StockTalk

Just thought I'd get this thread started.

I went to the AGM the other day.  Essentially VREY happy with my position. They have had a tough year with covid and China but still managed to build another factory.

Seems they have been distracted with the build but now that is petty much done no excuses for not getting product out the door.

I get the sense a main board listing is on the cards. Not sure where though.

Quote from: Minimoke on Jun 26, 2022, 05:05 AMJust thought I'd get this thread started.

I went to the AGM the other day.  Essentially VREY happy with my position. They have had a tough year with covid and China but still managed to build another factory.

Seems they have been distracted with the build but now that is petty much done no excuses for not getting product out the door.

I get the sense a main board listing is on the cards. Not sure where though.

I don't see a main board listing happening until 2024 but can't wait for it to happen, for any larger holders to sell any significant volume of their shares it will be a must happen.

I don't see a main board listing happening until 2024 but can't wait for it to happen, for any larger holders to sell any significant volume of their shares it will be a must happen.
[/quote]

I'm a relative noob here re Pharmazen - have they made sounds in the past re being interesting on listing on the NZX?

Quote from: Fiordland Moose on Jun 27, 2022, 09:37 AMI don't see a main board listing happening until 2024 but can't wait for it to happen, for any larger holders to sell any significant volume of their shares it will be a must happen.

I'm a relative noob here re Pharmazen - have they made sounds in the past re being interesting on listing on the NZX?
[/quote]Yes at last years AGM they talked about preparing for it but obviously with the whole Covid thing its been put back in order of importance.

Quote from: Minimoke on Jun 26, 2022, 05:05 AMJust thought I'd get this thread started.

I went to the AGM the other day.  Essentially VREY happy with my position. They have had a tough year with covid and China but still managed to build another factory.

Seems they have been distracted with the build but now that is petty much done no excuses for not getting product out the door.

I get the sense a main board listing is on the cards. Not sure where though.

Thanks mm, appreciate the feedback from the AGM

Fantastic buying at current prices, I've been topping up for the long haul over the last while, a few custodial holdings have been dispatching a few, bless them.

Excellent half year report

"Revenue for the six months to 30 June 2022 increased 36% over the previous corresponding period (FY 21 H1), from $9.4 million to $12.8 million. This increase is despite the ongoing Covid impacts on supply chain and the labour constraints being experienced.

Underlying EBITDA2 also increased up 135% over the previous corresponding period from $776,000 to $1.8 million, illustrating the leverage that we can achieve on increased sales. "

And, importantly. " we anticipate producing commercial product from the first new dryer in August and the second expected to be online in September. With both freeze dryers fully operational by the end of September this will double our freeze-drying capacity compared to the start of the year. "

Oh. There's another page of delight filled reading

"PharmaZen is well positioned to continue the recovery achieved to date and given our increased capacity and continuing strong demand for our products, we are forecasting notably higher sales and a higher underlying EBITDA than the first half."

And market likes it. You can fil your boots now at $0.60 now that those 50 cent sellers have been snapped up.

Yep very happy with progress here in difficult times, patience will be well rewarded in due course.

Strong 1H22 result IMO – encouraging progress moving forward with timely completion of capital projects under testing conditions. Ebitda increasing over PCP due to increased efficiencies and  economies of scale (as promised) bodes well moving forward, and with the 2 new freeze dryers fully operational by Sept & Rolleston #1 operational by Dec – then the 2023 financial updates should be much anticipated.
Market details of the new product line @ Rolleston #2 will hopefully be released by end Nov. and judging by Ken Fergus' comment that it will be "primarily a special purpose botanicals (plant based) facility" then presumably it will be some sort of juice/blackcurrent extraction development as alluded to in May 27th Agm (Slides #65&67).

It's a good report confirming steady progress and catch-up after the mainly COVID driven delays with the factories. We will have the 2 new freeze dryers at Port Hills up and running in September, doubling capacity compared to start of this year. Such production increase will have a major boost to the bottom line as they have illustrated with the 135% jump in EBIDTA from 36% increase in revenue in this H1 report.
Next year will be our year.

After leaving this years AGM I was left with the impression board and management had been severely distracted by covid and construction related issues. And reasonably so. Gone were the idea of doggy treats and new packaging and gone was aiora. But despite that they managed a team that, under extremely difficult circumstances managed to get factories built.

It is now clear that we have moved into an era that covid and construction is essentially behind us. The one black spot on the horizon is this useless governments insistence on keeping the labour market closed and artificially raising wages.

That aside its a clear horizon. Head winds have gone.

Board and management have a long and proven track record of delivering. No fuss. No nonsense. Just rolled their sleeves up and got things done.

It is very clear to me that demand for product exceeds ability to supply. New factory capacity will help with that.

Costs will now become more manageable. Margins can be tweaked.

Quality raw materials are on hand.

There is no doubt they are looking at main board listing. But I wouldn't be assuming its a NZX listing.

I am very comfortable with my current position. I've held after SP dropped from its highs near $.85. Currently I am holding a five bagger. And very confident this stock will get me a 10 bagger in the not too far distant future. In a years time I reckon $0.60 is going to look like very cheap buying.

And I do have dividend tucked in the very back of my mind - I need to drill down into the numbers a bit more before getting too excited.

Popped by the other day. Tarseal down around main rolleston factory. This means all heavy plant now inside factory. Second factory next door build coming on well.

Must be due an update soon.

SP has been falling back - I am hoping they have put required focus on sales and not just on building.

I'll post photos if I can figure out how to do it.

https://usx.co.nz/uploads/paperclip/documents/2749/original/PZ_History_and_Future_Growth.pdf?1671571696

Quote from: lorraina on Dec 21, 2022, 10:36 AMhttps://usx.co.nz/uploads/paperclip/documents/2749/original/PZ_History_and_Future_Growth.pdf?1671571696

Nice to see some photo's - but where are the financials.

I am ready for PAZ to stop being a construction company - that seems to be all we have head over the last year or so.

Quote from: Minimoke on Dec 21, 2022, 12:54 PMNice to see some photo's - but where are the financials.

I am ready for PAZ to stop being a construction company - that seems to be all we have head over the last year or so.

I agree it's completely bizarre that with the year almost over for them they don't provide some financial information with such an update. Draw your own conclusions but I believe if there was good news on that front to share, its highly likely they would have.   I think they've made a complete hash of the Aiora brand and Chemist Warehouse removing it from their stores and it not even being available online at all is pathetic.  The website was first class I thought so if they believe a new website will fix their issues with that brand, I think they are sadly mistaken.  Better bottling / labelling of product might help but it can take decades of serious investment in a new brand (e.g. Blackmores or Swisse) to build a successful supplements business.   I have moved on to another supplement for my eyes that's working very well and won't be back to buying Aiora supplements again in the future. 
What happened to their doggy treat's idea ?...another brand launch failure or did it never get off the ground in the first place?  Again, I am more than happy to shop existing reputable brand doggy treats for our new dog and once we find what he likes we will be sticking with it.

I thought the presentation and narrative about a possible site visit opportunity for shareholders pretty much read like a softening-up process for another capital raise. 

Not surprised there are no bids in the market to buy shares because what financial information are you basing any bid on ?

Quote from: Basil on Dec 21, 2022, 01:21 PMI agree it's completely bizarre that with the year almost over for them they don't provide some financial information with such an update. Draw your own conclusions but I believe if there was good news on that front to share, its highly likely they would have.

Last year at this time they at least said "While our sales and financial performance in the second half of the year is ahead of the first half, it has not seen us make up as much ground as we would have liked, largely a result of issues identified above

Quote from: Basil on Dec 21, 2022, 01:21 PMI think they've made a complete hash of the Aiora brand and Chemist Warehouse removing it from their stores and it not even being available online at all is pathetic. 

Airoa was (at my CW) a complete minnow. There was rows and rows  of "blackmores" and the like. Aiora had a couple of bottle's on a lower shelf.

Quote from: Basil on Dec 21, 2022, 01:21 PMThe website was first class I thought so if they believe a new website will fix their issues with that brand, I think they are sadly mistaken.  Better bottling / labelling of product might help but it can take decades of serious investment in a new brand (e.g. Blackmores or Swisse) to build a successful supplements business.   I have moved on to another supplement for my eyes that's working very well and won't be back to buying Aiora supplements again in the future.

A few years back at the AGM they mentioned some one famous (a musician / netballer??) who was the bees knees on marketing and a new brand template was being brought out. Its just kinda died along the way.
 

Quote from: Basil on Dec 21, 2022, 01:21 PMWhat happened to their doggy treat's idea ?...another brand launch failure or did it never get off the ground in the first place?  Again, I am more than happy to shop existing reputable brand doggy treats for our new dog and once we find what he likes we will be sticking with it.

At the last AGM they said it was too much of a distraction and they had loads of demand for current products.

Quote from: Basil on Dec 21, 2022, 01:21 PMI thought the presentation and narrative about a possible site visit opportunity for shareholders pretty much read like a softening-up process for another capital raise. 

Not surprised there are no bids in the market to buy shares because what financial information are you basing any bid on ?

They are currently trying to obtain a pile of cash (maybe circa $30m?) and last I heard hadn't been successful. If they are successful they won't need to capital raise. But if they aren't - obviously they will need to find other sources of cash. At the last AGM they indicated current shareholders were pretty well totally tapped out for cash and had no appetite to chuck in more.

I'm still content to hold.  I expect 2023 to be a year without distraction. Just focus 100% on getting product out the door for a healthy margin. Stop building. And don't bother with the distraction of a retail product - let someone else do that with the PAZ ingredients.

Essentially two (and soon three) factories now - they need to maximize out put form each.

I've been watching the build and will be up for a nosey around in the new year. Hopefully they have left-over retail product to hand out.

Wow that's interesting, $30m in this market, good luck with that.
Wasn't the last capital raise $14m? that they stuck it to small shareholders and bypassed them to give far more advantageous terms to the new incoming shareholder supposed to take them through to a high state of profitability?
To me it feels like they keep moving the goal posts from this idea to the next one, constantly thrashing about for something that gels.
All the time their financial disclosure is extremely poor but they expect to keep putting their hand out for more capital.   

P.S. Wanting $30m makes me wonder if there's been a breach of one of the terms under which the preference shares were issued, (was the auditor's insistence these be treated as debt an issue that was ever resolved?) and they want their $14m back plus penalties and interest.
So much going on here that minority shareholders are being kept in the dark about.  No wonder there's no on market bids.
I genuinely hope for shareholders sake they can navigate their way through this.

Just to be clear the $30m is simply my back of a matchbox calculation and dependent on a few variables. Could be closer to $20m

It is end of financial year in a few days time, so (pure speculation on my part) perhaps there is something in the wind that is being finalized right now. I'm not aware of anything that is but who knows. But there will be some reason for not mentioning the financials - and hopefully it isn't a negative one.

I think it pretty unlikely there has been any breach - Chair was very adamant that there was nothing likely to trigger action on that front.

They have also gone ahead with construction of Rolleston 2. So I'm presuming no tough financial constraints.

To help the company I am going to list the things here I would like to see before I would ever consider being a shareholder again.

1. Proper interim financial statements.  What they tell people at the half year mark is beyond pathetic.
I realise proper interim financial statements are not a requirement of being listed on the Unlisted market but if they ever want to migrate to a market that's more amenable to raising capital they must lift their game.

2. Get a forecast for every year into the market by the time of the interim report.  Forecasted Sales, gross margin and net profit / loss and abide by the continuous disclosure requirements of the NZX. - Yes, again, pretend you have higher disclosure requirements and abide by them as that's the only way you are going to endear yourself to new shareholders.

3. Transparency, transparency and more transparency.  What are your plans, why did they change, what worked, what didn't work and why etc etc.

4. Be honest with SWOT commentary to shareholders, what are your strengths, weaknesses, opportunities and threats.  How did you mitigate the threats and challenges and how are you planning to manage them in the year ahead.

Nine times out of ten in my experience when you get a presentation like that without any financial information that means they want more money from you but don't want to tell you how they have been trading because its bad news. 

Quote from: Basil on Dec 21, 2022, 05:54 PMTo help the company I am going to list the things here I would like to see before I would ever consider being a shareholder again.

1. Proper interim financial statements.  What they tell people at the half year mark is beyond pathetic.
I realise proper interim financial statements are not a requirement of being listed on the Unlisted market but if they ever want to migrate to a market that's more amenable to raising capital they must lift their game.

There is more than one way to raise capital.

I am sure that when they move to another market their accounts will be structured in such a way as to meet that markets reporting structure.

Quote from: Basil on Dec 21, 2022, 05:54 PM2. Get a forecast for every year into the market by the time of the interim report.  Forecasted Sales, gross margin and net profit / loss and abide by the continuous disclosure requirements of the NZX. - Yes, again, pretend you have higher disclosure requirements and abide by them as that's the only way you are going to endear yourself to new shareholders.

Forecasts are one tool. Directors doing what they say they will do is another. So hard to forecast in covid and Labour government times. Supply chain and labour supply restrictions are well known.

Quote from: Basil on Dec 21, 2022, 05:54 PM3. Transparency, transparency and more transparency.  What are your plans, why did they change, what worked, what didn't work and why etc etc.

We know what they do. Some stuff is commercially secret.

Quote from: Basil on Dec 21, 2022, 05:54 PM4. Be honest with SWOT commentary to shareholders, what are your strengths, weaknesses, opportunities and threats.  How did you mitigate the threats and challenges and how are you planning to manage them in the year ahead.

Like MPG and MFB do?

Quote from: Basil on Dec 21, 2022, 05:54 PMNine times out of ten in my experience when you get a presentation like that without any financial information that means they want more money from you but don't want to tell you how they have been trading because its bad news. 

I know 100% they are after more cash. They may not want to to report so close to year end for a variety of reasons.

I'm not expecting a flash year end result. Mainly due to covid, build and labour supply issues.

But I do expect these to be done for a strong 2023.

Sometimes I prefer to see bricks and mortar than pages and pages of ESG type financial statements.

Genuine question.  Its one thing to build all these new facilities but where on earth are they going to get the staff to run them ?

Last I recall hearing from them on the extent of the labour supply issue was quite some time back and it sounded like a very serious issue back then when they had a ~ 20% vacancy rate with existing manufacturing facilities and human resource costs were up 31% from memory.  Local advertising was drawing a nil enquiry response, but they thought they could bring in (from memory) work crews from the Islands ?  So they build all this extra new processing plant at great cost and how do they staff it ?

Honestly, I have been looking for a logical reentry point to reinvest some of the spoils of my previous investment foray with PAZ but at this point I have to agree with the market's assessment with no bids, this is presently (based on what extremely scant information is being made public) uninvestable.

The cold reality today after a horrendous 2022 is that unprofitable biotech companies are a dime a dozen on the NASDAQ and from what I am hearing on CNBC, chasing fresh capital for unprofitable tech and biotech companies is nothing but a head banging exercise.  Share price losses of 80-90% for unprofitable tech companies on the US market have been surprisingly common.  What's the real value here with their challenges is anyone's guess. Good luck guys, because I think you are going to need it.

 

Staff problems .....robots my dear basil

Yes mate I recall they talked about more automation but that sounds like even more expensive capex to me.
Top ten new robots in 2022.  Grillbot and maidbot sound interesting and could be very useful at BBQ time.  Let me know when I can pick one up from Mitre 10 for $999 😁
https://www.analyticsinsight.net/top-10-newest-robots-rocking-the-digital-sphere-in-2022/#:~:text=Top%20ten%20newest%20robots%20in%20the%20digital%20world,...%208%20Autonomous%20farm%20tractor%20...%20More%20items

Quote from: Basil on Jan 02, 2023, 10:38 AMGenuine question.  Its one thing to build all these new facilities but where on earth are they going to get the staff to run them ?

If they want staff they can get them through these guys:   www.accordant.co.nz
With Accordant being a member of the 8% gross yield club, I am surprised you are not already on board Basil.  Mind you, if you 'change your mind' getting out of AGL could be a problem.....

RB

If only life were so simple when you can't find staff, you engage an employment agency, and all your problems magically disappear.  Bet you all the retirement companies screaming out for hundreds of nurses and caregivers wish they had heard of those magicians. 

Quote from: Basil on Jan 03, 2023, 11:08 AMIf only life were so simple when you can't find staff, you engage an employment agency, and all your problems magically disappear.  Bet you all the retirement companies screaming out for hundreds of nurses and caregivers wish they had heard of those magicians. 

Actually - it is not so hard to get well trained nurses e.g. from the Philippines, from India, from the Ukraine or from various Russian satellite states all quite happy to work in NZ (and more of them than we ever could employ).

The only problem is our xenophobe government and our health workers union who fight every inch the registration of well trained overseas medical staff.

Based on my experience are e.g. German nurses (I am married to one :) ) better trained than NZ nurses, however they are not allowed to work here as nurse unless they do the full three year course again to get them dumbed down to NZ standards.

But hey - what luxury that we can create our own problems!

Getting this back on track let's have a wild guess as to earnings for FY22 just for fun.
In the last bit of financial information we received they said EBITDA was $1.8m for the half year to 30 June and the outlook was for higher EBITDA in the second half.  Not much to go on but hey, lets have a go.  Lets assume second half EBITDA was higher and guess it at $2.2m up 22% from the first half giving EBITDA for the year of $4.0m.
In 2021 depreciation and interest was $1.74m up a few hundred thousand from the year before due to more depreciation on more plant.  Lets be kind and assume its grown to only $2.0m in FY22 which gives earnings before tax of $2.0m up from last year's loss of ~ $800K.
$2.0m before tax gives after tax earnings of $1.44m and on 254.5m shares that's eps of only 0.566 cps.

Now we turn to what prospective PE to put on this, and I have been watching with huge fascination how the PE's of the tech and biotech companies have been collapsing on the NASDAQ. Great example, which is the talk of Wall St at present, is Tesla down a whopping 73% in the last year from huge heights and now trades on a forward PE in the low 20's !

Tesla grew sales a very handsome 40% last year and has outstanding opportunities for expansion with new factories and models coming.  As ridiculous as this sounds, let's give PAZ the same multiple as Tesla and I think that's being extremely generous given PAZ's very chequered track record and let's assume PAZ can grow eps by 100% in FY23 to 1.13 cps.   (How much it can grow eps in 2023 is frankly anyone's guess and will be heavily dependent on how successfully they tackle their chronic labour shortage problem).  Apply a PE of 23 to that and you get a wild guess at fair value of 23 x 1.13 cps = 26 cps.  That's pushing the boat out as far as is possible for this one I reckon.

I would bid at 26 cents if I really believed the above, (it would be nice to have at least one bid in the market), but I think given the apparent cash squeeze, chronic lack of liquidity, and patchy track record of earnings its somewhere south of there to account for the not insignificant risks involved.  Maybe 20 cents is fair value which sees it down about the same as Tesla in the last year ?

Above is just best guess prognostications based on extremely limited financial information.

 

Quote from: Basil on Jan 02, 2023, 10:38 AMGenuine question.  Its one thing to build all these new facilities but where on earth are they going to get the staff to run them ?

Last I recall hearing from them on the extent of the labour supply issue was quite some time back and it sounded like a very serious issue back then when they had a ~ 20% vacancy rate with existing manufacturing facilities and human resource costs were up 31% from memory.  Local advertising was drawing a nil enquiry response, but they thought they could bring in (from memory) work crews from the Islands ?  So they build all this extra new processing plant at great cost and how do they staff it ?

Honestly, I have been looking for a logical reentry point to reinvest some of the spoils of my previous investment foray with PAZ but at this point I have to agree with the market's assessment with no bids, this is presently (based on what extremely scant information is being made public) uninvestable.

The cold reality today after a horrendous 2022 is that unprofitable biotech companies are a dime a dozen on the NASDAQ and from what I am hearing on CNBC, chasing fresh capital for unprofitable tech and biotech companies is nothing but a head banging exercise.  Share price losses of 80-90% for unprofitable tech companies on the US market have been surprisingly common.  What's the real value here with their challenges is anyone's guess. Good luck guys, because I think you are going to need it.

 

As far as I can tell they will continue to get staff from the Islands. Its physical labour and Nz'ers are too soft to do hard work. Current pay rate has to be a minimum $27.76. So hopefully they are filling their boots before the rates go up to over $29.00 in February.

Their new factory is a stone throw from rolleston. And this is getting more and more "affordable" housing . It has a growing population of industrial workers as the whole of the western side of the railway line gets filled with new industrial businesses.

The new southern motorway also speeds up traffic out to Rolleston. Or conversely getting into town and through to their Ferrymead factory.

While labour supply is tight this ought not be an insurmountable problem.

I remain wanting to see them focussing 100% on manufacture - rather than diverting attention to factory builds. Year end has now closed so looks like we have to wait until April for news on financials. At which point I expect news also on their capital raising success.

I am struggling to understand the change in direction that PAZ has taken in recent years. They spent years establishing a profitable business based on NZ animal derived specialist products like collagen and bone products etc. Ok, so they were minnows in a world market sense but they had a strong moat in that NZ is animal disease free - no F&M, no BSE, no rabies, etc. etc. .. and they already have regulatory approval, which takes years to get, for these intermediary products that the worlds dietary supplement makers pay handsomely for because they are uncontaminated and safe for use in humans.

I initially thought the new manufacturing facilities would be used to gear up and expand on the market advantage they already had, but no, it seems the major new direction is for plant based supplements, and some expansion for the marine mussel based products.

There is no moat to be had with plant based supplements as countries like China and Chile can swamp a market with cheaper derived products of equal quality.

PAZ appear to have been wooed into a bigger is better mode by their new major investor who will profit from selling the end products but PAZ will have invested a heap of money into major expansion that will be way less profitable for PAZ.

The lack of transparency does not help and their claim of commercial sensitivity around future products doesn't wash either. That's a fudge excuse from a company that appears to think it no longer needs small investors. Have I missed something with PAZ ..

Interesting article from mid last year on how funding for the biotech sector has dried up like the Sahara Desert. https://www.ft.com/content/09c3a606-d195-4f41-b69b-83a59c9e4806    With the tech wreck gaining momentum in 2022 towards the latter half of the year I would think the situation for new funding is now quite considerably more challenging.
Interestingly the sector as a whole is down 70% from the peak in early 2021 about when the new major shareholder inked their deal for support at 40 cents.  (40 cents less 70% = 12 cents so maybe as I eluded too above my 26 cents is far too optimistic).

That ~ $14m raised was supposed to have carried them through to a much higher level of profitability but sadly, that does not appear to have happened and now they seem to want a lot more money.  It will be very interesting to see if there is any appetite from any new cornerstone shareholder or if they can float this on any market.

Yes PAZ did very well with milling animal products.Still do.
Their modest freeze driers could not keep up with demand,so a huge one was added.That could not keep up with demand,so another was added.And yet another has been added at Port Hills site.
Extraction plant was built to extract Greenshell mussel oil and blackcurrants.Demand was so great for mussel oil and Krill oil they had to build another.
From what I hear extraction is their most profitable plant.
They have reached capacity at Port Hills Road site.
Most new secret new products are driven by customers asking can you do this. PAZ is a customer driven business.
So today we have Port Hills site complete,Rolleston one 90%,and a start has been made on Rolleston two.   
Interesting noting Rolleston One has a cool store section
Should PAZ need to raise further capital I will support it,as I know they have/are spending their capital productively..

ps  Cibus  Fund..I do not think they are a PAZ customer,just an investor. in some very exciting companies.
The Cibus Fund, advised by ADM Capital Europe, invests growth capital into sustainably run food and agriculture companies across the globe.
https://www.cibusfund.com/portfolio/?fund-type=private-equity-portfolio

While the sector maybe cooling, I think you can't tar all companies with the one brush. Alot of the "biotech" sector is built on hype and bullsh!t IMO - and PAZ doesn't fit into this category.

From the outside it seems much of the focus has been on plant/capacity expansion - which has no doubt taken longer, cost more and proved more difficult than expected due to Covid.

I'm not sure but think at least one of the Rolleston facilities might be focused on petfood? (Lorraina might correct me). This will be toll-processing presumably, so operating for other customers. Petfood sector remains hot at the moment. But would be a processing margin, not a brand owners margin - where things get more interesting. Albeit less risk/reward and expect underpins factory operations while they develop their own channels.

My main concern is executing on sales/brand. This is where the real margin is. We've seen AiOra go into hiatus (??) and nothing happen with Department of Treats. When Ziwi gets sold for reportedly $1.5B, and companies like Go Healthy getting sold at lofty multiples, their value is in their brand, not physical facilities.

PAZ have done well with their factory work and expansion and proven their technical expertise, but in my opinion just need to prove their sales and marketing ability.

https://www.facebook.com/AiOraNZ?_ga=2.124611978.1446093616.1673325375-835067363.1673325375
No comments on the Aiora facebook page since 1 Sept 2021.
Marketing 101 - Keep in touch with your customers and keep making your products available for sale.

Quote from: Basil on Jan 10, 2023, 06:11 PMhttps://www.facebook.com/AiOraNZ?_ga=2.124611978.1446093616.1673325375-835067363.1673325375
No comments on the Aiora facebook page since 1 Sept 2021.
Marketing 101 - Keep in touch with your customers and keep making your products available for sale.

Product out of stock.

Nothing worse that having social media not updated - even just do it very occasionally to show that you are still alive.....

I'm beginning to wonder if Aiora was simply testing proof of concept. Could they manufacture tablets. Could they package them. Could they get them onto shelves.

The answer now is obviously "yes"

Could they make money at a decent margin - I suspect not.

Quote from: Minimoke on Jan 11, 2023, 12:12 PMI'm beginning to wonder if Aiora was simply testing proof of concept. Could they manufacture tablets. Could they package them. Could they get them onto shelves.

The answer now is obviously "yes"

Could they make money at a decent margin - I suspect not.

Could they label the supplement bottles?  Yes and No.  There were often crinkles in the labels wrapped around the thin and quite flimsy plastic bottles.  Overall, the packaging and presentation came across as "second rate" compared to other supplements I use from Swisse and third rate compared to the packaging and presentation of Blackmores Executive B supplements, (high quality glass bottle with excellent labelling), I use.  I am sorry but marketing 101 - presentation matters.  I also thought Aiora supplements were very expensive for what they are / were. 
If they want to make it in the supplements game they are going to have to significantly overhaul the presentation of their products and invest heavily over a sustained period of time in marketing.  Have they got deep enough pockets for that? 

An AiOra testimonial.
These things really work !
I felt super yesterday afternoon...was almost bouncing off the walls and couldn't get my mind to stop thinking until just after midnight.
So effective its probably best to take them in the morning with breakfast so you can get to sleep at your normal bedtime.
 

Doesn't matter if they work or whether it's just the feel-good placebo effect if you can't buy them.
Still out of stock with everything.  You'd be forgiven for thinking these guys want to destroy any brand value they have left in Aiora.

Quote from: lorraina on Jan 20, 2023, 06:23 PMAn AiOra testimonial.
These things really work !
I felt super yesterday afternoon...was almost bouncing off the walls and couldn't get my mind to stop thinking until just after midnight.
So effective its probably best to take them in the morning with breakfast so you can get to sleep at your normal bedtime.
 
Looks as though you will be able to bounce off the walls again Basil.
https://aioranz.com/collections/all

Sorry, but like some others due to the long absence from market I have found another supplement for my eye strain and am happy with it.

I'm not sure that will impact their revenue line

I'm not convinced selling finished product is a profitable activity. PAZ dont sperate revenue / expenses associated with Aiora so we have no way of knowing. I havent seen anything to convince me otherwise that Aiora is just a folly - somenting to give a crack. Or as they say  around modern board room tables "run it up the flag pole and see if it floats"

I'd sooner, given the hurdles faced over the past few years, they had 100% focus on maximizing production out of capital/plant. Ie ingredients.

That's said, I do like their new branding. Heres the one for Eye Health

I agree with you.
I would first of all like to see the new factories up and running at full speed.
Then get themselves into a really strong financial position to really market AiOra into their target markets in Asia.
That said, the new labels and AiOra's updated web site look great.
With AiOra product 04 05 subscription would work for me.
One bottle every two months would cover the two a day I use.
20% saving .
So currently paying $29.90 for 60 capsules or 49.83 cents each.
Buying on subscription :120 capsules $36.50 less 20%=$29.20 or 24.33 cents each.
Crickey that's under half price..!!.

Quote from: lorraina on Feb 17, 2023, 11:13 AMI agree with you.
I would first of all like to see the new factories up and running at full speed.
Then get themselves into a really strong financial position to really market AiOra into their target markets in Asia.
That said, the new labels and AiOra's updated web site look great.
With AiOra product 04 05 subscription would work for me.
One bottle every two months would cover the two a day I use.
20% saving .
So currently paying $29.90 for 60 capsules or 49.83 cents each.
Buying on subscription :120 capsules $36.50 less 20%=$29.20 or 24.33 cents each.
Crickey that's under half price..!!.

I'm hoping for a Shareholder pack at this years AGM. 1 bottle of each.

Quote from: lorraina on Feb 17, 2023, 11:13 AMcurrently paying $29.90 for 60 capsules or 49.83 cents each.

Quote from: lorraina on Feb 17, 2023, 11:13 AMI agree with you.
I would first of all like to see the new factories up and running at full speed.
Then get themselves into a really strong financial position to really market AiOra into their target markets in Asia.
That said, the new labels and AiOra's updated web site look great.
With AiOra product 04 05 subscription would work for me.
One bottle every two months would cover the two a day I use.
20% saving .
So currently paying $29.90 for 60 capsules or 49.83 cents each.
Buying on subscription :120 capsules $36.50 less 20%=$29.20 or 24.33 cents each.
Crickey that's under half price..!!.

I would see it that they have likely learnt a few lessons from Round 1 of AiOra, when alot of company focus has been elsewhere, and then now are giving AiOra a rebirth. While Asia might be the main target longer term (??) - in China for example, they don't like "Made for China" brands, and it has to be a respected & well established brand in their own country.

Personally I would agree with the factories/ingredients - and that is clearly going to be the core of their business, given the relative size of their production and infancy of this product - AiOra will only ever be a small portion of their production. With all due respect to Pharamzen, this has to be recognised at this stage at least as a bit of a side project, capable of delivering some cream - but important in the longer term.

I've mentioned in the past about GoHealthy and the multiple of what that gets sold at through Private Equity, and the multiples of what Ziwi got sold at. Big investors don't get so excited by factories, but they get excited by brands.....

Anyway, as an example, Lorraina's 60 pack of 750mg 04+05 capsules is about 45g of powder. Even at the discounted price it means they are selling the powder for effectively $655/Kg - they take the ingredient and manufacturers margins and in this case the retail margin. So while it might be cheap, it is still bloody good for AiOra. The closer to the consumer, the bigger the margins.....

Think of the beef liver capsules - what do you pay for beef liver down at the butchers (relatively not much - if they even have it). 120 capsules, 500mg at $31.60 on subscription = $526/Kg for beef liver powder.

There is some tasty margins in there......although you have to sell alot of capsules.....

Undoubtedly it is a difficult road building a brand, but hoping that they have some success, even on a smaller scale. Best of luck to Pharmazen on it.

Quote from: Sideshow Bob on Feb 17, 2023, 01:18 PMI would see it that they have likely learnt a few lessons from Round 1 of AiOra, when alot of company focus has been elsewhere, and then now are giving AiOra a rebirth. While Asia might be the main target longer term (??) - in China for example, they don't like "Made for China" brands, and it has to be a respected & well established brand in their own country.

Personally I would agree with the factories/ingredients - and that is clearly going to be the core of their business, given the relative size of their production and infancy of this product - AiOra will only ever be a small portion of their production. With all due respect to Pharamzen, this has to be recognised at this stage at least as a bit of a side project, capable of delivering some cream - but important in the longer term.

I've mentioned in the past about GoHealthy and the multiple of what that gets sold at through Private Equity, and the multiples of what Ziwi got sold at. Big investors don't get so excited by factories, but they get excited by brands.....

Anyway, as an example, Lorraina's 60 pack of 750mg 04+05 capsules is about 45g of powder. Even at the discounted price it means they are selling the powder for effectively $655/Kg - they take the ingredient and manufacturers margins and in this case the retail margin. So while it might be cheap, it is still bloody good for AiOra. The closer to the consumer, the bigger the margins.....

Think of the beef liver capsules - what do you pay for beef liver down at the butchers (relatively not much - if they even have it). 120 capsules, 500mg at $31.60 on subscription = $526/Kg for beef liver powder.

There is some tasty margins in there......although you have to sell alot of capsules.....

Undoubtedly it is a difficult road building a brand, but hoping that they have some success, even on a smaller scale. Best of luck to Pharmazen on it.

So, no reason not to get a full gift pack at the next AGM eh!

Director Greg Shepperd resigns today with immediate effect. Nothing much else in the release about it other than the usual "wish him well" statement.

Makes me a bit nervous. Year end accounts will be know to Directors by now. Why the rush out the door?

I have no idea, but I'm willing to accept "personal reasons" and trust that there is a legitimate reason for his resignation. Very easy for us to sit here questioning it, but maybe consider the fact that it could be a serious health issue - for him, or for someone close to him. He is entitled to his privacy and I think "personal reasons" is an acceptable way to protect that. We are all adults - we know what kinds of scenarios "personal reasons" generally encompasses. 

Quote from: Minimoke on Mar 01, 2023, 01:21 PMDirector Greg Shepperd resigns today with immediate effect. Nothing much else in the release about it other than the usual "wish him well" statement.

Makes me a bit nervous. Year end accounts will be know to Directors by now. Why the rush out the door?

4 April 2016 PAZ declare annual report
11 April 2107 PAZ released annual report
26 March 2018 PAZ Annual report published
8 April 2109 PAZ announce record profit
23 March 2020 PAZ announce record result
1 April 2021 PAZ announce strong 2020 result
8 April 2022 PAZ release unaudited result
14 April 2023 crickets

Keep a keen eye when the financials are eventually released as to whether they have been audited or not and whether it's a qualified audit report or not.

If they are not audited it will be the first time since I started buying in 2009 ..
Auditor is Deloitte Christchurch.

Quote from: Minimoke on Apr 14, 2023, 08:35 AM4 April 2016 PAZ declare annual report
11 April 2107 PAZ released annual report
26 March 2018 PAZ Annual report published
8 April 2109 PAZ announce record profit
23 March 2020 PAZ announce record result
1 April 2021 PAZ announce strong 2020 result
8 April 2022 PAZ release unaudited result
14 April 2023 crickets

21 April 2023 crickets
https://companies-register.companiesoffice.govt.nz/help-centre/financial-reporting/who-needs-to-submit-financial-statements/
Up to 5 months to file ! They are legally allowed to keep shareholders in the dark until 31 May 2023  :o 

Quote from: Minimoke on Apr 14, 2023, 08:35 AM4 April 2016 PAZ declare annual report
11 April 2107 PAZ released annual report
26 March 2018 PAZ Annual report published
8 April 2109 PAZ announce record profit
23 March 2020 PAZ announce record result
1 April 2021 PAZ announce strong 2020 result
8 April 2022 PAZ release unaudited result
14 April 2023 crickets

Nothing this morning. Looks like it might be May..... :o

Quote from: Sideshow Bob on Apr 28, 2023, 08:47 AMNothing this morning. Looks like it might be May..... :o

More important and urgent things to do than produce a Report

Quote from: winner (n) on Apr 28, 2023, 08:49 AMMore important and urgent things to do than produce a Report

Yeap, I am starting to think they may have some very serious issues to try and deal with because how else do you possibly explain the untoward delay ?
Recent Director resignation makes the situation look potentially even murkier....

Quote from: Basil on Apr 28, 2023, 04:19 PMYeap, I am starting to think they may have some very serious issues to try and deal with because how else do you possibly explain the untoward delay ?
Recent Director resignation makes the situation look potentially even murkier....

I'm starting to think, in the vacuum ,that is the absence of information, that your post below about auditors could well be correct.

PAZ came out in December with its non-announcement of the future. Basically window dressing.

So what can I suspect. The Rolleston build has run out of money. They proceeded with starting Rolleston II in haste without Rolleston I being complete. This means there has been a whole pile of capital applied and I reckon there is some dispute on how this should be accounted for.

Which leads to potential cash flow problems. By all accounts Christchurch factory seems to be going Ok - but who would know for sure. But the day to day costs of Rolleston (including depreciation) must be starting to mount up with no supporting cash revenue.

So, I reckon we are looking at another loss situation. Probably to the extent another capital raise is required. I do know they have tried to get their hands on a pile of cash, but as far as I can tell this plan didn't pan out. Their failure to keep the market adequately informed is also not a good look when courting other potential backers - and CIBUS may not want their investments diluted.

In the absence of any market information I can only be left to ponder a bad annual report. Just how bad I don't know. I am now drafting my question for the Annual Meeting.

Sadly a lot of tech and biotech companies, (especially in the US) have been caught red faced by trying to grow too fast assuming they can get their hands on more debt or capital if they need it. I hope it works out for you guys.

Quote from: Minimoke on May 03, 2023, 08:56 AM".....................
In the absence of any market information I can only be left to ponder a bad annual report. Just how bad I don't know. I am now drafting my question for the Annual Meeting.

Hey mini ....suppose they need to have printed an Annual Report before they have an Annual Meeting

You might be having to wait longer than you think before getting to ask that question you drafting

Don't fret ..financial year only ended 4 months ago

Quote from: winner (n) on May 03, 2023, 11:21 AMHey mini ....suppose they need to have printed an Annual Report before they have an Annual Meeting

You might be having to wait longer than you think before getting to ask that question you drafting

Don't fret ..financial year only ended 4 months ago

Last year they had the AGM on 27 May - that's not long to get the reports printed, ink dried and a large selection of complimentary Airoa bottles  for attendees. I'm expecting one bottle of each to try.

My limited understanding of the late reporting under the Companies act is that if 5 months after balance date they still haven;t reported, at some stage after that they might get a slap on the back of their hand with a wet bus ticket.  Sometime even later than that they might be placed in a trading halt which is basically ineffectual because there ostensibly has been a buyers strike, (of any real depth), for several months already.
Gotta 'love" the lax rules around unlisted companies eh.

Quote from: Basil on May 03, 2023, 01:26 PMMy limited understanding of the late reporting under the Companies act is that if 5 months after balance date they still haven;t reported, at some stage after that they might get a slap on the back of their hand with a wet bus ticket.  Sometime even later than that they might be placed in a trading halt which is basically ineffectual because there ostensibly has been a buyers strike, (of any real depth), for several months already.
Gotta 'love" the lax rules around unlisted companies eh.

The lax riules are part of the risk with listing and trading on the USX. But behavior like this is not conducive to a main board listing.

Quote from: Minimoke on May 03, 2023, 01:50 PMThe lax riules are part of the risk with listing and trading on the USX. But behavior like this is not conducive to a main board listing.

Yes, it is (one of) the frustrating parts about the USX-listed companies.

Some of them are large/longstanding entities, and while some will never list on the NZX, they should at least aspire to best practice. However in the case of PAZ, I understood longer term that NZX listing was a goal??

Hopefully we get an annual result sometime soon, and that it puts our minds to rest......

Quote from: Sideshow Bob on May 03, 2023, 03:06 PMYes, it is (one of) the frustrating parts about the USX-listed companies.

Some of them are large/longstanding entities, and while some will never list on the NZX, they should at least aspire to best practice. However in the case of PAZ, I understood longer term that NZX listing was a goal??

Hopefully we get an annual result sometime soon, and that it puts our minds to rest......

Main board listing has been stated as a goal. But NZX wasn't specified.

Any announcement yet?

Quote from: winner (n) on May 04, 2023, 01:22 PMAny announcement yet?

Crickets

Quote from: Minimoke on May 04, 2023, 04:23 PMCrickets

Just seem Fourth of May seemed an ideal day

Quote from: winner (n) on May 04, 2023, 04:25 PMJust seem Fourth of May seemed an ideal day

I wonder if they need a hand

The money you received goes in this column. The money you spent goes in this column, chuck in a bit of depreciation and we are nearly there.

If on the other hand we need a bit of fudging of the numbers, that will take a bit longer

Annual report has been held up as PAZ have a new auditor.
Looks like next week.
AGM on 26th 12.30 pm.Te Pae.

Quote from: lorraina on May 05, 2023, 11:02 AMAnnual report has been held up as PAZ have a new auditor.
Looks like next week.
AGM on 26th 12.30 pm.Te Pae.

So what happened with the previous auditor who were Delloites?. Seems a bit odd to be changing Auditors at this stage of the proceedings.

Think companies change auditors every few years.PAZ  had the same auditor since I first bought in in 2009.

Quote from: lorraina on May 05, 2023, 11:02 AMAnnual report has been held up as PAZ have a new auditor.
Looks like next week.
AGM on 26th 12.30 pm.Te Pae.

The plot thickens.  We have a Director resignation and now possibly, reading between the lines, an Auditor resignation ? 
If you look at the timing from previous years information releases there's no reason if the Auditor change had occurred in the normal seamless and timely way, that would have held things up for a month or more.

Here's the thing, let's look at the timing of information releases in the last 3 years in more detail.
Last 2 years they released statements conspicuously headlined as unaudited on 1 April 2021 and 8 April 2022 that were subsequently audited by the time the annual report was released.  The year before that they released good news on 23 March 2020, again unaudited, again audited by the time the annual report was released.  Notice how when there's good news, they are very quick to get it out to investors.

So why would they not release this years result in the normal way with timing and the new auditor do their work in the usual way?

In my opinion, If the auditor change had of been handled in the normal smooth way that would not have held things up. 

Reading between the lines I would think it's quite plausible, (but acknowledge speculative to say so), what we have here may be an Auditor resignation, possibly some way through the annual proceedings, perhaps based on concerns they have that are not acceptably explained, and the company scrambling to find a replacement.

If it was just "Garden" variety bad news and there was no possible dispute as to interpretation of financial information or going concern issues, PAZ directors would have got it over with already and announced the result in early April to be subsequently signed off by the Auditors later that month and the annual report prepared.

Something doesn't feel right here...    For you guys sake, I hope I am wrong and there's nothing untoward to be announced when they finally get around to announcing it.

I will wait for the annual report before commenting.

Quote from: Basil on May 05, 2023, 02:01 PMThe plot thickens.  We have a Director resignation and now possibly, reading between the lines, an Auditor resignation ? 
If you look at the timing from previous years information releases there's no reason if the Auditor change had occurred in the normal seamless and timely way, that would have held things up for a month or more.

Here's the thing, let's look at the timing of information releases in the last 3 years in more detail.
Last 2 years they released statements conspicuously headlined as unaudited on 1 April 2021 and 8 April 2022 that were subsequently audited by the time the annual report was released.  The year before that they released good news on 23 March 2020, again unaudited, again audited by the time the annual report was released.  Notice how when there's good news, they are very quick to get it out to investors.

So why would they not release this years result in the normal way with timing and the new auditor do their work in the usual way?

In my opinion, If the auditor change had of been handled in the normal smooth way that would not have held things up. 

Reading between the lines I would think it's quite plausible, (but acknowledge speculative to say so), what we have here may be an Auditor resignation, possibly some way through the annual proceedings, perhaps based on concerns they have that are not acceptably explained, and the company scrambling to find a replacement.

If it was just "Garden" variety bad news and there was no possible dispute as to interpretation of financial information or going concern issues, PAZ directors would have got it over with already and announced the result in early April to be subsequently signed off by the Auditors later that month and the annual report prepared.

Something doesn't feel right here...    For you guys sake, I hope I am wrong and there's nothing untoward to be announced when they finally get around to announcing it.

I'm girding my loins for bad news. Its not passing my sniff test of feeling right.

Quote from: Minimoke on May 05, 2023, 05:39 PMI'm girding my loins for bad news. Its not passing my sniff test of feeling right.

Hope the punter who sold 85k shares into $0.38 made some dosh. At almost 50% off its highs, the folks who bought into the ramp and still holding won't be feeling too happy, been a tough 12 months, especially if PAZ is going to report 'trouble at mill'.

Quote from: Buzz on May 05, 2023, 05:45 PMHope the punter who sold 85k shares into $0.38 made some dosh. At almost 50% off its highs, the folks who bought into the ramp and still holding won't be feeling too happy, been a tough 12 months, especially if PAZ is going to report 'trouble at mill'.

Hit a high of $1 in mid 2021.  There was only one solitary poster who called it overpriced at that level.

2021 annual report page 3, got to be one of the worst cases of chicanery on display.

paz.png

Speaking of EBITDA representations...As an accountant the thing that really sticks in my claw is with the unlisted platform there is no requirement to publish proper interim financial statements.  Releasing what amounts to little more than a press release outlining the EBITDA for the half year is not sufficient and left investors wondering whether they were trading at a loss at that juncture.  It appears from some posts in the other place, some naive investors thought EBITDA was profit and do not understand that EBITDA is an acronym for Earnings before interest, tax, depreciation and amortization.

It's been 13 months to the day today since investors have had any decent financial information on this company which is something that I think is abhorrent.  If the Directors are looking to build engagement with investors in the hope of them putting their hand in their pockets for a capital raise, they are doing a superb job of shooting themselves in the foot.

I suppose as long as this chart keeps showing higher sales year on year real profits will start to look pretty good.

Believe the story ...keep the faith

2902FBC8-7A09-4833-B8B8-16CCBB5D8D13.jpeg

How do you put a value on PAZ seeing it's market cap is about $100m

How about compare it to another company with lots of stainless steel making stuff

If trading on same Price/Book Value ratio as Synlait PAZ shares would be about 4 cents (Based on F21 book value for PAZ)

Quote from: winner (n) on May 08, 2023, 04:04 PMHow do you put a value on PAZ seeing it's market cap is about $100m

How about compare it to another company with lots of stainless steel making stuff

If trading on same Price/Book Value ratio as Synlait PAZ shares would be about 4 cents (Based on F21 book value for PAZ)

I know there is an element of tongue-in-cheek there Winner comparing PAZ to Synlait, but if markets are forward looking, then it is on future expectations of cashflows and profits. We don't have to go too far on the NZX to see companies valued as such and not in touch with fundamentals - ie PEB, 12.1c NTA per share (however good the T is), and a market cap of $360m but making a loss for 20+ years. Huge potential if it can crack it.

PAZ has actually traded this morning for the 1st time in over a month.....5,000 shares went through at 40c.....$2k trade that added $2m to the market cap. Is it worth $2m more than yesterday?? No. USX is so illiduid it doesn't really function as a proper 'market'. Alot of shareholders would be long-terms that bought in at much lower levels and happy to sit on book gains and go along for the ride. 

Personally I think PAZ has some great opportunities, and longer term should do well. Their expansion programme through Covid has taken alot of focus - hopefully they should near the end of this. But to me there certainly are some red flags - initial failure of AiOra, director resignation, length of time for the result, lack of decent announcements or updates and also some key staff turnover of late.

My biggest question is getting near the end of their capital works is can they execute? They have a whole lot more capacity and capability, but can they generate sales, margins, profits and reasonably quickly?

Very interested to see the FY result and accompanying commentary when it comes out.   

Quote from: Sideshow Bob on May 09, 2023, 11:00 AMI know there is an element of tongue-in-cheek there Winner comparing PAZ to Synlait, but if markets are forward looking, then it is on future expectations of cashflows and profits. We don't have to go too far on the NZX to see companies valued as such and not in touch with fundamentals - ie PEB, 12.1c NTA per share (however good the T is), and a market cap of $360m but making a loss for 20+ years. Huge potential if it can crack it.

PAZ has actually traded this morning for the 1st time in over a month.....5,000 shares went through at 40c.....$2k trade that added $2m to the market cap. Is it worth $2m more than yesterday?? No. USX is so illiduid it doesn't really function as a proper 'market'. Alot of shareholders would be long-terms that bought in at much lower levels and happy to sit on book gains and go along for the ride. 

Personally I think PAZ has some great opportunities, and longer term should do well. Their expansion programme through Covid has taken alot of focus - hopefully they should near the end of this. But to me there certainly are some red flags - initial failure of AiOra, director resignation, length of time for the result, lack of decent announcements or updates and also some key staff turnover of late.

My biggest question is getting near the end of their capital works is can they execute? They have a whole lot more capacity and capability, but can they generate sales, margins, profits and reasonably quickly?

Very interested to see the FY result and accompanying commentary when it comes out.   

Maybe they are similar to Synlait and about to announce a drop in orders from a key customer.

Quote from: Minimoke on May 09, 2023, 11:15 AMMaybe they are similar to Synlait and about to announce a drop in orders from a key customer.

No idea how diverse or concentrated their customer base is.

I think with alot of the new freeze-dry facilities, it is more toll-processing than their own production??

I see they have traded again!!

Another 2,000 shares at $0.43. $2,150.

Market cap up over 10% today!! ;)

Quote from: Sideshow Bob on May 09, 2023, 12:25 PMI see they have traded again!!

Another 2,000 shares at $0.43. $2,150.

Market cap up over 10% today!! ;)

Good news must be on way

Quote from: winner (n) on May 09, 2023, 12:28 PMGood news must be on way

Clearly - time for the momentum traders to go in? KW ???

Quote from: lorraina on May 05, 2023, 11:02 AMAnnual report has been held up as PAZ have a new auditor.
Looks like next week.
AGM on 26th 12.30 pm.Te Pae.

Well, its now 9:00 Friday 12 May and still no sign of the Annual Report.

This is now becoming very concerning. How difficult is it to present a set of accounts for a company with approx $30m in sales.

Our last meaingful update was back in August where they said "PharmaZen is well positioned to continue the recovery achieved to date and given our increased capacity and continuing strong demand for our products, we are forecasting notably higher sales and a higher underlying EBITDA than the first half" which were $12.8m

The revenue / expenditure parts of the report have to be straight forward. Which leaves me thinking they must be having problems with how they report their capital / eqity/ debt. Particular in relation to the Cibus cash injection. Is it reasonable for me to suspect they tried something dodgy that the prior auditors weren't happy with. And the new auditors remain unhappy with the way they want to present their accounts.

PAZ are rapidly losing credibility. And I note they did well until Cibbus started to inject themsleves in the business.

They better have nice cakes and lots of product to trial at the AGM to settle me down!

Feel for you mate.  What I can't understand is every single year they release the financial results around the end of March or very early April, which are obviously in the process of being audited as the audit report is included in the annual report released later in April.  The $64,000 question is why not this year ?

What I think is a real worry here is that we have a director resign and probably the Auditors also have resigned.  To suggest this was a smooth normal transition between the previous and incoming auditors looks naïve and is drawing a VERY long bow as a smooth transition in the ordinary course of business between two professional firms is very unlikely to have held up the audit process and certainly in no way whatsoever stops PAZ from issuing there usual information release around 31 March in a timely way.   Heck if its not done today its mid-May on Monday!

What many will not know is that when there is a changing of the guard with auditing professionals there is usually a letter and often briefing or working papers exchanged outlining any matters of concern as a professional courtesy from the outgoing to the incoming auditing firm.   In a nutshell a company cannot run away from any potentially serious problems simply by changing auditors.

As I have said previously, if this was just common garden variety bad news they would have swallowed their medicine, manned-up and got it over with already. 

Annual Report 2021 says the Board formed a Finance and Audit Sub Committee during the year

Obviously didn't have one before that ....just left such matters to the whole Board

Annual report should be out next week.
The AGM has been moved to;
AGM date Friday 19th June

Quote from: lorraina on May 12, 2023, 12:36 PMAnnual report should be out next week.
The AGM has been moved to;
AGM date Friday 19th June

so another three week delay. Just as well I hadnt booked flights. Something fishy is going on. It is impossible for their accounts to be that complex. Unless there is some jiggery pokery going on.

Quote from: Minimoke on Mar 01, 2023, 01:21 PMDirector Greg Shepperd resigns today with immediate effect. Nothing much else in the release about it other than the usual "wish him well" statement. Makes me a bit nervous. Year end accounts will be know to Directors by now. Why the rush out the door?

I agree the overall substantive financial situation would have been known to Greg Sheppard by the end of February.  Minority shareholders have to wait more than two and a half months to find out the reason he resigned.  Hmmm...how is that fair and reasonable to them?  How does such behavior engender trust or respect ?  Earlier today you said the below and I couldn't agree more

Quote...PAZ are rapidly losing credibility...

Wonder if Shepherd wasn't on the Audit Sub-Committee ...that might have held things up a bit

 AGM.Monday 19th June.
Sorry I put Friday..

https://usx.co.nz/uploads/paperclip/documents/2826/original/FY22_PharmaZen_AR_FINAL_.pdf?1684113808

Quote from: lorraina on May 15, 2023, 01:15 PMhttps://usx.co.nz/uploads/paperclip/documents/2826/original/FY22_PharmaZen_AR_FINAL.pdf?1684113087

Lots of pretty pictures ...and numbers not too shabby

Onwards and upwards from here

Numbers made better by;
December also saw us negotiating an
agreement for a sale and lease back of
our first building at Tawhiri for $9 million,
releasing funds to commence Tawhiri
2 and further investment in plant and
equipment. These negotiations were
completed after year end.

So we can perhaps see where some of the delay comes from

"While covered in the financial statements, I will draw attention to the impact of a change in interpretation of year end revenue recognition as approved by our new Auditors, Grant Thornton. In previous years revenue recognition was based around when our product was ready for shipment and had been QC cleared.

After further consideration and input from our auditors, revenue is now recognised at the time goods are shipped which has required a restatement in prior year results. This has meant that some goods sold and paid for but still on-site were not included as sales for the year."

This interpretation is how I would have thought it was done in the first place. So not sure what the prior auditors were up to.

And I guess that see the new year with a $694k in sales head start.

I see they have also announced their capital raise which I've discussed in prior posts below.

Quote from: lorraina on May 15, 2023, 01:35 PMNumbers made better by;
December also saw us negotiating an
agreement for a sale and lease back of
our first building at Tawhiri for $9 million,
releasing funds to commence Tawhiri
2 and further investment in plant and
equipment. These negotiations were
completed after year end.

I see they have transferred value from fixed asset to current asset. Good thing is they will have more cash in hand to continue with Rolleston 2 build.

Quote from: winner (n) on May 15, 2023, 01:32 PMLots of pretty pictures ...and numbers not too shabby

Onwards and upwards from here

You had better buy some over the next year while they are still cheap as chips then, your 4c value when compared to SML is not going to happen.

Initial thoughts on numbers
Sales up $3.4m - good
Cost of sales up $1.86m - inevitable
Gross profit up $1.54 good

Admin expenses up $ $274 k - not good
Marketing down $230 k. Not good (but may not need it.)

Net financial position $16.6M worse off - now at $48.35m. So what has changed. Cash on hand significantly reduced ($1.55m)- no surprise. Has to be construction cost to pay for . Bank overdraft increased $4.2m. Again I presume this goes to construction costs. Accounts payable up 1.7m - this is a bit of a concern. And secured borrowings up $6.7m

Seems they only netted $8.5m from sale of Rolleston 1.

Total equity has increas$2m between 2020 and 2022. So that is a lot of debt paddling to increase sales by a gross profit $1.54m


All in all I am reasonably happy with this report. I would much prefer they now focused on maximizing sales out of Christchurch and Rolleston 1 before any more money is spent on Rolleston 2. I'd like to see that debt position reduced since I don't want another Cibbus type capital raise to happen again to further dilute my shareholding.

Given the VERY LONG delay in the report, which shoudlnt have been if it was just a matter of when to account for finished goods, (where are the prior auditors on this!!) we should have pretty much a full half year update by the time we get to enjoy all the Airoa samples and tasty scones at the AGM

(and wasn't the the report strangely silent on Aiora? Not mentioned once)

The Financial overview summed things up pretty well for me, extremely strong demand outstripping supply and the issues around that, once those issues are sorted and supply can start to meet demand, then boom.

Genuinely pleased for shareholders that nothing untoward has happened.
2022 massively challenging for a lot of business's including PAZ.
As Minimoke has noted, their balance sheet is quite "stretched".
Breezy quite correct that once they get their ducks in a row the level of quacking will be much louder.

For mine, significant risks remain in terms of execution and staffing, and they are not in a robust financial position.  I feel many years of growth are already baked into the current share price with a FY22 PE of 119. It may seem cheap at 43 cents but tech and biotech companies halving their share price from levels of irrational exuberance they once hit is the norm, rather than unusual overseas.

Notice of Meeting;
https://usx.co.nz/uploads/paperclip/documents/2827/original/Notice_of_Shareholder_Meeting_2023_with_Bio's_attached.pdf?1684116433

65% down from its high now with Rats and Mice seller/s giving in, expect this to continue over the next few months but fortunately no one with any substantial sized holding can do much even if they wanted to, thats what long term investing is all about if you believe the story.

Hybrid Annual Meeting

This is a reminder that the Annual Meeting of PharmaZen Limited will be held at the Te Pae Christchurch Convention Centre, 188 Oxford Terrace in the Bealey 3 Room and online at www.virtualmeeting.co.nz/paz23 at 12:30pm (New Zealand time) on Monday, June 19, 2023.

If attending online, Shareholders will be able to hear and view the meeting, vote on resolutions and ask questions. If you will attend the Annual Meeting online, you will require your CSN/Holder Number for verification purposes.

More information regarding online attendance at the meeting (including how to vote and ask questions virtually during the meeting) is available in the Virtual Annual Meeting Online Guide available here.

Shareholders who wish to participate in the online Annual Meeting are recommended to log-in to the online portal at least 15 minutes prior to the scheduled start time for the meeting.

Okay after watching the ASM its pretty much go back to sleep until this time next year. My online question i sent to link a few weeks ago was not even asked and there may have been others who asked questions as well. Anyway its just a sit tight for me for now, masses of potential here but it needs to be realised.

(Cross posted)

Watched the presentation, but I have to say, I am not feeling the love for this company anymore. I heard no real passion from the speakers, and nothing to give me confidence that we will see any major progress anytime soon.

I am concerned about the comments re staffing issues. I get that some of the staff who left very shortly after starting, may simply have been ticking boxes for WINZ, as implied, BUT what exactly is the company doing to attract people and motivate them to want to work there? Are they paying employees appropriately? Are they taking advantage of apprenticeship schemes etc? It just makes me wonder what the real issues are.

I may of course, be misunderstanding/misinterpreting - but my gut feeling is that my investment in PAZ is pretty much a "bottom drawer" write-off now (only a very small holding which I brought at close to $1 but not even worth selling)

Quote from: Breezy on Jun 19, 2023, 01:35 PMOkay after watching the ASM its pretty much go back to sleep until this time next year. My online question i sent to link a few weeks ago was not even asked and there may have been others who asked questions as well. Anyway its just a sit tight for me for now, masses of potential here but it needs to be realised.

Any news on the warehouse that's up for sale and lease back?

It often gives me an uneasy feeling seeing large amounts of Assets Held For Sale on a Balance Sheet

Something in common with Oceania, Synlait etc

Quote from: Untamed on Jun 19, 2023, 01:52 PM(Cross posted)

Watched the presentation, but I have to say, I am not feeling the love for this company anymore. I heard no real passion from the speakers, and nothing to give me confidence that we will see any major progress anytime soon.

I am concerned about the comments re staffing issues. I get that some of the staff who left very shortly after starting, may simply have been ticking boxes for WINZ, as implied, BUT what exactly is the company doing to attract people and motivate them to want to work there? Are they paying employees appropriately? Are they taking advantage of apprenticeship schemes etc? It just makes me wonder what the real issues are.

I may of course, be misunderstanding/misinterpreting - but my gut feeling is that my investment in PAZ is pretty much a "bottom drawer" write-off now (only a very small holding which I brought at close to $1 but not even worth selling)

Bottom drawer but definately not a write-off by any stretch.

Quote from: Breezy on Jun 19, 2023, 01:35 PMOkay after watching the ASM its pretty much go back to sleep until this time next year. My online question i sent to link a few weeks ago was not even asked and there may have been others who asked questions as well. Anyway its just a sit tight for me for now, masses of potential here but it needs to be realised.

The factory tour was incredible

Quote from: lorraina on Jun 19, 2023, 04:20 PMThe factory tour was incredible

That's what matter the most

Quote from: winner (n) on Jun 19, 2023, 04:22 PMThat's what matter the most

My thoughts too.

Quote from: Untamed on Jun 19, 2023, 01:52 PM(Cross posted)

Watched the presentation, but I have to say, I am not feeling the love for this company anymore. I heard no real passion from the speakers, and nothing to give me confidence that we will see any major progress anytime soon.

I am concerned about the comments re staffing issues. I get that some of the staff who left very shortly after starting, may simply have been ticking boxes for WINZ, as implied, BUT what exactly is the company doing to attract people and motivate them to want to work there? Are they paying employees appropriately? Are they taking advantage of apprenticeship schemes etc? It just makes me wonder what the real issues are.

I may of course, be misunderstanding/misinterpreting - but my gut feeling is that my investment in PAZ is pretty much a "bottom drawer" write-off now (only a very small holding which I brought at close to $1 but not even worth selling)

Having also attended the AGM I might be answer a few questions.

The sense I get is staff are being well paid. Well above minimum wage and medical insurance.

Its hard labour work. You won't get many snowflake kiwi lads wanting to do that kind of work. The couch and gaming machine is too attractive. Get up once every few weeks to attend an interview and you can be safely back on the couch 2 hours later.

Apprenticeship probably isn't appropriate for most of there work. They had some pretty high skilled welding / manufacturing staff (evidenced by the kit we saw out on site) but may not be enough technical variety of an apprenticeship.

I don't ask if it is still around but a couple of years back they had an employee share progrramme running.

Quote from: lorraina on Jun 19, 2023, 04:20 PMThe factory tour was incredible

They sure have a lot of processing capacity being developed.

But I would have to say overall I was disappointed with the lack of actual plant that was even close to being operational.

All manufacturing is currently being done out of Port Hills. So Rolleston is essentially cash a money pit.

I was pleased to hear Rolleston II is essentially being mothballed while they shift focus from construction to manufacture.

Quote from: Breezy on Jun 19, 2023, 02:52 PMBottom drawer but definately not a write-off by any stretch.

A long long, way from being a write off. Theres a great deal of positive stuff on the horizon. I'm looking forward to them stopping construction and just getting stuck in to make product.

Quote from: Minimoke on Jun 19, 2023, 04:37 PMA long long, way from being a write off. Theres a great deal of positive stuff on the horizon. I'm looking forward to them stopping construction and just getting stuck in to make product.

I think ALL shareholders would agree with you..

https://usx.co.nz/uploads/paperclip/documents/2844/original/PharmaZen9_2023_FINAL_AS_PRESENTED.pdf?1687153171

Good luck guys.  I hope it works out well for you.

OK, I was clearly off base with my previous comments so my apologies to anyone who was offended by my post. My situation is vastly different from everyone else's - my comments were based on my own scenario, as I only have 1000 shares.

Just ignore me.

I attended yesterday's AGM and also went on the factory tour.
I was very disappointed that their first quarter was very poor.I had expected great trading with the new two huge freeze dryers now operating.
I was also expecting discussions on the change of auditor,the debt level ,and the very slow progress on the equipment installations .Thought there would be some angry shareholders.
Yet all resolutions were passed without any decent.
I was lucky to be seated next to PAZ largest shareholder,and former long term Chaiman,Max Shepherd.He is very excited that the Rolleston build is taking place,and the extremely bright future PAZ has.
Although I found hearing the speakers at the meeting hard,it was a very different matter at Rolleston.
MD Craig McIntosh answered all questions.If he was unsure of the facts he asked the two very capable staff who then answered.
The factory is not like buying a new engine for your car and fitting it.It is very complex.Chemicals at -40 degrees, then heat generated.The Stainless Steel equipment is huge.Huge freeze dryers,huge stainless steel tanks and mixing bowls.Huge stainless steel pipes everywhere.At lot of welding required.
Getting the power from the transformer to their switch board cost $110,000 and wiring the building approx $250,000.
When PAZ first installed a freeze dryer at Port Hills Road ,30 Chinese technicians came here and installed it.
Covid put paid to them coming back,therefore PAZ have had to do the work themselves.
The heat recovery plant is also big and complex.
I know the shareholders who went on the factory tour were impressed and excited at what they saw.

Quote from: lorraina on Jun 20, 2023, 08:30 AMI attended yesterday's AGM and also went on the factory tour.
I was very disappointed that their first quarter was very poor.I had expected great trading with the new two huge freeze dryers now operating.
I was also expecting discussions on the change of auditor,the debt level ,and the very slow progress on the equipment installations .Thought there would be some angry shareholders.
Yet all resolutions were passed without any decent.
I was lucky to be seated next to PAZ largest shareholder,and former long term Chaiman,Max Shepherd.He is very excited that the Rolleston build is taking place,and the extremely bright future PAZ has.
Although I found hearing the speakers at the meeting hard,it was a very different matter at Rolleston.
MD Craig McIntosh answered all questions.If he was unsure of the facts he asked the two very capable staff who then answered.
The factory is not like buying a new engine for your car and fitting it.It is very complex.Chemicals at -40 degrees, then heat generated.The Stainless Steel equipment is huge.Huge freeze dryers,huge stainless steel tanks and mixing bowls.Huge stainless steel pipes everywhere.At lot of welding required.
Getting the power from the transformer to their switch board cost $110,000 and wiring the building approx $250,000.
When PAZ first installed a freeze dryer at Port Hills Road ,30 Chinese technicians came here and installed it.
Covid put paid to them coming back,therefore PAZ have had to do the work themselves.
The heat recovery plant is also big and complex.
I know the shareholders who went on the factory tour were impressed and excited at what they saw.

Thats the benefit of attending the AGM and site visits @Lorraina. Its not what you glean from the presentation - its what you learn over the coffee that is by far much more important. Eg why they produce gummies.

Like you, very disappointed with Q1 results. I am not satisfied with their "staff shortage" reasons. Nor was I satisfied with the chairs (when I asked him) response to the lack of information being given to shareholders and the market.

However, after the site visit I have zero concerns about my holding. Progress is slow, but once they get Rolleston 1 up and running (its got a while to go yet) they will be pumping out literally tons of product.

This business is so much more than getting a bit of waste animal, chopping it into wee bits, freeze drying and chucking it in a capsule.

And pleased to get my $29.50 special dividend at the AGM. A bottle of Aoria. I like the be packaging - and what people won't see from the picture's is the tactile feel of the label which I like. I left the pet treat dividend to those that have animals so can't comment on that.

By my reckoning I'm about 1 1/2 years behind where I would like to have been with this investment. Not a great place to be. But I am still happy to be holding a great local company. I'm looking forward to 1H 2024 results

And why do they produce gummies mini?

Was any mention made of their sales and marketing skills .....all ok making heaps of stuff but you have to sell it

Quote from: winner (n) on Jun 20, 2023, 08:55 AMAnd why do they produce gummies mini?

Its a way of avoiding medicinal registrations. Put it in a capsule you have all sorts of dramas. Make a gummy and no one is worried

Quote from: winner (n) on Jun 20, 2023, 08:57 AMWas any mention made of their sales and marketing skills .....all ok making heaps of stuff but you have to sell it

No shortage of demand. Constrained by ability to produce.

Quote from: winner (n) on Jun 20, 2023, 08:57 AMWas any mention made of their sales and marketing skills .....all ok making heaps of stuff but you have to sell it

That's my concern too.  Let's get real, Aiora has been a real flop. For whatever reason the biggest distribution chain in Australasia (Chemist Warehouse), won't stock it and neither is anyone else.

Pet Treats.  Good, people love their pets but...A quick search of the Animates website showed 207 different sorts of dog treats, (didn't even search under cats).  Many of these brands would have invested tens of millions in building their brand over the years. https://www.animates.co.nz/dog/treats
Brand building is a long, complicated and expensive process that requires serious money and real skills.  Well respected brands like for example Blackmores have many decades of expertise and vast marketing expenditure every year behind their brand building.  Is PAZ capable of that sort of investment ?

Chief among other concerns is the valuation.  Even at 35 cents it's on a 2022 PE of 97 by my calculations.  Back a few years ago when I was buying, (and their growth prospects were very well known then), it was trading on a forward PE in the low 20's.  Profits would have to quadruple for the metrics on this to get back into the mid 20's.  Maybe that happens in 2025 or 2026, who knows...  Even if they can do that then that still only makes the stock fair value at the current price in 2025 or 2026 in my book and obviously there's no dividends between now and then.

Quote from: Basil on Jun 20, 2023, 10:22 AMThat's my concern too.  Let's get real, Aiora has been a real flop. For whatever reason the biggest distribution chain in Australasia (Chemist Warehouse), won't stock it and neither is anyone else.

Pet Treats.  Good, people love their pets but...A quick search of the Animates website showed 207 different sorts of dog treats, (didn't even search under cats).  Many of these brands would have invested tens of millions in building their brand over the years. https://www.animates.co.nz/dog/treats
Brand building is a long, complicated and expensive process that requires serious money and real skills.  Well respected brands like for example Blackmores have many decades of expertise and vast marketing expenditure every year behind their brand building.  Is PAZ capable of that sort of investment ?

Chief among other concerns is the valuation.  Even at 35 cents it's on a 2022 PE of 97 by my calculations.  Back a few years ago when I was buying, (and their growth prospects were very well known then), it was trading on a forward PE in the low 20's.  Profits would have to quadruple for the metrics on this to get back into the mid 20's.  Maybe that happens in 2025 or 2026, who knows...  Even if they can do that then that still only makes the stock fair value at the current price in 2025 or 2026 in my book and obviously there's no dividends between now and then.

You needn't concern yourself about it as you don't hold and stock prices don't follow symmetrical rules as you well know, get this listed on the ASX and you would see the price take off once they really get rolling, plenty of stocks on far higher PE's. Besides a few of us have too many shares to sell currently even if we wanted to and I don't want to before I see the company reach its true potential. Of course its disappointing and frustrating to see the slow progress but life can be like that more times than often.

Quote from: Basil on Jun 20, 2023, 10:22 AMThat's my concern too.  Let's get real, Aiora has been a real flop. For whatever reason the biggest distribution chain in Australasia (Chemist Warehouse), won't stock it and neither is anyone else.

Pet Treats.  Good, people love their pets but...A quick search of the Animates website showed 207 different sorts of dog treats, (didn't even search under cats).  Many of these brands would have invested tens of millions in building their brand over the years. https://www.animates.co.nz/dog/treats
Brand building is a long, complicated and expensive process that requires serious money and real skills.  Well respected brands like for example Blackmores have many decades of expertise and vast marketing expenditure every year behind their brand building.  Is PAZ capable of that sort of investment ?

Chief among other concerns is the valuation.  Even at 35 cents it's on a 2022 PE of 97 by my calculations.  Back a few years ago when I was buying, (and their growth prospects were very well known then), it was trading on a forward PE in the low 20's.  Profits would have to quadruple for the metrics on this to get back into the mid 20's.  Maybe that happens in 2025 or 2026, who knows...  Even if they can do that then that still only makes the stock fair value at the current price in 2025 or 2026 in my book and obviously there's no dividends between now and then.

Don't be distracted by Aiora.

After yesterday's AGM and site visit it is patently obvious that Pharmazen are an ingredients manufacturer. That is where they are putting pretty much most of their energy - converting raw materials into ingredients that others can use. And they can do that partly on quality of raw materials as well as price - they are working very hard to make sure their cost structure is very well managed. Hence the investment in energy hubs and raw material contracts.

What they have also done though is see the value of OEM products. I now see Aiora as basically R&D. They are learning how to convert their ingredient into capsules, gummys and sausages. This is really good R&D because there is so much more money to be made from these end user products. They are looking at markets - for example stressing dog treats are made from NZ Grass Fed Beef heart - its a point of difference from grain fed beef. Apparently sausage is a bit on an in-thing. We only talked about dogs - cats werent in the conversation.

So while they are looking at creating plant and facilities that can create a lot more ingredients they are also looking at adding value. And a lot of value! A 1 x 7 level of increased value on an already profitable ingredient.

I didnt ask specifically but in the conversation I got the sense that NZ market is essentially negligible from a revenue perspective. USA is main market. And they now have an open door into pets in China.

And a comment on their new branding - that is apparently what international markets find appealing - not necessarily NZ.

I have only ever seen the Aiora range as an add on product, its a bit like selling pies at a petrol station.

I hope they don't end up like Blis ...... great products but useless marketing ability

Could we see an Ariora Beef Liver Icecream on day as part of the product line extension

Tell you guys what.  I will do some market research for you in due course with a very smart dog.
When PAZ release their beef heart dog treats I will put two treats down on the ground at equidistant distance from Tony the Pony and see which one he goes for.
Lets go with the well known brand Schmackos as the other contender.
https://www.animates.co.nz/schmackos-marrobones-dog-treats-735g.html
Tony is a very clever dog, he'll tell us whether PAZ's dog treats are better or not.

Quote from: Basil on Jun 20, 2023, 11:55 AMTell you guys what.  I will do some market research for you in due course with a very smart dog.
When PAZ release their beef heart dog treats I will put two treats down on the ground at equidistant distance from Tony the Pony and see which one he goes for.
Lets go with the well known brand Schmackos as the other contender.
https://www.animates.co.nz/schmackos-marrobones-dog-treats-735g.html
Tony is a very clever dog, he'll tell us whether PAZ's dog treats are better or not.

If he's a smart dog he'll eat one. And then the other. And enjoy both

Quote from: Minimoke on Jun 20, 2023, 12:49 PMIf he's a smart dog he'll eat one. And then the other. And enjoy both

LOL he'll definitely do that...but which one will he get his huge snout into first?

I'm expecting the sp to drift down to about 25c before it turns upward in due course, odd custodial holdings offloading a few as they do every year around this time and rats and mice sellers who bought under 10c and can't be bothered waiting any longer. Anyway not really a market in the true sense as the vast majority of the shares (I'd guess 90%, are held by entities that aren't selling any).

Quote from: Minimoke on Jun 20, 2023, 08:51 AM....
Like you, very disappointed with Q1 results. I am not satisfied with their "staff shortage" reasons. Nor was I satisfied with the chairs (when I asked him) response to the lack of information being given to shareholders and the market.....

As an accountant, I find deliberate concealment of relevant financial information abhorrent and completely unacceptable.
There is no reason that proper half yearly financial statements cannot be provided to all shareholders.  For goodness' sake, we have computers and accounting systems that do a lot of the donkey work these days, this is not rocket science.  Insiders can trade all year on inside information while everyone else is in the dark until whenever they choose to eventually release their annual financial statements.

How this can possibly be seen as a level playing field is beyond my comprehension.  If the directors ever want to be taken seriously by the market, they need to start complying with best reporting standards of the NZX, regardless of the super lax unlisted requirements.

Everyone seems laser focused on the potential for increased sales and not much thought is going into the huge increase in wages, interest costs and depreciation involved with all this new plant and equipment.  Only time will tell how this all translates into future eps growth and to what extent.  I think the indications provided regarding Q1 and Q2 trading is the first insight shareholders have got that just having new plant up, running and operational does not necessarily automatically mean eps will grow. Apart form the serious lack of disclosure the issue as I see it is, the current historic metrics are extremely demanding, (as previously noted), and super high growth in eps for several years is already baked into the current share price.  That growth might happen, or maybe eps growth will disappoint, time will tell.

ASM preso has lots of pictures of new buildings, machines and plant. All looks awesome.

Reminds me of Ray in that film 'if you build it, he/they will come'

Suppose that film had a nice ending

Quote from: Basil on Jun 21, 2023, 06:52 PMAs an accountant, I find deliberate concealment of relevant financial information abhorrent and completely unacceptable.
There is no reason that proper half yearly financial statements cannot be provided to all shareholders.  For goodness' sake, we have computers and accounting systems that do a lot of the donkey work these days, this is not rocket science.  Insiders can trade all year on inside information while everyone else is in the dark until whenever they choose to eventually release their annual financial statements.

How this can possibly be seen as a level playing field is beyond my comprehension.  If the directors ever want to be taken seriously by the market, they need to start complying with best reporting standards of the NZX, regardless of the super lax unlisted requirements.

Everyone seems laser focused on the potential for increased sales and not much thought is going into the huge increase in wages, interest costs and depreciation involved with all this new plant and equipment.  Only time will tell how this all translates into future eps growth and to what extent.  I think the indications provided regarding Q1 and Q2 trading is the first insight shareholders have got that just having new plant up, running and operational does not necessarily automatically mean eps will grow. Apart form the serious lack of disclosure the issue as I see it is, the current historic metrics are extremely demanding, (as previously noted), and super high growth in eps for several years is already baked into the current share price.  That growth might happen, or maybe eps growth will disappoint, time will tell.

Dont make this stock your next OCA/HGH/FPH etc etc, things never seem to go well when that occurs, time will indeed tell and that time is not now.

Not intending to Breezy.  Just a note of caution that just because sales go up that often doesn't translate as well as some might expect, to the bottom line. 

Quote from: Basil on Jun 21, 2023, 06:52 PMAs an accountant, I find deliberate concealment of relevant financial information abhorrent and completely unacceptable.
There is no reason that proper half yearly financial statements cannot be provided to all shareholders.  For goodness' sake, we have computers and accounting systems that do a lot of the donkey work these days, this is not rocket science.  Insiders can trade all year on inside information while everyone else is in the dark until whenever they choose to eventually release their annual financial statements.

How this can possibly be seen as a level playing field is beyond my comprehension.  If the directors ever want to be taken seriously by the market, they need to start complying with best reporting standards of the NZX, regardless of the super lax unlisted requirements.

Everyone seems laser focused on the potential for increased sales and not much thought is going into the huge increase in wages, interest costs and depreciation involved with all this new plant and equipment.  Only time will tell how this all translates into future eps growth and to what extent.  I think the indications provided regarding Q1 and Q2 trading is the first insight shareholders have got that just having new plant up, running and operational does not necessarily automatically mean eps will grow. Apart form the serious lack of disclosure the issue as I see it is, the current historic metrics are extremely demanding, (as previously noted), and super high growth in eps for several years is already baked into the current share price.  That growth might happen, or maybe eps growth will disappoint, time will tell.

PAZ's first half ends at the end of this month.The first half result is usually announced in August. 

All they give you after the half year is sales and EBITDA and a brief commentary.

Quote from: Basil on Jun 22, 2023, 10:28 AMAll they give you after the half year is sales and EBITDA and a brief commentary.

What does it matter, we know the half year will be down as we have been told already it will be, no one continuing to hold is looking for anything much from the upcoming half year, its all about this time next year and beyond. Until then there is little to say or discuss other than those that want to downramp out of boredom.

I feel your frustration mate.  Please understand that as an accountant I find it extraordinary they only share a brief overview of operations, (missing important information) at the half year point.  That said, its within the rules of the Unlisted market so fair enough if you and others are happy with that.  Good luck with it.

Quote from: Basil on Jun 22, 2023, 11:07 AMI feel your frustration mate.  Please understand that as an accountant I find it extraordinary they only share a brief overview of operations, (missing important information) at the half year point.  That said, its within the rules of the Unlisted market so fair enough if you and others are happy with that.  Good luck with it.

IMO they should aspire to better and look at best practice. If their longer-term target is a NZX/ASX listing then should work towards the required levels of reporting and disclosure - not minimum within the USX rules.

Could understand much of the focus has been elsewhere with Covid/capital work, but understand and share the frustration.....

Quote from: Basil on Jun 22, 2023, 11:07 AMI feel your frustration mate.  Please understand that as an accountant I find it extraordinary they only share a brief overview of operations, (missing important information) at the half year point.  That said, its within the rules of the Unlisted market so fair enough if you and others are happy with that.  Good luck with it.

I'm not happy about that. And I expressed my view to the Chair.

There we go, down to 20c so below my 25c prediction. Cibus fund won't be happy being down 50% from near 3 yrs ago when they got their shares at a heavy discount to market at the time, doubt they will be looking to get any of their capital back for a lot longer than they anticipated. Hopefully they are turning the heat up to make increased production and productivity the focus from now.

Just posting this as a public service announcement for those that don't know or don't recall the difference between different classes of shares and the possible implications for the company if they had to be redeemed for cash.

Cibus were issued convertible redeemable "Preference" shares on very special terms, not ordinary shares.  This gives them preferential rights to ordinary shareholders as well as a range of other conversion or redemption rights not fully disclosed, (probably because they are "commercially sensitive").
https://usx.co.nz/uploads/paperclip/documents/2207/original/Additional_Market_Information.pdf?1612298553
Clause 3 is interesting.  It turns out since then some things have definitely not been under the control of the company.

Have a look at page 40, the audit report of the 2021 annual return.  https://usx.co.nz/uploads/paperclip/documents/2527/original/FY21_PharmaZen_AR_FINAL.pdf?1651176849
In certain circumstances these redeemable preference shares are redeemable for cash or may be exercised based on the market value of the ordinary shares.  This is why they are classified at a term liability in the balance sheet, not as equity.  The fact that they are a term liability in the balance sheet tells me the prospects of them being redeemed for cash $14m plus interest and possibly, penalties, is a very real chance of happening at some stage.

To the best of my knowledge the exact terms of those covenants and the terms under which their preference shares may be redeemed for cash have never been disclosed to the market but as usual the directors will know them and are happy to keep minority shareholders in the dark.

Cibus are part of a huge fund and I believe they wrote themselves into a very strong and advantageous position with these preference shares.
In addition to their right in certain undisclosed circumstances to redeem these shares for cash they clearly have the power to convert them at some stage within 7 years of issue based on the market value of the ordinary shares, (not the fixed 40 cent issue price), so there are potentially future implications there for share dilution.

The whole issue, the way they went about it, the murkiness of the terms of these redeemable preference shares and in particular the way the director's cut ordinary shareholders completely out of the loop in terms of subscribing for new shares was something I found really off-putting in 2021 and was the catalyst for me to reevaluate my position. 

Just reiterating, I really do hope this works out for shareholders, but this is definitely not something I want to jump back into.

Buyers stepping up at these ridiculous bargin prices. PS-Cibus will do nothing until they see all the new plant up and running at its full potential, they did due diligence before buying in and would know more than anyone the huge potential gains here.

https://usx.co.nz/uploads/paperclip/documents/2860/original/ASM_Presentation_Notes_from_Craig_McIntosh.pdf?1688361498

How much current shareholders going to be diluted with capital injections?

Even after the Tawhiri 1 sale and lease back we still have a book value in excess of $20m in land and buildings. Until interest rates reduce, it's not a great time for selling property, so we are not considering a sale of any further land and building to fund expansion at this stage. However, we maintain dialogue with Cibus regarding getting any additional funding from them. They have their share options, however price performance isn't where they would want to exercise those options. We also regularly talk with strategic partners that might be worthwhile bringing in however we have as much debt as we would like to carry, so the future direction is more likely to be from equity introduction or sale and lease back rather than debt.

Quote from: winner (n) on Jul 05, 2023, 09:10 AMHow much current shareholders going to be diluted with capital injections?

Even after the Tawhiri 1 sale and lease back we still have a book value in excess of $20m in land and buildings. Until interest rates reduce, it's not a great time for selling property, so we are not considering a sale of any further land and building to fund expansion at this stage. However, we maintain dialogue with Cibus regarding getting any additional funding from them. They have their share options, however price performance isn't where they would want to exercise those options. We also regularly talk with strategic partners that might be worthwhile bringing in however we have as much debt as we would like to carry, so the future direction is more likely to be from equity introduction or sale and lease back rather than debt.

Well how long is a piece of string? Not something for you to be concerned about being a non holder or have you become a holder at the current bargin basement prices?

In the market 1/2 year update underlying EBITDA of $410k on sales of $10.3m. on sales of $10.3m. This was down on the prior year underlying EBITDA of $1.8m on sales of $12.8m.

I don't understand why sales are down. Apparently more plant came on line and there is untold demand from customers. At the very least I would have thought they would have done same sales. There was talk about raw material supply issues - but I thought that was more to do with increased capacity - not maintaining current capacity.

And very disappointingly, they lost their third new freeze dryer in a shipping accident. Fortunately covered by insurance. But this will cause at least (I suspect) a further year delay in getting Rolleston fully operational. Seems they will give it a go with 2 freeze dryers, rather than 3.

But out look remains for current year to be same as last year. With improvements after that.

Interesting to see Cibus Capital's representative on the board Damon Petrie resigned effective today, the second director resignation within 6 months.  I guess that signals they won't be investing any further funds into PAZ. A new director has been appointed.
Didn't dare comment on the first half EBITDA result as it was so shocking, I feel sorry for shareholders.

Quote from: Basil on Aug 29, 2023, 05:11 PMInteresting to see Cibus Capital's representative on the board Damon Petrie resigned effective today, the second director resignation within 6 months.  I guess that signals they won't be investing any further funds into PAZ. A new director has been appointed.
Didn't dare comment on the first half EBITDA result as it was so shocking, I feel sorry for shareholders.

1H has already been commented on. Not much more to say other than to look forward. Cibus having adding the value as initially expected.

Given the poor first half, and the significant upturn which commenced in May, the company is looking
to post an update with unaudited third quarter results in the fourth week of October.

The tide has turned. 8)

Thank goodness..!!!...lol

I second that sentiment. First bit of good investing related news I've had in months.

Quote from: lorraina on Oct 19, 2023, 10:25 AMThank goodness..!!!...lol

What a great quarter

Annualised it's $$33m revenues and ebitda of $8m

That's pretty good

Quote from: winner (n) on Oct 19, 2023, 11:32 AMWhat a great quarter

Annualised it's $$33m revenues and ebitda of $8m

That's pretty good

That's encouraging indeed.  I hope this works out for holders.

Yet apparently they made too much collagen product. Giving away short dates product for cost of shipping only. Just ordered a bottle.

While I appreciate the opportunity, as I can't currently afford to buy Aiora, this is not the first time they have had an excess of short dated product, so a little concerned as to why this is occurring.

This should always happen.
To set up each product production takes a lot of time.
Therefore each time you run the production line a bit longer means the extras cost next to nothing.
For example produce 10,000 costs say $10,000 while producing and extra 5,000 only costs $1,000 more.
So average cost reduces from $1.00 to 73.34 cents.
If you keep your selling price based on sales of 10,000 and hit 14,000 you are well ahead.


 

Quote from: lorraina on Oct 20, 2023, 01:13 PMThis should always happen.
To set up each product production takes a lot of time.
Therefore each time you run the production line a bit longer means the extras cost next to nothing.
For example produce 10,000 costs say $10,000 while producing and extra 5,000 only costs $1,000 more.
So average cost reduces from $1.00 to 73.34 cents.
If you keep your selling price based on sales of 10,000 and hit 14,000 you are well ahead.


 

But those punters who bought the 5,000 excessive cheap ones won't be be paying full price for their needs eh. ....lost margin

Not so.14,000 sold full price.1,000  given away or destroyed.

Black Friday Sale Starts Now


The sale you've been waiting for! Shop 30% off all single products and essential packs.

No discount code needed.

Go to www.aioranz.com

Quote from: lorraina on Nov 20, 2023, 10:33 AMBlack Friday Sale Starts Now


The sale you've been waiting for! Shop 30% off all single products and essential packs.

No discount code needed.

Go to www.aioranz.com

You had me there for a few seconds percy ......thought the sale was 30% off PAZ share price ...bugger

Quote from: winner (n) on Nov 20, 2023, 11:32 AMYou had me there for a few seconds percy ......thought the sale was 30% off PAZ share price ...bugger

Someone slowly upping their bid by a couple of cents but only offer is currently 68% above that, all going well you will be lucky to get them at that price a year or so from now.

Quote from: Breezy on Nov 20, 2023, 11:51 AMSomeone slowly upping their bid by a couple of cents but only offer is currently 68% above that, all going well you will be lucky to get them at that price a year or so from now.

Bid creeping up a bit more, sellers waiting for some more positive news and we sure need it after wandering around in the desert for what seems like an eternity.

Hope it's not a case of the Israelites spending 40 years in the wilderness.

 Bit of interest in PAZ;
BIDS
Quantity   Price   MPID
58,000   0.3000   
5,000   0.3200   
25,000   0.3100   
100,000   0.2500   
OFFERS
Quantity   Price   MPID
18,000   0.4000   
20,000   0.4200   

Quote from: lorraina on Dec 20, 2023, 05:03 PMBit of interest in PAZ;
BIDS
Quantity   Price   MPID
58,000   0.3000   
5,000   0.3200   
25,000   0.3100   
100,000   0.2500   
OFFERS
Quantity   Price   MPID
18,000   0.4000   
20,000   0.4200   

60,000 shares traded today between $0.30 and $0.32.

Which is a 50% improvement on when they traded in September.

Hopefully we have now seen the bottom.

And heading back to $1

Good news coming in New Year I reckon

Momentum continues into Q4. 8)

In an announcment today "The trading improvements seen in Q2 and Q3 continue into Q4 for which we are forecasting another pleasing result. We are not forecasting Q4 to hit the same underlying EBITDA that we achieved in Q3 given the shorter trading month in December and year end cut-off issues, but we are still expecting to show a very favourable result for the quarter"

Quote from: Minimoke on Dec 21, 2023, 01:58 PMIn an announcment today "The trading improvements seen in Q2 and Q3 continue into Q4 for which we are forecasting another pleasing result. We are not forecasting Q4 to hit the same underlying EBITDA that we achieved in Q3 given the shorter trading month in December and year end cut-off issues, but we are still expecting to show a very favourable result for the quarter"

Couple of complaints on that other site about this update, I really don't see why as it was never going to be a detailed financial update but rather just letting shareholders know that things are still tracking along well and a favorable quarter is expected, thats good enough for me at this point.

Quote from: Breezy on Dec 22, 2023, 11:22 AMCouple of complaints on that other site about this update, I really don't see why as it was never going to be a detailed financial update but rather just letting shareholders know that things are still tracking along well and a favorable quarter is expected, thats good enough for me at this point.

Just Christmas Greetings ...nice of them to do that eh

Quote from: Breezy on Dec 22, 2023, 11:22 AMCouple of complaints on that other site about this update, I really don't see why as it was never going to be a detailed financial update but rather just letting shareholders know that things are still tracking along well and a favorable quarter is expected, thats good enough for me at this point.

Good enough for me as well. Better that the zero information you get from main board companies - so often that is only six months.

I'm still a bit wary - but will relax when I hear Rolleston factory is pumping

Good new board appointment.
https://prod-trade.usx.co.nz/api/file/65cbd3787b7189fb73e9d870.pdf

Looking forward to the result which could be next couple of days. Need to see some real traction with this company by the end of this year for me to continue with my current holding size, they really need to get this listed on a main board as well as the liquidity is pathetic for the number of shares on issue.

Quote from: Breezy on Apr 10, 2024, 02:32 PMLooking forward to the result which could be next couple of days. Need to see some real traction with this company by the end of this year for me to continue with my current holding size, they really need to get this listed on a main board as well as the liquidity is pathetic for the number of shares on issue.

Last year the Annual report came out on 15 May. Not April

Quote from: Minimoke on Apr 15, 2024, 08:53 AMLast year the Annual report came out on 15 May. Not April

Another month to sleep...... ::)

Quote from: Sideshow Bob on Apr 16, 2024, 08:01 AMAnother month to sleep...... ::)

Trading improvements in Q2 and Q3. And a bit of improvement in Q4. Final numbers will be intersting.

Odd!
In 2018 Annual report delivered on 26/3
2019, 4/4
2020, 23/3
2021, 22/4
2022, 29/4
2023 15/5

Today, 15/5/2024. Crickets!

And no bids / offers on market

Given nature abhors a vacuum I'l speculate that there are challenges around the accounting for Cibus.

Quote from: Minimoke on May 15, 2024, 01:14 PMOdd!
In 2018 Annual report delivered on 26/3
2019, 4/4
2020, 23/3
2021, 22/4
2022, 29/4
2023 15/5

Today, 15/5/2024. Crickets!

And no bids / offers on market

Given nature abhors a vacuum I'l speculate that there are challenges around the accounting for Cibus.

Challenges all round has been the name of the game here for a few yrs now, need to see some traction by this company over the next year or it could well become a dinosaur. Price at least a $1 below where I expected it to be at this stage.

Quote from: Minimoke on May 15, 2024, 01:14 PMOdd!
In 2018 Annual report delivered on 26/3
2019, 4/4
2020, 23/3
2021, 22/4
2022, 29/4
2023 15/5

Today, 15/5/2024. Crickets!

And no bids / offers on market

Given nature abhors a vacuum I'l speculate that there are challenges around the accounting for Cibus.

This encapsulates everything I despise about the unlisted market.
When there's good news, they get the result out in late March, (2020 year), otherwise it just keeps getting later every year.  If it was listed on the NZX as they stated was their goal some years back they have to report within 2 months from end of the financial year (end of February 2024) and yet here shareholders are nearly 5 whole months after the end of the financial year, (long after insiders would be well aware what the result is), and minority shareholders are still in the dark.  I think this situation is absolutely disgraceful and a damming inditement on the state of governance in this company.  Good luck to shareholders, I think you are going to need it.

Quote from: Basil on May 21, 2024, 03:35 PMThis encapsulates everything I despise about the unlisted market.
When there's good news, they get the result out in late March, (2020 year), otherwise it just keeps getting later every year.  If it was listed on the NZX as they stated was their goal some years back they have to report within 2 months from end of the financial year (end of February 2024) and yet here shareholders are nearly 5 whole months after the end of the financial year, (long after insiders would be well aware what the result is), and minority shareholders are still in the dark.  I think this situation is absolutely disgraceful and a damming inditement on the state of governance in this company.  Good luck to shareholders, I think you are going to need it.

Its very slack of them to not keep market updated

Result just out along with AGM details, just a pass IMO. Resolution to alter employee share option exercise price from 66c to 25c is a joke, they obviously don't have much faith in the sp going anywhere for some time.
Chairman Ken Fergus said:Our capital investment and expansion program over the last few years is truly delivering for the company, okay well if you say so but it sure ain't delivering for shareholders.

Quote from: Breezy on May 29, 2024, 03:50 PMResult just out along with AGM details, just a pass IMO. Resolution to alter employee share option exercise price from 66c to 25c is a joke, they obviously don't have much faith in the sp going anywhere for some time.
Chairman Ken Fergus said:Our capital investment and expansion program over the last few years is truly delivering for the company, okay well if you say so but it sure ain't delivering for shareholders.

I agree. I am not "feeling" it with this company anymore. I wonder how many employees bother to exercise their options, even at 25c.

Despirte hard first half, year end
Sales up 26.3 from 28.8m
Net profit up 5.5m from .78
Earning per share 2.49 from 0.36
Cash on hand up to $18.6 from 4.4k
Inventory levels same as last year
Bank OD down to 1.8m from 5.1m
Receivables exceed payables
Assets (increased) exceed liabilities (decreased)

Lease liabilities up hugely - bo doubt due to sale and lease back of rolleston

Movinginto pet food and Aioroa being rebranded.

Quote from: Untamed on May 29, 2024, 03:54 PMI agree. I am not "feeling" it with this company anymore. I wonder how many employees bother to exercise their options, even at 25c.

Apparently they have no incentive otherwise, how about believe in better for a start and let's get this on a main board which was proposed about 4 yrs ago. I note that after more than a month of no trades the 21k share bid parcel went through this morning at 30c, probably an insider needing a new deck.

Quote from: Breezy on May 29, 2024, 04:01 PMApparently they have no incentive otherwise, how about believe in better for a start and let's get this on a main board which was proposed about 4 yrs ago.

Well 25 isn't much of an incentive when the share price is currently 30c. I wouldn't exercise them if it were me.

Looks like Craig McIntosh is being nicely enriched via his loan that hes getting 12% interest on.

Quote from: Untamed on May 29, 2024, 04:03 PMWell 25 isn't much of an incentive when the share price is currently 30c. I wouldn't exercise them if it were me.

Maybe not for long as there are no bids and im sure some of these employees will be happy to toss them out at 25c as soon as they are able to.
Anyway I've got too many shares to do anything, hopefully I will be at break even come my retirement in just over 2 yrs time. Lol

Quote from: Breezy on May 29, 2024, 04:07 PMMaybe not for long as there are no bids and im sure some of these employees will be happy to toss them out at 25c as soon as they are able to.
Anyway I've got too many shares to do anything, hopefully I will be at break even come my retirement in just over 2 yrs time. Lol

Fortunately I have bugger all. I don't see me ever breaking even now though. PAZ feels a bit like BLT these days.

Quote from: Minimoke on May 29, 2024, 04:06 PMLooks like Craig McIntosh is being nicely enriched via his loan that hes getting 12% interest on.

Okay let me smack the wall one more time before I grab a bottle of wine and retreat to my grumpy cave.

Quote from: Untamed on May 29, 2024, 04:19 PMFortunately I have bugger all. I don't see me ever breaking even now though. PAZ feels a bit like BLT these days.

Dont worry. 2024/25 Will Be Our Year!

Quote from: Minimoke on May 29, 2024, 04:28 PMDont worry. 2024/25 Will Be Our Year!

Sure it will  ;)

Looking Ahead
With end customer demand continuing to be strong, we go into 2024 with considerable optimism.
New opportunities are arising in and around our consumer product ranges with AiOra set to receive a significant push in
2024. New Zealand music icon Boh Runga is taking on an ambassador role fronting our range extension into glandulars.
The AiOra range was developed to access the non-ingredient markets in Southeast Asia, and it is pleasing to note that we
will have products in both China and Korea this year.
The pet range will be launched across three online platforms in China in July. In conjunction with our Chinese partner
significant work has gone into finalising packaging, product and distribution channels.
Challenges with trademark registration will see the range marketed as Waitaki Pet and we are enthusiastic about the initial
feedback and potential

I have been keeping an eye on this in case there's an opportune time to buy back in.  I'm not feeling it.
Annual report file:///C:/Users/user/Downloads/6656b3c8a54ca5e3e24e0685_FY23%2520Pharmazen%2520AR%2520Template_final.pdf

If you strip out the "accounting paper only gain" of Cibus preference shares, (I'm not going to try and unpack why they did that) or why their ongoing fixation with EBITDA figures, what really matters is whether they made a trading profit after all costs and in that respect this snippet from the report is most interesting

QuoteThe view of the Board is that the going concern assumption is valid. This view has been reached after making inquiry and having
regard to the circumstances that the Directors consider will occur and those that are reasonably likely to affect the Company
during the period one year from the date these financial statements are approved.
The Company recorded a net profit before tax of $5,251,990 however if non-trading income of a net $5,737,011 is excluded the
Company would show a trading loss before tax of $485,021. The Company is budgeting to return to a trading surplus in 2024

I remember the days when they actually made real money after tax from real trading.  In 2020 for example they made real money $5.2m before tax after all costs, annual report here, $4m before tax in 2019 file:///C:/Users/user/Downloads/664fccc2122d5d9abc615645_FY20-PharmaZen-Annual-Report-Final.pdf 
I'm not sure how they can say they've made progress over the years with a straight face but I guess I am just old fashioned and believe that what really matters is whether you make a real profit after tax or not.  I don't see any of the cost pressures they have faced in 2023 abating in the foreseeable future and while I acknowledge there is a chance they could break even or even make a small profit in 2024, to me it still feels like its going backwards compared to the years prior to Covid before.  It's not for me as an investment again, certainly not at this stage.  To me, it feels like the company has reverted to being a "startup" again, which is a pretty remarkable state of affairs considering they've been trading for so long now, but I genuinely hope it works out well for shareholders. 

I note revenue for the year was $28.9 mil.Considering the very poor first half revenue was only $10.3 mil,the second half revenue was a very good $18.6 mil.This revenue was delivered from Port Hills Road site only.
Rolleston.Hopefully they start operations as they say at the end of July.
Should PAZ be able to keep Port Hills Road producing at current levels we can expect revenue there may reach over $37 mil to $39 mil.
With gross margin currently 33% we should see PAZ produce a very satisfactory result for the year ending 31st December 2024.
Now the big question that should be answered at the agm on June 27th,is what revenue Rolleston will produce.?
We will hear later in the year how the pet food sales are going;
The pet range will be launched across three online platforms in China in July. In conjunction with our Chinese partner
significant work has gone into finalising packaging, product and distribution channels.
Therefore there is a lot to look forward to.

Quote from: lorraina on May 29, 2024, 06:37 PMI note revenue for the year was $28.9 mil.Considering the very poor first half revenue was only $10.3 mil,the second half revenue was a very good $18.6 mil.This revenue was delivered from Port Hills Road site only.
Rolleston.Hopefully they start operations as they say at the end of July.
Should PAZ be able to keep Port Hills Road producing at current levels we can expect revenue there may reach over $37 mil to $39 mil.
With gross margin currently 33% we should see PAZ produce a very satisfactory result for the year ending 31st December 2024.
Now the big question that should be answered at the agm on June 27th,is what revenue Rolleston will produce.?
We will hear later in the year how the pet food sales are going;
The pet range will be launched across three online platforms in China in July. In conjunction with our Chinese partner
significant work has gone into finalising packaging, product and distribution channels.
Therefore there is a lot to look forward to.

surely the big question is why they aren't making a trading profit, as Beagle has noted above?  One off gains from selling property are just that, one-off, might be nice but have little to do with ongoing operating profits. Hope someone asks the hard questions at the AGM.

Haha I was kinda right yesterday about those 21k shares sold, it was holder Iceman selling to build a new deck. Good luck to those sellers currently lined up starting at 42c.
Have just put in my direct vote for the AGM and have voted against resolution 6 and hopefully others will also.
I put in a couple of questions for last years AGM and they were not addressed so not wasting my time this year.
Time for this thread to go back to sleep for another 6 months.

PAZ Annual report.
https://usx.us5.list-manage.com/track/click?u=746ad5c195883aa443504e861&id=4fbc16908e&e=c8d1cd4df0

Quote from: lorraina on May 30, 2024, 11:00 AMPAZ Annual report.
https://usx.us5.list-manage.com/track/click?u=746ad5c195883aa443504e861&id=4fbc16908e&e=c8d1cd4df0

Out of the 74 pages in that report my favorite by a country mile is p4, stunning unobstructed photo.

No one wants to pay anymore than 30c for these and I think it will be quite a while before that changes, sellers starting to load their guns just above that.

New campaign for AiOra, and new product range, just released:

https://aioranz.com/blogs/news/meet-boh-runga-aiora-creative-director-and-ambassador?utm_source=Klaviyo&utm_medium=campaign&_kx=-QmPWLDRWciaxz4ehS6wfC7mcfImLQJFf1sn7KDRcKs.T7LbhD

Feels a little like desperation to me to be honest.

Quote from: Untamed on Jun 25, 2024, 10:20 AMNew campaign for AiOra, and new product range, just released:

https://aioranz.com/blogs/news/meet-boh-runga-aiora-creative-director-and-ambassador?utm_source=Klaviyo&utm_medium=campaign&_kx=-QmPWLDRWciaxz4ehS6wfC7mcfImLQJFf1sn7KDRcKs.T7LbhD

Feels a little like desperation to me to be honest.

Pretty standard tactic these days for companies to use to promote their products however the AiOra products aren't going to drive this company to where it should be, just a sideline IMO.

I am looking forward to PAZ's agm on Thursday,especially their presentation outlook.A lot of exciting projects happening.
Just hope I am rid of my cold,otherwise I will watch online.
With Port Hills Road factory running at full speed,it will be interesting seeing how well,and how quickly Rolleston One
comes up to speed.


PharmaZen    Limited ( Company   ) , Annual Shareholders   ' Meeting will   be held on    Thursday, June 27   th , 2024, at 11:30
am at the  BNZ  Christchurch Partners    Centre ,  Level 4, 111 Cashel Street, Christchurch   and  online  at
www.virtualmeeting.co.nz/paz24   .

First 6 months revenue up 25% on same period last year.
Ministry of Primary Industries approval for Rolleston One factory completed.
Production to start there shortly.
Krill oil supplier's issues means PAZ's extraction plant is under utilised currently.
New products including for pets coming to market over the next few months.
Board renewal under way.

Quote from: lorraina on Jun 27, 2024, 01:08 PMFirst 6 months revenue up 25% on same period last year.
Ministry of Primary Industries approval for Rolleston One factory completed.
Production to start there shortly.
Krill oil supplier's issues means PAZ's extraction plant is under utilised currently.
New products including for pets coming to market over the next few months.
Board renewal under way.

Yes, and the comment was made that this supplier is unlikely to get their boat in the water next year. I think they need to find an alternative supplier. How long are they willing to wait for this one to start supplying product?

Some good stuff going on but I don't expect any sp appreciation anytime soon. Passing resolution 6 without anyone even discussing it is most disappointing, if you want to drive value and believe in the company then why drop option exercise price from 66c to 25c, im unimpressed with the signal that sends.
One poster on the other channel thinks that we might get back to $1 in a few yrs time all going well, once again not very aspirational, $1 in a year would be more in line with believe in better I would have thought.

Quote from: Breezy on Jun 27, 2024, 01:22 PMSome good stuff going on but I don't expect any sp appreciation anytime soon. Passing resolution 6 without anyone even discussing it is most disappointing, if you want to drive value and believe in the company then why drop option exercise price from 66c to 25c, im unimpressed with the signal that sends.

I did notice that there was silence initially around this one. When he asked for someone to second that resolution, nobody responded for some time, until a woman eventually said she would second it. I was expecting at least some discussion after that, but as you say, none was forthcoming. Maybe those present were just not game to speak up? I thought there might be some commentary with regard to the proxy votes - as in, how many voted for or against it, but that didn't happen either. No idea how the presentation of proxy votes works, but I thought it would be done differently.

Quote from: Untamed on Jun 27, 2024, 01:47 PMI did notice that there was silence initially around this one. When he asked for someone to second that resolution, nobody responded for some time, until a woman eventually said she would second it. I was expecting at least some discussion after that, but as you say, none was forthcoming. Maybe those present were just not game to speak up? I thought there might be some commentary with regard to the proxy votes - as in, how many voted for or against it, but that didn't happen either. No idea how the presentation of proxy votes works, but I thought it would be done differently.

I didn't bother submitting an online question regarding this because the questions I submitted last year were ignored so couldn't be bothered this time, dare I say that the AGM reminds me very much of an "Old boys club" on the whole.

Take a look at the depth on the offer side compared to the bids, never mind im sure there will be some staff options up for sale at 25c coming up (Sarcasm intended)

Quote from: Untamed on Jun 25, 2024, 10:20 AMNew campaign for AiOra, and new product range, just released:

https://aioranz.com/blogs/news/meet-boh-runga-aiora-creative-director-and-ambassador?utm_source=Klaviyo&utm_medium=campaign&_kx=-QmPWLDRWciaxz4ehS6wfC7mcfImLQJFf1sn7KDRcKs.T7LbhD

Feels a little like desperation to me to be honest.

Aiora is a complete joke....the face of the brand is Boh who?  If I recall correctly it was mentioned in the meeting that Aiora wasnt expect to create huge revenues so why bother doing it?  Is Aiora responsible for the higher than expected marketing costs

Quote from: Breezy on Jun 27, 2024, 01:53 PMI didn't bother submitting an online question regarding this because the questions I submitted last year were ignored so couldn't be bothered this time, dare I say that the AGM reminds me very much of an "Old boys club" on the whole.

I think this company deliberately avoids answering questions and putting out information with any substance behind it.  Alot of spin doctoring goes on for sure.

Only good thing that came out from the meeting was the Chairman stepping down. He should be embarrassed about the way this company has (not) promulgated information, his presentation lacked any enthusiasm, used the word "excited" about the future but certainly didn't exude it.  Shame he is staying on the board.  Hopefully the new Chair will make a difference.  The AGM gave little inspiration and go the sense they were just going through the motions

Quote from: Monty on Jul 02, 2024, 08:36 AMI think this company deliberately avoids answering questions and putting out information with any substance behind it.  Alot of spin doctoring goes on for sure.

Only good thing that came out from the meeting was the Chairman stepping down. He should be embarrassed about the way this company has (not) promulgated information, his presentation lacked any enthusiasm, used the word "excited" about the future but certainly didn't exude it.  Shame he is staying on the board.  Hopefully the new Chair will make a difference.  The AGM gave little inspiration and go the sense they were just going through the motions

Are you a holder yourself? Just a big patience game for me, once it hits my avg buy in price I will assess whether or not I can see the company fulfilling anywhere near the potential I think it can or not. Apart from the impacts of Covid the level of the current sp is abysmal to say the least.

With Rolleston One factory [Tawhiri] due to be operational shortly, new product AiOra launches in Korea and China, together with pet range launch via three online platforms in China,I expect more information will be shared with shareholders in future.
What has never changed is the demand and opportunities for PAZ products.

Managing Director's agm presentation starts at page 22.
https://prod-trade.usx.co.nz/api/file/667ce944dc9e0482a73b9fa3.pdf

Quote from: lorraina on Jul 02, 2024, 02:32 PMWith Rolleston One factory [Tawhiri] due to be operational shortly, new product AiOra launches in Korea and China, together with pet range launch via three online platforms in China,I expect more information will be shared with shareholders in future.
What has never changed is the demand and opportunities for PAZ products.

Agree with your last sentence but I guess its all about execution at the end of the day, like any athlete having done all the training they have to execute their potential come competition day otherwise its just theoretical.

Lol someone bidding for 50k shares at 25c, just waiting for those employees keen to ditch there newly minted 25c options.

Quote from: Breezy on Jul 02, 2024, 02:06 PMAre you a holder yourself? Just a big patience game for me, once it hits my avg buy in price I will assess whether or not I can see the company fulfilling anywhere near the potential I think it can or not. Apart from the impacts of Covid the level of the current sp is abysmal to say the least.

Yes, a long time very minor shareholder who has in more recent times started taking notice of what (or isn't) with PAZ.
I am not convinced by the China pet market, their economy is not as buoyant as it used to be so cant see how they expect to succeed when others in the pet product space are feeling the pain.  I am sure I heard it said during the AGM that Aiora wasn't expect to generate high revenues - so why do it?  Is this where marketing costs are up?  Doesn't make sense.

There is a definite trend in the annual reports where a raft of things are reported to be going to happen but very little evidence of execution in subsequent reports.

Time to stop blaming Covid disruption and get on with completing the projects

Quote from: Monty on Jul 07, 2024, 07:08 PMYes, a long time very minor shareholder who has in more recent times started taking notice of what (or isn't) with PAZ.
I am not convinced by the China pet market, their economy is not as buoyant as it used to be so cant see how they expect to succeed when others in the pet product space are feeling the pain.  I am sure I heard it said during the AGM that Aiora wasn't expect to generate high revenues - so why do it?  Is this where marketing costs are up?  Doesn't make sense.

There is a definite trend in the annual reports where a raft of things are reported to be going to happen but very little evidence of execution in subsequent reports.

Time to stop blaming Covid disruption and get on with completing the projects

Has been a very frustrating hold for sure especially with a big holding. I once thought this could be a $3 share but I highly doubt that now and if it snails its way back to $1 in a couple of years that could be as good as it gets. As we all know not every company reaches its true potential and missing the timing to do just that is often the reason.

Does any one have access to this NBR article and can share it with us.?


NBR

YOUR BUSINESS



Waitaki Biosciences' heavy capital investment starts to pay off



The nutraceutical pioneer is launching its own branded range into China after boosting manufacturing capacity.

When does the first half result come out?

Welcome to Stock Talk.

Last year it was on 14th August.
Year before 15th August.

Result out. Progress but still running on 3 cylinders.

The first six months of the year are typically the most challenging and this year was made
particularly difficult with supply issues for our krill extraction business as a result of our krill
supply partner's delays with their new boat. The fact that sales are up with the extraction plant
that produces the krill products operating at very low levels reflects the strength of our other
ranges.
Outlook
The increase in capacity the company has put in place and the continuing strong demand we are seeing
from our customers puts the company in a great position to achieve increased sales and profitability in
the second half and into the next financial year and beyond. Ken Fergus commented that "Our challenges
are around maintaining our high standards of product quality and carefully managing capex as we get
Tawhiri rolling. We are very excited by the potential of the new opportunities we see in our markets and
are confident that we have the right people and processes in place to benefit from these new
opportunities".

Still quite some time away from getting any sp traction as no real interest from punters at this point.

PAZ had delay after delay building their new factory.
Pity their Kril supplier had even more delays getting their new ship built.
In the meantime their other plant has to carry the business.
No news about their new product launches.Perhaps an update in a couple of months would be warranted.

Quote from: lorraina on Aug 16, 2024, 09:43 AMThe first six months of the year are typically the most challenging and this year was made
particularly difficult with supply issues for our krill extraction business as a result of our krill
supply partner's delays with their new boat. The fact that sales are up with the extraction plant
that produces the krill products operating at very low levels reflects the strength of our other
ranges.
Outlook
The increase in capacity the company has put in place and the continuing strong demand we are seeing
from our customers puts the company in a great position to achieve increased sales and profitability in
the second half and into the next financial year and beyond. Ken Fergus commented that "Our challenges
are around maintaining our high standards of product quality and carefully managing capex as we get
Tawhiri rolling. We are very excited by the potential of the new opportunities we see in our markets and
are confident that we have the right people and processes in place to benefit from these new
opportunities".

Still in a bit of a holding pattern at the moment. Problem with Kril vessel is well known. 

But once this thing starts firing on all 8 cylinders it will be all go.

Quote from: Minimoke on Aug 16, 2024, 12:03 PMStill in a bit of a holding pattern at the moment. Problem with Kril vessel is well known. 

But once this thing starts firing on all 8 cylinders it will be all go.

OK its a V8 and here is me thinking it was only a 4 cylinder model, happy to be corrected.

Quote from: Breezy on Aug 16, 2024, 02:07 PMOK its a V8 and here is me thinking it was only a 4 cylinder model, happy to be corrected.

Its got 4 cylinders at its Heathcote site and another 4 out in Rolleston. (with the ability to stick a turbo charger on Rolleston at some point)

https://prod-trade.usx.co.nz/api/file/66be6f290c033b1c231d90cf.pdf
EBITDA of $620K  Doesn't sound too bad but what they don't tell you is this.
Last year, (straight out of 2023 financial statements), interest was $1.6m and depreciation was $3.037m
A straight extrapolation of that and halving it suggests approximate Interest of $800K and Depreciation of $1.5m this half.
Take those off EBITDA and that suggests a Net Loss of approx $1.68m for the half year

VERY LONG road ahead before, (if it ever achieves that), this gets back to the profitability enjoyed before Covid in 2020  EBITDA of $6.7m and Net profit after all expenses of $5.2m  file:///C:/Users/user/Downloads/664fccc2122d5d9abc615645_FY20-PharmaZen-Annual-Report-Final%20(1).pdf

I keep a watching brief, but sorry, I still see no good reason to buy back in and still think this is highly speculative and unlikely to turn a reasonable sized profit in the foreseeable future.  The share price used to be, (past tense), supported by real earnings and that, in my opinion made it investable, but now all that's supporting it is the hope that things will improve.  Sure...production will ramp up in the future but so will processing costs, human resource and marketing costs, insurance, rates and so on...

Quote from: Basil on Aug 16, 2024, 08:58 PMhttps://prod-trade.usx.co.nz/api/file/66be6f290c033b1c231d90cf.pdf
EBITDA of $620K  Doesn't sound too bad but what they don't tell you is this.
Last year, (straight out of 2023 financial statements), interest was $1.6m and depreciation was $3.037m
A straight extrapolation of that and halving it suggests approximate Interest of $800K and Depreciation of $1.5m this half.
Take those off EBITDA and that suggests a Net Loss of approx $1.68m for the half year

VERY LONG road ahead before, (if it ever achieves that), this gets back to the profitability enjoyed before Covid in 2020  EBITDA of $6.7m and Net profit after all expenses of $5.2m  file:///C:/Users/user/Downloads/664fccc2122d5d9abc615645_FY20-PharmaZen-Annual-Report-Final%20(1).pdf

I see no good reason to buy back in and still think this is highly speculative and unlikely to turn a reasonable profit in the foreseeable future.  The share price used to be, (past tense), supported by real earnings and that, in my opinion made it investable, but now all that's supporting it is the hope that things will improve.  Sure...production will ramp up in the future but so will processing costs, human resource and marketing costs, insurance, rates and so on...

Yes a long road but definitely not highly speculative, its a long term well established business thats sells products which are essential for other companies to survive. Add to that the fact that directors have major skin in the game and of course they are not alone. Cast your mind back to a certain company that sells cars that was a total right off and the biggest dog on the block in your own words, things change although often not as quickly as we would like.

To be fair, Turners was always making a profit. Tina has been a game changer.
I hope PAZ finds a game changer somewhere in its portfolio of products.   Maybe the new pet treats? Good luck with it mate.

Since 1 January 2024 a tiny $36,000 of PAZ shares have traded on USX. The very definition of a non-liquid market, lacking any depth at all. Couple that with the near total lack of communication/updates from PAZ and there is simply no reason for a new investor to join this party and ample reason to avoid it. Not good for those holding PAZ.           

Quote from: Nizzy on Nov 16, 2024, 11:04 AMSince 1 January 2024 a tiny $36,000 of PAZ shares have traded on USX.

That is the worst case of illiquidity I can ever recall for any 'listed" entity. 

PAZ are having a 30% off Black Friday promotion for their AiOra products.
www.aioranz.com

Bit of news:  https://www.beehive.govt.nz/release/squeezing-more-bang-buck-blackcurrants (https://www.beehive.govt.nz/release/squeezing-more-bang-buck-blackcurrants)

Looks good. Not so good is rumours of redundancies?

Waiting for something to come out from the new Chairman.  Terrible reporting as usual.  Suspect it is another case of not much good news to report so have to construct a careful veiled report with little substance

Redundancies???.....never a good sign

PharmaZen Limited Press Release
19 December 2024
Christmas and almost the end of another financial year has rolled around fast in 2024. At Board level
we farewelled Ken Fergus last month which followed Peter Dobbs retirement in June and the
appointment of Jessie Chan in February. So, this is my first letter to Shareholders in what has been a
challenging year, featuring positives and negatives in equal measure in your Company's progress.
Waitaki continues to adapt to changed market circumstances, both in the form of valuable new
opportunities whilst working to mitigate ongoing raw material supply challenges. As you would
expect, cash is being very carefully prioritised to the highest value opportunities across product
development, market development and new manufacturing facilities.
The Board is grateful for Craig's leadership and energy stepping up to the short-term challenges while
not losing sight of the long-term opportunities. It is also appropriate to acknowledge the huge efforts
this year of all staff, who tirelessly meet often changing customer and shipping deadlines, without
losing sight of quality and safety.
I will provide a further update in March with a detailed snapshot of 2024 financial performance. Until
then, I thank you for your support and wish you all a joyous holiday period and a prosperous, positive
2025.
Vincent Pooch
Chair of PharmaZen Limited

Quote from: lorraina on Dec 19, 2024, 12:34 PMPharmaZen Limited Press Release
19 December 2024
Christmas and almost the end of another financial year has rolled around fast in 2024. At Board level
we farewelled Ken Fergus last month which followed Peter Dobbs retirement in June and the
appointment of Jessie Chan in February. So, this is my first letter to Shareholders in what has been a
challenging year, featuring positives and negatives in equal measure in your Company's progress.
Waitaki continues to adapt to changed market circumstances, both in the form of valuable new
opportunities whilst working to mitigate ongoing raw material supply challenges. As you would
expect, cash is being very carefully prioritised to the highest value opportunities across product
development, market development and new manufacturing facilities.
The Board is grateful for Craig's leadership and energy stepping up to the short-term challenges while
not losing sight of the long-term opportunities. It is also appropriate to acknowledge the huge efforts
this year of all staff, who tirelessly meet often changing customer and shipping deadlines, without
losing sight of quality and safety.
I will provide a further update in March with a detailed snapshot of 2024 financial performance. Until
then, I thank you for your support and wish you all a joyous holiday period and a prosperous, positive
2025.
Vincent Pooch
Chair of PharmaZen Limited

Sounds like a happy chair addressing undemanding share holders. Did he write that after the Christmas Function - or is this the way they keep the market informed?

Quote from: BlackPeter on Dec 19, 2024, 01:31 PMSounds like a happy chair addressing undemanding share holders. Did he write that after the Christmas Function - or is this the way they keep the market informed?

Its not really an "update" - so I dont know what his "further" one will be.

The moment you see "safety" in an announcement you know the corporate mumbu jumbo deflections are in full swing.

Terrible announcement - waste of time with no meaningful info.

What a way to introduce yourself as the new chairman.

While it is disappointing to get no news and probably means a poor result, I think Vincent Pooch is a very good operator and a huge upgrade on the previous chair. Expecting a lot more clarity in March.

Appalling lack of detail, symptomatic of the previous chairs reports.

Nothings changed.  Expect to read excuses for all the initiatives reported at the last AGM

Any news on the March announcement promised by the new chair? Pretty sure it's April now...

Quote from: lorraina on May 29, 2024, 05:39 PMLooking Ahead
With end customer demand continuing to be strong, we go into 2024 with considerable optimism.
New opportunities are arising in and around our consumer product ranges with AiOra set to receive a significant push in
2024. New Zealand music icon Boh Runga is taking on an ambassador role fronting our range extension into glandulars.
The AiOra range was developed to access the non-ingredient markets in Southeast Asia, and it is pleasing to note that we
will have products in both China and Korea this year.
The pet range will be launched across three online platforms in China in July. In conjunction with our Chinese partner
significant work has gone into finalising packaging, product and distribution channels.
Challenges with trademark registration will see the range marketed as Waitaki Pet and we are enthusiastic about the initial
feedback and potential

I wonder how all of these opportunities have rolled out - surely there is something good to report, didnt the Christmas message from the Chair say there was going to be something in March? (I still fail to see how a 2nd rate music icon can be the face for a supplement brand)

Comment made on the Sharetrader forum of a rumour of "trouble at the mill"

Shouldn't be surprised really, I doubt few if any of the initiatives mentioned last year have come to anything, if they had there would have been some positive interim releases by now

Wasn't there a new freeze drier damaged in transit last year, has it been repaired, installed & producing?

Is the Rolleston plant producing product, is it even occupied?   I am not expecting a good report in this space

We are getting into the territory of the Annual Result announcement (which is always ridiculously late). Typically comes out late April to mid May.

Half expected to be today to slip under the Easter radar.....

The heat has gone out of the petfood job - so would be interesting to get some commentary around Rolleston. As a bit of a guide (paywalled) https://www.nzherald.co.nz/hawkes-bay-today/news/ziwi-nzs-biggest-pet-food-factory-reduces-production-amid-drop-in-demand/PJ2DCDMOVFEJBCW3NS447RHAAU/

Plenty of new facilities and exporters now in that space, and freeze-dried isn't as "special" as it once was.

Looks like Cibus have lost interest in their investment??

Looks as though Rolleston has been "mothballed",without ever starting production.
Port Hills Road factory still operating,however I notice fewer workers' cars in their car park.
Big ask for Port Hills factory to cover Rolleston capital equipment spend.

Oh dear I am genuinely sorry to hear that.  Sounds grim.  I've seen this so many times in my career with small companies.  They try and grow too fast, and the wheels come off.  I hope it works out okay for shareholders.

Update looks good

https://prod-trade.usx.co.nz/api/file/6808724337f7103db765a89d.pdf

PharmaZen Limited Press Release
23 April 2025
Dear Shareholders,
As noted in my December 2024 letter, the 2024 financial year presented both significant challenges and notable
achievements for our Company.
The second half of 2024 demonstrated a positive trajectory, with unaudited sales increasing by over 20% on the
first half and unaudited underlying EBITDA more than doubling compared to the first half. These results reflect
encouraging progress in our operations. However, full-year sales grew by only 4% compared to 2023, falling short
of our expectations due to supply chain constraints affecting our key krill-based product line. Consequently,
underlying EBITDA for the year declined by approximately 50% compared to the prior year. We are currently
finalising year-end processes with our auditors and will provide a comprehensive report once audited figures are
available.
It is appropriate to update shareholders on the impact of Tariffs in the US. New Zealand now has a 10% tariff on
material going into the USA, however there are significant exemptions available that will limit the impact. As it
stands today, we expect the tariff costs to sit with the customers.
We believe the current tariff landscape presents a compelling opportunity. With trade between China and the US
facing significant tariffs it is increasingly unsustainable for companies in those markets to maintain
competitiveness without adapting their manufacturing strategies.
As a result, we expect a growing number of U.S. and Chinese companies to actively seek offshore production
solutions to protect market share. New Zealand's strong regulatory reputation, tariff advantages and premium
production capabilities position us as a highly attractive partner for these manufacturers. We are well-placed to
capitalise on this shift.
Looking ahead, we are excited to announce a new Joint Venture with a leading Australasian pet care distributor to
manufacture pet treats and supplements for distribution through their network. This initiative, developed as part
of our long-term strategy, holds significant potential for expansion beyond Australia and New Zealand. We
anticipate this partnership will become a meaningful contributor to our future revenue streams.
We remain committed to addressing challenges and capitalising on opportunities to drive sustainable growth.
Thank you for your continued support.
Vincent Pooch
Chair of PharmaZen Limited

Sounds like an opportunity to turn the lights on at the Rolleston plant.

I think if PAZ can secure a steady supply of Kril we will see Rolleston open.
The Rolleston extraction area is huge and I would guess it was built for kril.
Should the new partnership for pet treats and supplements turn out profitable, I think we could see PAZ being the company that originally attracted us to them.So much potential.
Keeping the company afloat with Covid,shipping issues,supply issues,must have been a huge challenge for the directors and management.

Every company has challenges. Honesty and clarity are also important. There doesn't seem to be much historically when one reviews reports and announcements - I'm hoping the new chair fixes that starting with the annual report and AGM.

Quote from: lorraina on Apr 18, 2025, 10:43 AMLooks as though Rolleston has been "mothballed",without ever starting production.
Port Hills Road factory still operating,however I notice fewer workers' cars in their car park.
Big ask for Port Hills factory to cover Rolleston capital equipment spend.

Hilarious I thought something had to be operational before it could be mothballed.  Rolleston hasn't been finished despite claims it would be in July, albeit partially.

They raised $3m to get the RMP in place...turns out to be a waste of money if you are not producing saleable product

They made a point of claiming to being committed to providing updates on progress and potential - well there's fail #1

Suggests to me that they have little if anything that's worth reporting

Last AGM listed China Pet product launch, Aiora (Never been convinced of this endeavor and Boh who? the brand ambassador)

What about gummies, collagen for Korea, Keratin & Ovine collagen, all reported at the last AGM...were these real opportunities or just the AGM slide show with things they think they would like to do.

Does this company actually finish anything?

Quote from: lorraina on Apr 24, 2025, 04:19 PMI think if PAZ can secure a steady supply of Kril we will see Rolleston open.
The Rolleston extraction area is huge and I would guess it was built for kril.
Should the new partnership for pet treats and supplements turn out profitable, I think we could see PAZ being the company that originally attracted us to them.So much potential.
Keeping the company afloat with Covid,shipping issues,supply issues,must have been a huge challenge for the directors and management.

Covid was so long ago.....time to stop using this as an excuse for not finishing projects

Quote from: lorraina on Apr 23, 2025, 06:33 PMConsequently,
underlying EBITDA for the year declined by approximately 50% compared to the prior year.

Some people seem to have tried to put a positive spin on the recent company announcement but as I see it, this is a pretty dire situation.  Halving EBITDA from last year's appallingly low figure and then factoring in higher depreciation for all the extra plant and equipment and also deducting interest costs means the company is likely to be trading at quite a significant loss for the year ended 31 December 2024 and may in fact be struggling to stay afloat.  It would appear they simply don't have the resources to finish projects and now they don't have the track record of profitability to enable them to borrow more either.  Trading in the shares is now nonexistent, so the chances of a capital raise also appear very slim. As some have noted, there's a lot of talk, about a lot of future plans and things, but as we all know already, talk is cheap and there's very little follow through and delivery.  I'd be recalibrating my expectations to a very low level if I was still a shareholder.    Good luck guys.

PharmaZen Limited Press Release
12 May 2025
Dear Shareholders
PharmaZen faced a challenging trading year in 2024, as previously communicated.
We are working with our auditors to finalise technical matters in our year-end financial statements with one
material item remaining outstanding. This item is technical in nature and will not impact any previous guidance
on Sales or Underlying EBITDA.
We expect this to be resolved within the next two weeks, allowing us to release our Annual Report to shareholders
by 30 May 2025.
We will provide further updates if this timeline changes

Sounds like some quite significant NON-CASH writeoffs coming uo

Or even worse discussions around whether they still a 'going concern'

For a small business, each year they seem to have technical accounting issues that creates a delay in presenting their accounts.

I reckon it will have something to do with the asset value of Rolleston and CIBUS.

Might be worth mentioning (again in 2021 their year end report was published 22 April, in 2022 it was 29 April, in 2023 it was 10 May. In 2024 it was 29 May. And in 2025 it appears to be by 30 May.

Quote from: winner (n) on May 12, 2025, 11:43 AMSounds like some quite significant NON-CASH writeoffs coming uo

Or even worse discussions around whether they still a 'going concern'

A tagged auditors report with concerns around going concern considerations wouldn't surprise me at all. 

PharmaZen Limited Press Release
23 May 2025
Dear Shareholders,
Cibus Oscar Ltd., holding 35,000,000 Redeemable Convertible Preference Shares (RCPS), has issued a
redemption notice to convert these shares into debt.
We have not opposed the notice, as the RCPS have created ongoing challenges with annual valuations and
finalising accounts with auditors.
The company is currently in discussions with Cibus Oscar Ltd and external advisors regarding the valuation of
the RCPS and has requested that USX impose a trading halt on its shares.
Vincent Pooch
Chair of PharmaZen Limited

Just out of curiosity, what have the last few share transactions been priced at ?

Quote from: Basil on May 26, 2025, 03:27 PMJust out of curiosity, what have the last few share transactions been priced at ?

.20

We are getting into the same problematic territory as we did last year. The AGM has to be done by the 30 June 2025. And they have to give 21 days notice. the clock is ticking and not giving shareholders much time to consider any proposed resolutions.

PAZ fined $7,500 by FMA for late filing of Accounts

Quote from: winner (n) on May 30, 2025, 11:55 AMPAZ fined $7,500 by FMA for late filing of Accounts

There is zero excuse for that. They are a small company and the accounts ought not be that complex.

This years AGM will be interesting.

Pleasing their bank is still supporting them.

PharmaZen Limited Press Release
30 May 2025
Dear Shareholders,
As noted in our release of 12 May 2025 we have been working with our auditors to finalise the financial statements
to 31 Dec 2024.
As previously released to the USX, CIBUS Oscar Limited has issued a redemption notice which on implementation
will create a liability for the Company. Until that liability is known or unlessCIBUS withdraw the redemption notice
the auditors will not be able to give a clear audit report. We have been working to try to resolve this, but this has
taken longer than anticipated so as a result, we advise that the release of our Annual Report will be delayed to no
later than 6 June 2025, rather than 30 May as previously indicated.
The delay has resulted in a $7,500 infringement notice from the Financial Markets Authority (FMA) for late filing
per the link below
https://www.fma.govt.nz/news/all-releases/media-releases/fma-issues-infringement-notice/
The FMA's notice refers to delays caused by negotiations with our bank in relation to the going concern
assessment. These banking matters were resolved in early May, and we continue to have the support of our bank.
The CIBUS redemption notice relates to two matters from 2024, and we were disappointed at the timing of receipt
of this given how late we were in the audit process. While we had anticipated resolving these matters through
negotiation, they remain ongoing.
We will provide a full update on the company's financial position with the release of the financial statements on
or before 6 June 2025. At that time, we also expect the current trading halt to be lifted.
Thank you for your continued support and patience.
Vincent Pooch
Chair of PharmaZen Limited
Further information:
Craig McIntosh
Managing Director
PharmaZen +64 21 372 069

Once may be forgivable. Two shows a problem. Three times is a trend. There is just no excuse for such poor accounting behaviours. On top of their very poor December update. The Board need to pull their socks up!

"Pharmazen has not yet filed audited financial statements for the year ended 31 December 2024 that were due by 30 April 2025, as required under section 461H of the Financial Markets Conduct Act 2013 (FMC Act).  It was also late to file financial statements in 2024 and 2023. "

Dear Shareholders,
The finalisation of our 2024 year-end accounts has been delayed, primarily due to a redemption
notice from our private equity investor, CIBUS Oscar Limited. We are writing to provide clarity on
this issue, the resulting adverse audit report, and the Board's response to the CIBUS notice.
Background and Audit Delay
The adverse audit report stems from uncertainty over the redemption value of the CIBUS
Redeemable Convertible Preference Shares. Without an agreed value, the auditors could not provide
a definitive opinion. This uncertainty arose after CIBUS issued a formal redemption notice early in
May 2025, unexpectedly and without prior discussion, during the last phase of the audit process.
Our partnership with CIBUS was intended to support the expansion of our extraction business, driven
by projected growth from our krill supplier, who were constructing a new vessel. Although the
vessel's hull was launched in 2021, COVID-related disruptions, significant cost overruns, delays and
related litigation led to the shipyard selling the vessel to a competitor in 2024. As a result, the
extraction business, turning over $9 million in 2021 and expected to double, ceased operations
entirely by the end of 2024. Despite growth in other areas, the partnership has not delivered the
anticipated outcomes for either party.
CIBUS's Redemption Notice and Offer
The subscription deed clearly outlines a process for determining the fair value of CIBUS's preference
shares. The Board sought to follow this process to reach a commercial resolution, however, CIBUS
proposed a redemption value approximately 60% above the audit approved valuation (as of
31 December 2024). We consider this non-commercial and unsupported by a fresh valuation as of
the redemption date.
Board's Response
The Board, comprising two independent directors and two major shareholders has acted with
integrity and resilience, refusing to accept a non-commercial offer that would disadvantage
shareholders.
We acknowledge that accepting CIBUS's terms would have expedited the audit process, however in
doing so would have compromised our fiduciary duty to you. Instead, we are pursuing a fair
valuation process, as required by the subscription deed and remain open to constructive dialogue
with CIBUS to resolve this matter.
Financial Statements
Arising from the notice of redemption from CIBUS, received in the midst of the audit process, the
auditors could not gain certainty on the debt to CIBUS resulting from that notice. This was critical in
assessing liabilities of the Company and as a result, the auditors could not give a clear audit opinion
and there was a delay issuing their audit report. This also caused delays resulting in the FMA fining
the Company for not filing audited financial statements on time.
About PharmaZen:
PharmaZen (USX.PAZ), which trades as Waitaki Biosciences, is an innovative developer, manufacturer and marketer
of science-based, natural, nutritional ingredients and consumer goods. Originally founded in Dunedin, PharmaZen
now has the largest solvent extraction facility in the country and operates the largest batch freeze dryer in
Australasia. Shares in PharmaZen are traded through the Unlisted securities trading platform.
Waitaki Biosciences a division of PharmaZen Limited
320 Port Hills Rd, Hillsborough 8022
Christchurch, New Zealand
P : + 64 (3) 337 6096
W : www.waitakibio.com | www.aioranz.com
Next Steps
We regret the delay in finalising the accounts and are working diligently to address the outstanding
issues. At the upcoming Annual Shareholders' Meeting we will provide further details on the
Company's performance, the opportunities ahead and our strategy to strengthen the business. We
encourage your support as we navigate this challenge and work to protect shareholder value.
Should CIBUS reconsider their approach and withdraw the redemption notice, it would facilitate a
prompt resolution and avoid further disruption. We remain committed to transparency and
welcome your questions at the ASM.

Annual Report
https://prod-trade.usx.co.nz/api/file/68412af016fc0d2a104781a6.pdf

Gone form a $5.2m profit to a $9.9m loss.

Capital raise on its way.

Margins shrunk.

Number of employees earning over $100k increased

Assets decreased by $3m, liabilities increased by $3m. $7m in receivables. $10m in payables. Cash on hand $95k

Inventory up $3m to $7.5m

Liabilities went from $11.7m to $41.8m

This is a very sad and distressing situation for many shareholders.  It is not my intention in any way whatsoever to rub salt into the wound.  Just post some thoughts as I see them that might be food for thought

It should be obvious to all experienced investors who know how to read a profit and loss statement and a balance sheet the company is in VERY deep trouble here and shareholders now face a classic conundrum of whether they throw good money after what will probably be bad, unless a successful capital raise can be progressed.   The situation with CIBUS is deeply problematic in the circumstances and indicative of a complete breakdown in the relationship.

My view, and I have more than 40 years experience as an accountant and investor, is that shareholders have been very badly let down over the years.  They had, what was once a company growing well with growth in top line sales and real earnings per share growth, brought to its knees by a bunch of directors who's plans for growth were simply far too ambitious.  Covid and all the issues around that, got in the way and should have been a salient warning of the risks but the directors ploughed ahead with relentless high growth ambitious and have encountered numerous other challenges flowing from that.

Directors often cited great level's of demand, implying it was far in excess of their ability to supply at times, (something I often tell clients is easily fixed very profitably with price increases), but these directors knew better until they don't and now find themselves on the brink of receivership coming cap in hand to the same shareholders they have so very poorly communicated with in recent years.  I also note much higher inventory this year which means investors may have been deliberately mislead with statements implying no shortage of demand.

I am glad I am not in the invidious position of deciding whether I should throw good money after bad. The key questions investors need to answer is firstly, Do the directors deserve another chance ?  Each investor will need to make their own mind up about that.   Secondly at an operational level is the business viable ? Looking at the financials' I would not put up a bid for any volume even at 1 cent per share, its that bad in my view. I note annual operational losses, (excluding all one off items of circa $4.5m in FY24).

They remaining trading at the behest of their bankers but with circa $25m owing and incurring losses and in breech of their banking obligations and without a waiver, for how much longer ?  Without a successful capital raise and it should be no surprise to anyone what the bankers will do shortly thereafter.  Selling surplus property plant and equipment can take a long time and if I were lead on the banking committee, without a decent sized capital raise, I'd be looking to be in charge of the process under administration and / or receivership.

This is just my view and others will see it differently. Good luck to all shareholders.

Disclaimer. The above is not professional advice or a recommendation on what to do..  Where its financially worthwhile to do so and you want professional advice, investors should seek guidance from a highly experienced professional advisor.  All investments involve risk.  DYOR and take advice as required.

A lot of water to go under the bridge..??..lol.
Currently their equity ratio is 30.15%.
The huge increase in current liabilities needs an urgent capital raise.
We are now near PAZ's first half ending at the end of month, yet no mention has been made of how they are trading.
A big hole in their revenue was the loss of their Kril supplier.They have a new supplier,but again no mention has been made of how that is progressing.
The pet food partnership looks interesting but it will be sometime before we hear how that is going,and how profitable it is.
$30mil revenue out of the Port Hills Road set up is an achievement.
The land they have for sale at Rolleston should be easily sold as Rolleston is still growing rapidly.
The capital raise on Unlisted will be a challenge.
Going to be an interesting AGM..lol.

Had another skim read.  Gosh, I initially didn't realize the terms of those preference shares include redemption for cash in certain liquidity events.  It would seem to me CIBUS want cash, not the preference shares converted into ordinary shares.  Not sure how they will raise sufficient funds to pay CIBUS back, get their bank facility down and have sufficient working capital to continue operations.  Maybe a 1:1 cash issue at 10 cents but how many shareholders would support that ?

2025 Annual Shareholder Meeting
Tuesday, July 15 2025 - 11:00am
Annual Meeting

The Annual Meeting of Shareholders of PharmaZen Limited will be held at the Rakaia Room at the Novotel Christchurch Conference Centre, 52 Cathedral Square, Christchurch and online at www.virtualmeeting.co.nz/paz25 on Tuesday, July 15, 2025 at 11:00 am (New Zealand time). If you will be attending online, you will require your CSN/Holder Number for verification purposes.

I see the share price has tanked to 10 cents - Hope to see honesty and real questions at the ASM rather than propaganda

Quote from: Doozer on Jul 05, 2025, 12:11 PMI see the share price has tanked to 10 cents - Hope to see honesty and real questions at the ASM rather than propaganda

They will have to come up with some clever smoke and mirrors at the AGM to deflect this lot.

I wonder if this is a deliberate move to devalue the shares so as to deter CIBUS from exiting?

Quote from: Monty on Jul 06, 2025, 05:47 PMThey will have to come up with some clever smoke and mirrors at the AGM to deflect this lot.

I wonder if this is a deliberate move to devalue the shares so as to deter CIBUS from exiting?

The AGM;s eh.

Where we we told there were no issues at all with the CIBUS referential share options as the triggering events would never happen/

How CIBUS were great investment partners and would bring a wealth of experience and access to many more international markets.

Manufacture isnt the problem - we have way more demand than we can produce.

I was seriously unimpressed with the Chairs market update in December. They better pull up their socks!

Quote from: Minimoke on Jul 07, 2025, 09:15 AMThe AGM;s eh.

Where we we told there were no issues at all with the CIBUS referential share options as the triggering events would never happen/

How CIBUS were great investment partners and would bring a wealth of experience and access to many more international markets.

Manufacture isnt the problem - we have way more demand than we can produce.

I was seriously unimpressed with the Chairs market update in December. They better pull up their socks!

Risk has been very badly mismanaged over the years.  Unless there's support for a major capital raise ...I think its pretty clear what's going to happen.

Quote from: Basil on Jul 07, 2025, 10:38 AMRisk has been very badly mismanaged over the years.  Unless there's support for a major capital raise ...I think its pretty clear what's going to happen.

Last time we were told there was no appetite from existing shareholders to put money in -- that's why they went to Cibus.

Bit of a shame they sold part of the Rolleston site. No asset. And an insurance overhead/. With no apparent production coming from it. A bit like Synlait - a big pile of stainless steel.

Directors hold huge stakes and are unlikely to be in a position for a large pro-rata cash issue.

A very dire situation.  I doubt the bank will continue support without a substantial capital raise so unless a white knight can be found and unless Cibus and the bank can be accommodated as part of that...

QuoteBlueBell - Other Channel. Not all of this current situation is to do with things outside of their control. Sure, we had Covid and all of the issues that went with that, however that's long over and they can't continue to use that excuse. Sure, the loss of the krill business hasn't helped however what about all of the "exciting opportunities" mentioned in previous AGM's that don't appear to have transpired (why not?). There been little reported if any on new products. Aiora is a flop, was even said in the last AGM they don't expect to make much from that....so why spend anything on it, how much do they spend on that brand ambassador every year?

Maybe the lack of reporting is really a reflection of the complete lack of progress - there is nothing to report!

Their inability to keep the CIBUS relationship going speaks volumes, both parties must have thought each other was worth it in the beginning right? There will be plenty of incompetence at BOD level involved here and very few completed projects.

Not much discussion on here about this and I note the annual meeting is tomorrow.  This post caught my eye and I pondered if by some miracle they could extricate themselves from their currently invidious financial position, why would anyone trust their latest stories of encouraging prospects when so many previously encouraging statements from the board have come to nothing ?   

Quote from: Basil on Jul 14, 2025, 01:03 PMNot much discussion on here about this and I note the annual meeting is tomorrow.  This post caught my eye and I pondered if by some miracle they could extricate themselves from their currently invidious financial position, why would anyone trust their latest stories of encouraging prospects when so many previously encouraging statements from the board have come to nothing ?   

There are, I believe, significant trust issues that must be resolved
- 3 years running failed to get Annual Reports done on time - inexcusable!
- failure to keep market (shareholders) properly informed. The December 2024 update for the Chair was an extremely poor output from new chair.
- Keeping market informed - they dont even have their 2024 Annual report up on their website yet!
- Failing to know what the business is. We are a raw material business with a never ending demand for our product. No, we are a health supplement business fronted by a wonderful pop singer. Nope we are a doggy treats business.
- failure to hear shareholder concerns about Cibus preference shares and saying, to para phrase " we dont envisage any situation where those shares will ever be called on"
- failure to keep shareholders in formed that the Rolleston site had been mothballed.

on a brighter note - it was reported that sales in 2nd half 2024 were significantly up. (which makes me wonder why they were down so much in first half - they better have an explanation for that.

Agreed. You'd have to be very "brave" to throw more money into this with their track record in recent years.  Such a shame.  They were growing top and bottom line very nicely several years ago. 

AGM this morning at 11am.

Holders should have got an email on how to join.

Should be interesting........  ;)

Coming away from the meeting I'm not sure I am any the wiser. Firstly I found craig quite hard to understand - he didn't seem as positive as he has been in prior meetings. I'll have to listen again on replay.

So out takes.

CIBUS has turned into a cluster. I gathered things weren't rosey this time last year - but clearly gone down hill since and relationship irretrievable. They are now discussing at what price CIBUS exits. The $quantum remains to be determined - but I think Craig made it quite clear that what ever was settled on would not trigger a liquidation / receivership event.

Capital raise - seems to be no one in actual discussions at the moment. Says existing Shareholders are being considered as an option

Banking facilities. Appears to have support of bank and these will be extended.

Rolleston site - appears there will be no product coming from there for at least 6 months. In the meantime lease and insurance has to be paid.

Port hills facility jam packed and humming.

New product wasnt a doggy treat - seemed more a doggy medicinal. They need to look beyond on customer. (This one customer / supplier approach needs to be overcome)

Inventory  appears to be krill. I dont get the story about the ship. Seems there is no shortage of ships harvesting krill.

Disappointing  only 2 Directors turned up - at least one was on a video feed.

Explained delaying getting accounts published (CIBUS) but I reminded a Director this is the third strike in a row.

No mention of Airoa - looks like this is dead and buried. No mention of blackcurrant, offal or other raw material supply.

H12025 appears to be worse than H12024. Which isnt good as it took H2 to get the tear end into the "decent" position it ended up in.

Craig seemed to think (in an illiquid market) the SP will be looking much better in the not to distant future.

In summary, seems like the big swinging brick / distraction is CIBUS. Get that out of the way and there will be a clearer picture of the P&L / Balance Sheet. And with those clear in a better position to chase a capital raise.

I get the sense the fat lady has pulled up into the car park. She is still a wee way off from warming up her vocals.

Thanks for that summary Minimoke  :)

PAZ ASM.
https://prod-trade.usx.co.nz/api/file/6875c70ff08b9c97ba5ed4b5.pdf

Good luck guys.

Quote from: Basil on Jul 15, 2025, 07:05 PMGood luck guys.

Luck is never a good investment strategy.

Overall I thought the AGM was another poor reflection of the company, lack of professionalism & disregard to shareholders, the information on the go forward was at best vague. Nothing on the "exciting" things that didn't work since last AGM and the whys (suggest nothing worked).  Now just jumping onto the next thing that might rescue them.

The sense I get is that they are trying to downplay the CIBUS situation.  I can't see that CIBUS will want to exit on book value ($3.7m) when they've put $10m into it. Clearly Wayne Burt has done a crap job of managing that relationship!!
PAZ reputation won't be great in the venture capital world after this is over

I am surprised there is no interest reported from their customer base or supplier base / meat companies. For sure other PE companies will be wary as relationships are key.

Quote from: Doozer on Jul 19, 2025, 08:44 PMm surprised there is no interest reported from their customer base or supplier base /

Many of their red meat suppliers at least have got their own (large) battles they are fighting at the moment.

Could be a good bolt-on if they had the cash, especially for pet treats/food and nutraceuticals. But with no real brand to go with it, then limited to the stainless steel.....

Seems to be no shortage of Krill to keeps PAZ's processing humming

https://apnews.com/article/antarctica-krill-whales-global-warming-fishing-boom-bd7708913cd1482ae190365b04d98ede

Good news - should be a good result for the first half based on krill oil production increasing?

Quote from: Doozer on Aug 01, 2025, 04:03 AMGood news - should be a good result for the first half based on krill oil production increasing?

I'm not sure how much krill Is actually being processed. We got this yarn about krill companies being at war with each other and a ship being cut in half and lengthened to spite another party. But trying to pin them down on raw material supply lines was a bit of a challenge.

Quote from: Minimoke on Aug 01, 2025, 06:44 AMI'm not sure how much krill Is actually being processed. We got this yarn about krill companies being at war with each other and a ship being cut in half and lengthened to spite another party. But trying to pin them down on raw material supply lines was a bit of a challenge.

recommend watching the Attenborough movie "Ocean", extraordinary photography but a wake up call, overfishing of krill in Antarctica having significant impacts across multiple marine ecosystems. Not good. But fixable if krill take can be managed .   

Quote from: Nizzy on Aug 17, 2025, 09:47 AMrecommend watching the Attenborough movie "Ocean", extraordinary photography but a wake up call, overfishing of krill in Antarctica having significant impacts across multiple marine ecosystems. Not good. But fixable if krill take can be managed .   

I'm not a big fan of David Attenborough after his BS walrus leaping off cliff due to climate change mockumentary.

Month on from the AGM and radio silence.

The Stainless Steel ship, SS Pharmazen sails on.......but where is it heading??

Quote from: Minimoke on Jul 15, 2025, 01:47 PMI get the sense the fat lady has pulled up into the car park. She is still a wee way off from warming up her vocals.

Its hard to imagine with them being in breech of banking covenants that as each week goes by that the bank is not getting more anxious about any news of a capital injection.  I hope this works out for holders and that the bank have a lot of patience.

UNAUDITED RESULTS FOR THE SIX MONTHS TO 30 JUNE 2025
Christchurch biotechnology company PharmaZen (USX.PAZ) today reports first-half sales of $12.3m
(FY24 $13.7m) and Underlying EBITDA of $765k (FY24 620k).
As indicated at the Annual Shareholder Meeting first half sales are lower than first half of 2024
primarily due to the timing impact of the transition to our new krill extraction partner.
Despite the lower sales our Underlying EBITDA is favourable to first half of last year as a result of
cost controls implemented throughout the business. We expect to see the benefit of these cost
controls continuing to flow to the bottom line into the second half as sales volumes increase on the
back of the krill oil extraction business.
Outlook
The September launch by our Joint Venture Vetralife of the pet supplement range marks an exciting
milestone for the company. The pet supplement sector continues to show strong growth with
opportunities for the range reaching well beyond Australasian markets.
US tariffs remain challenging with the recent increase to 15% creating price pressure however
significant parts of our US market business remain tariff exempt.
We see material upside possibilities with offshore based brands seeking production opportunities,
toll processing and co-manufacturing in NZ where we enjoy favourable tariff agreements in key
markets. Discussions with these potential partners are ongoing and we will keep the market
informed as these progress to conclusion.

Quote from: lorraina on Aug 25, 2025, 10:26 AMUNAUDITED RESULTS FOR THE SIX MONTHS TO 30 JUNE 2025
Christchurch biotechnology company PharmaZen (USX.PAZ) today reports first-half sales of $12.3m
(FY24 $13.7m) and Underlying EBITDA of $765k (FY24 620k).
As indicated at the Annual Shareholder Meeting first half sales are lower than first half of 2024
primarily due to the timing impact of the transition to our new krill extraction partner.
Despite the lower sales our Underlying EBITDA is favourable to first half of last year as a result of
cost controls implemented throughout the business. We expect to see the benefit of these cost
controls continuing to flow to the bottom line into the second half as sales volumes increase on the
back of the krill oil extraction business.
Outlook
The September launch by our Joint Venture Vetralife of the pet supplement range marks an exciting
milestone for the company. The pet supplement sector continues to show strong growth with
opportunities for the range reaching well beyond Australasian markets.
US tariffs remain challenging with the recent increase to 15% creating price pressure however
significant parts of our US market business remain tariff exempt.
We see material upside possibilities with offshore based brands seeking production opportunities,
toll processing and co-manufacturing in NZ where we enjoy favourable tariff agreements in key
markets. Discussions with these potential partners are ongoing and we will keep the market
informed as these progress to conclusion.UNAUDITED RESULTS FOR THE SIX MONTHS TO 30 JUNE 2025
Christchurch biotechnology company PharmaZen (USX.PAZ) today reports first-half sales of $12.3m
(FY24 $13.7m) and Underlying EBITDA of $765k (FY24 620k).
As indicated at the Annual Shareholder Meeting first half sales are lower than first half of 2024
primarily due to the timing impact of the transition to our new krill extraction partner.
Despite the lower sales our Underlying EBITDA is favourable to first half of last year as a result of
cost controls implemented throughout the business. We expect to see the benefit of these cost
controls continuing to flow to the bottom line into the second half as sales volumes increase on the
back of the krill oil extraction business.
Outlook
The September launch by our Joint Venture Vetralife of the pet supplement range marks an exciting
milestone for the company. The pet supplement sector continues to show strong growth with
opportunities for the range reaching well beyond Australasian markets.
US tariffs remain challenging with the recent increase to 15% creating price pressure however
significant parts of our US market business remain tariff exempt.
We see material upside possibilities with offshore based brands seeking production opportunities,
toll processing and co-manufacturing in NZ where we enjoy favourable tariff agreements in key
markets. Discussions with these potential partners are ongoing and we will keep the market
informed as these progress to conclusion.

Thanks. My read = tenuously holding steady.

No mention of capital raise so thats a worry. No deals signed - thats a worry.

A long way to go to be out of the woods.

2 September 2025
CIBUS Redeemable Convertible Preference Shares
PharmaZen and CIBUS have agreed to terms on the conversion of CIBUS' Redeemable Convertible
Preference Shares to debt of $3,255k payable on October 30, 2026. The debt is interest free and
has discount provisions for early repayment. The formal agreements to record this are currently
being finalised.
This arrangement provides certainty for CIBUS while enabling PharmaZen to progress
opportunities for capital restructure, debt reduction and key capital projects at Tawhiri.
PharmaZen also advises that BNZ continues to provide extensions to the company's banking
facilities to enable the Company to continue with its capital raise activities.
Vincent Pooch
Chair of PharmaZen Limited

Not sure if this is good or bad , don't like the mention "BNZ continues to provide banking extensions "
https://prod-trade.usx.co.nz/api/file/68b6664191fa491fa4b6fe8c.pdf

 to enable the Company to continue with its capital raise activities.

Quote from: Stoploss on Sep 02, 2025, 03:46 PMNot sure if this is good or bad , don't like the mention "BNZ continues to provide banking extensions "
https://prod-trade.usx.co.nz/api/file/68b6664191fa491fa4b6fe8c.pdf

Its good that they have agreed terms and jumped that hurdle.  The question is, will they be able to jump the next hurdle and raise sufficient capital to keep BNZ happy and have sufficient working capital to go forward and if so, how dilutive is any new capital raise to existing shareholders ?

The capital raise prospectus is going to be a very interesting read.

The Annual Report had $3,255K in preference shares as a liability. Cibus invested $14m so they have taken a massive hit.

I take this as good news. CIBUS would have wanted more but Craig Mcintosh has held firm. Well done.

We had a big brick with an unknown amount swinging over out heads. We now know what it is.

So PAZ need $3m to pay back CIBUS. Payables exceed Receivables by $3m. Need some cash to finish Rolleston.

Lets call it a $10m capital raise.

Almost 220 million shares on issue - lets see what way they play it.....

Not a massive sum and sure some of the large holders might be more willing to open their purse, but there will be some unhappy shareholders out there.

Quote from: Sideshow Bob on Sep 03, 2025, 01:36 PMAlmost 220 million shares on issue - lets see what way they play it.....

Not a massive sum and sure some of the large holders might be more willing to open their purse, but there will be some unhappy shareholders out there.

$0.046 per share to raise $10m may not be attractive when the SP is only $0.10

Apparently the reason they went with CIBUS and not existing share holders is that majority holders had no interest in pumping more money in

Quote from: Basil on Aug 19, 2025, 06:22 PMIts hard to imagine with them being in breech of banking covenants that as each week goes by that the bank is not getting more anxious about any news of a capital injection.  I hope this works out for holders and that the bank have a lot of patience.

We now know the shares are being converted to debt payable October 2026. So they have brought themselves some head room. What we dont know yet is if teh debt is secured and where it ranks.

The Annual report showed assets of $72.6m and liabilities (including Cibus) of $50.7. So at face value there might be some comfort for the bank that if PAZ goes bust they will get theri money back.

The trouble is that Rolleston will be considered an asset. Lots of shiny stainless steel. But currently it is totally non productive. With lease cost being a millstone around PAZ's neck.

I'm confused about the statement key capital projects at Tawhiri. This is Rolleston correct? Does this just mean finishing the plant and starting it up? Surely it's finished, if so what will it make? Or more expansion?

Quote from: Doozer on Sep 11, 2025, 07:40 AMI'm confused about the statement key capital projects at Tawhiri. This is Rolleston correct? Does this just mean finishing the plant and starting it up? Surely it's finished, if so what will it make? Or more expansion?

Rolleston isn't finished. It is essentially mothballed. There is still scaffolding up. And no activity out there

I dont know how much is left to be done. When I was last out there it looked like it was maybe 90% complete

There is also the land they own next door. There is nothing being done on that other than the big shed.

My understanding Rolleston was built primarily for petfood?

If so that bird has flown - LOTS more people in the game just in NZ and markets saturated and much more difficult in tighter economic times. Just ask the PE buyers of Ziwi and K9 Natural about their investments.......

Additionally freeze-drying is nothing special these days, and still a relatively costly option. With also less livestock, producers might be getting the squeeze on raw material.

So the second shed was for petfood as well? Thats what i don't get - why build a second plant vhen the first one is not running? And if they already have the pet food partner that is being spruked, which is good news, is that production in Rolleston or at the old site - ie is rolleston then starting soon with the new partner?

Quote from: Doozer on Sep 16, 2025, 04:50 AMSo the second shed was for petfood as well? Thats what i don't get - why build a second plant vhen the first one is not running? And if they already have the pet food partner that is being spruked, which is good news, is that production in Rolleston or at the old site - ie is rolleston then starting soon with the new partner?

Governance has been extremely poor at PAZ in recent years in my opinion.  Their rapid expansion plans had all the makings of arrogance, greed and gross recklessness.  They tried to grow far too fast and the wheels have well and truly come off.  Covid being a problem for this company is only a very small part of the picture here.  Not only very poor governance I would suggest very poor strategic planning and risk management.  Execution of their erroneously aggressive plans has also been very poor.  Plenty of lessons for observers to learn here.  They were once growing strongly and growing real earnings per share strongly.  As soon as they started to obfuscate earnings by using EBITDA instead, that was your clue to run for the hills.

Shareholders face a very, very long and difficult journey to see if the company can build back the credibility it once had.  Many challenges lie ahead.

Quote from: Basil on Sep 16, 2025, 04:16 PMGovernance has been extremely poor at PAZ in recent years in my opinion.  Their rapid expansion plans had all the makings of arrogance, greed and gross recklessness.  They tried to grow far too fast and the wheels have well and truly come off.  Covid being a problem for this company is only a very small part of the picture here.  Not only very poor governance I would suggest very poor strategic planning and risk management.  Execution of their erroneously aggressive plans has also been very poor.  Plenty of lessons for observers to learn here.  They were once growing strongly and growing real earnings per share strongly.  As soon as they started to obfuscate earnings by using EBITDA instead, that was your clue to run for the hills.

Shareholders face a very, very long and difficult journey to see if the company can build back the credibility it once had.  Many challenges lie ahead.

Basil - I think you have wrapped it up quite nicely

Thanks.  To be crystal clear, I think there's at least a 50% chance the bank tips them into receivership sometime over the next year or so and there's no way that CIBUS would have agreed to those miserable settlement terms if they didn't think so too.

Quote from: Minimoke on Sep 03, 2025, 07:22 AMThe Annual Report had $3,255K in preference shares as a liability. Cibus invested $14m so they have taken a massive hit.

I take this as good news. CIBUS would have wanted more but Craig Mcintosh has held firm. Well done.

We had a big brick with an unknown amount swinging over out heads. We now know what it is.

So PAZ need $3m to pay back CIBUS. Payables exceed Receivables by $3m. Need some cash to finish Rolleston.

Lets call it a $10m capital raise.

As per PAZ's annual report.
Total Assets.$72,577,603.
Total Equity $21,884,758
Equity ratio 30.15%
I would think PAZ should look for an equity ratio of 40%.
ie on the above figures $29,031,041
That would require $7,146,283 of new capital.
Therefore Minimoke's $10mil capital raise figure sounds about right.


Cibus debt of $3.255,000 is to be repaid 30/10/2026.

A capital raise .A one for one at 5 cents would  would raise $10,974,674.

xxxxxxxxxxxxxxxxxxxxxx
Doubled up/
Post as above.

Brave call mate and good post.  I hope it works out for you.

Quote from: Basil on Oct 02, 2025, 09:53 PMBrave call mate and good post.  I hope it works out for you.

So do I....lol...Although I did make certain of having a "free ride" some years ago.

CIBUS Redeemable Convertible Preference Shares
Further to PharmaZen's release of September 2, 2025, the company confirms that formal
agreements have now been completed to convert the CIBUS Redeemable Convertible Preference
Shares to debt of $3,255k payable on October 30, 2026. The debt is interest free and has discount
provisions for early repaymen

Interest free. Nice!. Cibus took a bit of a bath on their investment here.

So whats been going on with PAZ.  Rolleston site obviously didnt sell otherwise they would have released something.

Another smoke and mirrors Chairmans report just before Christmas thanking the MD for another crap year

Quote from: Monty on Dec 14, 2025, 02:31 PMSo whats been going on with PAZ.  Rolleston site obviously didnt sell otherwise they would have released something.

Another smoke and mirrors Chairmans report just before Christmas thanking the MD for another crap year

Rolleston site (part a with the factory on it) did sell. They have been in a long term lease with new owners for quite some time.

I'm not aware that part b of the site (the back, and the bit with the framed structure) were up for sale.

I havent seen a Chairman's year end report released. So cant comment on that.

Edit. I stand corrected. They do indeed have three plots out t Rolleston for sale ( I must drive by more often - i'v been a bit slack lately). Deadline sale by September. Sign is still up so presume none or not al of them have sold. That Rolleston area is getting overstocked with property. There as few up for sale in the area.

24 December 2025
Market update
PharmaZen Ltd advises that Vincent Pooch has resigned from the Board for health reasons, effective
immediately.
Max Shepherd will rejoin the Board as interim Chairman, upon his return from overseas travel in
February.
Following the resolution of the CIBUS debt conversion, the Company has progressed a capital raise and
is in advanced discussions regarding a strategic placement. Further updates will be provided as
appropriate.
The Company continues to have the support of its banker.
Craig McIntosh
Managing Director

Quote from: lorraina on Dec 24, 2025, 02:16 PM24 December 2025
Market update
PharmaZen Ltd advises that Vincent Pooch has resigned from the Board for health reasons, effective
immediately.
Max Shepherd will rejoin the Board as interim Chairman, upon his return from overseas travel in
February.
Following the resolution of the CIBUS debt conversion, the Company has progressed a capital raise and
is in advanced discussions regarding a strategic placement. Further updates will be provided as
appropriate.
The Company continues to have the support of its banker.
Craig McIntosh
Managing Director

Vincent seemed Ok at the AGM. Add how a health issue comes up and immediately takes you out of the business.

Pretty sad "Christmas card" from PAZ.  Not a single word on trading conditions which continues their truly woeful track record of shareholders communications over recent years.  The memo is just dangling a bit of hope that a white knight will rescue the company from receivership.  I guess some hope is better than none.  Quite obviously Vincent Pooch is sick of the stress of trying to keep the wolf from the door.  Good luck guys.

Going to be another "interesting " year for PAZ in 2026.
Good manufacturing equipment,good products,good sector,nothing a decent capital raise can not fix.

Quote from: lorraina on Dec 26, 2025, 05:15 PMGoing to be another "interesting " year for PAZ in 2026.
Good manufacturing equipment,good products,good sector,nothing a decent capital raise can not fix.

Cash normally helps but track record, management, delivering on promises and execution count for alot.

Needs runs on the board or likely just good money after bad?

Financial year just finished and lets hope we don't have to wait until the end of May like last year to get results....

Quote from: Sideshow Bob on Jan 09, 2026, 09:41 AMNeeds runs on the board or likely just good money after bad?

No need for a question mark after that statement in my opinion.  Shareholder communication in recent years has been appalling.  They've basically shot themselves in the foot in terms of asking existing shareholders for more capital, is how I see it.

I am looking forward to the capital raise prospectus.
Should make for interesting reading.?

Quote from: lorraina on Jan 12, 2026, 10:18 AMI am looking forward to the capital raise prospectus.
Should make for interesting reading.?

I got the sense they are are already talking to someone.

I think you are right,
"Following the resolution of the CIBUS debt conversion, the Company has progressed a capital raise and
is in advanced discussions regarding a strategic placement"

Trading halt. Pending finalisation of a potentially significant deal with overseas interest.

Gee all those traders who were lined up will be disappointed

"The Board advises shareholders that it is in active negotiations with an overseas party regarding a potential major investment in PharmaZen.

These negotiations are at a critical stage and as a result the Board has placed a trading halt on PharmaZen shares until the negotiations are concluded.

The Board will keep shareholders informed as this matter develops further."

Yes, a trading halt when it hasn't traded for 123 days......the irony!!

Quote from: Sideshow Bob on Mar 03, 2026, 09:12 AMYes, a trading halt when it hasn't traded for 123 days......the irony!!

Thats so funny.

I doubt progress has been made on sale of other Rolleston site - road out side the place is closed.

We live in interesting times.?.!.
Should know just how interesting shortly..lol

PAZ need a good hard kick up the rear end. Web site only has the 2023 Annual report on it. Its terribly out of date. Communication with shareholders is abysmal. Need a decent Board of Directs. Burt hasn't been seen for ages, McIntosh is too close to the business and poor decisions. Chen not really a heavy hitter.

So I'm hoping for a new investor who can actually take this company forward in a significant structure and managed way.

Quote from: lorraina on Mar 03, 2026, 11:56 AMWe live in interesting times.?.!.
Should know just how interesting shortly..lol

In this instance it is "interesting times" unfortunately, rather than the usual "well positioned"...... :-\

Quote from: Minimoke on Mar 03, 2026, 12:47 PMPAZ need a good hard kick up the rear end. Web site only has the 2023 Annual report on it. Its terribly out of date. Communication with shareholders is abysmal. Need a decent Board of Directs. Burt hasn't been seen for ages, McIntosh is too close to the business and poor decisions. Chen not really a heavy hitter.

So I'm hoping for a new investor who can actually take this company forward in a significant structure and managed way.

Absolutely - the level of communication is useless, as is the progress. Always excuses.

Any new investor is naturally going to want a large pound of flesh to put their money in, and will heavily dilute existing holders. They are also going to make some significant changes as status quo isn't working.

I wonder when we'll see a result? If Air NZ can get a result out before the end of February, surely these guys can manage it in March??

Quote from: Sideshow Bob on Mar 03, 2026, 12:51 PMAbsolutely - the level of communication is useless, as is the progress. Always excuses.

Any new investor is naturally going to want a large pound of flesh to put their money in, and will heavily dilute existing holders. They are also going to make some significant changes as status quo isn't working.

I wonder when we'll see a result? If Air NZ can get a result out before the end of February, surely these guys can manage it in March??

Ya dreaming mate! 5 June 2025 was when the let the market know there 2024 results. with $30m in sales there is no excuse for not having the report done by the end of February

Those of us with long memories know of a number of companies that lived in "interesting times" and today are regarded as being " well positioned".
2CC,ATM,CHI,GEN,GFL [usx],SCL,SKL,SEK,TRA,and even EBO and MFT.
Whether PAZ can join them is the challenge facing PAZ's long term directors/shareholders Max Shepherd,Wayne Burt and Craig McIntosh,who with other long term shareholders The Patterson family, Ken Fergus and a few others hold just over 50% of the company...
I do not know whether they can or can not succeed.,but I do know they will be giving it their best shot.

How long do we have to have our trading activities restricted in this trading halt. Its been over a week now. Giving insiders the opportunity to shuffle the walnut shells.

Road out side Rolleston site now reopened. And it looks like the for for sale sign has bene refreshed.

Certainly must have a good idea on the FY result that they must be all over?

Although they might be still counting the walnut shells. 

Quote from: Sideshow Bob on Mar 10, 2026, 03:44 PMCertainly must have a good idea on the FY result that they must be all over?

Although they might be still counting the walnut shells. 

My money is them blaming the auditors again.

Trading stopped for 22 days now. Negotiations cant be going well. And still no financial results.

In my book companies make results or they make up excuses.  PAZ management are expert's at making up excuses.  I'd wager the war and its effects on the business will be the excuse they use next.  The key question is will their bankers continue to have patience if these negotiations fail ?

Quote from: Basil on Mar 24, 2026, 11:09 AMIn my book companies make results or they make up excuses.  PAZ management are expert's at making up excuses.  I'd wager the war and its effects on the business will be the excuse they use next.  The key question is will their bankers continue to have patience if these negotiations fail ?

Even one of the biggest cot cases around (Synlait), managed to get their 31 January results out yesterday. And they had a complex $949m in revenue. gee - even their loss was greater than PAZ's revenue.

Sadly PAZ now just appears to be a plaything for its major shareholders.

The current chairman is PAZ's largest shareholder.
The two other directors are PAZ's second and third largest shareholders.
I expect they have "the owners eye" and are working hard behind the scenes, in difficult times,to find a path ahead for PAZ.

Quote from: lorraina on Mar 24, 2026, 01:16 PMThe current chairman is PAZ's largest shareholder.
The two other directors are PAZ's second and third largest shareholders.
I expect they have "the owners eye" and are working hard behind the scenes, in difficult times,to find a path ahead for PAZ.

What's your 'owner's eye' think of current situation?

Back to their glory days one day maybe

No I think if they can find capital their glory days are ahead of them
Excellent plant and equipment.
Excellent products .
Demand for traceable ingredients for human and pets is strong.
With capital there are a huge number of opportunities for them to expand their range of products.
Their capabilities include milling [bones for calcium] ,extraction [kril and mussell oil and blackcrrants] and freeze drying fruit and vegetable etc].
Capable of making use of any vegetable,fruit,animal [cows] or marine [fish or mussells].
Can even use waste of any of the above to produce first rate product up to pharmaceutical standards..
My major concern is someone like Mark Stewart,Talleys or Scales will take them over cheaply.

Quote from: lorraina on Mar 24, 2026, 02:38 PMNo I think if they can find capital their glory days are ahead of them
Excellent plant and equipment.
Excellent products .
Demand for traceable ingredients for human and pets is strong.
With capital there are a huge number of opportunities for them to expand their range of products.
Their capabilities include milling [bones for calcium] ,extraction [kril and mussell oil and blackcrrants] and freeze drying fruit and vegetable etc].
Capable of making use of any vegetable,fruit,animal [cows] or marine [fish or mussells].
Can even use waste of any of the above to produce first rate product up to pharmaceutical standards..
My major concern is someone like Mark Stewart,Talleys or Scales will take them over cheaply.

If they could produce stuff like this they'd be really profitable

https://www.animates.co.nz/dog/food/dry-food?filter.brand=Orijen

https://www.bing.com/ck/a?!&&p=bb276a7992611cb7c8fcc32d0c986e8a529459730c3ebb73feaf1fa1ae8130ebJmltdHM9MTc3NDIyNDAwMA&ptn=3&ver=2&hsh=4&fclid=0652eaa1-2977-6f77-0ed4-fcd428c16e4d&u=a1aHR0cHM6Ly93d3cuYmluZy5jb20vYWxpbmsvbGluaz91cmw9aHR0cHMlM2ElMmYlMmZ3d3cud2FpdGFraWJpby5jb20lMmYmc291cmNlPXNlcnAtbG9jYWwmaD1keXFDMDlyOXIlMmZ6JTJiZDNONGs1VGFDRnhEN1AlMmJuSFRqN1hHZm5wekRJaXY4JTNkJnA9bHdfbWFnc21sJmlnPTE4RUE2NTg5QjhBNzRDQ0FCOUJCQTZEQzI1QzVDQ0EyJnlwaWQ9WU44MTM4eDk5OTAzOTY4MzA4NDk4Mzg0NzU

And for Winner 69;
https://www.waitakibio.com/functions/animal-nutrition

Quote from: lorraina on Mar 24, 2026, 02:38 PMNo I think if they can find capital their glory days are ahead of them
Excellent plant and equipment.
Excellent products .
Demand for traceable ingredients for human and pets is strong.
With capital there are a huge number of opportunities for them to expand their range of products.
Their capabilities include milling [bones for calcium] ,extraction [kril and mussell oil and blackcrrants] and freeze drying fruit and vegetable etc].
Capable of making use of any vegetable,fruit,animal [cows] or marine [fish or mussells].
Can even use waste of any of the above to produce first rate product up to pharmaceutical standards..
My major concern is someone like Mark Stewart,Talleys or Scales will take them over cheaply.

Mhm. Just noticed that this is just another company trying to  make money based on some Otago University research.

Nothing wrong with that, though Pacific Edge sort of comes to  mind. And I am sure, there are many more companies like that living for decades from shareholder funds.

I see Pharmazen started in 2001 (hey, that's 25 years ago) and I doubt that longterm investors so far made a good deal. Question is - what changes do you see which might change this in the future?

A good injection of  capital.
Every thing else will follow.

Quote from: lorraina on Mar 25, 2026, 10:34 AMA good injection of  capital.
Every thing else will follow.

That's exactly what was supposed to happen with the fresh Cibus capital years ago.  They've hopelessly mismanaged those resources and tried to expand too quickly and fell on their face.  Why would it be different this time...

Because all the imported  equipment is in place and with fresh capital it could be operating in a few months.
Capital is needed to pay down debt and for working capital.
What no one knows is just how much it would cost today to import all the plant and equipment.
At a guess I would say at least twice what PAZ spent..

Quote from: lorraina on Mar 25, 2026, 08:45 PMBecause all the imported  equipment is in place and with fresh capital it could be operating in a few months.
Capital is needed to pay down debt and for working capital.
What no one knows is just how much it would cost today to import all the plant and equipment.
At a guess I would say at least twice what PAZ spent..

They also need raw materials. Like Krill. They seem to be a bit quiet on that front.

Ouch
https://prod-trade.usx.co.nz/api/file/69cad077329a505231d45a65.pdf

Quote from: Stoploss on Mar 31, 2026, 08:38 AMOuch
https://prod-trade.usx.co.nz/api/file/69cad077329a505231d45a65.pdf

A real ouch! I wonder why the bank wont engege?

Quote from: Minimoke on Mar 31, 2026, 09:00 AMA real ouch! I wonder why the bank wont engege?

Always 2 sides to the story .....

Quote from: Stoploss on Mar 31, 2026, 09:01 AMAlways 2 sides to the story .....

I reckon not having year end accounts signed off by auditors hasnt helped. Must be something not good in them.

Quote from: Stoploss on Mar 31, 2026, 08:38 AMOuch
https://prod-trade.usx.co.nz/api/file/69cad077329a505231d45a65.pdf

Sad news.

Expect another excuse for a delay of FY2025 results

Quote from: Sideshow Bob on Mar 31, 2026, 11:40 AMExpect another excuse for a delay of FY2025 results

Last year it was those pesky auditors. This year it will be that pesky bank.

Wonder what outcome of receivership will be?

Hopefully just trade their way out of trouble ...get some cash to sort out bank ...and then it's all all hunky dory again

Better than selling of things and closing down

Receivers are Teneo ....was PwC until recently

They do seem pretty good at refinancing and restructuring so hope there be a good outcome

Unfortunately just an omnishambles of under-performance and under-delivery.

Quote from: winner (n) on Mar 31, 2026, 01:23 PMWonder what outcome of receivership will be?

Hopefully just trade their way out of trouble ...get some cash to sort out bank ...and then it's all all hunky dory again

Better than selling of things and closing down

I am disappointed for shareholders but as I have eluded too in previous posts I am not the least bit surprised.
Quite frankly its perfectly understandable the bank lost patience. All the signs are there. The company has been hopelessly mismanaged since the Cibus capital injection and its was a free warning shot that the directors and management got completely offside with them to the point where Cibus were prepared to walk away with pennies on the dollar.  Communication with shareholders has been absolutely appalling over the years to the point where they also alienated shareholders and would have been unable to do a rights issue.  Read between the lines...seeing as they treated everyone else so disrespectfully, do you really imagine they would be great / prompt / open and transparent communicators with their bankers ?

The directors simply couldn't execute on any follow through on any of their plans, one big grandiose plan after another amounted to nothing. Always excuses delivered, not results delivered.  Even Blind Freddy could see they tried to expand too quickly. 

The most likely future outcome in my opinion is because the business is highly likely to be burning cash like its Guy Fawkes time in the current environment the receivers will not bother trying to trade their way out of their difficulties, especially in the current highly toxic global geopolitical climate and the plant and equipment will be sold for what is typically 10-15 cents on the dollar in receiverships.  The bank are just trying to minimize their loss.  They obviously felt the party looking to inject capital wasn't credible and / or the company was just trying to buy time and the bank lost patience with the endless so called recapitalization process that has been going on for many months.   Quite often prior to any meeting with bankers a key points for discussion agenda or written proposal is provided which might have involved a third party asking the bank to capitalize part of their lending into shares.  The bank's refusal to meet suggests this could have been the case and they viewed the proposal as commercially unreasonable. Everyone has their limits in terms of patience and the bank had clearly had enough of the companies bullshit as had Cibus and I would venture to add, most other investors.

In my view the directors and management really "tucked" shareholders here with mismanagement and very poor governance.  This case highlights the dangers of investing in small closely held companies that are not trading on the NZX. 

You're probably spot on there Basil with your summary

Maybe shares are worthless now ...a collectors item of what may have been.

Sometimes the 'owners eye' doesn't work eh

Yeap, sadly, sometimes directors and management cannot see the wood for the trees.  They often cited excess demand for their products as the reason they had to gear up so quickly for expansion.  Probably just another one of their regular "stories" but if it really was the case the cure for excess demand is simply putting your prices up a bit and making excess margin for a while which you then reinvest into the business in new plant and equipment and R&D.

It is sad to see a company which had genuine potential and was growing eps nicely at one point several years ago, being slowly destroyed by overly ambitious directors and management trying to grow too fast and with too much debt.  The wheels literally came off.  I suspect they never really had the marketing expertise to go with their technical know-how.  Nobody should be holding their breath that there will be anything left for shareholders after the receivers and liquidators have done their work.

Quote from: Basil on Mar 31, 2026, 03:03 PMYeap, sadly, sometimes directors and management cannot see the wood for the trees.  They often cited excess demand for their products as the reason they had to gear up so quickly for expansion.  Probably just another one of their regular "stories" but if it really was the case the cure for excess demand is simply putting your prices up a bit and making excess margin for a while which you then reinvest into the business in new plant and equipment and R&D.

It is sad to see a company which had genuine potential and was growing eps nicely at one point several years ago, being slowly destroyed by overly ambitious directors and management trying to grow too fast and with too much debt.  The wheels literally came off.  I suspect they never really had the marketing expertise to go with their technical know-how.  Nobody should be holding their breath that there will be anything left for shareholders after the receivers and liquidators have done their work.

That "excess demand" is probably worth digging into and this was a constant story delivered by management and directors to the market. Seems they were misleading.

The departure of Jessie Chan in February was a clue. She had only been there a short time and I'm not sure what she added. That's the lesson on holding illiquid stocks - they are hard to shift when changes happen. They could really have done with a decent commercial director - who would have said using a retired pop singer as your marketing guru is probably not the best commercial decision. Nor is keeping shareholders in the dark. There are times when you need more than just customer goodwill.

I think we will also find that management / directors failed to properly manage supply chain. I suspect they ran out of raw materials. 

They have a lot of stainless steel to sell. Sadly there are lots of properties for sale out at Rolleston. And they aren't moving.

The bank will only be secure if these assets can actually be sold. Trading out of receivership might be a better strategy.

Its probably of only academic interest now, but I wonder how their sales were going. They had spent an awful lot on marketing.

Companies Office says Pharmazen only had 2 directors - surely not

Quote from: winner (n) on Mar 31, 2026, 04:18 PMCompanies Office says Pharmazen only had 2 directors - surely not

Correct.

Short term director Jessie upped and left in February. Reasons unknown
Vincent pooch left in December. For health reason if I remember correctly

This left absentee director Wayne Burt (I've never seen him)

And Craig McIntosh who is also CEO

Quote from: Minimoke on Mar 31, 2026, 04:30 PMCorrect.

Short term director Jessie upped and left in February. Reasons unknown
Vincent pooch left in December. For health reason if I remember correctly

This left absentee director Wayne Burt (I've never seen him)

And Craig McIntosh who is also CEO

Wayne Burt has an UK address ...maybe he directs remotely

Wayne Burt quoted in NBR saying this receivership is bad for NZ - they are a company that NZ needs as it processes a lot of local stuff and exports to the world

Quote from: winner (n) on Mar 31, 2026, 04:50 PMWayne Burt quoted in NBR saying this receivership is bad for NZ - they are a company that NZ needs as it processes a lot of local stuff and exports to the world

It has already received some government tax payer funding.

Quote from: lorraina on Mar 25, 2026, 08:45 PMBecause all the imported  equipment is in place and with fresh capital it could be operating in a few months.
Capital is needed to pay down debt and for working capital.
What no one knows is just how much it would cost today to import all the plant and equipment.
At a guess I would say at least twice what PAZ spent..

When did they announce that all the equipment was in place?  There was a drier damaged in transit that there was no announcement about on its repair or replacement

https://www.nbr.co.nz/investment/pharmazen-receivers-hit-back-at-boards-misleading-statement/

Quote from: Basil on Mar 31, 2026, 10:07 PMhttps://www.nbr.co.nz/investment/pharmazen-receivers-hit-back-at-boards-misleading-statement/

That's a pretty damning article Basil

The arrogance of the Directors is amazing ....they obviously in denial of things going wrong

The new prospective investor (also a customer) probably happy they now in receivership ...dodging a bullet and maybe getting the whole lot cheaper ..who knows

Love watching train wrecks ...always something to learn

Hard to believe now that share price was $1 a few years ago ....that must have been exciting days

Hope you all locked in good profits on the way down ....for those who bought high and still holding commiserations 

No announcement to replace the announcement they were forced to take down.  :-X

Quote from: winner (n) on Apr 01, 2026, 08:08 AMThat's a pretty damning article Basil

The arrogance of the Directors is amazing ....they obviously in denial of things going wrong

The new prospective investor (also a customer) probably happy they now in receivership ...dodging a bullet and maybe getting the whole lot cheaper ..who knows

Love watching train wrecks ...always something to learn

Agree 100%.  I've been an accountant for more than 40 years now and in my experience bankers only call in the receivers as a very last resort when the business is fundamentally stuffed, on the rocks and there's no other course of action that's commercially realistic.   

I can't help highlighting how PAZ's reporting, (which in recent years has been very late and tardy) for quite some time now has been centrally focused on EBITDA numbers, almost to the point where (reading between the lines on posts on both channels), many naive investors thought that was the profit of the company.  To be clear, after depreciation, amortization and interest costs, (excluded from EBITDA), they've been losing quite a lot of money for quite some time and probably ended up in a cash flow crisis after the directors couldn't / wouldn't inject further funds to support day to day operations and the BNZ refused to provide further funding. 

Who knows what the overseas investors proposal was, we'll never know, but I note they had many months to bring an offer to the table that was acceptable to the BNZ and shareholders.  The fact that the NBR is reporting that PAZ lost two of its biggest customers could have been the final nail in the coffin.  Why were those customers lost ?  The almost total lack of transparency by directors did not help.

I suspect from the comings and goings of so many board members over the years that there's a lot of disharmony and this means normally one dominant leader who is responsible for the good and bad. Clearly the bad here is Rolleston, two failed factories which never started. Lots of 'nice shiny stainless steel' which has been spruked on this forum but in reality means nothing if it's not running, efficient and effective. The capital investment program has clearly been a disaster. I sense the business itself is a good one - and could be saved with a change of leadership and capital investment management.

As we sit back waiting for this years Annual Report (yes - I am still expecting to see one!), I can report at least a little good news. It appears the land and shed at Rolleston 2 has sold. And they have enough money to keep the outside lights on at Rolleston 1

And no first report from Receives filed yet

For what its worth, the land had a rating valuation of $4.2m with $0.00 for capital improvements. Surely the shed is worth something. Less discount for distressed seller thanks to BNZ