A Real Good Find

I agree with Red Ninja with one caveat. As far as I know Totte went after Napier (and not necesarily Napier, could have been someone else) in order to increase the cap to £50m minimum in order to gain institutional interest. If, as reported here, the institutions don't trust him, then neither do I. I don't have access to this site but came across this via a google search doing due diligence.



AIM flotation

Company: Real Good Food Co.
Sector: Food manufacturing
Deal size: £1.2m

When smallcap markets are in the mood, there’s no better way to turn energy and a little bit of risk into paper riches. Witness the Real Good Food Company.
A year ago it was one of several ideas of small-time corporate financier, Pieter Totté. Since then, he has parlayed £12,500 and most of his waking hours
into a £2.6m stake, plus a net £89,000 in cash he charged for putting it all together.

In three separate deals over the summer, Real Good Food bought a large cake-bakery, a fancy cake-maker and a sandwich-maker. On combined sales of £23m,
these businesses lost around £1.2m between them in the 12 months prior to acquisition – a feature reflected in the combined acquisition cost of about £2m
of which the greater part represented taking over debts of the acquired businesses.

Pieter Totté’s partner in turning this lot into something a touch sleeker is John Gibson, a specialist interim chief executive in the food sector, who owns
11 per cent of the new group.

Having raised £1.6m on the hop from a couple of institutional investors over the summer, they floated their creation on Aim in September at 110p a share,
picking up another £1.1m in the process, and financing payment of the final tranches of a cool £1m of fees run up over the last few months.

Aren't the (minor) director buys Totty and family via Menton Investments Limited/Tulip Trust? £100k? Peanuts.

Sounds hard that, looks cheap though, in two minds really.