Pharmazen

[Nizzy]

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.

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 .   

[Minimoke]

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 .   

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

[Sideshow Bob]

Month on from the AGM and radio silence.

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

[Basil]

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.

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.

[lorraina]

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.

[Minimoke]

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.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.

[lorraina]

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

[Stoploss]

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

[lorraina]

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

[Basil]

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

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 ?

[lorraina]

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

[Minimoke]

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.

[Sideshow Bob]

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.

[Minimoke]

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.

$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

[Minimoke]

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.

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.