On 20th September I pointed out that Sovereign Mines of Africa (SMA) then 3.5p was almost out of cash and was ramping its shares to get a placing away. Six months later after ramp after ramp of spurious press releases we finally have the placing. The only shock was that Sovereign did not commission an utterly crap paid for research from convicted felon Charlie Gibson of Edison to help with the ramp. The placing naturally screws private investors big time ( this is AIM) and is accompanies by prize winning PR horse shit from Sovereign.
The shares were 1.625p at the close yesterday. The placing is raising a paltry £625,000 (call that £575,000 after costs) at just 1p. So some lucky City folk can flip the stock and make a quick turn and all those suckers conned into paying anything up to 4p during the past six months by those upbeat press releases will be 20% diluted. The advisers make a quick buck, the City insiders on the placing making a quick buck and everyone else is buggered.
Sovereign clearly wanted to raise more
on Shareprophets | Comments