Pharmazen

[Doozer]

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?

[Minimoke]

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?

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.

[Sideshow Bob]

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.

[Doozer]

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?

[Basil]

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?

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.

[Monty]

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.

Basil - I think you have wrapped it up quite nicely

[Basil]

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.

[lorraina]

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.

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.

[lorraina]

xxxxxxxxxxxxxxxxxxxxxx
Doubled up/
Post as above.

[Basil]

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

[lorraina]

Brave 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.

[lorraina]

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

[Minimoke]

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