From £6.99 per month
ShareProphets
The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares

MINDING THE LSE’S BUSINESS

Join for as low as £6.99 per month

With ShareProphets’ membership, you receive:

• All premium articles

• Tom Winnifrith’s Bearcast

• Access to all the entire nearly 10 year archive

• ShareProphets Daily Newsletter

Latest Views & News

OUTSIDE ALL PAYWALLS: Letter to AIM Regulation – were Bidstack’s pre placing interims bogus & misleading? Enquiry needed now!

By Tom Winnifrith, the Sheriff of AIM | Wednesday 4 January 2023


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.


Yesterday there was an admission from Bidstack (BIDS) that its soon to be former business partner Azerion had terminated the venture and had not been paying invoices for some time. This begs the question: were interims released on August 8 2022 bogus and designed purely to pump the shares ahead of the 5 October bailout placing. I have written to AIM Regulation demanding it launch an enquiry.

Did Bidstack deceive investors ahead of October bailout placing - you must surely launch an enquiry.

Sirs.

I write to you yet again about AIM listed Bidstack (BIDS) a company with a long history of misleading investors, sins which I have flagged up to you numerous times. So far you appear to have done nothing about it but I hope that in 2023 your departmental New Year resolution is to do some actual regulating and what better place to start?

On August 8 Bidstack announced half calendar year results and boasted:

Our wider product offering and suite of tools, organic growth and the commencement of our commercial relationship with Azerion has created a 2.5x increase in first half revenue year-on-year to over £2m.”

How much of that £1.226 million increase in revenues came from Azerion? I only ask because in the same six-month period, trade and other receivables, increased by £1.532 million.

On October 5 Bidstack staved off bankruptcy with a £10 million placing at 2.85p.

On January 3 Bidstack admitted that Azerion, as well as terminating the partnership, had not paid a number of invoices due and that it was embarking on legal action to reclaim those sums. The question is when did Azerion stop paying its invoices or, indeed, did it ever start?

So the two questions you should be demanding that hapless Nomad SPARK Advisory establish are:

1. What was the quantum of invoiced revenues from Azerion in H1 2022?
2. What portion of those invoices had been settled by a) August 8, b) October 5th and c) remain unsettled now?

If it emerges that a high portion of the issued invoices remained unsettled by October 5 surely Bidstack should have flagged this up BEFORE its fund raise as that would have impacted the share price of that raise materially?

I urge an immediate enquiry and a long overdue public censure if the results suggest that investors were deceived.

I remain, as ever,

Your obedient servant and wish you, for 2023, blwyddyn newydd da.




Tom Winnifrith
www.ShareProphets.com
This story is available to all readers
ShareProphets is reader-supported journalism

Become a member starting at £6.99 per month for all articles, the Bearcast, and our seven year archive.


Filed under:



Subscribe to our newsletter

Daily digest of our latest stories.



Search ShareProphets

Market News

Complete Coverage

Recent Comments

That Was the Week that Was

 

WIX

How is Wickes getting along?

Friday »

TERN

Tern – Is There More Bad News On The Way?

Thursday »

ZYT

Zytronic – now a recovery Buy?

 

YGEN

Buy Yourgene - target 0.6p

 

ROO

Keep avoiding Deliveroo shares

Friday »

THS

Tharisa – Q1 report, still a value Buy

 

SBRY

Sainsbury’s has a good Christmas