PGW - PGG Wrightson

[Balance]

The agria website makes reference to recieving their non compliance notice( this would be for having shares worth less than $1) on the 19 August 2012.
By my calculations this gives them til Feb 19th 2013 to have had a share price over a $1 for more than 30 days.

tick tick tick
However could they simply announce a cancellation of say 50% of the shares to inable them to achieve this.

Let's hope they do not meet the deadline.

[Snoopy]

The agria website makes reference to recieving their non compliance notice( this would be for having shares worth less than $1) on the 19 August 2012.
By my calculations this gives them til Feb 19th 2013 to have had a share price over a $1 for more than 30 days.

The Agria website lists the non compliance share price noted notice dated 19th July 2012. So by my reckoning 19th January is the deadline. And that means getting the share price up to $1 and more by 19th December if the shareprice is to average $1 for a month before the threatened delisting date.

In practice no respectable company would try to cut things that fine though.

tick tick tick
However could they simply announce a cancellation of say 50% of the shares to enable them to achieve this.

Yes you are right Agria could just cancel half their shares. However the problem as I see it is that Agria have no income to pay their interest bill. With no income and a significant debt to pay, you are bankrupt whatever the share price is. So I don't think canceling shares is going to work. However a special dividend from PGW even of 1c if it is announced at the PGW AGM might do it. Alan Lai is standing for re-election so he should be there!

SNOOPY

[Snoopy]

Snoopy,

this is not correct. Agrias shareprice has only to be valued above 1$ for a period of 30 days.

>NYSE continued listing standard requiring a listed security to maintain a minimum average closing price of $1.00 per share over a consecutive 30-trading-day period. The NYSE noted that the minimum average closing price is the only listing criteria the Company is not in compliance with. The Company has six months from receipt of the notification to bring its ADS price and average ADS price back above $1.00. <<

Thanks for the correction Agrainvestor. I had too many time frames spinning in my head! You were right and I was wrong.

This should not be a problem after the annual report is out.

If the annual report was going to save Agria, would it not make sense to expedite getting it out?

I am not sure that declaring a huge loss is going to inspire market confidence!

SNOOPY

[Snoopy]

Let's hope they do not meet the deadline.

I should point out that delisting from the NYSE would not necessarily mean the end of Agria. There are alternative secondary markets where Agria shares could trade. Telecom has moved to one of these markets when they left the NYSE voluntarily. It would certainly be a blow to the Agria ego though. I wonder how many companies have been delisted from the NYSE, and fought their way back?

IMO the real problem is the renegotiation of the Agria debt. The deadlines for doing that start on 13th January 2013 IIRC.

SNOOPY

[Snoopy]

Why have you left out the first clause and last clause of the agreement between Agria and New Hope, Snoopy?

It's not like you to leave out half the picture!

Sorry Balance, but I did put in the link so that those who read my quote could go back and check the context. I was not meaning to obfuscate things by leaving detail out. But I don't believe that making a full quote of the text would have enhanced my point. Namely that this Agria deal with New Hope is contingent on XT still being on the payroll at Agria.

At the moment PGW is far and away the biggest investment that Agria has. So why would XT the CEO of Agria quit the PGW board? It doesn't make sense. Unless XT is on the brink of leaving Agria. To leave now at AGM time would be far more honourable than suddenly quitting a few more months down the track.

SNOOPY

[Snoopy]

Put option. Does it mean New hope has the right to sell their shares to AGRIA for the current value, or for a value that AGRIA wishes to pay ?

>>The repurchase price (“Repurchase Price”) payable by Agria Group to New Hope upon exercise of the Put Option by New Hope shall be a price to be agreed upon in writing by Agria Group and New Hope.<<

http://www.sec.gov/Archives/edgar/da...223exv4w55.htm


Therefore i ask myself, for what sense is this Put Option if Agria has to agree ?

Agrainvestor, refer to my post 1916 and particularly note the last piece of the quote:

"Furthermore, New Hope International has the right to sell its shares in Agria Asia to Agria Group Limited, or Agria Group, on the terms and conditions provided in the shareholders agreement at a certain repurchase price determined pursuant to a supplemental agreement entered into between Agria Group and New Hope International in June 2011. The obligation of Agria Group in connection with this put option held by New Hope International may be on terms that are not commercially favorable to us."

The price that New Hope will pay for Agria Asia shares was determined on June 2011. What that price is has not been disclosed to the market. But given that the put option price:

"may be on terms that are not commercially favorable to us" (from the Agria 20F filing)

This would suggest to me that it is probably not the market worth of Agria Asia shares today. Or alternatively the put option might be a market price, or a monthly average of market prices. But the timing of the purchase might not suit NYSE listed Agria. Whatever the actual arrangement, I believe it is unfavourable for Agria. I believe the price of the put option that will allow New Hope to exit from Agria Asia has been set by New Hope as a condition of bringing New Hope on board in the first instance.

SNOOPY

[Balance]

Sorry Balance, but I did put in the link so that those who read my quote could go back and check the context. I was not meaning to obfuscate things by leaving detail out. But I don't believe that making a full quote of the text would have enhanced my point. Namely that this Agria deal with New Hope is contingent on XT still being on the payroll at Agria.

At the moment PGW is far and away the biggest investment that Agria has. So why would XT the CEO of Agria quit the PGW board? It doesn't make sense. Unless XT is on the brink of leaving Agria. To leave now at AGM time would be far more honourable than suddenly quitting a few more months down the track.

SNOOPY

Picture becomes clearer or did they read your post and said "Snoopy is right"? Not written in jest either, Snoopy me ole mate!

http://www.nbr.co.nz/article/pgg-wri...ties-bd-130564

[Snoopy]

Picture becomes clearer or did they read your post and said "Snoopy is right"? Not written in jest either, Snoopy me ole mate!
<snip>

Not really a good look to lose the CEO and CFO in one day is it? However Agria itself is only down 2c to US80c. PGW is also down 2c to 34c as I write this, although in percentage terms that 2c is a lot more. I guess only the faithful are on the Agria share register these days. More room to shock people on the PGW register!

I don't buy the whitewashed statement on the reason for departure of XT and John Layburn. I think they have been unable to renegotiate those Agria loans that are up for renewal from January next year. They made the call to launch their lifeboat early. Meanwhile Captain Alan Lai is on the bridge wondering what that small white thing is sticking out of the water on the horizon.

Strike One: The senior crew abandon ship.
Strike Two: Suspension from trading on the NYSE
Strike Three: Bankers take over their loans.

Another Steel & Tube on the way perhaps? What will the discounted PGW redistribution price be to institutional and private investors be? 29c has a nice bargain ring to it!

SNOOPY

[Agrarinvestor]

Thanks for the correction Agrainvestor. I had too many time frames spinning in my head! You were right and I was wrong.



If the annual report was going to save Agria, would it not make sense to expedite getting it out?

I am not sure that declaring a huge loss is going to inspire market confidence!

SNOOPY

>>I am not sure that declaring a huge loss is going to inspire market confidence!<<

2 Million loss is almost nothing. I thought you may be impressed, by that number. You told me that the falling shareprice of PGW would be
a big problem for AGRIA. After this question was positively solved for Agria, you are painting new horror on the wall.
I don't think that John Layburn leaves the ship because it is sinking. Maybe such a skilled person has better possibilities elsewere.
XT is going into retirement.

[Balance]

Not really a good look to lose the CEO and CFO in one day is it? However Agria itself is only down 2c to US80c. PGW is also down 2c to 34c as I write this, although in percentage terms that 2c is a lot more. I guess only the faithful are on the Agria share register these days. More room to shock people on the PGW register!

I don't buy the whitewashed statement on the reason for departure of XT and John Layburn. I think they have been unable to renegotiate those Agria loans that are up for renewal from January next year. They made the call to launch their lifeboat early. Meanwhile Captain Alan Lai is on the bridge wondering what that small white thing is sticking out of the water on the horizon.

Strike One: The senior crew abandon ship.
Strike Two: Suspension from trading on the NYSE
Strike Three: Bankers take over their loans.

Another Steel & Tube on the way perhaps? What will the discounted PGW redistribution price be to institutional and private investors be? 29c has a nice bargain ring to it!

SNOOPY

Good - the day of reckoning gets closer and closer.

Me thinkth you are still missing the woods for the trees, Snoopy me-ole-mate.

Go through your Heartland thread postings and you will know what I mean.