Yep, thought the same $15m not much
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They paid the price for ignorance and Arrogance. Now they can't win it back. Losing biggest customer hasn't helped as they haven't replaced it with anything substantial.
Just liquidate the business.
Good luck to you shareholders.
So the Olympic yachtsman is leaving Metro after 5 years ..amazed he’s lasted that long.
Going to do a lot with that $15m …..’ progress a capital raise to further reduce its debt level, create the conditions for AGG to grow and improve the New Zealand business.’
So ‘company are in the process of updating their outlook for FY25 and will provide an update when this process is complete.’ Bought back memories from 2018/19 when I ‘assisted’ them in updating their forecasts.
They told me I was too pessimistic about market size etc and couldn’t see the big picture ha ha ……and went ahead with their forecasts. In retrospect I was too optimistic but haven’t been surprised with the number of downgrades and sad stories since.
The ASX listing awoke from a months-long slumber today, and is now down almost 50% - and still hovering above the NZX closing price :scared:
I hope the board takes that as a vote of no confidence for the recapitalization plans, and a big 'For Sale' sign aimed at anyone interested in buying a $250M-a-year glass processor at a bargain price.
Doesn't have to be cash, will consider equity swap for the likes of VSL, STU or even (yikes) FBU. It'll need some investment, but the rate of return should be pretty good as it's offsetting bank debt.
From the perspective of a shareholder with shallow pockets, anything will be better than this cap raise, which is likely to be nothing short of homeopathic in its dilutory effect.
I suspect that at the time, it would've passed a shareholder vote to proceed to negotiation, had a special meeting been called. But I'm also skeptical that it could've eventuated in a sale - maybe it was just a pretext to peek at the books.
This scenario plays out time and time again, with seemingly generous takeover offers being shunned by boards, who are supposed to be acting in shareholder interests. And often those board members hold negligible shares themselves, instead having a rational self-interest in continuing to bank director's fees as long as they can. STU, MPG, SKT, ERD, RAK, ... and no doubt more that we know of, and more that we don't.
Not sure if my MP is listening, but I'd suggest some reform for public company governance:
- Directors must have at least an X% or $Y shareholding interest, and their fees are not to exceed Z% of the value of that interest.
- Takeover offers at a premium of at least W% to market cap must be announced, and put to a shareholder vote.
I suppose each company's corporate charter could enshrine provisions like these, but having it legislated across the board (heh) would be for the good of the public.
I agree bulltrap. Low quality board members lacking focus and a stake in the company.
7.5c holy smoke. Hard to raise capital at this price.
Basically any cap raise is doing a favour to the banks who are on the hook for >$50m.