Last desperate roll of the diceToday 09:14
So many questions, so few answers.
Good luck with a £2.5M new money for old fund raise fellas. At a £1.5M market cap that will be some Houdini trick.
“Indicative commitments of £1.15M… conditional on getting over £2M”. Say what? That looks like no sort of commitment at all! And if the brokers have been touting this around since January and not even got half way there…..
What happened to Fortified? Guy Wheatley was on last Friday’s RNS as Lead Broker but has been dropped off today’s. Have even Fortified (who will raise for absolutely anyone for a fee) admitted the game’s up?
Last we heard on 30 March Fortified (not Oberon) were “seeking to raise a further minimum funding of £3 million, with a target of £4 million, in a share placing in which regard the Company is proposing to issue a prospectus, which is at an advanced stage with the FCA, to provide authority for it to issue new shares in respect of loan conversions as well as for additional funding.” What happened to that fundraise and the prospectus “at an advanced stage”? Dead in the water?
What about the Recyclus Crowdcube raise. This RNS says TM1 still owns 48.35%. So no equity issued in Recyclus then – certainly no share issues notified to Companies House. Has the Crowdcube raise been abandoned?
Why would anyone buy in the market at more than 0.05 when there is a WRAP coming at that price once others have put up a seven figure sum of new money for old to de-risk for the retail punters? Surely you buy today at a DISCOUNT to 0.05 for the risk, not a premium!
More urgently, having admitted on 13 April that the company had “limited cash reserves”, we are nearly two months on with no further placings to keep the lights on. So how is it paying the bills day to day, and how close is it to an operational creditor pressing the plunger and sending the whole thing sky high?
Notice that Atlas haven’t given an inch. They are waiting. Tick tock.
Anyone who reckons this RNS is positive is totally tonto. The new strategy is a distraction. Yada yada. It is a last desperate roll of the dice to drum up interest in a fundraise that has already run aground. The last notified placing targeted £4M, sought a minimum of £3M, today apparently you are looking for £2.5M and have expressions of potential interest for £1.15M. All off a market cap of £1.5M? Again I say, good luck. If Fortified have thrown the towel that says it all and you really are in trouble.
It remains, as it has always been, for financial masochists only.
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