Oh dear, the word on the street is that things are going badly wrong at Great Western Mining (GWMO) but apparently the company is saying that “it is all Tom Winnifrith’s fault.” As I go to clear another space on the Mantelpiece for my next trophy let me explain.
On May 10th I pointed out that the balance sheet of Great Western was almost certainly a train wreck. That is to say cash minus trade payables was somewhere between just over nil and minus quite a bit. With no revenues at all it strikes that if it is not already trading while insolvent it soon will be. That as you are aware is a very naughty thing to do and if directors are aware that a company is trading while insolvent they have a legal duty to stop doing so and that means a statement that its shares are being suspended pending clarification. But heck this is the Cesspit so what do rules matter?
Now it is clear that Great Western (at 1.725p valued at £1.12 million) needs to raise material cash to keep going. But that is rather hard to do for three reasons:
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