Pharmazen

[lorraina]

A good injection of  capital.
Every thing else will follow.

[Basil]

A 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...

[lorraina]

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..

[Minimoke]

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..

They also need raw materials. Like Krill. They seem to be a bit quiet on that front.

[Stoploss]

Ouch
https://prod-trade.usx.co.nz/api/file/69cad077329a505231d45a65.pdf

[Minimoke]

Ouch
https://prod-trade.usx.co.nz/api/file/69cad077329a505231d45a65.pdf

A real ouch! I wonder why the bank wont engege?

[Stoploss]

A real ouch! I wonder why the bank wont engege?

Always 2 sides to the story .....

[Minimoke]

Always 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.

[lorraina]

Ouch
https://prod-trade.usx.co.nz/api/file/69cad077329a505231d45a65.pdf

Sad news.

[Sideshow Bob]

Expect another excuse for a delay of FY2025 results

[Minimoke]

Expect another excuse for a delay of FY2025 results

Last year it was those pesky auditors. This year it will be that pesky bank.

[winner (n)]

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

[winner (n)]

Receivers are Teneo ....was PwC until recently

They do seem pretty good at refinancing and restructuring so hope there be a good outcome

[Sideshow Bob]

Unfortunately just an omnishambles of under-performance and under-delivery.

[Basil]

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

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.