I can laugh because I’m not a shareholder of this most vicious and well oiled machine of value destruction.
The thing is I posted earlier today an article summarising the disastrous placing that Kibo (LSE: KIBO) announced last time round on 25 March in which they let slip that not all the shares issued were taken up by their broker’s discretionary clients.
Here is the said text from the previous RNS (emphasis mine):
…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.
Now after the ridiculous and frankly scandalous ramping of it’s stock in what is nothing more than a baseless good news RNS, we have been greeted with another placing for them to raise £1,500,000.
Here is what the esteemed CEO Louis Coetzee had to say:
We are very pleased to undertake this placing primarily because of the strategic advantage of bolstering our cash position at this key time in the company’s development. This funding provides the Company with a robust working capital position and will allow us to accelerate work on the Company’s exciting Imweru Gold project where a pre-feasibility study is underway as well as our Haneti nickel project, where we are keen to follow up on the exciting geochemical results we received during February this year. We are determined to sustain parallel momentum on all of the Company’s projects as we have consistently done over the past two years, while we continue to advance the Rukwa Coal to Power Project up the value curve.
‘We are very pleased to undertake this placing’…I can just imagine the smile on his face and I am sure he is very pleased to conjure up £1,500,000 out of thin air at the expense of existing shareholders.
Like I’ve said I am not a holder of Kibo stock and neither do I want to be for the simple reason that it is yet again an example of AIM CEO greed. I’ve already posted an article about it’s financial position which puts into basket case territory.
It’s a dog.