RE: Broker tips a buy at 4p1 Nov 2019 13:50
The company itself said they will be breakeven by the end of 2021 then why you think the will rise anytime soon, if it ever happens? The SP was over 4p, 4.73p literally YESTERDAY and then they issued the RNS raising money with 81% discount! Even fund raise with 20% discount seems extremely risky and they raise it with 81% discount! Anyway, if you think investors will buy back in or even top up at this price, you are probably wrong mate. They burned over £9M in six months to june 2019 and also said they will be raising again. IMHO, stay far far away from this company. The shorters had fun and I don't think they will leave anytime soon either. And who knows, may the be the directors themselves are even shorting their own company as they don't own much shares either. Don't just jump in for a quick 10%, investors were sold a false dream here who I think have lost the appetite to reinvest or topup at this price.
Extract from the RNS:
" The Fundraising will raise gross proceeds of up to £7.05 million at the Issue Price;
· The net proceeds are intended to be used to fund the Group's operations through to the end of 2020 and the Directors will seek to raise further funds at the end of 2020, if not sooner. The Directors believe the Group will be generating sufficient cashflows to be break-even by the end of 2021."