Quintis gets sandalwood oil sale boost, loses director
Sean SmithFriday, 30 June 2017 3:32PM
The group is due to emerge from a lengthy share trading suspension next week.Picture: Countryman
Sandalwood grower Quintis has received some much-needed cash, but lost one of its directors.
The group, which is due to emerge from a lengthy share trading suspension next week, disclosed today it had sold $11.3 million of sandalwood album oil to global giant Young Living.
The bulk sale of the 2.85 million tonnes of oil is part of an off-take agreement signed with US-based Young Living in September 2016.
Quintis said the sale provided “important cashflow” as the group worked through to rejuvenate dwindling cash reserves.
It also “crystallises the value of Quintis’s sandalwood oil inventory and provides a demonstration of the demand for the company’s sandalwood album oil”, the group said.
Quintis also disclosed the resignation of director Gillian Franklin after 21/2 years.
No explanation was given for the departure, but the credibility of the Quintis board has been hurt by the disclosure in May that directors were unaware of the loss of an important oil contract until months afterwards.
QIN Price at posting:
29.5¢ Sentiment: Hold Disclosure: Not Held
