UK 15:58 Wednesday, 7 October 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.
I’ve watched the Challenger Acquisitions (CHAL) story unfold with great interest and think the current share price represents a buying opportunity.
Already a member? Sign in
• All premium articles
• Tom Winnifrith’s Bearcast
• Access to all the entire nearly 13 year archive
• ShareProphets Daily Newsletter
Cancel any time
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments
Davecandle
Not much quantitative analysis here, Gary.
No mention of the £3m convertibles and YA’s direct holding of 10% putting pressure on the sp in the short term.
No mention of the fact that without a new project announcement soon, this business runs out of cash by end Q1 2016.
No mention of the fact that they owe the Starneth vendors another €1m by mid 2016.
The biggest risk accordingly isn’t more capital contributions re NY, it is whether they get Jakarta over the line. The LOI or MOU was signed in July and the latest deadline for financing passed yesterday without a murmur from the company.
If I was thinking of financing the project I would think twice about giving an upfront payment of $15m to a micro-cap company with net current liabilities.
Good luck
wildrides
Never underestimate Gary ……….. He finds all these weird and wonderful companies …….. this sounds like an investment company that buys second hand space shuttles ………… but actually makes “London Eye” wheels . Blimey ………… I suppose someone has to do it . My experience of investing in engineering companies is that the Engineers are “bonkers” inventors that cant stick to a development or manufacturing budget ( or they dont bother with a budget at all ! ) so good luck with that Gary . Very interested to see how it goes tho . I shall watch with interest from a safe distance .
Gary Newman
DaveCandle,
Fair comment, but only so much space and didn’t want to just effectively copy all of the deal details that anyone looking at this will read in the prospectus anyway – mentioned the EBITDA based payments as they aren’t fixed (like the further 1 million Euro payments are) and will depend on performance.
With regards the finances in general, at this stage it is hard to comment until it is seen how everything has been integrated and whether there have been any significant changes there.
The risk side of things overall is why I’ve flagged it as speculative and mentioned it being risky and that the company has to deliver.
It isn’t one that i hold myself, as I’ve stated in the disclaimer, but know it is one that people have been interested in.