Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

ZincOx – failed fundraising, delisting mooted. Cheese’n’Onion or Salt’n’Vinegar, anyone?

By Nigel Somerville, the Deputy Sheriff of AIM

29 December 2015 05:57

More:

This morning AIM-listed ZincOx Resources (ZOX) produced a calamitous RNS. A failed funding round (for $5 million) means that 90% of its erstwhile wholly-owned subsidiary ZincOx Korea Ltd is to be handed over to Korea Zinc or – at Korea Zinc’s request – a loan by Korea Zinc will be converted in an eye-watering debt-for-equity shareholder dilution to leave ZincOx shareholders with just 10% of the equity. And there could be more dilution as ZincOx Korea is loss-making: any further funding to keep the lights on at the plant will come from Korea Zinc which will increase its ownership in proportion. Even after this ZincOx looks to be in dire straits and is now considering delisting. In short, this is a trainwreck. Time for one of Tom Winnifrith’s bags of Walkers – or will it be just Tesco Value?

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Comments

Barford

29 December 2015, 07:06

I agree Nigel, I dared to contradict the rampers on Lse as they were saying it a great deal! Heading for 400% rise! and so on.
I gave balance and all I got was bbm comments that don’t have the knowledge to understand the situation looming…..
All the best….
Ian

29 December 2015, 07:46

I just posted the link to this article on LSE and the word “shareprophets” is edited out! Seems to be a couple of people on LSE ramping but if prospects were so good they would have raised the $5 million.
Gary Newman

29 December 2015, 07:52

Nigel,
You beat me to it! Been following this one over last few trading days as was getting ramped to death on Twitter last week – had never even heard of it prior to that!