillcast board expects turnover (subject to audit) to be no less than £8.3m (2020: £7.3m), the revenue growth being underpinned by strong growth of 29% in recurring subscription revenue alongside a stable performance from professional services.
· In March 2022 Mode Global Holdings plc announced changes to its board. Rita Lui was appointed as CEO. She will be responsible for driving Mode forward, focussing on its long-term vision to become a disruptor that bridges fintech and crypto. Jonathon Conway, its existing Chief Technology Officer, was appointed to the executive board.
Developments since 31 March 2022:
· In April 2022, in order to improve and supplement shareholder communications, Novus Communications Limited was appointed as Vela's PR and IR adviser.
· In April 2022 Cornerstone FS PLC reported its highest ever quarterly revenue for Q1.
And this from Jan 2022
Fri, 28th Jan 2022 12:00
RNS Number : 0145A
Vela Technologies PLC
28 January 2022
28 January 2022
Vela Technologies plc
("Vela")
Update re. investment in Cornerstone FS plc
The Board of Vela (AIM: VELA) notes the announcement made on 27 January 2022 by Cornerstone FS plc ("Cornerstone") regarding, inter alia, the results of the proposed placing (the "Placing") and subscription (the "Subscription") that was originally announced by Cornerstone on 26 January 2022. The Placing and Subscription has conditionally raised £0.87 million for Cornerstone at 26.5 pence per share.
Subject to customary conditions, Cornerstone is also due to acquire Capital Currencies Limited (the "Acquisition") which was announced on 26 January 2022. Part of the gross proceeds of the Placing and Subscription will be used to fund the initial cash consideration and integration costs of the Acquisition.
Vela holds 645,902 shares in Cornerstone which will, upon completion of the Placing and Subscription, represent 2.74% of Cornerstone's enlarged share capital. Cornerstone is a payments focused fintech business that makes managing currency simple for SMEs. It provides international payment, currency risk management and electronic account services using a proprietary cloud-based multi-currency payments platform.
An extract from the announcement issued by Cornerstone yesterday is set out below. The full announcement can be found here: https://www.londonstockexchange.com/news-article/CSFS/result-of-placing-and-total-voting-rights/15305483
James Normand, Executive Director of Vela, remarks:
'Vela is pleased to see that Cornerstone has been able to augment its cash reserves so that it can continue to implement the business plan set out in its admission document published last April. Vela has noted the progress made by Cornerstone since its IPO and remains persuaded by its 'buy and build' strategy.'
VELA are due to give their quarterly investment update this month so will be able to see if we can gleam anything from that. Highly doubt it though.
THG,
Pretty sure they will want CSFS to explain themselves so hopefully they will have something to say about this. Right now we are all in limbo land with this stock. For all we know this could be the bargain of the year stock or on its way to oblivion and that aint right IMO.
Yesh, As has been said before, the market hates uncertainty so this is why we are where we are. I find it hard to believe that we are a further 10% down today meaning we are 60% down from the day before the RNS only for Julian to give a interview where this is not mentioned and everything seems rosey?!
Some bottom fishing buys
Q1 was a record in terms of revenue. At the time of the TU, I imagined that the full year could be £4.5m, such was the rate of growth. The uncertainty around inflation concerns and the war in Ukraine, could well have affected the business, with the Pound being so low. Likely that there will be a H1 update in the coming weeks. Had the news been great, a year to date announcement in the results rns, could have eased concern. Therefore am inclined to believe that Q2 will not be so good. If that is the case, my original optimistic forecast for the year is going to prove to be far too high.
If there is to be an equity raise, 6p a share would be a result under the circumstances. Though in reality 5p is more likely, especially if CSFS bite the bullet and go for £3m+. That would be a massive dilution for existing holders, who would need some convincing that further investment would be worthwhile.
Not convinced by Sparks Advisory the Nomad. Had been watching BRSD but they are chasing top line whilst the losses grow along with Director remuneration, advised by Sparks.
If I might proffer my investment case for CSFS? Don't touch it with a bargepole! Sorry to be flippant, but JW has misled us all and for that alone I would steer clear. But an even more glaring issue is the specter of a fundraise "in the coming months". This is just plain unacceptable because the wound that is the financing problem is being allowed to fester for God knows how long. This happened quite recently over at RMM and PUR, and both times resulted in a drip, drip erosion of the SP. This is clearly the plan - destroy shareholder value now so as to allow JW and his buddies to buy in cheaper when the price of the fundraise is finally revealed (and you can bet your bottom dollar JW will buy in big when that opportunity arises). I'm expecting a raise at around 5p, but wouldn't be shocked to see even lower than that. Current shareholders are going to be diluted to oblivion. The only possible way to salvage anything is to buy in when the SP reaches the issue price and try to average down. But who has the money to do that these days? No, we've been royally shafted and I don't trust JW as far as I could throw his fat behind. Rant over. Apologies in advance if I've overstepped the mark, but just calling it as I see it.
If he had to raise say £3m at £0.05 then the company would have to issue >70m new shares bringing the total shares to almost 95m (from current issue of 23.7m). God knows how he would get people to support that unless we get one those good old RNSs that says having consulted their BoD and Broker this action would be in the best interests of all concerned etc etc.
They still have access to an existing CLIN that they have not used to date, I would rather they use that to create some breathing space whilst they sort out their finances.
The company has changed the CLIN price twice before to lower prices.
They also said: CLIN could be converted at average mid-market price of the Company's ordinary shares on AIM for the five dealing days immediately prior to the date of the drawdown of the loan.
Given that we are only at day 3 today since the collapse it could be coming by the end of the week perhaps?
One scenario?
4,600,000 shares at £0.075 = £345,000
Down another 15% and still the bod say nothing. Utterly disgraceful lack of clarification when clearly needed urgently
Its got to be bad when PIs are selling for pennies on the pound. Literally no point selling at these prices unless you really need to take some money and the heavy loss.
I guess some will take what they can get regardless of the hit they are taking for whatever reason, some may trade on credit with T Trades that need to be settled.
Biker888, don't beat yourself up. It's all a learning curve. I must admit, I took a hit with MSMN as well back in the early days of my investing journey, when I was much greener than now. The annoying thing here is that I really thought I had done my due diligence with CSFS. I hadn't jumped in but had been watching from the sidelines for some time. The trading update in April had been so promising and upbeat that I thought this was a screaming buy at the c.20p levels. After all, we had been fed statements such as: "The Board remains confident in the Group's prospects and looks forward to updating the market on further progress in its audited results for the year ended 31 December 2021, which it intends to announce in June 2022." This was on April 20th this year. By June 30th, we get this: "These circumstances indicate the existence of a material uncertainty, related to going concern. The financial statements do not include any adjustments that would result if the Company or Group was unable to continue as a going concern." So in April, JW was "confident" in the Group's prospects, but by June there's suddenly question marks over the ability of CSFS to "continue as a going concern"? This whole sorry saga stinks to high heaven and shareholders need to join forces to oust that liar JW. The Group has zero credibility in my eyes, which is a critical flaw when operating in the world of financial services. Where's the trust? No wonder two board members jumped ship on the day of final results. They were probably both so disgusted by the deceit of JW that they knew they would never be able to look him in the eye again and decided to distance themselves from the whole fiasco. So, Biker, I agree. An investigation is needed here, and for JW to be exposed for what he is - a fraud.
Exactly, this is the problem with AIM, companies seem to be able to say what they want in an RNS and get away with it. As you say, how could JW be confident and look forward to sharing the audited results? As is plainly clear, the results were atrocious and coupled with the resignations! Dread to think what JW would think are bad results?!
As far as I am aware the NOMAD for the company has to approve all RNS releases so wtf were they doing in allowing this misleading information being published and then CSFS only telling investors at the absolute last minute of their dire cash position.
After being appointed a NOMAD for a company, the advisor becomes responsible for advising and guiding the company on the responsibilities it assumes to be admitted to the AIM. The responsibilities mainly include (the AIM officially imposes 45 rules):
Retention of a Regulatory Information Service provider to ensure disclosure information can be notified as and when required (AIM Rule 10)
6.5p the bid
mcap now just £1.5m. No doubt Julian is sitting in his office with his fingers in his ears singing lah lah lah, if I don't say anything people won't know what total mess this really is.
Still nothing from the BoD and SP is falling off a cliff again. Does anyone at CSFS actually give a damn? Clearly not.
Ok fed up posting on this so will take a break and write this off, can't trade these even if I wanted to. What an absolute shambles. Signing off until the company can actually be bothered to update the market.
We will just have to wait to get a better idea of what's going on at CSFS. What option will they take? Does JW end up with a much bigger stake in CSFS or the 'new' company? At least one party was selling on good news, which meant the PI ownership in the company was increasing as they got sucked in.
Had good news from another FX company this morning Equals EQLS. They have had a record H1 with revenues of £252k per day @ 48% margin. Despite heavy investment have £15m in cash. What is currently holding the share price back, apart from the bear market, is Crystal Amber's large holding, as they are liquidating their fund by end Dec 23. Am not complaining as it is giving me a chance to regularly top up at a decent price.
Also have a smaller holding in TAVI, whick just keeps on going up, despite the bear market. Directors have topped up in the last week. This would appear to be a well run small cap, with very clever people in charge.