UK 02:33 Sunday, 27 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
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.
In late October Stratmin (STGR) stated that after a placing then that there would be no need for another placing. On Monday it announced that it had raised £900,000 at 4.75p in an oversubscribed placing.
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Comments
Woody44
Open offers and rights issues for small cap AIM companies are usually a waste of time as they never raise more than a few quid. They’re expensive because of all the regulations and paperwork and they make the company look ridiculous as they set out to raise millions and end up raising thousands which barely cover the cost of documents (see Ncondezi, Scotgold). It’s not that PIs are irrelevant it’s just that they don’t have much money. Rights issues and open offers may be the fair thing to do and I agree with your sentiment but in reality it probably wouldn’t have made economic sense to the company.
It is outrageous for a company to claim it does not need money and then go fundraising and for the price to have leaked. AIM should but won’t take action no doubt.
paul
As I mentioned previously about Amara, you do your research, you find what looks a good prospect on Aim, and you back it with hard cash. Your investment starts to go up nicely, and then wham, the company announces a placement deal. The private investor is shafted again! If you are lucky, you are back to where you started, if not, you are under water!
Stratmin, on the face of it is a good investment. However, when they go passing the hat around city spivs, it’s only the private investor that takes the hit. I have invested in a good few Aim companies, and they pretty much to a number operate the same way. So you have to ask yourself, is Aim uninvestable, why bother?
Stratmin looks great value at 5p, will I invest more, no way, had enough of being shafted! Aim directors need to start thinking about the private investor, maybe the best way of doing that, is to invest elsewhere!
Ucabwoo
Long term STGR holder here.
Needless to say the placing knocked the wind out of me. Even worse was the language used especially “oversubscribed”.
I actually thought a producing company would not have to raise capital but wrong again I’m afraid…lesson learnt. In the future invest in cash rich companies.
I have not taken your advise to “sell” as, like you stated, the swing to cash generation and profiibility is well under way. Time wil tell to see if you were correct on this one.
Dave Jay
I can understand the disappointment and anger at the way this was handled but I don’t see that the investment case has changed in any way. I’ve had this on my watch list and opened a small position this morning. That in itself should be a sell warning!