Cobram Estate Valuation

Valuation of Cobram Estate




-6500 Ha of land $65,000,000 Domain.com comparable land valuation
-Biological Assets ( olive trees ) $20,000,000 Untested company claimed value
-Buildings, brands Plant $10,000,000 Untested speculative valuation . Brand valuation subject to viability of the farm


TOTAL $95,000,0000 All other assets are canceled by corresponding liabilities

Outstanding shares 380,000,000 = 25 cents per share


IPO priced at $2.00 would represent a 800 % premium to valuation

As an Adri business ( orchard) it is subject to the extremes of climate and other acts of God

Oil brands subject to the viability of the farm

Management over more than 20 years have not delivered a profit




CONCLUSION

Grossly overvalued at IPO valuation, Highly speculative farming enterprise . Cost cutting by the sale of water rights for around $60 million to reduce debt has place the farm at the mercy of water costs that can be in excess of $20 million per year . Clearly management lacks long term thinking and place the long term viability of the enterprise at risk