RE: Funding partner5 Dec 2025 18:45
Stocksandstuff
If you honestly believe TM1’s current suspension has “nothing to do with cash” or to be more precise the lack thereof, I think you are so naive as to almost deserve the penury buying the likes of Technology Minerals and Zenith Energy is going to bring you.
I suggest you find something else to get a passion for, like 18th century English porcelain or 1960s motorbikes, liquidate your share portfolio and start dealing in that.
When last year’s accounts came out they showed the most technically insolvent balance sheet position I have ever seen in a publicly traded company in 40+ years on the markets.
The company had current assets of £1.352M and current liabilities of £4.633M – a current ratio of 0.29 : 1. Putting that another way, 29 pence of assets readily turning into cash for every £1 of liabilities falling due in the next year. As bust as bust can be, and only surviving on the forbearance of its creditors.
That is not a matter of opinion. It is expressly stated as fact on page 96 of 109 from the annual report, note 24 to the accounts, under the heading “Breach of loan covenants”. The wording here gives you a clue as to how the auditor was possibly able to sign off on going concern. Atlas Capital Markets was able to give the coup de grace at any time. It didn’t because it was given comfort around the realisation of assets and waived its right to redemption of its loan notes “for a year and a day.” That timing is vital. The going concern review goes out a period of one year. With that waiver for the extra day, the auditor was able to sign off.
I conclude that despite asset realisations this year, the liabilities are still overwhelming. I suggest that creditors will not give that waiver again because they cannot see any proceeds from asset sales in the near future. As THE_CHAIN has pointed out, the company cannot issue shares at a discount to par, and while they are suspended there is no market for creditors to dump them anyway.
Recyclus cannot issue equity either, they tried that with an EIS scheme. I don’t know who advised them that was a possibility but it was a complete non-starter. Nobody is going to rank behind the loan from TM1. It would be new money for old. If you believe in that story buy tickets for Aladdin.
I will be amazed if the 2025 accounts ever see the light of day. Mind you, I was similarly amazed last year and called it wrong.
IMHO as soon as the assets of Recyclus have any value, if (BIG if) they ever generate genuine free cash flow, they will be prepacked into administration so as to float freely away from the debt to TM1. In that scenario TM1 debt takes a haircut making the equity worthless.
TM1 may leave, or be booted off the market, before that so as to die quietly away from the public gaze. Plenty of other busted flushes have gone that route. IMHO it’s over.
But then as Dusty will no doubt remind you, I’ve been saying that for a while too.
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