The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
My guess this is going to zero. As I say the net working capital deficit renders the equity worthless because I don't think there is a viable business here.
I can actually see this delisting now (wouldn't be surprised if they blame the corona virus!). Strip out all listing costs, remove non-execs. Who knows it may be close to profitable. But I sincerely doubt existing shareholders would see any benefit.
Not a bad summary 4kandles.
Of course O'Neill and CCCAL (effectively one and the same) have previous in delisting businesses they control. They did exactly the same with EP&F Capital and they have since disenfranchised the other shareholders in EP&F to a degree that you would not believe.
This business is completely worthless imo. It should never have been listed.
"The Board is of the view that the serious loss of capital does not pose any risk to the
solvency of the Company, "
ROFLOL. What solvency are they talking about? This company is always on the verge of insolvency hence the never ending series of share placings.
LOL
Section 656 of the Companies Act 2006
It has recently come to the attention of the Board that the value of the
Company's net assets has become less than half of its called-up share capital.
It is a requirement of section 656 of the Companies Act that, where the net
assets of a public company are half or less of its called-up share capital, the
directors must call a general meeting of the company to consider whether any,
and if so what, steps should be taken to deal with the situation. This is
termed a serious loss of capital.
Accordingly, the business to be conducted at the General Meeting will also
include consideration of what, if any, such steps should be taken. The Board is
of the view that the serious loss of capital does not pose any risk to the
solvency of the Company, therefore no specific measures are proposed to deal
with the serious loss of capital. Notwithstanding, the Board recognises this
technical requirement and invites Shareholders to discuss accordingly.
As a result of challenging market conditions, the existing ordinary shares of 0.1p each in the capital of the Company (the “Existing Ordinary Shares”) have, at times, traded on AIM at a price less than the nominal value of such shares. The issue of new shares at a price which is less than the current nominal value of the Existing Ordinary Shares is prohibited by the Companies Act. The Board, therefore, considers it prudent to implement the proposed share capital reorganisation (the “Share Capital Reorganisation”) in order that the market price of the ordinary shares to be created pursuant to the Share Capital Reorganisation (the “New Ordinary Shares”) becomes higher than the nominal value of the same therefore allowing the Company to raise funds by issuing further shares, should the Directors elect to do so