Member Info for OnTheDip

Yes John, I agree that there is no point bailing at this stage and also share your thoughts around the placement. Whatever the money is being used for, the lower the market cap the worse it is for us, as the dilution will be much greater for the same value of investment.

The sorry state of the Afri market cap / share price has to lie firmly with DL in my opinion. The PR and investor relations have been awful here since we were on AIM.

I've heard him say to focus on the end goal of the companies he's involved in, which would normally make sense, but not when the SP consistently heads downwards and funds constantly need to be raised, as if that continues very few of us would see any benefit in the end goal (or at least not enough to warrant us having money tied up here for X number of year...)

He also says the SP is down to investors and he has no control over it etc. I disagree. There is a reason that investors haven't been buying here and I don't need to list them out for all the long termers here!

I continue to hold and hope that this comes good, but the jury is out for me on whether it will ever do so and if most of us will even claw back our original investment, never mind make a profit!

That's exactly the problem, DL's reputation unfortunately, in my opinion.

LGC seems to have bypassed this as they are picking up the Canadian investors, but it seems anything UK based many won't touch with a barge pole if DL is at the helm.

I'm constantly reading about disgruntled investors from the likes of REM (now Cadence I believe) on about DL's 'ramping' and you can sort of relate, although he does seem to have toned it down considerably over the last couple of years, there are still plenty of statements he makes that never materialise:

"Watch what I do with AFRI!" (Been waiting 4/5 years and still 'Jam tomorrow' and now all about Cannabis!)

The "Lickedy Split" move of exchange that was going to happen is AFRI didn't trade - This obviously never happened, however looking at Sativa maybe the exchange isn't the issue

Didn't he recently even say at the AGM that was attending by a couple of posters here that the first half results were looking really good and he was thinking about posting them early this year?!? (What happened to that?)

The fact that the books for the 40% owned SA element are still closed and such minute detail is given whilst posting astoninishgly low gross margins would now doubt scare off a lot of investors as well (especially, again, with DL's reputation!)

So it's now back to 'jam tomorrow' and most people waiting for an exit point, I'd imagine. I think even most, if not all, of long term investors must also be getting to that point now. How much longer should money be tied up here is the question, years on and SP at a all time low, where everyone will be sitting on losses.

Just seems crazy that this global logistics business that was going to become the next Lohnro now seems to have put all of it's eggs in the Cannabis market basket and we'll all be paying for that in the form of massive diltuion due to pathetic market cap here!

I agree, very underwhelming.

I knew by reading the first paragraph that the numbers would be hidden much further down and would be disappointing.

I agree, zero progress has been made compared to growth last year as the first half revenues are down. The share price is at an all time low and then even if they do raise funds, if any of it results in further 'working capital' type of news then at this share price / market cap we'll all suffer further large dilution.

Unbelievable that we're how many years into this now and the SP is still where it is and today's results are going to do absolutely nothing to change that and now the focus is shifting to medicinal cannabis and more 'jam tomorrow'

BigMJ - Welcome! Great news this morning and looking forward to seeing where AAAP can go!

Fingers crossed! We've all waited so long here but if patience is ultimately rewarded in the very near future then I'm sure most of us will be able to forgive and forget the tedious SP performance over the last few years!

Good luck to all and let's hope this is the turning point of Afriag and that we finally see a decent rerate here!

I like this line from the RNS:

"This is intended to be the first step of a diversification for AAAP, which the Directors believe will allow the Company to significantly grow its business"

I agree wth Optimist13 on that point, I think the SP / Market cap is so low that if even the big holders sold in their entirety it wouldn't take long for trades to cancel those out and then rise.

Also, I know a lot of LTH (including myself) have been frustrated and voiced in the past about waiting for an exit point, BUT if the tables did suddenly turn and we saw a stream of good news, a sharp increase in SP and everything looked like it was finally moving in the right direction, I wonder how many would actually sell? I don't think I would at that stage, unless the rise didn't have any substance behind it.

That's not great..... nearly 20% dilution for just £300k

This is exciting news and good to see that things are progressing quickly on the cannabis side of things. Along with the existing established businesess, and in comparison to other companies, the tiny market cap is now almost unbelievable.

Surely we must now start to see this move upwards to a more sensible valuation....

Exciting watching the accent of Sativa and Afraig starting to be promoted by DL on the cannabis side of things.

The licence tweet is really interesting and surely can only be for Afriag following the recent tweets around the tie up with LGC etc.

Could this finally be the platform that lifts Afriag up to a decent share price and market cap? I hope so. One thing is for sure is that if Sativa are valued at that price (and on NEX) then there is certainly a large inequality when comparing Afriag, who already have established (and underpriced!) areas of business outside of the cannabis sector.

Let's hope for an RNS and a LARGE rerate to finally reward the LTH's here.

Yes, it would certainly be great to see the interim report early and showing an improved margin. I think that would do the world of good for confidence here.

Thanks for the responses Optimist13. Sounds like it was a positive experience and off the back of that hopefully we will finally start to see the tide turn here after all this time. Now that would be something to make most us long termers forgive and forget the frustration of the past if that were to happen.

Optimist13,

When it was mentioned that margins on the trucking business were thin (as you say, which is absolutely evident by the financial statements), was there any indication that this was likely to change? If not, were the directors comfortable in that no further fundraising would be required?

I'm wondering whether they have priced themselves so low to gain market share, but then will struggle to raise prices/improve margins now that they have the market share, as not sure how much loyalty there would be by customers on the trucking side of things if prices were raised....

My thanks also to Optimist13 & Wolveshaveeyes for both attending and feeding back following the AGM. Very much appreciated.

Following on from Optimist13�s message earlier regarding the AGM, anyone have any idea of the percentage of votes needed against to contest the resolutions? I�m assuming with the 14% (200+ million) put forward by the directors who are recommending approval that even if everyone decided to object we�d struggle to get the majority required? Here are the resolutions, I feel action has to be taken and although I can�t attend the AGM in person I�m willing to vote in proxy against the resolutions, especially around further potential fundraising and directors allowed to set their own remuneration.... when shareholders are being treated so badly. http://library.isdx.com/infostore//Company-Accounts/AFRIAGPLC/AfriAg%20plc%20-%20AGM%20June%202018%20-%20Notice%20of%20AGM%20Circular.pdf

Optimist13, I'm on the same page as you and will be happy to vote against all resolutions if we continue to be treated with such contempt and the lack of transparency is not addressed immediately. Please keep us posted. Regards, OTD

Yet again, the lack of transparency is the thorn in our side. Revenues have risen fantastically, which is all well and good, except again the net profit % is pitiful. Where is the money going? DL always says �Reinvested to grow bigger� but there�s zero transparency to verify this and for all we know Afriag PTY good be paying out a fortune in salaries to directors. The veil of an investment company that PTY is hiding behind makes it impossible to see what�s going on behind the scenes, but you�d expect on a turnover of �14m to make more than �100k plus profit! They�d be better off selling up and sticking the money in a current account for a better return than the hassle of running a business .... something isn�t right, I agree...

MicroCap, Well let�s hope the results give us something to be positive about next week. A few of us here have been in here now for a good few years and the poor news flow, coupled with NEX has tested most investors patience to the limit. A good set of results with an indication/plan to move exchange would restore a bit of confidence here. I�m still holding all my shares here, despite coming close to selling a couple of times, and hope that mine and all other investors patience is finally rewarded in the very near future. I still think this is a great business that could be huge one day, would be nice to see that ambition reflected in the share price though!

Happy New Year to all invested here. Hopefully, 2018 is finally the year when this turns around and investors are rewarded. Saying that, the continued silence on Afriag is a bit unsettling, as we can only guess as to what the reason is..... and hopefully we don't get stuffed like the xmas turkey!

Vibhav, That's certainly a possibility and a valid point. The RNSs seemed to imply that the Nomad was the issue, but I guess a decision could have been made at an earlier stage that they would delist in the meantime and the last few weeks were a formality of that, although I would still have expected to see an update but what you say could certainly be feasible.