RE: Next RNS (Potentially)31 Jul 2020 09:22
DYOR ...
This CEO's skin isn't in this game it is in the AvantGarde Group
The question for them was how to get out of a company that has 32B shares in issue without any product and very little prospect of getting any financial support , no financial institute was going to take it on but thousands of PI may just be convinced to chase the "Unicorn"
"The best grift is when the mark doesn't even know they have been conned"
The principle behind this company seems to be sound,(as any good con does) but the way its being presented smacks of "Smoke & Mirrors"
1A2F (of which the CEO is a controlling director) has made nearly 6B shares available to stock loan companies that are free to trade them, so the talk of the Seller being out is probably a little premature. (and there will be another 5% for 1A2F to get rid of after that, not to mention the other linked shareholders)
Whilst the RNS says that 1A2F will offer to "invest funds from the capital raised into the Company's inventory funding process" that effectively takes 1A2F from being a major stakeholder in SYME to being a major Client and gaining considerable financial protection in doing so. (and will get "inventory" for their investment with the capital that used to be held in SYME),
Its a very clever mechanism to raise funding without going down the traditional placing route (if a little unethical in my opinion), and with a company with so many shares already issued would a placing have raised much, and now they don't need to care about the depths the SP will get to. Without placing the shares no one has an idea of their expected worth (well apart from the CEO, who pawned them out telling the broker he "intended to come back for them ... Honest !", looks like the broker knows the worth and is shedding them as fast as he can !
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