Member Info for Samthespaniel

For months the trades have been mostly small (£1-1,000) or medium (£5,000 -25,000).

Small amateur gamblers or larger professional players I would guess. The market makers will be having a substantial influence in such a small market.

This market is one in which you must be prepared to lose your money. Many such companies go to the wall so you should never invest more than you can afford to lose.

I commend the board for taking steps to keep the company solvent. They are doing the sensible things.

Timber is an important product and the demand is likely to grow in the future with the rebuild of Ukraine costing hundreds of billions, tornadoes and floods ravaging property around the world. Carbon credits likely to be in demand. This is a long-term investment. If the board get through the next few months it could make steady growth for years to come. KEEP CALM and wait for a RNS.

Important day.

General Meeting

11.00 a.m. on 16 June 2023

Record date of dealings in, and for registration of transfers of the Existing Ordinary Shares

6.00 p.m. on 16 June 2023

Admission effective and commencement of dealings in the New 0.01p Ordinary Shares.

8.00 a.m. on 19 June 2023

WELL SAID! This troll is hardly worth the effort.

MatthewV sums up the WBI optimists like myself. Shares are a gamble. AIM shares especially so. Reading the tripe written by some contributors over the past 2 years leads me to believe that they just enjoy trolling.

The WBI GM on 16 June will throw some light on the financial situation. Will 0.01p shares be available on 19 June? Will there be a share swap too?

Discussions with a number of parties are progressing which may include raising funds through the issuance of shares and/or reducing or rescheduling other debts of the Group. Whilst there is currently no indication that the additional financing required will not be obtained, it cannot be certain. Although the audit report is not modified in respect of this matter, these events or conditions, along with the other matters as set forth in the notes, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern.

Cleary, this is a promising, growing, business. The chat from HawaiifiveO shows that refinancing is at a delicate stage but light appears at the end of the tunnel.

A lender wants their modest amount of money back by the end of the year.

The shares will be nominally 100 times smaller after the GM. But the value of each share should be similar to the present value with acknowledgment that cash flow will be dented by payments to the lender over the rest of the year.

If the income situation (income 2023 current and projected) looks OK next week I would expect the shares to rise.

PS Dolan has 3%. He will be fighting tooth and nail to get through this glitch hoping to have repaid a lot of borrowing and looking forward to better times from 2024 onwards.

User-Name has touched on a subject not fully aired. A lender took shares at 1.2 for a loan (as I recall). That lender must have done their due diligence and be pretty peeved that Sydbank caused the price to plummet.

They could be saying to WBI - "show me and tell me everything because I'm considering lending you the money that Synbank took back". I want X number of shares, which will get you solvent , to get the price back up to 1.2 and beyond.

An article dated August 2022 and updated November 2022 is hardly worth reading.

The company have provided better data in their RNS's.

922 posts in 29 months. About 1 a day.

What is the definition of a troll? Ignore him.

This from Markets Insider:-

As to how high lumber prices could go, Raymond James projected that lumber futures could rise to $500 per thousand board feet in the second half of the year, and then rise to $525 in 2024. That represents potential upside of as much as 34% from current levels but DYOR.

The USA problem with debt ceiling has been resolved but interest rates are still creeping up affecting mortgages and the housebuilding industry. Lack of new housing is chronic as it has been for many years. The war in Ukraine is draining investment funds from all of NATO nations. Whether WBI can find new lender(s) in the current situation is something we will get to know in the near future. Bearing in mind that the previous lender caught a cold buying at 1.2p any issue of 0.1p shares is bound to involve heavy dilution.

Poses a problem for shareholders .

This company deals in Lumber and associated products.

Their future income depends on market prices, shipping and energy costs.

These are the low points for lumber:-

Jan 19 2023 - $401.08

Mar 15 2023 - $421.32

May 15 2023 - $432.89

June 1 2023 - $477.23

The low points are steadily rising. That is a help to WBI, as has been the fall in energy & shipping costs. It should encourage lenders. It may not avert 0.01p shares being offered but may affect the number.

The share price yo-yo's as people try to make a buck. As with all shares. With all this activity the MM's must be laughing all the way to the bank.

The RNS says this:-

Discussions with a number of parties are progressing which MAY (my caps) include raising funds through the issuance of shares and/or reducing or rescheduling other debts of the Group. Whilst there can be no certainty that these discussions will have a positive conclusion, the Directors are convening the General Meeting at this time so that the Company has the flexibility to issue ordinary shares quickly if agreement is reached on the terms of an equity issue.

Reading between the lines, they are talking to existing and other lenders (who probably do not want the business to be liquidated), probably about the equity issue and rescheduling the debts (combination of both) so that the business can be kept running as timber prices rise and the carbon credits situation advances.

It aint all bad! The BOD are doing what is necessary in a tricky situation. It may belly flop. Place your bets.

The other 913 posts since 2021 tell you that we can safely ignore anything from this contributor.

This company sells timber in various forms. Looking at all the indices it appears that the index has fallen drastically since 2020 and was at its lowest in November 2022. It has since recovered by 10%.

Looking at the RNS's through 2022 it appears that the company was expanding production to the extent that it was able to tread water despite despite the falling lumber price.

Sydbank decided not to risk their capital. Whether that was a reasonable action is for them, but it has not helped WBI.

In 2023 WBI were hampered by bad weather but had large quantities of timber to sell (so the RNS says). The market value for timber has stabilised according to the indices so people must be buying despite the recession. Presumably WBI have been selling timber in 2023 and are now producing more so has a cash flow from their timber. They have slowly built the business, albeit on the back of diluting shareholders. That is not unusual. BLOOM have just done it to me and they are 100 times bigger than WBI. The question is whether it will be a viable business in the future. It could be if the world economy picks up (and the war in Ukraine is over in 2023) but the short-term financing problem needs sorting quickly. Only they know their current financial situation and how much they need to raise. It will affect existing shareholders but WBI was always a gamble. I'm annoyed that I did not apply a stop/loss criteria but I will not sell now as the basics of the business appeal to me and it may come good in a couple of years time.

The RNS is clear:-

Sydbank wants a plan by END OF MAY.

Whether Woodbois deign to tell the poor sods who invested trustingly in their company anything of note after 31 May 2023 remains to be seen.

With so many trades for such a small company the MM's are doing OK.

Remember the old adage, "he who laughs last, laughs loudest". Who will have the loudest laugh on 31 May?

See this for the price of lumber over any period in the last 50 years.

https://www.macrotrends.net/2637/lumber-prices-historical-chart-data#:~:text=Interactive%20chart%20of%20historical%20daily%20lumber%20prices%20back,12%2C%202023%20is%20%24339.00%20per%20thousand%20board%20feet.

It has dropped continually. The cost of borrowing will be having an effect on housebuilding, particularly in the USA where homes are mostly built of timber . Like UK, there are not enough homes so lumber could be needed around the world. As inflation recedes demand should pick up. For veneer too.

Whether the low price of lumber worried Sydbank and will deter lenders to WBI only you can guess.

It said this,'Sydbank, .......is terminating a $6 million debt facility that it holds with Woodgroup ApS (the "Facility").

Woodgroup ApS has various banking arrangements with Sydbank, including the $6m Facility that was fully utilised and an ancillary account with a cash balance of $3.1 million. Sydbank have a floating charge against the assets of Woodgroup ApS and have offset this $3.1 million in partial repayment of the Facility.

Note that the sums are in $ so we are talking about £5.5m - not a huge sum.

Note that the $3.1m has been offset against the assets of Woodgroup Aps.

Clearly, refinancing will not be straitforward as the assets of the Group lie partially in the hands of Sydbank. Presumably they would not like to see Woodgroup go under and consequently lose their $6m, but they have a fallback position of $3.1 of assets.

Hopefully WBI are trading well enough to give prospective lenders encouragement but it may come at a price.

Assuming that a lender (s) is found there will be a stampede to sell by those who took a punt at .35p - .6 and those who have covered their current loss. It will be a long road back for those currently severely out of pocket.

Dear Buzby 2001,

I note from your previous helpful posts that your investment position is like many of us - optimistic that the company will pull through and that you will recover your investment (plus more).

Clearly, the company need to have a good case to convince an investor to lend them the cash they need pro tem. On the face of it they do as shipping rates are falling, the oil price is slumping and new orders are being received.