Amigo (AMGO) has today given us an update on the scheme of arrangement which will, almost certainly bit not certainly, eventually see nineteen new shares issued for every one now in issue. Whatever happens, at 3.58p the shares are monstrously overvalued.
When Covid arrived I penned a piece here about the possible impacts on sub-prime lenders, given that the industry was already having issues even prior to that, and have also commented extensively on this on Twitter over the past couple of years.
Normally companies will do anything they can to stop auditors or anyone else saying that there is any uncertainty at all as to its ability to continue as a going concern, that is to say not to go bust causing investors to lose all their money. But today, loan shark Amigo (AMGO) stresses most clearly that there is a material uncertainty and still its shares are bid higher. Crazy stuff.
Another day and another statement from the loan sharks at Amigo (AMGO), folks who – as a judge pointed out the other day - are A grade bullshitters in the league of Julie Meyer. Yet again, Amigo threatens folks, quite unnecessarily, with the spectre of insolvency. The company’s market update today is just plain disingenuous.