SeaDragon

[Dentie]

Anybody have any impressions from the AGM? News coverage made it sound pretty optimistic, but were any hard questions asked and answered?

Directors were asked for their credentials before being cemented in. Ross, as always knew his stuff and whistled through things but nothing financial released (of course). Chairman was asked why there were no woman Directors. Overall, I am happy to accept their confidence that things are on track. Having contracts for supply and sale is big I think and the new factory looks impressive - they have done their homework.

[Apathy]

Directors were asked for their credentials before being cemented in. Ross, as always knew his stuff and whistled through things but nothing financial released (of course). Chairman was asked why there were no woman Directors. Overall, I am happy to accept their confidence that things are on track. Having contracts for supply and sale is big I think and the new factory looks impressive - they have done their homework.

Ok so first warning sign is in the face of some borderline accounting, a significant cash burn and forecast loses on $10m turnover the fact that the notable question was about gender mix goes to the quality of the audience.

In terms of the CEO ‘knowing his stuff’ the $15million in accumulated losses might suggest otherwise!?

Did no one ask how they could justify classifying the profit on Snakk shares as “ongoing operations”?

Did no one ask how they could justify issuing shares for meeting performance when the core business performance was appalling and well behind forecast?

Anyone want to know how they could take a paper profit prior year on the Snakk shares– write it off the balance sheet in New Year and book sale to P&L – again!

How about spending all the capital raised on plant for a product they don’t actually sell? Danger signs (and there are many) that they are looking to process anchovies? Last I saw we didn’t have a big anchovies catch in NZ?

[Dentie]

Ok so first warning sign is in the face of some borderline accounting, a significant cash burn and forecast loses on $10m turnover the fact that the notable question was about gender mix goes to the quality of the audience.

In terms of the CEO ‘knowing his stuff’ the $15million in accumulated losses might suggest otherwise!?

Did no one ask how they could justify classifying the profit on Snakk shares as “ongoing operations”?

Did no one ask how they could justify issuing shares for meeting performance when the core business performance was appalling and well behind forecast?

Anyone want to know how they could take a paper profit prior year on the Snakk shares– write it off the balance sheet in New Year and book sale to P&L – again!

How about spending all the capital raised on plant for a product they don’t actually sell? Danger signs (and there are many) that they are looking to process anchovies? Last I saw we didn’t have a big anchovies catch in NZ?

Firstly, perhaps if you had ventured from behind the parapet long enough to attend, it may have raised the quality of the audience? Then you could have asked the questions that were important to you...

Secondly, in terms of the CEO "knowing his stuff" - I was referring to his technical knowledge of the game they are in. There is nothing worse than having a "generic" or "theoretical" CEO holding the reins of a company - but having no technical knowledge of that company's business operation. Recipe for disaster!

Thirdly, yes - I did get up and questioned both Ross and the CFO in respect to what effect the Snakk shares had on its profit. I noted how the sale of the shares accounted for turning around the previous year's loss and asked when we could expect a profit from trading operations. My queries were referred to Sean Joyce (legal) who promptly shook his head. Evidently, the questions I was asking were deemed as "price sensitive" and therefore went unanswered. They did however point out that they quit the SNK shares at the appropriate time - as they have lost value ever since.

Fourthly, I questioned them about when a reverse split was likely to happen and they advised it would happen when it was appropriate to do so. Meaning when it was in the best interests of the S/Holders.

Lastly, nobody is more aware of what held them back than the Board. It must be hard to swallow when your products are in hot demand and yet you can't secure enough material to fulfil that demand. That appears to have now changed and they have supply contracts in place going forward. They also added they still have good future demand. I think I would rather have that problem to contend with - than to have all the product ready to go in a fancy new factory - but no demand to warrant it.

Easy to be an arm chair critic Apathy...the Board has good credentials and the main players have their own skin in the game. Nothing like commitment and risk! Looking forward to next year.

[Scooter]

Well said Dentie. I think the stars have started to align after the harsh history of the company. Worth a chance to let it run to reap the rewards for investing in this

[Apathy]

Firstly, perhaps if you had ventured from behind the parapet long enough to attend, it may have raised the quality of the audience? Then you could have asked the questions that were important to you...

previous year's loss and asked when we could expect a profit from trading operations. My queries were referred to Sean Joyce (legal) who promptly shook his head. Evidently, the questions I was asking were deemed as "price sensitive" and therefore went unanswered.


Lastly, nobody is more aware of what held them back than the Board. It must be hard to swallow when your products are in hot demand and yet you can't secure enough material to fulfil that demand. That appears to have now changed and they have supply contracts in place going forward. They also added they still have good future demand. I think I would rather have that problem to contend with - than to have all the product ready to go in a fancy new factory - but no demand to warrant it.

Easy to be an arm chair critic Apathy...the Board has good credentials and the main players have their own skin in the game. Nothing like commitment and risk! Looking forward to next year.

I don't think there is any need to be so aggressive/defensive/personal as I was simply making observations - the forum is not just for cheer leaders who want to talk their investments up!

Its perfectly ok if you and I have a difference of opinion on what constitutes a successful CEO... I look for profit - you technical expertise.

I guess the alarm bell is they won't say when they will be profitable.... and yet they have no issue publishing third party "analysis" on when it will happen...

Unless they are profitable soon they will be back to shareholders as the money raised to date is going to new plant... or will the debt fund losses?

[Dentie]

I don't think there is any need to be so aggressive/defensive/personal as I was simply making observations - the forum is not just for cheer leaders who want to talk their investments up!

Its perfectly ok if you and I have a difference of opinion on what constitutes a successful CEO... I look for profit - you technical expertise.

I guess the alarm bell is they won't say when they will be profitable.... and yet they have no issue publishing third party "analysis" on when it will happen...

Unless they are profitable soon they will be back to shareholders as the money raised to date is going to new plant... or will the debt fund losses?

Don't mean to get aggressive/defensive or personal Apathy and that includes this post. However, I do admit to posting in the same tone commensurate with whom I am replying to (incl all threads I post on - not just SEA). One glance at your historic posts clearly demonstrate what I am referring to.

Like most (all?) shareholders, I of course want to see them profitable as soon as possible. I also want to see them with a cash surplus from their "trading" operations and asked that question as well, but Sean Joyce shook his head on that as well. I think they should be allowed to openly share these financial type of questions with their shareholders (after all, they do own the company right?) but the rules around "protected" or "privileged" disclosure prevent them from doing so. It would put the company in hot water with the authorities and we don't want that!

There was no alarm bells here Apathy - they will have a good idea within the Board when they will be profitable - based on information they have at any one time and that includes Ross Keeley the CEO. They just can't share it with a selected few - not fair to others. So, for the rest of us, we just have to interpret/analyse the available financial info and make our own guesses.

There seems to have been a lot of thought go into the new factory in Nelson and, as a shareholder, I expect them to invest in the latest technology, plant & equipment in order to grow their operations. The factory itself is being purposely built for them and is being paid for by the Land Owner. They have negotiated forward contracts of supply of material - as well as customers for the end product. I'm happy that they are on track - but business is business and anything can happen - all they can do is control what they can in order to de-risk any uncertainties. They seem to have done that.

By the way - without being personal, I'm not a cheerleader and I don't need to talk my investments up.

[Balance]

Firstly, perhaps if you had ventured from behind the parapet long enough to attend, it may have raised the quality of the audience? Then you could have asked the questions that were important to you...

Secondly, in terms of the CEO "knowing his stuff" - I was referring to his technical knowledge of the game they are in. There is nothing worse than having a "generic" or "theoretical" CEO holding the reins of a company - but having no technical knowledge of that company's business operation. Recipe for disaster!

Thirdly, yes - I did get up and questioned both Ross and the CFO in respect to what effect the Snakk shares had on its profit. I noted how the sale of the shares accounted for turning around the previous year's loss and asked when we could expect a profit from trading operations. My queries were referred to Sean Joyce (legal) who promptly shook his head. Evidently, the questions I was asking were deemed as "price sensitive" and therefore went unanswered. They did however point out that they quit the SNK shares at the appropriate time - as they have lost value ever since.

Fourthly, I questioned them about when a reverse split was likely to happen and they advised it would happen when it was appropriate to do so. Meaning when it was in the best interests of the S/Holders.

Lastly, nobody is more aware of what held them back than the Board. It must be hard to swallow when your products are in hot demand and yet you can't secure enough material to fulfil that demand. That appears to have now changed and they have supply contracts in place going forward. They also added they still have good future demand. I think I would rather have that problem to contend with - than to have all the product ready to go in a fancy new factory - but no demand to warrant it.

Easy to be an arm chair critic Apathy...the Board has good credentials and the main players have their own skin in the game. Nothing like commitment and risk! Looking forward to next year.

NZX and NZAX Reverse Listings

• Reverse listing of SeaDragon Marine Oils into Claridge Capital Limited on the NZSX

• Reverse listing of VMob Limited into Velo Capital Limited on the NZAX

• Reverse Listing of RIS Group Limited into Holly Springs Investments Limited on the NZAX

• Reverse listing of Orion Minerals Group Limited into RLV No 3 Limited on the NZAX

• Reverse listing of ICP Bio Limited into Australian Property Holdings Group Limited on the NZX

• Reverse listing of Charlies Trading Company Limited into Spectrum Resources Limited on the NZX

• Reverse listing of Plus SMS Holdings Limited into RetailX Limited on the NZAX

• Reverse listing of New Image International Limited into Selector Group Limited, a company listed on NZX

• Reverse listing of Media Technology Group Limited into Strathmore Group Limited on the NZX

• Reverse takeover and listing of Queen Charlotte Holdings Limited by Aquaria 21 on the NZX

• Reverse takeover and listing of AQL Holdings Limited by Organic Interceptor on the NZX

• Reverse takeover and listing of Strathmore Group Limited on the NZX

• Reverse takeover and listing of Fever Pitch International Limited by Kidicorp Group Limited on the NZAX

[whatsup]

NZX and NZAX Reverse Listings

• Reverse listing of SeaDragon Marine Oils into Claridge Capital Limited on the NZSX

• Reverse listing of VMob Limited into Velo Capital Limited on the NZAX

• Reverse Listing of RIS Group Limited into Holly Springs Investments Limited on the NZAX

• Reverse listing of Orion Minerals Group Limited into RLV No 3 Limited on the NZAX

• Reverse listing of ICP Bio Limited into Australian Property Holdings Group Limited on the NZX

• Reverse listing of Charlies Trading Company Limited into Spectrum Resources Limited on the NZX

• Reverse listing of Plus SMS Holdings Limited into RetailX Limited on the NZAX

• Reverse listing of New Image International Limited into Selector Group Limited, a company listed on NZX

• Reverse listing of Media Technology Group Limited into Strathmore Group Limited on the NZX

• Reverse takeover and listing of Queen Charlotte Holdings Limited by Aquaria 21 on the NZX

• Reverse takeover and listing of AQL Holdings Limited by Organic Interceptor on the NZX

• Reverse takeover and listing of Strathmore Group Limited on the NZX

• Reverse takeover and listing of Fever Pitch International Limited by Kidicorp Group Limited on the NZAX

Mega into TRS

[biker]

Anybody have a reference, if there is one, to a security of supply for the RFO (New factory and omega3) entity as opposed to the SFO (squalene) entity?

[Apathy]

Anybody have a reference, if there is one, to a security of supply for the RFO (New factory and omega3) entity as opposed to the SFO (squalene) entity?

Nope - there is none, and not likely to be one as the domestic supply of suitable material wouldn't get close to supporting a 5000mt facility. Which is why I guess they are looking at Anchovies and CEO is in media berating the industry for not collecting more.