RC365 Holding (LON: RCGH) is now back to below the price at which it started. Which does begin to make the whole adventure look like a pump and dump. Now of course an actual accusation that it is or was would be too much. So we’ll just run with this idea that if it were a pump and dump then this is the sort of share price that we would have seen:
RC365 Holding share price from Google Finance
It’s also worth noting that a pump and dump is not illegal. Doing things - legal things - which make the share price rise and then selling stock isn’t illegal and obviously it cannot be. Colluding in only doing that - conspiring to drive a share price up in order to be able to dump at the top of the market, well, dependent upon exactly what is done and how much colluding, that can be illegal.
As we said right back at the start of the adventure with RC365 Holding: And now the last piece of the scheme drops into place.” Issuer: RC365 HOLDING PLC, Seller of stock: Hatcher Group Limited, number of shares sold: 5.5 million, date: 22-Jun-2023.” Ah. On 22 June RC 365 was up at 80 pence and above (often above, during the day). Before this all started RC365 was at 20 pence and change. So, Hatcher Group hires RC365 for £1.5 million to write an app. This increases the price of RC365. Hatcher Group then sells shares for a £4 million or so profit above the price they would have got before the announcement about the app contract. RC365 shares begin to decline significantly once the share sale is announced to the market. Well, yes, OK. Clever. Works, is wholly and entirely legal. Wish we'd thought of it ourselves in fact, even if we did still manage to spot that there was something that wasn't going to make us shareholders out here rich about it all. But, umm, the likelihood that this is going to make money for RC365 shareholders at current prices? Slim we would have thought, really very slim.
Yes, there are other parts to the RC 365 story. But RCGH wasn’t worth £200 million.And we have been saying all along that RC365 would fall.
We’d need significant convincing that we’ve been wrong these past few months.
