Monday, 29 February 2016

The Best Thing About The Future Is It Comes One Day At A Time...

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In November 2015 I looked at ECR Minerals a company I followed back in the days when the Ex Director and CEO at Metal Tiger was a mere mortal private investor himself, this was a company that had a whole host of problems namely the board that were in place at that time. After shareholders voted to remove the board Mr Clayson took office as top trump, some could argue he made it there by default or as trusted confident to the group that voted the old management out (Hartford & co) During 2015 it was clear that the company was not clearing debt quick enough to give itself enough opportunity to get back to market to refinance. 

I spoke with a number of city related parties in 2015 who agreed that things looked tight for ECR, however the conclusion was drawn that if ECR could clear the YHA death spiral and acquire enough capital on an interim basis then the business stood a chance to gasp air before swimming ahead, shares had traded in a liquid fashion at approx 0.05p-0.08p as it transpired Mr Johnson of Metal Tiger agreed the idea wasn't such a bad one and himself proceeded to offer the company money although with a twist. The bar was set at 0.02p (Heavily discounted to the earlier sessions building up to it)  

At this point it was clear that the convertible debt remained in place and it was my view that the slack was expected to be taken up by retail punters, once the loan notes were satisfied there would be a pre placing string of news at which point the financiers (Inc MTR) would be presented with an opportunity to sell at a level that very few genuine investors in ECR (A company the MTR CEO was an Ex Director) could take advantage of.

This was an opinion I had based on my findings as it was clear that there were city related options open to ECR yet they chose to run with MTR and a select group, I want to state that if MTR had supported ECR (As publicly stated) through to them satisfying their funding needs before dumping its position then I would hold a very different point of view which is why over the last 12/14 weeks I've simply stated my funding concerns for ECR and remained observant. However this has not been the case!!! ECR still needs money (Death Spiral, CLN,Placing surly coming) with support now very thin. 

Metal Tiger hardly set the bar high on support and in the face of funding needs, it will be interesting to see what part Metal Tiger, The Birmingham Boys and the GR Investors have played in this awful mess. (That's a story all of its own, why? how and who are the backers which causes Metal Tiger to travel up to Walsall and surrounding regions to regularly present)

At this point I want to state that other than applying market mechanics and logic I'm simply observing, asking questions and noting events which have taken place, ECR is typical of many companies listed on aim where constant funding results in little to no material progress thus rarely rewarding those funding the business, clearly one or two clever instrument providers may make a quick turn or an old board member and friend but what about the little man, what have they seen returned under the Clayson's stewardship? 

There's a number of questions about the musical boardroom chairs, the grass root investors of the midlands coupled to the after market approaches of those attending events to welcome '' The group of HNW Investors mission statement of buy more shares '' 

Somethings just doesn't sit well with this chain of events so more due diligence is needed, I welcome any infoformation on the companies mentioned before drawing any conclusion. 

All the best