Being in and subsequently out of this company, I can sit on the sidelines. Here is my commentary on their strategy:
Positives
They have a new strategy which taps into the IF and nutritional market
Negatives
They have a new strategy and have no track record in delivering on past strategies
Having a "Nutritional" product and being able to sell it at high volumes are poles apart; very little discussion about how they are going to sell these products and drive revenue/profit
P11 - having completed a feasibility study, there is no detail - what is the cost? how am I going to finance? and what is the expected ROI? AHF don't even state whether it is feasible?
P22 (I laughed at this page) AHF comparing themselves to their peers - BAL and A2M. BAL and A2M have a known product and established and proven routes to market. The rest I would throw a blanket over - all yet to prove themselves.
The rest talks about the IF market opportunity and how BAL and A2M are prospering. AHF does not expect to have an IF product until 2019.
A walk down memory lane - here are the previous cash requests
February 2010 - Rights Issue
August 2014 - Capital Raising
May 2015 - SPP Raise
June 2015 - Institutional and sophisticated investor placement
September 2017 - Cornerstone investor placement
September 2018 - SPP Offer
Plus they have maxed out their loan facilities to $10 million (AR 2017)
Think I will stay on the sidelines.
AHF Price at posting:
13.0¢ Sentiment: Sell Disclosure: Not Held
