The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
This has been bouncing around for over 20 years. I can’t remember the exact number, but I think they’ve raised almost a billion over that time and the general problem was and still is that they never ever produced anything.
They explored lots of wells, did amazing PowerPoint presentations, most of the directors became millionaires, but us the shareholders got absolutely nothing.
When they couldn’t raise anymore they sold 75 % of the business to keep the gravy train running, which only attracted venture capital who thought they can make a quick bug.
They released most of the cash from the 75% sale but are now running out of cash too.
Rather than taking out a loan they are raising more funds to buy the rest of the company (with the money they previously released).
It’s been one enormous waste of time and money (for us the retail shareholders)
I’m repulsed by the attitude of some managers who see individual investors as cash cows that just have to be dazzled with a PowerPoint presentation or two or ten to hand over money.
Where do we get it from? We have to actually work for it and expect a return. They came in with a grand vision ousted the old useless board and said they can do it all better. Get a loan, get the share price closer to 70p (when I first started investing), than you might see some more engagement from me.
They certainly can raise the money.
If the share is worth 40p and you have 50 million due on FID (which was due years ago), why not get a loan?
Something is very wrong about this and smells very fishy. I’m not going to pump anymore money in.
No certainty, no fixed timeline and too many broken promises.
I bought my first shares here for 70p.
Fast forward a few years and it’s now 99% down. I’ve made some money in between trading the shares and the dividend payout when these guys took over, but what I want to know now is their exit strategy.
A few years ago the current board was adamant that the shares are worth over 40p no matter what the share price of the day was … what is their target now after the raise?? Can someone ask the question at the AGM please.
The problem with these shares is, that there is plenty of them and no one is buying.
None of the directors are buying any as they are being printed for them for free and whenever the company needs any they print more too.
So there will be plenty on the books of the brokers or intermediaries.
First of all nothing anyone says here will affect the share price.
What these comments do do is affect other share holders. Some contributors have suggested that it “could only go up” since it dropped to 3p - guess what we’re at 1.2p now. So the cautious camp has saved potential retail investors a lot of money as it happens.
Secondly if you look through old presentations you’ll find that there are quite a few other issues that have been promised and haven’t happened:
- 24,000 hectares of land planted in Guitry and second CPO Mill built (as promised in 2016)
- RSPO member - certification (as promised in 2019)
- Processing 30,000tpa of RCNs (as promised in 2019)
- Third commodity as well as clean energy (I think first mentioned in 2020)
I stopped reading the trash the broker publishes a long time ago.
The cashew problems (although everyone on here discovered them years ago) are apparently now instantly solvable, the palm oil price is holding at record highs, we’re further down the line and apparently about to repay an enormous amount of debt that’s due.
If anything the broker should have raised their valuation, but someone has probably woken up to the fact that this won’t rise 700% anytime soon or that they put the wrong company name down so they pulled another number out of the hat “let’s say 8, that looks a lot better and is also a Chinese lucky number - that’ll work”
The total current company valuation is £1.5 million, but on FIT $25 million is due to them and they still hold a third on the whole thing.
If I was one of the other two partners I’d rather buy the whole company than pay my $12.5 million fee… it just doesn’t make sense.
Something is going on which we aren’t being told.
Don’t be alarmed. A totally capable - totally independent broker has done a thorough ‘Jeremy Paxman style’ investigation on it and has come to the conclusion that the shares are worth 9.5p right now… actually for the last couple of years.
This time next year Rodney …
I have actually sold some around 6p (this price sounds like dreamland now!!) when this was first announced.
It was supposed to be a positive, but then turned negative as the potential new partner wanted a new course of action and a huge time delay pressed this down to 0.5p.
Now they’ve left and rather than going back up to 6p it’s dropped towards 0.3p … only time will tell what’s going to happen, but the “fair price” of 40p suggested by the board looks a million miles away now.
In 10 years this hasn’t made any money and given the rate of inflation and other missed opportunities investors need this to double a few times before we even break even.
If the company were really worth 9.5 or 8p per share right now they would be buying shares left right and centre and do the next acquisition or share hand outs for underperforming staff in shares held in treasury and not continue to print more.
We’re at 1.5p now so all these comments and recommendations at 10p or 9.5p or 3.5p were wrong, incompetent and misleading new investors.
I am very curious how they are going to make this right. If it were a football team only a new coach would give new confidence. They should all resign and hand back their share awards for underperforming.
On paper everything sound simple.
If you look through the old decks the plan was to only focus on palm oil, have a second mill, second site and double production and get a sustainability certification.
Cashews weren’t on the deck. Then we heard about a third commodity and energy production. I’m addition the whole thing is also heavily reliant on debt and they haven’t turned a profit yet either (that’s the company and shareholders)… staff are being paid every month as I understand it.
This valuation is complete fantasy.
Any share price is a valuation of the actual business.
If you look at the annual accounts is says the current assets are valued at 54 million, but there is also quite a bit of debt of 39 million. So if you were to sell it all and pay off everything you still have 15 million left. - That’s the valuation. That’s a share price of about 3p (more or less).
No there are other factors that can influence the valuation. Low interest payments on that debt or brilliant management or any unique and amazing business idea or patent that can’t be replicated easily.
None of this applies here, that’s why the share price is 2p.
Unless they are rearing chickens that can lay golden eggs this won’t change in the foreseeable future.
Please always do your research and don’t take my word for it.
I bought in years ago as I liked the story. A new business, creating something, supporting local farmers, growth and sustainability.
This has all changed and I don’t like it all all anymore and am just holding a small position and will exit if it breaks even.
The broken promises, disorganisation, setting up other ventures that are then bought out, paying staff in shares as if it’s a technology company, endless issuing of shares and incompetence of completing things for years have left a rather sour taste in my mouth.
We thing the share price should improve at these levels, but we thought that at 6p, 4p and 3p already.
The best you can hope for now (if the business is actually any good) is that a bigger company buys this out, but they never pay an astronomical premium … maybe double of what it is, but that’s it.
Another 10% down today.
While the potential opportunity here has been highlighted and is well documented. The buy recommended from brokers and other sources at over 3p was rushed and not serious.
1.9p is in my opinion a much better entry (while still high risk) and I would like to see the directors come out now in support and buy shares in the open market if they are serious in supporting a broker who thinks this is worth 9.5p right now. Otherwise fire the broker or resign!!
That target has been in place for almost 2 years.
Today’s price 2.1p (another 4% down).
It’s misguided, meaningless and totally unprofessional.
Anyone who’s invested based on that recommendation when it first came out is way, way under water.
There is also no guarantee that the company isn’t going to issue more shares which will dilute the value more or that they start in another project (also announced years ago) that will waste more time and money.
Completely meaningless!!