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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.
The writer JZchat's logic is flawed. If the loan that was recalled is replaced by a loan of a similar size the repayment of the new loan is bound to be at a higher rate, but repayment rate is unlikely to cripple WOODBOIS if their claims about increased production in 2023 are true. It will increase overheads. The SP is likely to rebound close to 1p. The lease option is sensible.
I cannot believe that they would float more shares at 0.37p. However, everyone has to make their own mind up.
This site is inhabited by the optimistic and the pessimistic, and trolls. The history of the company is to add to the share base to develop the business including the purchase of land for the future and a second production line. They have lived on the edge for the past year and share price has not been helped by misleading statements in the press about carbon credits - which are unlikely to materialise for many years. Holders of large tranches of shares have been selling for many months leading to various speculative opinions as to why. The loss of a lender of £6m has cause the share price to drop a further 1/3. The company have a further month to replace that loan. On the bright side the company should be producing timber and veneer at full capacity whilst finalising the carbon credits agreement.
One could assume that the share price will return to 1p+ when re-financing is in place (if re-financing takes place) and continue to climb.
At the moment the company are keeping their cards close to their chest which is giving rise to much negative speculation, so this share is very speculative and as has already been said,"not for widows and orphans". Those who have followed the price down and on an average buying price of 1p are hoping for good news whilst there are many who appear to be speculating at prices around 0.35p. That could be a good punt or not.
This stock must now be owned principally by the smaller shareholders other than the BoD and some others. In view of the lack of information (like how trading is going since the bad weather) why are all the smaller shareholders not asking the regulator to verify all the claims made in recent company statements and verifying whether or not there is insider trading taking place. The late trade of 23m shares (was it a buy or a sell) also needs to be clarified
What is going on here? Buy or sell?
27-Apr-23 17:07:40 0.41 23,000,000 Unknown* 0.39 0.43 94.30k
Helpful view of the situation. Tx.
The RNS's give a suitable explanation of the situation. The Q1 shortfall in production was due to abnormal weather. They sensibly brought forward work on the plant. They are continuing to shift stock and are producing using their financial resources. They are seeking alternative financing. I find that a plausible explanation.
That the company has had to add to the share base to get to the position where they are now they are with increasing production capacity, and the carbon credit situation improving, is understandable. They reject Sydbank's reason for withdrawing but have been given 5 weeks to find alternative finance. That is a fair deal.
There are clearly people on this chat who are playing games rather than offering sound logic. I will be keeping my shares as it appears that the company has a future.
People mopping up yesterdays massive sells. The MM's are bound to mark down the stock whilst they know that big sellers are still out there.
The basics for the company are positive. A good trading year expected according to the latest report. Too many have tried to make a quick buck and got burnt. Now perhaps the small investors can see the SP begin to climb.
I'm in for another £1,000 today at 0.4p
This is from latest report:-
The shut-down planned for later in 2023 to allow for implementation of re-ordering of work-flows and processes was brought forward to February-March since abnormal weather conditions were causing supply chain disruption between forest and sawmill. The significant increase in production volumes during 2022 had put pressure on warehouse storage space and the down-time was also used to reduce inventory and free up space.
The rest of the year should be profitable. Providing WBI can find a body to refinance it the future could be rosy but it is a gamble.
5m sold, 10m bought.
What is wrong with building a business on cheap money from shareholders? It happens all the time. That is history for WBI.
It is now that matters. Shareholders have to take a view as to whether there may be more dilution or whether the corner has been turned. The volume of buys compared with sells suggests that it has in the opinion of buyers.
Q4 2022 and Q1 2023 says all you need to know. History s irrelevant. This company is increasing production and profits. For the shareholders there is a strong possibility of their shares steadily rising, hopefully for those who bought above 1p they can recoup all of their losses in the next year or two.