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Letter to AIM Regulation – Bidstack must come clean on its dire financial position

By Tom Winnifrith, The Sheriff of AIM | Thursday 27 May 2021


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.


This is my second letter this month to the Oxymorons at AIM Regulation about Bidstack (BIDS) where some investors have been made aware that trading is way behind budget but others live in blissful ignorance. I demonstrated earlier that Bidstack is now within days of going bust unless it undertakes a bailout placing so AIM Regulation MUST force it to come clean. The letter reads:


Ref Bidstack, breaches of Rules 10 & 11, looming insolvency and a possible placing


To AIM Regulation


Sirs


For reasons emerging today this is getting ever more serious.

I wrote to you on this matter on May 7. But still Bidstack has yet to inform the market via RNS that its trading in 2021 is way behind what had been expected and that 2022 is looking far worse too. House broker Stifel broke this bad news to some investors in a downgrade on 22 April but the wider market is still unaware. These are material downgrades – 2021 sales forecasts falling from £9 million to just £4 million.


The historic breaches of AIM Rules 10 and 11 are bad but what is worse is that some investors are still unaware of the deteriorating outlook. Worse still, that weakening trading means that – as I showed earlier today HERE – the company will go to zero cash sometime between this week and the end of June. It may well already be in a position where it is unable to meet all of its creditors as they fall due. If not, it very will soon be. Having £500,000 of cash is no good if it is only there because one has not paid £600,000 of bills!


Thus surely the company must be forced to issue a statement to make investors clear of the weakening trading and of its financial position.


As broker to Bidstack, as well as Nomad, Stifel will by now be trying to undertake a rescue bailout placing. Surely it cannot be allowed to do that when the share price is a false one because most investors, i.e. those who are not Stifel clients, are unaware of how bad the financial position at Bidstack is.


I urge you to both sanction Bidstack and Stifel (as Nomad) for the historic breaches of AIM Rules 10 & 11 but MORE IMPORTANTLY to force the company into an immediate confessional RNS as a matter of urgency.


I remain, as ever,


Your ever obedient servant


 


Tom Winnifrith
The Sheriff of AIM

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