ALF - Allied Farmers Limited

[golden city]

Good luck All

[nztx]

Whoa -- did that SP slide 10 points or what on Friday ?

More encouragement needed - Golden

With such positive partnership news into the vastly profitable NZRL management Co -
the gumboots at ALF shouldn't be sinking into the thick Stratford mud & getting bogged down
like this ..

[golden city]

Just patiently enjoy the fess once the ipo succeed It is always going to be long term stock to get the dividends rather than quick money scheme fliping

[frostyboy]

There are quite alot of sell limits on the 50 cent rights, holding it back.

I'm not a holder, If they achieve the "NEW ZEALAND Rural Land Co IPO" without issues, then I will think current prices are a buy and I will act.
At the moment I think the risk reward isn't very good, ALF have done alot of dilution at 50cents.

[nztx]

It looks like some lucky punter out there managed to get a gumboot unstuck out of the thick Stratford
muck only to manage to kick things back up late in the session ..


but will they be half as optimistic about the NZRL grand trumped up scheme to want to throw anything
that way .. or perhaps leave it for the other suckers out there ?


After all, the volume of ALF shares on the loose is still fairly minute - even after Cap Raise so
existing punters dont miss out, the 'Reward a Merchant Banker for the Idea' issue and other share
issues, than the more plentiful NZRL 'own a slice of some Dairy Dirt - but only if a Farmer can be found'
incarnation & what may seem to be a Farm Revaluation driven slower moving sucker issue ..


The good news seems to be - if NZRL don't Fly' then it wont be as bad a ALF's past tangle & long
sort out necessitated with 'Eric the Great's Hangover Finance' remnants landing in ALF's laps ..


Let's not forget in passing to wish the claimed penny less 'Eric the Great' a very Merry Christmas locked up in
HM's UK jail for the duration for other deeds that the local Media have covered extensively ..


The bad news is with ALF's Veals not looking so well of late & "Drought Conditions" ALF have eluded
to recently - the unwinding cost may well put pay to prospect of future ALF dividends.. but then who knows

[nztx]

There are quite alot of sell limits on the 50 cent rights, holding it back.

I'm not a holder, If they achieve the "NEW ZEALAND Rural Land Co IPO" without issues, then I will think current prices are a buy and I will act.
At the moment I think the risk reward isn't very good, ALF have done alot of dilution at 50cents.

SP is starting to record lowering SP levels - be further shares available shortly out of the 1:3 CI too
depending on how many are stayers & how many are players..

Fridays fall was with ALF shedding the January Div

[nztx]

close down to around a big fat 60c today

probably below the pre 1:3 CI adjusted theoretical now .. has everyone lost interest in ALF or woken up
after ex div ?

[mfd]

close down to around a big fat 60c today

probably below the pre 1:3 CI adjusted theoretical now .. has everyone lost interest in ALF or woken up
after ex div ?

Could be some holders selling down to free funds for the placement, uncertainty over the NZRLC capital raising, who knows? Generally quite thinly traded so it does bounce around a bit. Will see how things settle over the next few weeks.

[Nigel]

Down from 68c to 58c in the last couple of days. In trading halt today as we wait for the announcement on NZRLC. I hope it wasn't a leaky ship (with news the IPO isn't proceeding) that led to the sell-off. I guess we will find out today/tomorrow. If the IPO has been successful, it will be excellent for ALF and I'd expect the shareprice to head back towards 70/80c, possibly higher (recent high was 82c).

[nztx]

https://www.nzx.com/announcements/365132

Final Chance to Invest in Rights Offer/NZRLC IPO Successful

"FINAL CHANCE TO INVEST IN ALLIED RIGHTS ISSUE FOLLOWING SUCCESSFUL RURAL LAND COMPANY IPO

• Shareholders are reminded that Allied Farmers’s Rights Offer @ 50cps closes this Friday 18 December 2020.

• The NZ Rural Land Company Limited (NZRLC) IPO has successfully satisfied its minimum raise condition of $75 million in its Initial Public Offering, meaning that Allied Farmers will acquire a 50% interest in NZ Rural Land Management Partnership (the Manager). To assist in the success of the IPO capital raise, Allied agreed to invest $750,000 in the NZRLC IPO.

Final Chance to Invest in Allied Farmers’ Rights Issue Capital Raise

Allied Farmers Limited’s (“Allied Farmers”; NZX: ALF) shareholders are reminded that Allied Farmers’s Rights Offer closes this Friday 18 December 2020. For those shareholders that may have been waiting to understand the outcome of the acquisition of a 50 percent share in the Manager, you will see from the update below that you can now do so with confidence that this will be proceeding.

We encourage shareholders to consider investing, as it provides the opportunity to acquire shares in Allied Farmers’s for 50 cents per share, (being a discount of 19.4% against the closing price of 62 cents per share on 15 October 2020, being the date immediately prior to the date Allied Farmers’s capital raising plan was announced), and goes some way to reducing the impact of full dilution by those that do chose to participate.

Acquisition of 50% of Management Company

Allied Farmers’s is pleased to confirm that it has been advised by NZ Rural Land Company Limited (NZRLC) that it has successfully satisfied its minimum raise condition of $75 million in its Initial Public Offering.

As a result, the previously announced conditional agreement for Allied Farmers to acquire 50 percent ownership in the Manager will be completed in the coming days. The Manager holds the external management contract to NZRLC.

Allied Farmers’s Chairperson, Richard Perry, said “We are delighted that this significant milestone has been achieved, and we look forward to NZRLC commencing its farm acquisitions. We believe this is an excellent outcome for Allied Farmers, as it generates additional cash return for a modest capital outlay, and enables us to diversify in a manner consistent with our strategy and values”.

Additional Investment in NZ Rural Land Company Ltd

Allied Farmers has agreed to invest $750,000 in the NZRLC capital raise. The $750,000 investment, made from existing group reserves, is in addition to the $375,000 in costs loans that convert to shares in NZRLC, taking Allied Farmers’s investment in NZRLC to $1,125,000 (based on a subscription price of $1.25 per share). This ensures that the owners of the Manager all have a meaningful investment in the entity it will manage (the owners of the remaining 50% of the Manager have invested a similar amount into NZRLC).

This investment has been made for two equally compelling reasons. First, it has assisted NZRLC to achieve the $75 million minimum capital raise, and therefore triggers the acquisition of Allied Farmers’s 50 percent interest in the Manager. Second, Allied Farmers firmly believes that its investment in NZRLC aligns with its strategy to invest in businesses that complement our existing core activities and that provide solutions to the issues facing the agricultural sector

Richard Perry

Chairman"