PAZ Pharma Zen

[percy]

I think even Percy might have been very pleasnatly surprised by the number of different product growth opportunities articulated yesterday, I know I certainly am !

Listening to the presentation its clear that the record $8m capex planned for the year ahead only covers the deposit on the new factory but they have cunningly got the vendor to agree to deferred settlement terms at some future date, (presumably contemporaneously with title issuance for the site).

How much is required to get the new factory built, equipped and up and running isn't clear but what is clear is their bank are supportive and with the abundance of growth opportunities presenting, I am sure shareholders would also be supportive with a capital raise (I presume sometime in 2021).

Whether a potential capital raise may be done in tandem with a NZX listing is an interesting question to ponder...

I agree Iceman...anything under 40 cents now would be an absolute gift. The question in my mind is with all the growth so apparent will anyone be prepared to sell shares in decent volume anywhere in the 40's ?

I would like to think someone would but am not especially hopeful...

I certainly was very surprised by the number of different product growth opportunities.All seem to be a very advance stage.All very exciting
Capital.Looks to me PAZ will need more capital,later this year or early next year.I think they would like a major supplier to take a placement,and that would also secure supply .Then raising capital from shareholders/public would be best done by a NZX listing.
Whatever happens the future outlook just gets more and more positive.
The right company,in the right country,in the right sector,with the right directors/management to take advantage of the large number of opportunities available.
Shares.We saw a major shareholder sell down or out over the past year.No major shareholder appears to want to sell any shares.
Yet I expect there are a large number of original shareholders, who have forgotten they own PAZ shares or even know how to look at The Unlisted market.
A NZX listing would awaken them.

[peat]

Excellent result , great company ,
I'm out , 68% return in six months.
I know I will regret this one day.
But not today

[Beagle]

Excellent result , great company ,
I'm out , 68% return in six months.
I know I will regret this one day.
But not today

I believe you will come to deeply regret that over the years ahead mate. You should have PM'd me, I would have paid you 42 cents and saved you the brokerage.

Percy, why would they do a placement with one of their suppliers ? If they're going to raise capital I would strongly prefer a renounceable rights issue so its the existing shareholders that have the right to add to their investment. Either that or a listing on the NZX raising fresh capital again with first right of refusal to existing shareholders.

[iceman]

Good question about the suggestion of a placement to a supplier Beagle. If that will indeed happen, the most obvious reason would be to strengthen relationship to secure supply. Maybe they feel this is prudent with all the CAPEX ?

[Beagle]

1:3 at 35 cents would raise ~ $25m and something I would certainly support but directors and their family interests who between them, (help me out here Percy), own something like 90m shares might not have the 30m @ 35 cents = $10.5m cash to invest.

With such a substantial range of expansion and growth opportunities I think perhaps its time after next year's annual result in April that the directors looked at an NZX float to raise enough capital to really supercharge this company's growth even more !

[percy]

Possible Capital raise. A total guess. Raise about $17mil to $19mil.
Placement of 10 or 12 mil shares at 50 cents...................................$5mil to $6
one for ten rights issue at 50 cents. 21.8mil shares................$10.9mil..plus extras taken up $13mil
The rights issue would have to have the option for applying for extra shares as there would be a large number of the original shareholders,who they either will not be able to contact,or who will not want to take up their rights.
Should they stay on unlisted I doubt shareholders will be able to sell their rights.i
Last rights issue they had problems.I had to get Craigs to sign a form that Lorraine and I knew what we were doing.
Forbar would not do it for their clients.As most PAZ shareholders, at the time lived in Dunedin, that caused PAZ no end of trouble.
Timetable.Late this year or early next year.Another guess just after they announce their 31st December 2020 result.around late March 2021.So agree with Beagle April 2021.

[Mr Slothbear]

Good question about the suggestion of a placement to a supplier Beagle. If that will indeed happen, the most obvious reason would be to strengthen relationship to secure supply. Maybe they feel this is prudent with all the CAPEX ?

from what I have heard in the past securing sufficient ingrediant supply has been one of their challenges. The cow adrenals that form some of their very popular products are not easy to source so I can see merit in having close relationships with suppliers.

[iceman]

from what I have heard in the past securing sufficient ingrediant supply has been one of their challenges. The cow adrenals that form some of their very popular products are not easy to source so I can see merit in having close relationships with suppliers.

Thanks for that bit of info. It all makes sense.

[whatsup]

Yesterdays presentation imo has been well received by investors with buyers @ .44 and sellers @ .55 today.

At .46 PAZ will be a $100,000,000-00 M C company, well done all!!

[Beagle]

Bid 50 cents now. I am not surprised. There is such a huge runway of growth with this one, its such an exciting company.

The "Lead Husky" on this exciting journey barked so loud on this one my ears nearly bled, but I'm so glad he did and am so pleased to be part of the pack.