SML - Synlait Milk Ltd

[Newman]

Answer from Chairman to question about size of CR - "hundreds of millions of dollars."

Sounding like $200m to $250m to me.

The capital raising would be large enough to pay back bonds, further reduce bank debt, retain farmers, enhance Pokeno productivity, and produce a good after-tax profit to please shareholders.

Could a CR of $250-300m and a share price return to $1 before Christmas be expected?

[Toddy]

The capital raising would be large enough to pay back bonds, further reduce bank debt, retain farmers, enhance Pokeno productivity, and produce a good after-tax profit to please shareholders.

Could a CR of $250-300m and a share price return to $1 before Christmas be expected?

Yeah sure, if they raised 218m off current shareholders that's a buck a share into the bucket.

[silverblizzard888]

Very impressed with the Chairs performance and lots of interesting updates provided. First off great to have the resolution passed and loan from Bright on its way, next step will be capital raising. There was some good updates provided.

Asset Sales
Sounds like Dairyworks is off the table, theres no strong offers and Synlaits sick of being lowballed and most probably Pokeno too since they think the asset will be important for future growth, but will depend on how the CR goes.

Capital Raising
With asset sales unlikely to be sold off now and the Chair speaking about 'hundreds' of millions being raised, that will be their first target to raise enough to pay down debt. Asset sales will only be back on the table if they fail to raise the amount they want.

Pokeno
An important update on Pokeno was provided, the Chair spoke about Pokeno having supplied Abbott for 12 months and that the ramp up is still to come for more plant based products, they had only just completed a testing phase for another of their products, so ramp up soon after. They are also working with Bright to create a new product too. Pokeno cash burn will be solved soon with hints that 2025 Synlait will be cashflow positive.

Share price
Share price has rebounded well and with things looking much brighter going forward it can still continue to perform. At 37.5 cents and an $81m mcap its still looking like good value.

[whatsup]

With a M C of circa $60 mil and $250,000,000 funding to raise ?

[silverblizzard888]

With a M C of circa $60 mil and $250,000,000 funding to raise ?

The Chair did say they will be raising several times their market cap, so yes it looks like the case. If the share price is higher by end of August then less dilution.

[bull....]

Very impressed with the Chairs performance and lots of interesting updates provided. First off great to have the resolution passed and loan from Bright on its way, next step will be capital raising. There was some good updates provided.

Asset Sales
Sounds like Dairyworks is off the table, theres no strong offers and Synlaits sick of being lowballed and most probably Pokeno too since they think the asset will be important for future growth, but will depend on how the CR goes.

Capital Raising
With asset sales unlikely to be sold off now and the Chair speaking about 'hundreds' of millions being raised, that will be their first target to raise enough to pay down debt. Asset sales will only be back on the table if they fail to raise the amount they want.

Pokeno
An important update on Pokeno was provided, the Chair spoke about Pokeno having supplied Abbott for 12 months and that the ramp up is still to come for more plant based products, they had only just completed a testing phase for another of their products, so ramp up soon after. They are also working with Bright to create a new product too. Pokeno cash burn will be solved soon with hints that 2025 Synlait will be cashflow positive.

Share price
Share price has rebounded well and with things looking much brighter going forward it can still continue to perform. At 37.5 cents and an $81m mcap its still looking like good value.

you were right when you said a while back at just over 20c that liquidation value was worth more than current price. probably still case now. so agree probably good value still with uncertainty significantly reducing.

[Toddy]

So what kind of carrot are they offering farmers to stay or sign up.

The farmers will be a big winner out of today's cap raising announcement for sure.

[silverblizzard888]

So what kind of carrot are they offering farmers to stay or sign up.

The farmers will be a big winner out of today's cap raising announcement for sure.

Can’t remember precisely but the farmers wanted upfront payment incentives and synlait promising competitive milk pricing to fonterra

[nztx]

So what kind of carrot are they offering farmers to stay or sign up.

The farmers will be a big winner out of today's cap raising announcement for sure.

Will they ? So who is left digging repeated holes in their front garden for CR after CR ?

Any news on a future dividend out of this or do the Chinese lenders get first lick of the lollypop right up the top of the queue .. or maybe better dodging the mayhem ahead in future rounds of craziness .. by simply leaving funds in the bank on high interest ?

[RupertBear]

Very impressed with the Chairs performance and lots of interesting updates provided. First off great to have the resolution passed and loan from Bright on its way, next step will be capital raising. There was some good updates provided.

Asset Sales
Sounds like Dairyworks is off the table, theres no strong offers and Synlaits sick of being lowballed and most probably Pokeno too since they think the asset will be important for future growth, but will depend on how the CR goes.

Capital Raising
With asset sales unlikely to be sold off now and the Chair speaking about 'hundreds' of millions being raised, that will be their first target to raise enough to pay down debt. Asset sales will only be back on the table if they fail to raise the amount they want.

Pokeno
An important update on Pokeno was provided, the Chair spoke about Pokeno having supplied Abbott for 12 months and that the ramp up is still to come for more plant based products, they had only just completed a testing phase for another of their products, so ramp up soon after. They are also working with Bright to create a new product too. Pokeno cash burn will be solved soon with hints that 2025 Synlait will be cashflow positive.

Share price
Share price has rebounded well and with things looking much brighter going forward it can still continue to perform. At 37.5 cents and an $81m mcap its still looking like good value.

I was also very impressed with the Chairs performance.