One year on8 Nov 2024 09:40
Exactly a year since I first posted here.
In that time I’ve been abused, ridiculed, and today with the shares down more than 90% and suspended, I suggest vindicated.
That RNS from 7 November 2023 was the clue that the equity here was in for a shafting. A related party deal to provide cash for ongoing losses. I was told that there would be no selling, that the operations would be throwing off cash soon, yet the price immediately started its one way journey south. A brief rally while a number of empty promises were rolled out before the AGM, then…
The real killer. Early in the new year the CLN facility with CLG and later Atlas to provide cash for huge dilution. I was told it was not a death spiral, the shares were with patient holders who were fully bought into the company’s long term potential. The market was never told the conversion terms of the current facility, only that the shareholder had “agreed to abide by orderly market provisions in respect of the sale of shares” (yeah right).
No TR-1 was produced until very recently, when buying liquidity had almost completely dried up and the note holder was forced to retain converted shares which the company had first tried to issue at a discount to par.
Because of serial non-delivery from the Board, the result was catastrophic for the share price.
So we are now in a situation where TM1 equity owns a minority stake in a loss making battery crushing operation, and a ragtag of mineral assets with much RNS Reach promise, but no actual realised value.
Will there be any consequences for those behind this calamity? This being London small caps, probably not. In the name of “deregulation”, all sorts of shenanigans are allowed to continue unabated at the lower end of the main market and AIM. The result is always that the promoters get richer at the expense of the private investor. The majority of anything under about £100m mcap is utterly uninvestable.
Yet the private investor almost encourages it. Single share telegram groups, bulletin boards that will hear no bear case, nor even suffer their darling management teams facing any sort of scrutiny or criticism. Instead you round on the naysayer, dismissing his view out of hand. “He’s short!” (it was impossible) “He wants a lower entry!” (not at any price) “He’s being paid to post!” (I wish!) Echo chambers ringing only to the sound of positive ra-ra!
Well here is your result, SeagullsFan, AndyOzwald, THE_CHAIN, LoggyLogbot, Dustyslay, Riz, Keith and all the rest. Next time you encounter a bear acting in the interests of efficient, fair markets I hope you will have learned your painful, expensive lesson. Until then, peace out.
As Articdriver recently said
“ALWAYS do your research. Find out who owns what, who controls what, and be certain you are not taking all the risk while someone else is ahead of you in terms of potential reward.”
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