In case anyone is confused, this deal is about the French company Solabia buying the Israeli company Algatech (not to be confused with the Australian company Affinity Energy previously known as Algae Tech/AEB).
We've heard from many shareholders over the last 8 years or so about how amazing AEB's technology and products are. So amazing that they keep failing, abandoning them and trying new things until they shifted the focus away from algae and even took algae out of the company name and switched to failing at growing marijuana.
They failed to make Algae work in the energy pursuits and eventually changed their story from 'we can make biofuels cheaper than crude (at half the price of crude regardless of the price of crude, was their exact claim) but later admitted that the price of oil was too low for their product to be economically viable, even though the price of oil isn't very high (much, much lower than they had claimed they could undercut crude by 50% at!).
As for nutriceuticals etc, they've had many years of promises and failure. Exactly how long do you need to accept that something isn't going to work? If they claim something will be turning a huge profit within a few months, okay, maybe an extra few months, even a year, maybe even two years might seem like a plausible delay, but it has been many years and things have only become worse and more obvious. It's a wonder anyone can still be in denial. They're still, after many years, literally selling close to or perhaps literally nothing (it's difficult to tell if it's zero or negligible, and it seems that for several months they have ceased to even make any attempts and we're currently not even sure if they are making an attempt to maintain their infrastructure, and it seems most likely they are not). What are you basing your claim that they are making money on? The company ran out of money months ago after finally failing to secure enough capital from investors, and at best has been mothballed while waiting for more money to come in (or as they put it, for capital raising to be 'finalised' - it has been enough months now for that story to be wearing thin, surely you can see that).
A French company buying an Israeli algae company may be good for the algae industry if the French company has big plans to develop it, but if so, that would be bad news for AEB, in the same way that if I had a small company which was already clearly failing, a much larger company in the same industry getting even bigger and better would be very bad for me.
At this point it probably doesn't matter because fairly soon (I'm guessing it will be in July) it seems like AEB will come out of suspension and into administration. It will be very interesting when that happens (or if something else eventuates) because whether it's a case of them having finalised a capital raising with a partner and they're going to announce their magical cure for all cancer or it turns out that they're using this time to shred all the paperwork and torch the office as they flee to South America, the market will be informed and we'll get the story.
No prizes for guessing what I expect to happen, but I'm looking forward to it like the last episode of a bad TV series I got stuck watching.
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