We had basically thrown in the towel with AIM-listed, social media SaaS pure-play, SocialGO a month ago after reporting its disastrous FY results (see Where to start with SocialGo?). Now management has finally come to the same realisation that this was one lame duck that was never going to fly.
In a last-gasp attempt to salvage – well, I’m not sure what really – management has raised another £200k to keep the duck afloat while it tries to sell off the barely beating heart of the business and turn the carcass into – you guessed – an “Investing Company”. According to the release, the new company “will initially focus on opportunities within the financial services sector located in the United Kingdom but may consider investments in other sectors or in other geographical regions that the Directors have expertise in.” Or not, as the case may be, I suppose.
SocialGO floated on AIM in April 2004 (as a holding company to develop an interactive educational children’s toy) at 90p valuing the stock at £13.5m. Its shares peaked at around £2 a year later. Clearly much has happened in between and the shares closed last week at 0.25p – a veritable ‘farthing stock’!
The only positive thing to be said is at least executive chairman Oliver Cooke is not trying to hide behind his PR firm – you will find his mobile phone number at the end of the RNS release.