Originally posted by Jace1984
This is really about securing SAMR. I have it on good authority that WHA are anticipating a site inspection in the next couple of months and SAMR approval shortly after that. I expect that WHA and BAL will get their approval in the same batch. If successful, WHA have $125m in contracts ready to go for their B&P facilities, with bank guarantees, so they should be cash flow positive this CY. In the meantime they are building their organic business - launching the Uganic brand and completing the Corio Bay facilities, hopefully by the end of the year. Then I think they will convert to pure organic. I expect by this time next year they will have two producing facilities and will own most of the organic supply in Australia. So they are looking to cement themselves as major players in the Australian dairy industry, in every step of the vertical integration process, and positioning themselves for the future through the fast growing organic industry, especially in China. At least the debt raised will be asset backed and non-dilutionary, although I suspect the real reason for this has more to do with the trouble they had raising the cash last time around - I don't think there is much investor appetite for another CR.
If they pull the China story off this will be a ten-bagger from here. If not, they will still own some great assets and be major players in the supply chain. It's reassuring to know that they still have a strategic relationship with Mason's through their distribution channels, and Mason's are still major shareholders for now - so it's win win for them.
how do you have this information?
I'm kinda over people having supposedly inside info
posts like these should be banned.