Hi guys. I am a long term holder going through the report now.
It should be very easy to verify this information one way or another. Some of these claims are so explosive, either the company is full of lies and deceit, or Glacus are. I do not see how there can be grey area because it's so extreme!
Copied and pasted below in an excerpt from the report. I would argue that confirmation either way on this point would be enough to confirm whether or not this is legitimate research or a farce
Interested to hear people's opinions and see if anybody can do some research and find some answers.
Frank Wilson purchased $50000 shares today. Should be a lot more methinks at this point!
The company should respond immediately, and in detail
Peace
"Phantom Chinese Buyer? One of the festering uncertainties in TFS’s business model is whether there will be a significant addressable market for sandalwood once its plantations are ready for harvest. To allay such fears, in September 2016, TFS announced that it completed its first shipment under a “five-year agreement to supply 150 tonnes per annum of processed heartwood to China.” Mysteriously, TFS did not announce the identity of this Chinese buyer, even though it had agreed to purchase the equivalent of USD 25 million in sandalwood from TFS per year (50% of TFS’s projected harvests), making the mysterious Chinese buyer TFS’s most valuable customer.
a. A Richer Link? Buried in TFS’s website, written in Chinese, the Company discloses that its exclusive distributor in China is an obscure firm named Shanghai Richer Link. We think that the Company was coy about the identity of its Chinese customer because any modicum of due diligence reveals that, far from being a big distributor capable of purchasing such vast quantities of sandalwood each year, Shanghai Richer Link is a tiny commodities importer with minimal operations and a small balance sheet.
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First, Shanghai Richer Link does not have an operating website. Without a web presence, how could Shanghai Richer Link successfully distribute sandalwood?
Second, we called the telephone number for Shanghai Richer Link listed on the TFS website. In a recorded phone call, when we asked the representative from Shanghai Richer Link whether it was the exclusive distributor of sandalwood in China for TFS, the representative claimed to be unfamiliar with TFS. After asking a colleague, she stated that “we do not do that business anymore.” We admit that we could have spoken to a clerical employee who may have been confused, but TFS claims on its website that Shanghai Richer Link is its sole and exclusive distributor for sandalwood in China – if that is true, why would the employees of Shanghai Richer Link be unfamiliar with the Company or deny doing business with TFS?
Finally, we reviewed publicly available SAIC filings of Shanghai Richer Link filed by the distributor with the Chinese government, which include its historical financials. SAIC filings showed that in 2015, Shanghai Richer Link reported only AU$ 1.7 million in revenues, COGS of AU$ 1.4 million, and profits of only AU$ 25,433. Likewise, SAIC filings showed that Shanghai Richer Link’s cash balance was tiny at CYE 2015 (AU$ 228,352), not even in the universe of being able to finance the purchase of 150 tonnes sandalwood from TFS, the equivalent of USD 25 million, per year.
Ultimately, it does not appear as if TFS’s highly touted Chinese buyer is capable of purchasing 750 tonnes of sandalwood over the next five years. Rather, it appears to be a tiny importer with no web presence, minimal operations, tiny revenues, almost zero profits and a small cash balance insufficient to purchase sandalwood in bulk. In our opinion, TFS has materially mislead investors by announcing that it presold 750 tonnes of sandalwood for ~USD 125 million over five years without disclosing that the supposed purchaser (TFS’s exclusive distributor in China) does not appear to have the scale, operations or cash to fulfill such a contract."
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