By Tom Winnifrith, the Sheriff of AIM | Tuesday 10 May 2022
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.
After my weekend revelations, following on from Friday’s bombshell admission of rank dishonesty, I had expected Kinovo (KINO) shares to be suspended by now. For those weekend reports suggest that, very soon, the company will be reliant on its banks for survival. I have written to the Oxymorons at AIM Regulation about what is a major scandal of non-disclosure.
Re Kinovo: suspension and enquiry into the company and Nomad Canaccord needed now
To: AIM Regulation
Make no mistake: Kinovo, a company listed in your Parish, is a major scandal, and, on three counts, I urge immediate action.
On January 12 2022, Kinovo announced the sale of its construction arm, DCB, for up to £5 million, with £4 million almost certain to land in 2022. For a business that made prior-year profits of only £260,000, this looked like a cracking deal. Nowhere in that RNS did Kinovo mention it had to guarantee the working capital needs of DCB. Last week, we discovered there was such a guarantee, and that Kinovo was already on the hook for £3.7 million.
I suggest the suitability of those at Canaccord be investigated at once, that shares in Kinovo be suspended for the reasons detailed above, and that there be an investigation into whether its executive team is fit to run a public lavatory, let alone a public company.
Your obedient servant,
The Real Sheriff of AIM