Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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In the last press release, the management deferred their compensation to preserve capital and took options, to show their commitment to the company. I'm a bit cynical about taking options with an exercise price of 1p... I would sell my shares to have such a deep-in-the-money option to buy at 1p over the next 5 years! Skepticism aside on that front, I do not understand why the company has a listing in the USA. There is absolutely no benefit that I can see from paying tens of thousands of dollars to have a listing.
Because they wanted to grow their US investor base. It’s not really worked as they planned though
Check, but pretty sure the US listing was closed down due to lack of interest, PHC also do their own PR too.
No TR1 holdings notifications, surprised we haven't seen one from RG
Hopefully news not too far away on Brazil distributor for MOSHY (PHC25279) and TEIKKO
@1Pencil - UK stocks simply cannot be traded on a US exchange. The flat fee for settlement of a foreign share is $50. That's not a huge amount, but it is 15% premium if you were to buy all the shares on offer. Also, 15% to sell, meaning the break-even (if the exchange rate stayed the same) is about 40%, before tax on gains! No surprise to me that no US investors can buy the US listed stock. The company have a great future, in my opinion, and are very cheap vs competitors in the same field (pun intended) on an EV to Sales Y5 basis. They would be better served either being a full US company (with US accounting in $), or being a pure UK company. trying to be half pregnant with a US listing is a drain on resources which brings no benefits (that I can see).
Occam, you lost me a little bit there with your reply, I think the listing was more aimed at US investors buying rather than UK investors buying in US market, that requires WBEN form.
I wondered being alongside peers in the bio stimulant industry might help, Biotalys for example is listed in Brussels enjoying a much more favourable valuation.
Biotalys NV (BTLS.BR) Brussels
Investor web page updated as of end Dec 23, two largest holders now have 30% between them.
https://www.planthealthcare.com/investors/shareholder-information/major-shareholders
3.5m reported after the bell.
Add the major holdings up and we get 67.5%. The directors hold 2-3% and I know of at least two PIs with 1%.
That’s 72% of shares accounted for so I reckon the float is quite small.
Just add good news really.
Newlands entry appears to be on the low side, last notification on 28 November 2023
4.582%
15,649,310
Occam - I used to hold here but no longer following the current board announcing on 2nd May 2023 - "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"
That destroyed any trust in what could have been a superb company. The dual listing, in my view, remains indicative of this Boards ambitions to delist from AIM and gain a full listing in the US. "
18/05/23 - This didnt inspire much confidence "Whilst there are various perspectives within the shareholder base with regards to the listing on AIM and there is a broad acceptance that the Company is currently under-valued, there is clearly a prevailing view that the Company should remain listed. Having considered the feedback in full, the Board is pleased to confirm, therefore, that the Company remains committed to its listing on AIM, including for any potential funding needs."
Also Scobie Ward has increased their holding (and influence) to 13.1% whilst Richard Griffiths has reduced their holding to 5.54%.
The current SP suggests I made the correct choice for me. Until there is a new board in place who are committed to growing this company as a UK listing its not for me. Still love the products and what the company as a whole are trying to achieve but my view is the current board care little for PI's and would think nothing of delisting from aim with zero thought or notice to PI's.
Be interesting to see if Richard Griffiths remains a seller and clears out fully from PHC.
Until there is a Board change or PHC's future listing is confirmed whether AIM or NASDAQ ill keep watching from the side.
OAPK20: From what I understand of the minimum requirements for listing on NASDAQ (in terms of financial assets, liquidity etc.) Plant Healthcare might qualify to list there in a decade when they have achieved their long-term goals. In the short term, there is absolutely no point in spending thousands of pounds listing a UK company on minor US exchanges. It simply never trades there, for good reason. There isn't a single UK company listed on a US exchange (which isn't an ADR, which is a very different animal to listing the local share in USD).
I am disappointed that the sales of the product launches come, but there's no profit for the owners (shareholders). Being a bigger company, selling more, but not making any money is pointless. 2 years ago (when funding good ideas with free money) ended, the only companies any investors beyond VC were interested in were those who could make a profit. Love the products, but I don't understand the point if there is no profit.
Biotalys NV (BTLS.BR) are listed in Brussels and enjoy a much (much) higher valuation with no real income as yet, if PHC were going to re-list somewhere else this would be a good place imo.
PHC have a good product line up now which has gone from just one (Harpin) to say five if you include variants, geographical locations have increased too with new registrations and/or partners, the problem is one of scale and reaching that elusive tipping point.
Griffiths, I would have thought he would have sold by now, his recent purchase of XSG is somewhat perplexing.
Couldn't find this graph earlier which demonstrates the painfully long and drawn out process from development to actual sales, I doubt many investors would have signed up knowing just how long it would take.
https://www.planthealthcare.com/new-technology/pretec
We are (thankfully) now at the end of this process with sales gaining traction albeit at a time when agi markets are very challenging, FMC recently reported only modest growth for 2024 of 2-4%
@1Pencil - thanks, that's a great chart. I'm in the stock for the long term, because I believe in the value proposition the products offer to farmers. In my experience in new agriculture products, they are always 2 (or 3) years later than hoped. Regulatory approvals, distribution contracts etc all take time, but then become huge barriers to entry for a company to defend against competition. My frustration is that I thought that the company was "asset light", and that the value was in the intellectual property. When product was contract-manufactured by a third party, huge profit margins would belong to shareholders (with a barrier to entry). I did not expect to see no profit at all, and cash flows now going into manufacturing technology. When am I ever going to see earnings, even if sales targets are met?
No worries, in general terms PHC need to generate around $16m to reach breakeven. Cavendish have forecast $16.6 for this year which seems too high, at least at the moment anyway.
In the right market I think this is very achievable especially with several new products on offer, if they can pull back on admin costs it will bring this threshold down.
In terms of value, product development, patents and registrations are all barriers to entry, this is why many think consolidation is inevitable as currently too fragmented.
One other thing worth mentioning for any potential acquirer is the significant accrued losses of nearly $100m, this in itself has value to the right purchaser.
This is what Cavendish detailed in their November update
‘Our FY24 revenue forecasts have been reduced by 28% in line with guidance and, despite this downgrade, a more cautious outlook on costs means we still expect the company to reach positive EBITDA in FY24.’
Going back to the consultation last year, it felt odd as management didn’t offer any alternatives to the current situation. It wouldn’t surprise me if they already had interest from a third party and this was a toe in the water exercise to see how investors feel about going private.
The attraction for one of PHC’s existing partners must be tempting, Origin for example (owners of Agrii UK) currently have a €20m share buyback programme and well-funded, Chris Richards is also Chairman.
Wilbur-Ellis similar situation, Plant Healthcare would almost earnings enhancing from day one with cost savings, plus the benefit of $100m of accrued losses going forward.