CVT-Comvita

[Shareguy]

https://www.thepost.co.nz/business/360831941/bnz-puts-honey-maker-belonging-large-private-landowner-receivership

[Crackity]

If I was advising Florenz and Mark Stewart I'd be standing in the market at 80cps on Monday for the whole company - I'd be signing up any major shareholders who voted for the offer to succeed over the weekend

Then again Mark Stewart doesn't need much advice from me


Hmmmm...... 

[Shareguy]

Yes it's going to be interesting to see what happens. Thought Wangs comment that receivership a possibility scaremongering to say the least.

[Basil]

"To bee or not to bee" (spelling intentionally changed) is one of the most famous lines in all of English literature. (Shakespear). It marks the beginning of Hamlet's "to be or not to be" speech, which is a soliloquy. The speech and the line reflects some of the existential questions that Hamlet the play and Hamlet the character are interested in and seems entirely appropriate here.   The companies long and truly horrendous track record with woefully inaccurate forecasting is arguably its biggest handicap, (certified B Corp alright but not in a good way), and could very easily be the telling factor with its bankers.  Good luck to shareholders.

[winner (n)]

"To bee or not to bee" (spelling intentionally changed) is one of the most famous lines in all of English literature. (Shakespear). It marks the beginning of Hamlet's "to be or not to be" speech, which is a soliloquy. The speech and the line reflects some of the existential questions that Hamlet the play and Hamlet the character are interested in and seems entirely appropriate here.   The companies long and truly horrendous track record with woefully inaccurate forecasting is arguably its biggest handicap, (certified B Corp alright but not in a good way), and could very easily be the telling factor with its bankers.  Good luck to shareholders.

I'm glad you listened to me when the share price was over 12 bucks a few years ago

Their cash flow performance back then was a sure sign they were never going to be successful ...and cash flows are still pretty abysmal.

They've told some really good stories over the years eh but stories were all they were

[afc029871]

Comvita were trading in the low 50s prior to the takeover bid and are back there now, in what looks like a failed bid.
My guess is they will have a rights issue to reduce debt and giving them breathing space as business recovers once the bid is withdrawn.
What about 2 shares for 1 at 15 cents to raise 20 million after expenses?
Should add this pure speculation on my part 😄

[Crackity]

Comvita were trading in the low 50s prior to the takeover bid and are back there now, in what looks like a failed bid.
My guess is they will have a rights issue to reduce debt and giving them breathing space as business recovers once the bid is withdrawn.
What about 2 shares for 1 at 15 cents to raise 20 million after expenses?
Should add this pure speculation on my part 😄

Just fyi -the business never seems to recover

Disaster prone seems the best phrase to describe this company for the last decade

[Shareguy]

You have to wonder how many shareholders will dip into their pockets for a cap raise after Wangs comments of possible receivership.

[Basil]

The only basis for putting more money in is if you believe their forecast of future EBIT.

Over the last decade or so, their track record of doing what they say they will do is one of the very worst on the market.

Throwing good money after bad in my opinion.

[Hectorplains]

https://www.nzx.com/announcements/464426


The company desperately needs new capital but despite showing a lot of leg on the street corner,  they've had no takers.

Their rubbish balance sheet, massive debt and lack of profitability; all feels so Synlait-ish.

[Tim nice but dim]

https://api.nzx.com/public/announcement/464782/attachment/459212/464782-459212.pdf

From chairs address p6

"The Board has a clear preference for a recapitalisation approach that seeks to provide
existing shareholders an opportunity to support the company, while also seeking to
minimise dilution.

Since the Scheme vote, we have received significant expressions of interest from both
existing shareholders and new parties. This has expanded the range of potential options
available to the company.

The Board and management are now engaged in detailed discussions with several
parties as we work through the structure of the recapitalisation.

This includes options for placements above current market price.

These discussions are continuing and remain subject to further evaluation, with no
certainty as to outcome at this stage."

Mentions of 25M placements but wait for it ..... a placement above market price, unheard of, who would pay more than market price?? Watch this space.