Today's News

Firstly I have to say I couldn't believe today's news, its a bolt out of the blue.

To say I'm stunned by it, is putting it very mildly.  

As I'm sure you all know by now, I praise as well as criticise what Syntonic do.

Some will agree with my views other's won't.

While we won't know more of the facts until Wednesday, the news @dabs1978 has posted I at least am very grateful indeed for them sharing it with us, so thanks.  I'm disappointed to see other regulars are far more critical of the poster, rather than the news we've just received. @GoldRoyal89 if a new poster maybe but not one we know !

If it was issued over the weekend, then its been in the works for several days prior to that.

Gary clearly said in the Q&A no fund raising required in the short or medium term unless for an acquisition.

So it doesn't appear by the email to be for an acquisition that's for sure.

Now if the company had waited until it had done the Q&A and in that it had said it wanted to accelerate growth (and the reasons for doing so) etc, I would have been much more understanding & forgiving of them announcing & doing a cap raising afterwards.

They could have held the Q&A earlier had they chose to do so, they chose not to, it was meant to be early November I recall at one point, but they pushed it back to the day of the AGM.

So as far as I'm concerned Syntonic now have a massive credibility problem with investors going forward, the market won't believe them, it remembers & will question the company's financials even more time after time.

We've not talking about the placing being at a premium, we're talking about it being at a discount ! a mere 0.4 cents above the relisting price for goodness sake.

Is that really what the vast progress the company's made in the last 3.5 months is worth?

On the one hand 0.4 cents doesn't reflect it at all.

On the other, the market questioned the company financials back in July/August because it wasn't able to view any figures for the new business. GARY reassured the market with his answer in the Q&A on the funding issue. Today's news sadly reopens that can of worms, is it really for accelerated growth, or is there a flaw in the business model ?

If you're not asking yourself that question right now, then you should be. I certainly am.

If they are looking for private investors for these placing shares, then they've not learned a single lesson from the re-listing fiasco. They need several long term Institutional investors onboard end of story. If they issue them through the same source as the last time the share price will be dead in the water for ages, they'll just bank a quick couple of pips and move on, just as they did in July.


I fear more mistakes are going to occur on who gets these shares etc

The company has made a big mistake on the timing of all this.

Personally Distraught & Betrayed is how I feel right now.

LOTM