Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
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Can’t trust a board that deliberately tanks a share price with an RNS like that. Totally shafted the PI holders. They appear to have an agenda to take this private then rto on US market.
They’ve made up their mind they need share holders with their views to hold enough votes to push through their agenda.
This mornings communication is obviously from the board but those driving it are likely to be shareholders themselves, Griffiths needs a return on his investment here. Some of the earlier fund raisings were well over 100p having touched 400p at one stage.
Its very likely this is a softening up prior to going private, Griffiths will have to sign it off so there is that level of protection as his average price will be a lot higher than where we are now.
i have mixed feelings about this. It could be an indication that a more aggressive growth strategy necessitates a fundraise, and in truth, nothing is non dilutive ; even debt has an impact.
otoh, if the opportunity is that attractive, and all options are being explored, it could catalyse a TO. After all, that was always the likely endgame.
After initial disappointment at this, i have decided to hold. Fingers xd.
Agree bots, James Ede-Golightly is also Griffiths right hand man, often gets appointed to boards to help steer the ship.
London market is a bit of a backwater for growth companies hence the exit by many aspiring companies, highly likely the board have already had discussions with the like of Wilbur-Ellis and others, Ospraie is another option to go private.
https://ukinvestormagazine.co.uk/plant-health-care-be-an-opportunist-and-jump-aboard-now-after-the-25-share-price-fall/
Laura2022
At the last AGM I asked the directors if PHC had the 'for sale' sign up. A bit cheeky. CR answered diplomatically explaining how the sector was in the process of consolidating …. yada yada... (nothing specific). He went on to say that if PHC was going to be taken over, they wouldn't be selling on the cheap (the SP was around 10p at the time) . He did mention a price based on the fundamentals which was significantly higher.
Second, during an IMC (I think) someone asked about the US OTC markets and attracting US investors. The question was initially answered by JT something like 'good question, Jeff Hovey, you have some ideas on this'. The question was handed over to Jeff Hovey who didn't give anything away as I recall; but clearly this was an issue they'd discussed.
Third, look at the two recent appointments: Kate Coppinger and James Ede-Golightly and CR comments:
"We are delighted Kate has joined the Board. Her background in M&A and regulated industries will be an asset in terms of the Company's future product development and geographic expansion. In addition, it is great to welcome James back to the Company to help us capture the growth opportunities that we have identified.
PHC has lofty ambitions and is being held back by AIM – so this consultation was always on the cards and I salute the transparency of the company in signalling it.
So, in sum
Companies that get taken out on the cheap are failing companies (e.g. First Republic) - there's nothing failing about PHC and the broad business plan remains unchanged. Furthermore, CR owns over 1% of the company and JT has just taken on a load of options. That’s why they are exploring ‘non-dilutive’ growth options. Have some faith.
Nice buying opportunity if you have a few quid.
Not sure why the drop in price, surely this is good news for holder with the board exploring options on how to increase shareholder value/share price?
Strong results make this a very attractive PE target imo, Griffiths will want maximum return for UK investors given his epic investment over the years - mopped up overhang
Trying to buy very difficult, had to drop down to 50k bites
This looks like a run up to being sold off, could be wrong but lots of stored value here - lets see how Scobie/ Ospraie AG/Grifiths respond
Thankyou both
I may invest here at this level (3yr lows) as the business itself looks in good shape
How much to the directors and other funds own please ?
I don't think de listing is likely, as they don't have the capital to buyout shareholders, unless they sell to private equity. I think this is unlikely because the directors are personally invested here and will want a return on that
The SP drop is a joke. Literally no fundamentals have changed. AIM is a cesspit atm though so no wonder they're reviewing options. I'm not sure what would be more suitable, perhaps moving to the US. If that's the case, I will remain invested, and ride the wave back up. Company has great potential
Are they hinting at US listing or de list/private do you think please ?
US listing would be good option given their geographical foot print
Very disappointing notice has ruined what should have been a success story. The implication for a number of years has been they do not require additional capital, so why oh why, when they are on target for their plan, do they suddenly need it?
Any thoughts from those who know the company well please? I assume nomlungu will take up the offer of contacting the chairman to offer views
Announcement of Consultation
The Board is pleased to report that Plant Health Care is on track to deliver long-term targeted revenue, cash breakeven and profitability, in line with its strategy. However, like many other small UK-quoted companies, the Board is frustrated that the Company's share price performance does not reflect the positive progress in the delivery of its strategy.
The Board is committed to accelerating the Company's organic growth and, where possible, making value-accretive acquisitions to scale up Plant Health Care's operations. This will require capital investment; however, the Board is mindful of the impact on existing shareholders of any potential future equity raise at current share price levels.
Therefore, the Board has decided to evaluate over the coming weeks a range of financing options for the Company, including how Plant Health Care might access non-dilutive and strategic capital to support its growth ambitions. 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.
The Board has decided to evaluate a range of financing and strategic options for the Company, including how Plant Health Care might access non-dilutive capital to support its growth ambitions, and, as part of this process, to consult with key shareholders as to whether AIM remains the right environment for Plant Health Care to achieve its ambitions. Further details of the proposed consultation are below.
I am out now... good luck to everyone riding this share.
Shocking. Sold. Typical sceptic tanks. No thought for PI’s. Good company too.
Looks like they beat guidance across the board. Cash position better than the Cenkos model. Outlook positive. Management disappointed in share price perforce so they will look to options—hopefully a US listing or Daily Mail puff piece.
See pages 35 & 36 (overleaf)
https://issuu.com/fruitandvine/docs/fruit_vine_issue_4/34
I think a reverse TO of a small US agrotech company (as someone mentioned on ADVFN), perhaps on the Russell 2000 would be a cheap way to list on a recognised exchange in the US and remain as PHC.
PHC have the makings of a great company. As CR said, PHC want one of their products on every field (paraphrasing Bill Gates). Also, if you look at the PreZym package it says “PreTec inside” (paraphrasing Intel). They’re thinking big.
Looking forward to seeing the marketing for Obrona.
'Any thoughts'
I hope not - this has the potential to start producing free cash flow in excess of the current m/cap before the end of the decade from existing resources. Any takeover premium would have to be significant...
Who would acquire PHC in merger/acquisition?
Any thoughts
Of course its relevant, 4th largest shareholder recently adding.
Ospraie AG Science have the lions share so big holders and which way they would vote is an important factor should corporate action emerge.
There's a huge amount of M & A at the moment on London markets, PHC is trading well below its intrinsic value so any possible stake building should be considered important imo.
He’s a hedge fund manager in Asia isn’t he.
Relevant? I don’t think so; just invests into a good oppo like the rest of us.
Not much out there other than hedge fund info, also chunky holding in https://www.dianomi.com/
https://www.investegate.co.uk/dianomi-plc--dnm-/rns/holding-s--in-company/202303141600019589S/
Renewed interest on my part post change of CEO, dipped foot in..
I remember Scobie Dickinson Ward from a while back, any further background info?