CAV - Cavalier Corp (Carpets)

[bull....]

Do we know whether Kinleith Land & Infrastructure Limited paid the standard 10% deposit to Cavalier on the purchase contract becoming unconditional? If they did, there might be some upside to CAV. As CAV is likely to still have to pay the Bayley's commission on a sale that doesn't complete, they may be out of pocket if a meaningful deposit wasn't paid.

you would think so , usually 10% of the purchase price is the most you can demand. so 2.4 mil may have been paid as deposit which after the 12 days cav is entitled to keep less commission and lawyer fees as you say. the commision payable might be based on the lease rental?

i think cav up to year to sue for damages even if they re sell the property to someone else.

so agree with you cav win/win situation

[bull....]

great news

Cavalier further advises that Cavalier Bremworth has also entered into a new sale and purchase agreement with another third party on terms substantially the same as the previous agreement, except for the requirement of Cavalier to guarantee the obligations of Cavalier Bremworth under the lease and the increase in the purchase price of the Auckland property to $25.5 million (an increase of $900,000).

https://www.nzx.com/announcements/363263


a new sale and did they keep the forfeited deposit on the cancelled deal?

[sb9]

Good programme on TV1 Sunday last night re Wool and its future. Saw this lady Rochelle Flint, GM Marketing & International Operations from Cav being interviewed for a portion and she sounded pretty upbeat about wool carpets future.

[Ekrub]

It can be seen on TVNZ On Demand, if you log in. It may have prompted a few buyers of CAV shares this morning.

[Ahgong]

great news

Cavalier further advises that Cavalier Bremworth has also entered into a new sale and purchase agreement with another third party on terms substantially the same as the previous agreement, except for the requirement of Cavalier to guarantee the obligations of Cavalier Bremworth under the lease and the increase in the purchase price of the Auckland property to $25.5 million (an increase of $900,000).

https://www.nzx.com/announcements/363263


a new sale and did they keep the forfeited deposit on the cancelled deal?

The first paragraph of the announcement mentioned that the contract with Kinleith was forfeited because they did not pay the deposit.

[Scrunch]

great news

Cavalier further advises that Cavalier Bremworth has also entered into a new sale and purchase agreement with another third party on terms substantially the same as the previous agreement, except for the requirement of Cavalier to guarantee the obligations of Cavalier Bremworth under the lease and the increase in the purchase price of the Auckland property to $25.5 million (an increase of $900,000).

https://www.nzx.com/announcements/363263


a new sale and did they keep the forfeited deposit on the cancelled deal?

The new higher price is an additional 1.3c/share. It also removes uncertainty re tge deals progress so no surprise the share price is up 3c as at late morning.

[nztx]

The new higher price is an additional 1.3c/share. It also removes uncertainty re tge deals progress so no surprise the share price is up 3c as at late morning.

Bear in mind that CAV's properties don't appear to have been revalued in the books
as far as I can see from their Reports .. "Cost or Deemed Cost" in Note 5A of the
2019 Annual Report

From Preliminary 2020 FY Report filed with NZX:

Under Note 6 (Page 26)

AUCKLAND PROPERTY

"The Group’s property, plant and equipment includes the Auckland property with a carrying value of $12,877,000 that was sold and leased back subsequent to the balance date. The property was not classified as held for sale at the balance date as other funding arrangements for the transformation to an allwool and natural materials organisation were being considered at that time, and the final offer that was made for the property subsequent to the balance date was subject to consideration and approval of the Directors, Overseas Investment Office (OIO) and shareholder approval. "

The last 2 years Years Reports include some fairly hefty other write downs, provisioning, restructuring provisions& exit from former business joint venture etc coming through into bottom line


Realised Property Gains must add to reported NTA, if this is the case

[bull....]

Bear in mind that CAV's properties don't appear to have been revalued in the books
as far as I can see from their Reports .. "Cost or Deemed Cost" in Note 5A of the
2019 Annual Report

From Preliminary 2020 FY Report filed with NZX:

Under Note 6 (Page 26)

AUCKLAND PROPERTY

"The Group’s property, plant and equipment includes the Auckland property with a carrying value of $12,877,000 that was sold and leased back subsequent to the balance date. The property was not classified as held for sale at the balance date as other funding arrangements for the transformation to an allwool and natural materials organisation were being considered at that time, and the final offer that was made for the property subsequent to the balance date was subject to consideration and approval of the Directors, Overseas Investment Office (OIO) and shareholder approval. "

The last 2 years Years Reports include some fairly hefty other write downs, provisioning, restructuring provisions& exit from former business joint venture etc coming through into bottom line


Realised Property Gains must add to reported NTA, if this is the case

good points.

be in cash when it settles in the balance sheet. i reckon by next reporting date they have 35c of cash in the bank. effectively your paying nothing for there other assets at current prices. people only starting to realise just now

[nztx]

good points.

be in cash when it settles in the balance sheet. i reckon by next reporting date they have 35c of cash in the bank. effectively your paying nothing for there other assets at current prices. people only starting to realise just now

Very likely & that's before the new campaign to make "Wool threads on the floor" very sexy again takes hold ..

Discl: Holder

[flyinglizard]

good points.

be in cash when it settles in the balance sheet. i reckon by next reporting date they have 35c of cash in the bank. effectively your paying nothing for there other assets at current prices. people only starting to realise just now

The cash/share is $0.3713 now (25.5m/68.68m). Just today's closing sp. I saw the momentum of purchasing Made in NZ products recently, after talking to three carpet suppliers last week. Hope CAV will win the tenders of some government projects. If this momentum continues, then CAV will generate positive cash flow and NPAT F21.