What a nightmare for Quindell (LON: QPP) and their cack handed Chairman Rob Terry, the last few months have been. The beleaguered AIM listed technology company taken down by a little known research establishment, aptly called Gotham City Research LLC , in April has yet again took a massive hit losing a further 25% of its already deflated share price. Bad news seems to be never far away. That’s an approx. £2 billion pounds sterling loss as of 7am this morning since the April shorters’ bomb! With more revelations of wrong doing about to be released by, the Sheriff of AIM Mr T Winnifrith, today, one wonders just where Quindell will end up. Suspension is a real possibility. Read it HERE
Quindell and Rob Terry had been overly confident, to the point of arrogance, of scaring off Gotham City with dire threats of libel as well as gaining a premium listing on the stock exchange thus allowing it to join the main indices. It was never going to happen after Gotham City shot them out of the sky. The £1.3 billion loss of value in April sent the Executive board into a tail spin that looks like it’s approaching ‘terminal velocity.’ Share-holders began running amok, wildly screaming to the moon, baying for blood and viciously turning on any one who pointed out the flaws in the Quindell business model. My good friend Mr Tom Winnifrith was widely derided for writing “Shite” being a “Wanker” and rather incredulously for running a restaurant.
The Company yesterday told it’s battered, bruised & wild eyed share-holders that it has not been able to satisfy all the requirements for a premium listing and that the reason for the failure was the “company’s’ success” In particular it did not satisfy Listing Rule 6.1.3 at this time, and particularly, the criteria in Listing Rules Guidance Note 6.1.3E (5) which states that an applicant may not be eligible if its business has undergone a significant change in its scale or operations during the period of the historical financial information, being the last three years’ audited accounts.
Does any person really believe the crock of shit spewing forth from the founder and Executive Chairman? Mr Terry are you really trying to tell investors that you’ve failed because you’ve been “too successful?” Quindell have failed to gain a premium listing because Quindell have lost approx. £2 billion pounds in value since April of this year. Not because it is a success!
On June 9th 2014 just 3 days ago Rob Terry was telling the markets/shareholders that; “As previously announced, the Company has been targeting a move from AIM to a Premium Listing; the Company and its advisors continue to work on achieving this target as soon as practicable.” 48 Hours later we get the RNS telling us that failure is due to success. On March 4th 2014 Terry paid BRR to record a soft soap interview, in which Terry stated that the “250 entry for now, I think, < sic> is more of a formality for us.” What a howler! Terry should resign immediately.
Quindell has divided opinion ever since it listed on Aim in May 2011. The company began life as a golf & country club then transformed through a reverse merger to create a platform that offers to cut costs for the motor insurance industry. An idea that like deja vu just keeps coming back. In early 2000, Rob Terry was founder and chief executive of insurance software firm The Innovation Group. (LON; TIG) the company expanded rapidly in the dotcom bubble. The bubble burst, ripping the hearts out of UK Share-holders, despite its much vaunted revolutionary technology. Terry left the company in 2003 after its share price collapsed and as the company became involved in a complex reverse takeover.
Quindell’s ambitions of moving up from Aim to the Official List of the London Stock Exchange are dead in the water.
It really is a case of Deja vu!