Market's view on Cloudcoco

Published on April 2024

  • Stock watchers are anticipating an update on the company’s progress, which is expected either tomorrow or by Monday, particularly concerning the suspension of trading until the debt restructuring is resolved.
  • There are discussions about the ownership structure of the company; concerns were raised that the board could easily pass any resolution due to their significant control, which might worry general public shareholders.
  • The connection between Jill Collighan, the CFO of MXC (a significant creditor), and her role in the company was highlighted, suggesting that the company is in knowledgeable hands despite concerns about the debt.
  • The possibility of the company’s shares being suspended for an extended period is mentioned, reflecting uncertainty in resolving outstanding financial issues.
  • A detailed discussion about the debt structure involving MXC, which includes scenarios like converting debt to equity to avoid repayment issues, is explored. This option could dilute shares but would make the company debt-free.
  • The company is in a delicate position with its auditors, needing clarity on its debt to be signed off as a going concern, indicating financial instability but also a focus on resolving these issues.
  • The company failed to finalise its annual accounts for the financial year 2023 by the expected deadline, citing that more time was needed for completion and for the auditor’s review.
  • Speculation about the company’s financial performance is optimistic, with expectations of profitability based on past performance and revenue growth. The company is thought to be undervalued and potentially on the cusp of positive share price movements if upcoming financial disclosures are favourable.
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