I sold out in the last couple of weeks the rest of my position for basically the same reasons. The company was very good to me - I sold at 18c and the bulk at 43c from 6c - but they don't look anywhere near making a profit with their current business model.
The idea of selling off assets and leasing them back to fund further expansion makes it sound a lot like they had no actual plan towards profibility. I do believe them (for what it's worth) every time they say they are 'on track to reach 10,000t by 2030', but they have never said they'd be making a profit when they get there.
I liked the idea of owning the land, as it would produce a real capital gain as an investment. Now the leakage with an ongoing lease cost, their bottom line does not need another burden.
It's starting to look very much like a lifestyle company to me, with shareholders (those that aren't paid in wages, salary or for consultancy etc) left to wonder when, if ever, there will be a catalyst that propels the company into the black and delivers a dividend. Or even provide just some SP growth would do.
I, too, love the idea of MCA, but one of the main attractions to me was the initiative of using the water twice, keeping fish in it then pumping the nutritionally upgraded water onto an agriculatural crop or pasture. Nowadays they never even mention this, and from memory they sold all of their cattle, and they are now moving to not even owning the land they are going to have all their ponds on. As much as I've been a successful investor in the company, the focus seems to be just keeping the company rolling over, rather than ever making any money. I don't think they have a future as a wealth accretor for shareholders, and that's why I'm out. Good luck to those who persist, I really hope the company does well for you.
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