If you are going to shaft your shareholders at least do it properly.
From the 25 March RNS
Kibo believes that, of the outstanding placing proceeds, £526,000 (representing the consideration for 10,520,000 Kibo shares which were to be issued to third party investors) which had been paid into Hume Capital’s client money account, will be released to Kibo, as soon as practically possible under the procedures established by the FCA for such circumstances.
Released as soon as practically possible.
Not only does Kibo (LSE: KIBIO) have a problem generating cash from it’s operations it also has a problem generating cash by issuing shares.
The RNS continues:
However Kibo understands that the balance of the placing consideration of approximately £204,000 (representing the consideration for 4,080,000 Kibo shares which were to be issued to Hume Capital’s discretionary clients) is unlikely to be released to the Company. The shares which were issued by Kibo in relation to this portion of the placing will likely be declared forfeit and cancelled by the Company, as provided for by the Company’s Articles of Association.
Did Hume’s discretionary clients actually take a look at Kibo’s operational activities and suddenly have a change of heart?
This is a huge blunder that current shareholders ought to consider when reviewing their investment in Kibo.
No wonder the price shot up in an absurd way yesterday since investors are hanging onto any piece of good news out of Kibo in a desperate attempt to see a return.
My only concern with a stock like this is: when would be a good time to short?
If the opportunity presents itself I’ll be sure to update this blog.
Disclosure: no position.