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 Originally Posted by King1212
Can't have quite fill up their offer......I got through from a company yesterday.....
TBK Capital has been appointed as a sub-distributor of Manuka Bonds, a new
high yielding investment with an interest rate of 8% per annum and the
opportunity to share in some potential upside in the value of the
underlying Manuka honey that is being used as security for the bonds.
The Manuka Bonds are being issued to wholesale investors by Oceania
Natural Finance Limited (“ONFL”), a wholly owned subsidiary of
NXT listed Oceania Natural Limited (“ONL”).
ONL is a
distributor of Manuka honey and Noni juice, with strong channels into the
Chinese market. It is listed on the NXTmarket operated by NZX. ONLlisted with a stock price of 64 cents in March this year. Since the
date of its listing:
- The shares have traded as high as $2.90;
- The share price is currently sitting at $2.47 per share;
- ONL raised $828,000 in May through the issue of new shares at an issueprice of $2.295 per share.
In July, the company raised a further $3.5 million to expand its
distribution network in China through the establishment of an incorporated
joint venture in Hong Kong.
Manuka Bonds
The active ingredient of Manuka honey which is measured by its UMF
rating can increase with age under certain storage conditions. This may
result in an uplift in the value of the honey if it moves into a higher UMF
band.
As part of an ongoing Manuka honey inventory and
warehousing strategy, Oceania (through ONFL) is seeking to raise new debt
with a unique secured bond issue - Manuka Bonds. The Bonds are secured by a
first ranking specific security interest over specific and separately
identified Manuka honey inventory (Manuka Barrels) held by the Issuer. Each
investor’s bond subscription will be solely applied to the purchase
of Manuka honey barrels from ONL’s suppliers.
The Bonds
will pay interest at 8% per annum, payable quarterly in arrears, and have a
maturity date of between 12 - 18 months. On the maturity date the investor
will be repaid the face value of the Manuka Bonds, any outstanding accrued
interest and potentially an additional 20% of the increase in the market
value of the Manuka honey within the Manuka Barrels over which they are
secured if the honey has moved into a higher UMF band.
The Manuka barrels will remain in storage in a secure facility operating
under the appropriate Risk Management Programme registered with the
Ministry of Primary Industries until after the investor’s security
interest has been discharged. In the event of any default by the Issuer,
each investor would be able to take possession of their secured Manuka
Barrels and sell them on the open market to recoup their investment. There
is currently a very strong and liquid trading market for Manuka honey in
New Zealand and internationally.
InvestmentExample
There is no requirement or restriction on the
number of barrels an investor might “finance” (subject to a
minimum of 5 barrels). A barrel of UMF 5+ honey is currently worth about
$9,300 (including GST) with each barrel containing approximately 300kg of
honey.
So an investor taking 5 barrels as security, would be
buying $46,500 of bonds. If in 12 months’ time the barrels are worth
$12,000 each, the investor will have received $3,720 in interest (paid
quarterly over the period) plus $2,700 bonus interest if the honey has
moved into the higher UMF band giving a total return of $6,420 or 13.8% on
their investment.
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Originally Posted by Balance
Ouch, good luck finding a buyer if anyone wants to get out after that CVT style shocker. Looks like the whole manuka honey industry is turning sour.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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Originally Posted by King1212
Did they ever get this bond issue away ?
Wouldn't bet on getting an interest payment after that downgrade .....
Honey trap comes to mind ...
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So less than two and a half years after listing it is delisting tomorrow [Announcement].
Whilst stocks such as this and the Chow Group, which also delists tomorrow, will not be missed by me, I am concerned that the New Zealand Stock Exchange is steadily shrinking.
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Originally Posted by Apathy
Add Tim Preston and Malcolm Lindeque to the list of ex SEA geniuses and it’s bound to be a winner! NZX sinks to new low in allowing this sort of rubbish on any of its exchanges.
Market manipulation in action.
https://www.stuff.co.nz/business/131...ulation-scheme
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Originally Posted by Balance
It's upsetting that it takes four to five years for this to get to a court judgement. I wonder how those who were manipulated by this feel about it, it's not likely they'll be recognised in any way or recompensed, so what is the value of the judgement after all? Just dotting and crossing some bureaucratic i's and t's at great expense to the taxpayer, when in fact the market controls, or lack of them, enabled it to happen in the first place. NZX needs to look within, they provide the platform that enables these shenanigans, without any recourse for the hard done by.
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Originally Posted by Baa_Baa
It's upsetting that it takes four to five years for this to get to a court judgement. I wonder how those who were manipulated by this feel about it, it's not likely they'll be recognised in any way or recompensed, so what is the value of the judgement after all? Just dotting and crossing some bureaucratic i's and t's at great expense to the taxpayer, when in fact the market controls, or lack of them, enabled it to happen in the first place. NZX needs to look within, they provide the platform that enables these shenanigans, without any recourse for the hard done by.
NZX is a failed exchange - going backwards year after year, and getting more and more desperate for listings.
Think My Food Bag. What a crock of cow dung.
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