ann out : share placement and spp, page-19

There are obviously different parts to their business:

Cardia Biohybrid - modern more sustainable resins (replacing up to 66% petroleum content)
Cardia Compostable - biodegradable resins
Cardia Bioproducts - end to end - plastic bags etc

I'd love to know which of these three areas is currently most profitable and which they see as having the most potential. If they are all equal, that will also be interesting to know.

Back in their Feb 2012 Investor Presentation, the following general point was highlighted under Company Overview:

"Low cost to upscale capacity & quick pay back on capital equipment investment" hmmm

I wonder which part of their business this relates to - resin, plastic bag (or other plastic products)? It was a general highlighted point, so I'll take it as applying to all parts.

WHY, a few years ago (someone may recall), they Cap Raised in order to significantly increase their production (I recall reference to "heads") volume capability - so now, they need more capacity again? Wow, did I miss all the profit resulting from previous sales following this new capacity? Then only last month, they announced:

"Purchase of three new film extrusion and bag making
machines with aim to order a further three by end of June quarter.
• Each production line capable of producing an
additional 1.5 million bags per month
. Cardia Bioplastics’ strategy to expand finished products division having early impact on global sales.
• Increased finished products capacity will enhance sales margins, as Cardia products will be made in
-house.
• Existing capacity for resin production meets business requirements."

So they mentioned an aim to order 3 more machines by June. Is that part of what the current $2.5m CR is about in relation to increasing efficiency?

It seems like they have been upscaling for some time, increasing their capacity and then further upscaling, but don't seem to show any results for all this, unless as already discussed, current volumes are at extremely low profit margins.

This all opens up lot's more questions when one looks back at all these past announcements, CRs and Investor Presentations. Maybe it is good that it is now 5:17pm Friday - a sign to stop thinking about CNN too much.

Ugh!