PAZ Pharma Zen

[whatsup]

Back to where I bought my last shares right on 4 years ago, if it goes too much lower I will double my 250 k holding !

Look like someone beat me to it, good luck with that one.

[iceman]

Back to where I bought my last shares right on 4 years ago, if it goes too much lower I will double my 250 k holding !

You may well have a fight on your hands ! At 20c I have become an "interested party" even though I am way overweight already !

[percy]

https://usx.co.nz/uploads/paperclip/...pdf?1688361498

[winner69]

How much will current shareholders be diluted I wonder?

[Even after the Tawhiri 1 sale and lease back we still have a book value in excess of $20m in land and buildings. Until interest rates reduce, it’s not a great time for selling property, so we are not considering a sale of any further land and building to fund expansion at this stage. However, we maintain dialogue with Cibus regarding getting any additional funding from them. They have their share options, however price performance isn’t where they would want to exercise those options. We also regularly talk with strategic partners that might be worthwhile bringing in however we have as much debt as we would like to carry, so the future direction is more likely to be from equity introduction or sale and lease back rather than debt.

[Southern Lad]

Half year results to June 2023 down to an underlying EBITDA level have been released:

30 September 2005 (usx.co.nz)

The struggles continue!

Would be good to understand the unadjusted EBITDA or even the actual NPAT.

[stoploss]

Half year results to June 2023 down to an underlying EBITDA level have been released:

30 September 2005 (usx.co.nz)

The struggles continue!

Would be good to understand the unadjusted EBITDA or even the actual NPAT.

Thanks Sthn L, I have clarified with the company . The damaged freeze dryer was insured .

[winner69]

PAZ not a very ‘lucky’ company are they

Always dogged by bad fortune

Hope they not one of these forever unlucky outfits

[Baa_Baa]

PAZ not a very ‘lucky’ company are they

Always dogged by bad fortune

Hope they not one of these forever unlucky outfits

20 cents on the bid, 25 on the offer. Ridiculous spread. That's a very long way down from recent times, the hype valuation has all but been crushed, although it should have been obvious that it was massively over extended on all metrics.

PAZ will imo do very well in the long run, but do we all have the long runway to realise that? Best thing this company could do imo is list on the NZX and let the market liquidity decide.

Languishing on the USX with its illiquidity could bring this down under the 0.10's as all the hyped punters exit. You'd have to ask yourself who is priming the ask, they're either happy to take a loss and get out, or are still taking profit after having got in earlier.

[Sideshow Bob]

A half year result!! Excuse formatting as copy and paste.....

https://www.usx.co.nz/uploads/paperclip/documents/2894/original/PharmaZen_1H_2023_results_release_final.pdf?169198 9940

Continuing strong demand but staffing issues generate a disappointing result Christchurch biotechnology company PharmaZen (USX.PAZ) today reports a disappointing result forthe six months to 30 June 2023.

As flagged at the Annual Shareholder Meeting the company faced significant staffing issues in the first quarter which resulted in an extremely poor first three months of the year, despite the continuing strong demand and additional installed capacity. These challenges resulted in some significant changes in structure and approach to recruitment and by the end of March the number of process workers had increased by 50% to be in line with required levels.

May and June both operated at just under 90% dryer utilisation enabling the company to post a halfyear $410k underlying EBITDA2 on sales of $10.3m. This was down on the prior year underlying EBITDAof $1.8m on sales of $12.8m.The additional capacity and an improvement in supply for the extraction business will see the trendshown in May and June continue and, despite the poor start to the year, the company expects the fullyear result to be at least in line with 2022.

Given the poor first half, and the significant upturn which commenced in May, the company is looking to post an update with unaudited third quarter results in the fourth week of October. PharmaZen Chair Ken Fergus said: “The first quarter was clearly not the way we wanted to start the year and created several challenges for us. The changes implemented have been successful with the speed of the correction being extremely pleasing.

Changes in management, structure and a total of18 new staff is no small achievement.”“The labour market is easing and the changes we have made internally are all looking like long-term solutions. What is particularly pleasing is the continued growth in demand. The additional freeze dryers in place are all but fully committed through till the end of the year”.

The continued growth in demand is making the commissioning of Tawhiri critical as it is clear we will be going into next year needing further capacity. Tawhiri is running late as a result of cash constraints from the first half performance but has been further set back by damage to the third freeze dryer delivered in the last week of July. The 35mt unit came off its transportation rack in transit and effectively rolled around in the hold causing irreparable damage.

This will need replacing and we are looking at options for how we can commission the other units and install the third unit at a later date. The original plan required all three to be in place to complete the plant room and building structure.

Outlook
The increase in capacity the company has put in place and the continuing strong demand we are seeing from our customers puts the company in a great position to achieve increased sales and profitability in the second half and into next financial year and beyond. The company is confident the utilisation issues are resolved, and the focus returns to increasing capacity.

Ken Fergus commented that “Our traditional challenge has always been increasing capacity to meet demand and that remains the case. Interest for pet product since obtaining the China license has been extremely encouraging and we will be working hard to make sure we can service what will be an exceptional opportunity”.

[percy]

Thanks Sthn L, I have clarified with the company . The damaged freeze dryer was insured .

Thank goodness.
Thanks for checking with PAZ, and sharing.