ALF - Allied Farmers Limited

[Lizard]

ALF010 into shares .... is that another trillion shares to be issued?

Depends on average of 20 days VWAP, although that's half in the bag at this point... and the price used is 95% of that value - calculate the number by dividing into $12.6m

Given another 1095m shares to be issued to bonus and PAR rights holders, the market cap is effectively around $6m at 0.2cps...so the noteholders probably going to end up with a little under two-thirds of ALF. Glad the Hanover investors don't mind sharing around the $110m of net assets they are now recognised as having brought to the table...

[Lizard]

One thing I think needs to be asked here is how ALF can issue the 977m+ shares to PAR holders. They eventually end up with nearly as much of the company as Hanover investors, yet put in only $2.3m c.f. Hanover investors nearly $110m. Shareholders never got a vote on this and now won't - which appears a bit outrageous.

Earlier, this was going to be included in a shareholder vote at the upcoming meeting, due to the 20% limit on new issues, but now it seems they have been able to bypass this, as they can include the shares from the ALF010 conversion.

It is probably splitting hairs, given this farcical situation can only occur because the company is close to worthless. But this process does seem to have circumvented listing rules by effectively issuing shares under a placement that now equate to almost 50% of the shares that were on issue at the time of placement, yet shareholders don't get the chance to vote on this.

Oh, and it would have to be presumed that the allocation of these unissued shares is contributing to the effective share price (theoretically one-third lower than it would be without them) and therefore the VWAP at which the ALF010's will end up converting. A "double whammy" for existing holders in the dilution.

[winner69]

ALF issue of shares and dilution of some holdings sems to parallel the Zimbabwe inflation rate

[Lizard]

Looks like ACC took might have taken the major part of that placement last year, as appear to have been allocated quite a few shares under the PAR rights.

[minimoke]

Looks like ACC took might have taken the major part of that placement last year, as appear to have been allocated quite a few shares under the PAR rights.

I think we will find ACC is propping up quite a number of companies. (inc Syft, Dominion Finance, Just Water, Energy Mad, Ecoya, Whoosh, Sealegs, NZO, Pike, Abano and Methven)

[winner69]

Liz - I haven't been able to keep up ... so how nany shares did they end up with before the consolidation .... billions or trillions or zillions

All I know that ALF shareprice is now 5 cents ... much higher than the beginning of the year so should save my bacon in the NZX comp

[Newman]

After consolidation at 100:1, ALF shares were traded at 6 cents each. This is equivalent to 0.006 cents before consolidation.

[bung5]

After consolidation at 100:1, ALF shares were traded at 6 cents each. This is equivalent to 0.006 cents before consolidation.

so ALF has a market cap for 1.5 million not 150 million ?

[digger]

After consolidation at 100:1, ALF shares were traded at 6 cents each. This is equivalent to 0.006 cents before consolidation.

Given it was 100 to 1 then the 6 cents today relates to 0.06 not 0.006 as that would be 1000 to one.
So just before considalation it was on average .3 of a cent it has now lost 4/5 of its value since considalation. Is that correct or have i got it wrong somewhere.
The idea of considalation from my experience is the allow further lose of value. Below .1 of a cent the company can no longer trade so consolidation is necessary to continue DOWN the slippery path.
Are these cals as others see it??

[Xerof]

Yes digger, nothing wrong with your logic.

I'm wondering why the price would collapse today in particular - surely nobody sold at these 'higher' prices without knowing there was a consolidation, but to me that seems to be what has happened, or its a couple of the bond holders getting their cash out

with 58k of sales today, the MC has collapsed by 70% of what it was yesterday.....