Very misleading. From their own announcements: 14 Jan 2021: 1AG...

Very misleading. From their own announcements:

14 Jan 2021: 1AG identified through their own research and info from their knowledgeable avocado development partner French’s Group, that high density plantings yielded better results and would be the way forward.

13 May 2021: Pendulum become significant shareholder (17.42%) of 1AG

29 July 2021: Pendulum Group appointed as project manager for the development of the 52Ha stage 2 plantings. They will be paid $320k for a 4 month contract that concludes on 30 Nov 2021 - presumably when the stage 2 planting would be finished.

20 Aug 2021: 1AG work with Pendulum to develop a “revised strategy” that includes:
- high density plantings. This had already been announced and shouldn’t be attributable to Pendulum’s engagement.
- reduced capex per tree. This is common sense; if you plant more trees in the same area with fixed infrastructure the capex per tree will be reduced. Not worthy of inclusion.
- high performance micro sprinklers in line with the industry standard for the region. This was already known well before this announcement since they had engaged nearby avocado producers (French’s Group and Richard Eckersley) who should have provided this information before the irrigation design and system capacity was even drawn up - at least 12 months ago.
- further site drainage requirements. Very concerning that this wasn’t identified sooner with their topographic and soil surveys. It implies they could face harvest issues in the future since WA harvest occurs at the same time they would normally be planting - if they can’t plant now due to site conditions then are they going to be able to get harvest machinery in place in 5 years time?
- a reduction in stage 2 planted area from 52Ha to 7Ha. 21 days earlier they were on track for completing the 52Ha and Pendulum we’re going to help deliver it. Did they really need to pay Pendulum $320k to advise them it had been a wet winter and the ground was still too wet to plant?

This seems like Pendulum weren’t happy with their investment and were privy to the likely delays that would hamper the stage 2 development. So they are effectively getting a partial refund of their recent investment through a $320k advisory fee.

Alterra promote themselves as an experienced developer and manager yet they need to engage multiple third parties (French’s Group, Richard Eckersley and now Pendulum Group) at the shareholders expense to tell them they need better site drainage and the ground is too wet to plant. Where is the value in 1AG? They are failing at the only project they have.

Is the weather 100% to blame, or have Alterra failed to raise the funds to develop the 52Ha of stage 2? The fact they omitted any reference to the necessary Carpenters investment implies they don’t have it.