BPAM vs BFC, page-8

The next answer relates to my question, being, will there be a share issue to ensure that the company has working capital to survive, as this will have a dramatic affect on our share prices

Mr Flews response is as follows

"The company has facilities in place with its bankers that should be sufficient to sustain the working capital needs of the business based on its FY20 budgets. If the company were to make a large investment, either a large capital project or an acquisition, the company would probably need to raise equity at that time. There are no current plans to make a large investment although the company does of course continue to examine options focussed on growing its core dairy and meat businesses.

At the upcoming AGM we expect to be providing more information about the company’s improving operating performance including for the first 4 months of the current financial year."


As we know the results against projections for the last three years have been so far out its ridiculous, maybe its BPAM doing the projections. To have any confidence in the projections would be like suicide, based on historical performance. His answer certainly gave him a way out.

Bankers actually could not lend anymore to this conpany based on its market cap and three years of continual losses, at the end of each year projections are done and are never met. There ability to service their bank debts clearly needs to be questioned without raising anymore capital based on historical results not airy fairy projections that have never be acheived.

It appears more than likely a share issue will need to take place, so is it appropriate to sell now and if you feel ballsy re purchase the shares after the share issue at a heavily reduced value and hope BPAM resign with Sexton and the CEO and CFO become independant to BPAM and work directly for Beston without any outside influence.