Poor Corporate Governance28 Dec 2022 10:27
Poor Corporate Governance
Todays RNS does not add up.
We are informed that the BoD have continued to issue “Shares for Debt”
Shares issued today 160,136,800 total debt reduced £1,601,368 but when you add up Tony Calamita’s fees £250,000 Ian Munzberger’s fees £252,800 Thomas Roland’s £50,000 Andrew Male’s £129,847 and Antony Joshua’s £268,334 this comes to £950,981. This leaves a balance of £650,387 not accounted for. It is not cash in the bank it is debt reduced but what debt?
Going back to the Interims which were issued on 31/03/22 (for period 6 months to31/12/21) under “Current Liabilities” there were “Borrowings” of £359,216 and under “Non-Current Liabilities” there were “Borrowings” of £152,256 (£511,472)
Now the balance of £650,387 could have been allocated to clear the “Borrowings” of £511,472 but we are not informed what debt was exchanged for shares!
As the BoD have exchanged £650,387 of debt for shares you have to look at what has been RNS’d since the 31/12/21
RNS 4/02/22 Fund Raise of £2,060,00
RNS 22/02/22 Shares for Debt £505,557 but no details of what debt was exchanged for shares, could this have been the £511,472 from the Interims? If it was then there would have been no debt on the balance sheet after the £2 million fund raise three weeks earlier.
RNS 3/05/22 One of the “Investors” in the Feb 2022 fund raise failed to hand over £1.2 million and the Companies Broker resigned (I am not allowed by LSE to mention the Brokers name because if I do my post will be removed) For the record the Broker got Love Hemp to issue an RNS to clarify that they resigned before the 3/05/22 (obviously so they can be seen to have acted honourably, which they always do and never forward sell as that’s against the rules and as the shares were suspended that option on this occasion was not available to them)
RNS 25/08/22 £70,000 fine by AQUIS Exchange because the Company “The Company failed to update the market on the investor’s failure to make payment on the due date and its ongoing attempts to secure the unpaid funds until 3 May 2022. As such, investors had a false impression of the Company’s cash position from the beginning of February until early May 2022.”
RNS 20/09/22 Company pays the £70,000 fine TODAY to AQUIS Exchange. Why 3 weeks later? Short of cash? Also updates shareholders that now not able to list on Main Market, reason being the passage of time that the application has lapsed.
My view would be because the BoD have poor Corporate Governance.
Hopefully the BoD will think about how they have been running the Company and reflect as to why in the last year to June 2021 they can justify their fees. If the BoD were to take a step-back they would have paid the Aquis Fine by reducing their fees.
RKB
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