Adrian Hargrave, CEO of SEEEN, explains how the new funds will accelerate customer growth Watch the video here.
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Well I’m happy that you received a reply Bots because I’m yet to receive one from my email and thanks for posting that extract.
Good points iPencil.
Concerning TO the other issue is timing. When would be best to put the for sale sign up? I would say let’s get regulatory approval for PHC949 in Brazil and the US and hopefully be profitable by then. Would make the company irresistible.
One of the ongoing issues is the management structure both now and in the past, has always been geared up for much higher revenues and profitability to support such costs,
The option to go it alone is still a viable one but will take time, some holders here have been invested well over 10 years so patience may be wearing a little time.
Takeover by a larger company instantly leverages the technology at scale justifying higher salaries and costs, managements options some of which are 'out of the money' will also trigger making this the most likely outcome imo.
I can only see two viable options, namely:
# Go it alone, painfully slow growth trajectory
# Larger company takeover
So the question is at what price, it has to reflect the investment and time by existing holders to get their buy in and sign off, that level is going to vary with each holder.
The second question is how much is the tech and IP/pipeline valued at?
Cenkos has raised their price target to 37p but this is obviously not a 'Sale price' but perhaps a baseline from which to start.
Boulder River, Janus Henderson and Richard Griffiths are all long term holders (10 years or more) representing around 28% of the vote, plenty enough to ensure a good price for holders.
Cheers bots, helpful info
You're right guygad.
But I don't have permission to share, so trying to be guarded.
Thanks for this. Cynically, and not knowing anything else they wrote to you, I doubt their response could consist of anything else or contain additional granularity. That noted, responding to an email (and an email sent to the in this context) is encouraging and reflects well on management.
Just to let you know that I've received a communication from the company which may allay fears that the company will be sold on the cheap. I’m not prepared to give details, however the following is a direct quote “Please be assured that we have no intention of selling PHC on the cheap, after all this hard work. We are currently canvassing opinion amongst shareholders on the way forwards and will let you [meaning investors] know which way the Board decides to go.”
That's a relief - I'm now more positive about the future and the brilliant results. Well done PHC!
Agreed 1pencil. What's for sure is that there will be no fire sale here. The company is not in dire straits, quite the opposite. The directors are have skin in the game and the key shareholders will want a return. Huge over reaction to the announcement. This is actually a great buying opportunity! Unfortunately, the markets are so spooked atm that any uncertainty causes people to take flight
Griffiths is an important player here given he is the second largest shareholder combined with board representation.
A quick look back in history, Griffiths first appeared in the 2012 AR under ORA (Guernsey) Limited, with a holding 10.80% this subsequently increased to 17% crossing notifiable threshold on 2nd May 2012 - limited price data for this early period but appears price was 50 - 60p peaking to around 100p, since then PHC has suffered dilution through various placings, Griffiths holding now stands at 13.43%
https://www.lse.co.uk/rns/PHC/holdings-in-company-ndbghqin30r7r6h.html
Its possible his buying helped the share price up towards 100p mark, either way his holding was purchased at multiples of where we are now which doesn't include dilution, another significant factor.
If we look at the initial TR1 holding notification in May 20212 it reports 9,088,853 shares which equates to 17.09% of the company, today he has 41,710,000 shares equating to 13.43% of PHC.
I am not suggesting he will try to recoup losses through a sale but its unlikely it will go cheap after 11 years of investment.
They've been on AIM for years and just as they're turning the corner they've had enough?
If they were looking for debt, they'd have done it before now - last year it was clear borrowing conditions were tightening.
Lots of MA activity going on as the big boys swallow the minnows, led by the banks.
A sale would be the only viable option. Maybe they've already been approached.
I'll hold. An offer of £50m 1-bags us from here.
A bit disappointed with how they communicated their plans; they are right that the share price on AIM does not reflect the progress towards generating significant free cash flow that has been made. But saying that they will consult with key shareholders on whether remaining on AIM is in the companies best interest, without clearly explaining what other options will be considered, is a sure fire way to damage the share price even more.
It will be interesting to see the tone of any replies received from Chris Richards; and I hope that they do an Investor Meet session soon to explain their thinking in more detail.
Ignore OAP, they’re a pump and dump merchant, I’ve experienced it on CIZ.
Wilbur Ellis would be a natural acquirer given their close relationship but I don’t believe that’s likely because they would’ve been discussing that behind the scenes if a deal was to be announced, rather than making a public statement.
Scroll down, then continue scrolling and scrolling...
https://www.wilburellis.com/100th-anniversary/growth-through-acquisition/
Started to draft an email going through the various options, but tbh I think the board knows they are limited which means this is a bit of a funnelling exercise.
For example, PHC couldn't list on the NASDAQ as too small, even if they it were possible the cost is prohibitive, OTC market yes, but is this any better than AIM?
The only real choice is to be bought out which is probably where this is heading, its a bit like a consultation process when being redundant - you still get made redundant but they pander to you for six weeks to make it seem less bad lol.
Happy to hear other ideas on this..
OAP, if they have entered a consultation period they may be restricted, not sure on the rules would have to check that.
Its all very well dropping the price but if you cannot buy what's the point, went down to 25k lots to get filled.
Larger holders mostly qualify for overseas reporting rules which means higher thresholds unless they decide to disclose voluntarily.
Two divisions with Wilbur Ellis that have good synergies, Plant healthcare going it alone is possible but tough - far better under someone else's wing.
https://www.wilburellis.com/portfolio/
Good luck Bots.
Okyo has the weirdest capital structure I've ever seen. Took a look at that a couple of years ago and ran in the other direction.
OAP, I've enjoyed your posts but since you've sold, I suggest you just leave. When people stick around the thread they have a vested interest in seeing the share go down further to prove themselves correct. That's not fair on those people who remain happily invested here.
Why do you think Directors haven’t been buying ?
As part of this process, the Board intends to consult with shareholders as to whether AIM remains the right capital market for Plant Health Care to achieve its ambitions. Shareholders are invited to submit their views on this issue to the Chairman by email.
Depends on your broker. I'm with Halifax and can do
Another company I hold shares is OKYO ,they too are de-listing from Aim on the 12 of this month,again they say the cost is too much.Is it difficult to trade when they're based in the USA?
Some director buying might help change sentiment.
Those are my sentiments too (see earlier post) PHC may as well list where there is investor interest, or merge be bought out - paying £250-350k a year just to flatline on AIM isn't good value imo, this mornings response is a prime example, huge drop on positive news, little investor interest to support it.
Two other companies which I have invested have similar issues, one a biotech (HCM) has signed $1b plus deal with $400m cash upfront, stock sits at a near 10 year low. THG dropped to ridiculous levels way beyond anything normal, its now received a bid approach from Apollo.
PHC current valuation is less than half the amount spent on PREtec
Note the phrase "right capital market."
-----------------------------------------------------
Plant Health to evaluate London listing as stock levels 'frustrate' board
May 2 (Reuters) - Plant Health Care (PHC.L) said on Tuesday its board will evaluate if the firm should continue to be listed on the LSE's Alternative Investment Market (AIM) as it was "frustrated" with the share performance not reflecting its strategic progress. Shares of the agricultural products company slumped 24% to 9.3 pence in early trade on Tuesday. They have lost about 97% of their value from a record high of 383 pence in 2008.
Some investors and financial executives have said London risks losing its appeal for stock market listings as sluggish trading and low valuations are driving companies elsewhere. Plant Health said on Tuesday it will consider other financing and strategic options, including raising non-dilutive capital to fuel its growth, and consult with shareholders as to whether AIM remains the "right capital market."
Multiple companies have chosen to delist from the London Stock Exchange or have considered an extra listing elsewhere, including the likes of Dublin-based construction company CRH (CRH.L) and betting company Flutter Entertainment (FLTRF.L).
That’s a pretty speculative statement. If PHC were planing to ‘shaft’ PIs, why be so transparent about it. Best not build castles in the sky, if PHC is going to be sold, it’s going to be at a fair value price way higher than the current.