Their lack of sales/sales growth would be the really the concerning aspect to SH's. Obviously can't get to any sort of critical mass or economies of scale, and also questions where is the market for the product?
Hve Comvita some secret plan for these products
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Maybe to mix it with Manuka Honey - maybe the secret ingredient to increase the UMF??
I would have thought CVT have enough to focus on rather than worrying about these guys. Always easier to be a customer, than a cornerstone shareholder of a company such as this.
Maybe to mix it with Manuka Honey - maybe the secret ingredient to increase the UMF??
I would have thought CVT have enough to focus on rather than worrying about these guys. Always easier to be a customer, than a cornerstone shareholder of a company such as this.
Given the write-down on their investment even if they did purchase material (which they aren't and won't as the plant is apparently only able to produce semi refined material - making a lie out of their entire reason for being) it will be some of the most expensive fish oil ever sold...
The punchline to all of this is that the poor schmucks who have invested for reasons of securing favorable supply terms can't actually get what they want and even if they did they would be effectively subsidizing their competitors..........
Given the write-down on their investment even if they did purchase material (which they aren't and won't as the plant is apparently only able to produce semi refined material - making a lie out of their entire reason for being) it will be some of the most expensive fish oil ever sold...
The punchline to all of this is that the poor schmucks who have invested for reasons of securing favorable supply terms can't actually get what they want and even if they did they would be effectively subsidizing their competitors..........
They are on their way out then!
Only chance is for Comvita and Stewart to pump in more money.
Whoever is doing due diligence on Comvita will be asking what strategy CVT has to turnaround SeaDragon surely!
Talk about a backdoor job! Looks like the shareholders are right royally screwed indeed!
We believe that the Company has sufficient capital to achieve its immediate growth plans as long as we deliver on sales expectations. As at 30 September 2017 SeaDragon had net cash on hand of $2.29 million. The board has taken the strategic decision to draw down the remaining $1 million available under Comvita’s convertible loan note facility. Mr Groves said “The draw down of the remaining $1 million gives us the flexibility to build sufficient inventory ahead of anticipated large orders and gives our customers greater assurance over order fulfilment. We are fortunate to have the backing of shareholders such as Comvita who share our vision for success in Omega-3 markets. The Board continues to monitor the Company’s capital requirements on an ongoing basis.”
So the cash burn from End September to End May - 8 months is now up to $3.29m (plus $175k) they "only" burnt $3.8m for entire year 2017 so clearly things getting worse...
2015 - $6.2m - $2.8m loss
2016 - $5.6m - $5.5m loss
2017 - $4.3m - $6.7m loss
2018 - $3.0m - $6.0m loss
So in 4 short years they have halved sales and double the loss. Which is where the comedy starts:-
Chairman Colin Groves said: “A year ago, we had little supply of raw oil and few customers for our Omega-3 products. We have since taken steps to establish SeaDragon as a reliable supplier of significant quantities of Omega-3 fish oil to several major international customers and we are in negotiations with several others.”
Halving sales and announcing the company was insolvent definitely helps establish a reputation ------- just not how Chairman Groves might see it...
SeaDragon Chief Executive Dr Nevin Amos said: “Sales in the last financial year have established the company’s credentials and provided SeaDragon with a strong foundation. The current level of orders is not yet sufficient for the company to cover its costs.
seriously ----------- $34 million of accrued losses and insolvency is not a strong foundation........
Last edited by Apathy; 31-05-2018 at 11:22 AM.
Reason: typos
Originally Posted by Sideshow Bob
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(obviuously I am completely taking the yellow coloured liquid)
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