Biocare Share Discussion Threads

[tornadodown] 06/6/2008 09:55

Looking at buying a few of these due to the "green" issue. Seem to be playing globally and there could be some good upside to the stock from these levels.

[tornadodown] 05/6/2008 18:42

Research

BioCare has more than 50 formulations in various stages of development, nine of which are currently ready for sale in the retail market. Every formulation is plant-based and entirely natural.

How the Retail products work
Surfactants provide the most effective way to break the surface tension that holds dirt and grime to a surface. BioCare's surfactants are derived from plant extracts, which include corn, cocoa, palm, potato and canola.

Effective grease removal requires solvents to dissolve and liquefy grease fats and oils. BioCare uses a solvent extracted from citrus fruit. It is an essential oil that is excellent for dissolving the majority of grease, fats and oils.

To provide evaporation and some additional solvency, an organic ethanol is used. This alcohol is extracted from a range of plant materials that include sugar beet and sugar cane.

Food grade dyes of plant origin are used to provide colour recognition for individual product selection. Perfumes are created from a wide range of essential oils, extracted from herbs, flowers, leaf material and fruits of a wide range of plant species.

Product Testing
To ensure that BioCare's range of cleaning products were equal to or better than their chemical competitors, the company submitted the initial five products to an independent testing laboratory where they were tested against the leading chemical brand in each category. All five of the BioCare products performed at least as well as the chemical alternatives.

Other Product Areas
Biocare has long-term plans to develop products for the automotive, industrial, agricultural and aquacultural markets. The Company has already identified potential products that use biological agents - beneficial bacteria and fungi - for a wide range of degradation applications in the agriculture, solid waste management, waste water management and hydrocarbon industries. In these products bacteria and fungi are used to breakdown complex organic molecules into safe disposable natural waste materials. No decision has been made on the potential or the commercialization of these products.

All organisms used by BioCare are non pathogenic and non toxic. BioCare does not support or use genetically modified products, nor does it support or engage in product testing on animals.

[tornadodown] 05/6/2008 18:41

Trading Statement
RNS Number:0071K
Biocare Solutions PLC
17 December 2007
Biocare Solutions plc
("Biocare" or the "Company" or the "Group")
Pre-close Trading statement
Biocare Solutions plc, the developer, manufacturer and vendor of effective natural household
cleaning and laundry products, today issues a trading update ahead of its full year results ending
31 December 2007.
Production Facilities
As anticipated at the interim results issued in September, the Board is pleased to announce
that new production facilities in southern Italy are now fully operational.
Following the transfer of the Company's operations into the new plant at Ferrandina and the
closure of manufacturing facilities in Meda, close to Milan, overhead and production cost savings
are expected which will positively impact the Company's performance as it moves into 2008.
The enhanced production capacity provides the company with a platform to expand commercial
activities both in Italy and internationally.
Trading
The Company is pleased to announce the acquisition of a new Italian client who is a specialist
in the cleaning products field. We estimate that, when we are supplying all their outlets, it will
add Euro500,000 to our annual sales.
In line with management expectations, after taking account of delays in commissioning the new
factory and consequent lack of production capacity, the Company expects full year operating
results for 2007 to be similar to those of 2006.
Financing
The Board has continued to review the capital needed for expansion and the appropriate capital
structure for the Group going forward.
RAB Special Situations (Master) Fund Limited ("RAB"), a substantial shareholder of Biocare,
which holds 35,040,000 ordinary shares representing 38.23 per cent of the issued share capital
of the Company, has agreed to extend its short term facility by a further £300,000 pending
discussions to restructure existing and any further short term loans to the Group and to replace
these with a significantly lower-cost convertible loan. Other than this facility the Company is
debt free which provides sufficient headroom for suitable bank funding which is expected to be
put in place during 2008 as production expands.

[tornadodown] 05/6/2008 18:40

RNS Number:0827Q
Biocare Solutions PLC
14 March 2008
Biocare Solutions plc ("Biocare" or the "Company")
Director's shareholding
The Company received notification today that Stuart Anderson, the Executive
Chairman of the Company, on 13 March 2008 purchased 500,000 ordinary shares of
1p each, at a price of 5 pence per share.

[tornadodown] 05/6/2008 16:00

BioCare Solutions is committed to developing, manufacturing and selling totally natural and totally effective products that perform as well as or better than chemical alternatives.

We have brought biological expertise together with formulation and commercial skills to exploit the ability of plant extracts, bacteria and fungi, to deliver natural and sustainable solutions that have been historically resolved by chemical means.

While our portfolio of products includes specialist applications for the industrial, agricultural and aquaculture market sectors our focus is currently to develop and expand our range of household cleaning and laundry products.

The Company's manufacturing site is in Italy. Our plant and production process is both state of the art and unique to BioCare. This is to ensure our products, the ingredients of which are more expensive than chemical alternatives, can be produced as economically as possible to keep prices low.

Currently Biocare Solutions sells a range of retail cleaning products. At launch five all-natural household cleaning products were marketed principally in Italy, but also into Malaysia and the UK. In 2007 3 new laundry cleaning products were added.

As we move towards a greener enviroment this company may start to grow rapidly.

Company website

[pre] 05/6/2008 14:55

news soon me thinks...another 135K buy:-))

[pre] 04/6/2008 18:15

well the risk is high but the returns here could be a multi-bagger in the making imo, dyor etc....director bought at 5p recently....

[tiredoldbroker] 04/6/2008 15:46

Well, the share price is telling you that the market reckons the director who bought stock got it fundamentally wrong, and that the company has very major problems. RAB may feel that having gone this far, they might as well see it through, and bear in mind that their loans are secured on the assets of the company and its subsidiaries - so they can walk away with the business anyhow, and leave the other shareholdes with nothing.

The basic problem is that BSN didn't raise enough cash at the start to get the project off the ground; as a result, they are now at their weakest just when they might hope to be launching. I'd advise you to look at what usually happens to companies in this sort of bind - like Danka, Bella Media or Paros, for example, where if there's an asset potentially worth having, someone else prizes it away because they can finance it, and the shareholders get nothing.

Look at the cost of funding and that blunt statement - "unlikely that the Company would have sufficient working capital". It means they are in a parlous state and are operating on a knife edge, and indeed, if they do see growing demand for their products, they probably don't have the money to finance the stock needed, and could go bust trying. They've spent the money they had, it's all being done on borrowed cash now, and they probably can't raise any more beyond what they currently have. No equity left. Which is why the share price is at its current level. Sure, a couple of determined rampers could probably make the share price double from this level, if they could spin it to enough suckers, but I doubt very much that there's anything left in this for existing shareholders.

[paddywak1967] 04/6/2008 11:16

but the company only acquired debt by expanding their operation to service a fast expanding business. The company are growing fast, not getting smaller. They have opened a larger facility in Italy to accommodate growing trade as they admitted their existing facilities could not cope with all the work they had. They actually state this in a trading update in 2007. They are also expanding into the far east and elsewhere. Also, I have no idea what their fixed assets are worth but you cannot really say they have no equity at all. The fact that RAB have 30 odd million shares in this company and are fully prepared to invest more money shows they must be doing something right. A director buying at 5p just a couple of months ago also inspires some confidence.

[tiredoldbroker] 03/6/2008 15:48

Paadywak, any company which has effectively no equity but a pile of debt, is losing money at the operational level and (to quote the 28 March announcement) is borrowing money at a cost of a 10% commitment fee plus rolled-up interest added at the rate of 2% per month, and which says "Without such funds, it is unlikely that the Company would have sufficient working capital over the coming months", is I'm afraid, a company in trouble.

[paddywak1967] 03/6/2008 15:35

still don't think I've ever seen a company lose 40% of its share value in a day and not issue any kind of statement!

[paddywak1967] 03/6/2008 15:12

tiredoldbroker

I accept your point that the company are not asset rich but they are not a company in trouble either. They have taken on loans in order to expand the business as a result of a need to increase capacity which shows a company going forwards, not backwards!

[pre] 03/6/2008 14:58

this will be back up tomorrow if history repeats itself....any positive new wil see a multibagger here imo, dyor etc:0-)

[paddywak1967] 03/6/2008 14:36

It's possible but the company don't appear to be in trouble from an operational point of view. They just need capital to expand operations. If anything, they appear to have too much work and not enough capacity to sustain the work they are getting.....hence the new plant! If they issue a statement stating operations are going as planned then the share price will rise substantially. If they do not then it could well drop. Simple logic really!

[tiredoldbroker] 03/6/2008 14:33

Paddywak, what the company actually said in December 2007 was that apart from the loan from RAB, they were debt free; the RAB loan has grown to a prospective £3,457,390, and the 13.3.08 announcement also revealed a €600,000 leasing facility secured on its bottling line; and what the market is telling you is that the value assigned to BSN's debt plus equity is somewhere less than £4m - in which case, the existing equity is practically worthless, and at some stage the company will probably reorganise itself by exchanging debt for more equity, and the issue price will be a fraction of a penny, leaving RAB with probably over 90% of the stock.

Given that they expect a 2007 operating loss similar to the 2006 figure (-£2.5m), a new customer adding an eventual half a million Euros to annual sales just isn't progress enough, and the main facility at Ferrandina has been valued at €3.7 million, so they aren't asset rich compared to their debt.

[3celtic] 03/6/2008 14:21

.25 within days.imho

[3celtic] 03/6/2008 14:20

yes but they have not bought since at nearly a tenth the price.

[paddywak1967] 03/6/2008 14:17

The money raised was not to service debt but to allow the company to expand substantially. This is from an RNS in April 07

LONDON (Thomson Financial) - Biocare Solutions PLC said production at its new facility in Ferrandina, Italy, will now begin in May, later than previously announced, but the development stays on budget.

In February, the company had said it expects full production at the Ferrandina facility at end-March.

It added that its existing plant in Meda (5040.KL - news) , Italy, is being run on double shifts to cope with the production shortfall.

'Once Ferrandina is commissioned, the plant will be capable of more than trebling throughput,'

The worry is that the company have not said anything and let the share price plunge. On the plus side you have directors buying only 2 months ago at 5p.

[paddywak1967] 03/6/2008 13:00

What's interesting is that RAB own 35,040,000 of the issued share capital or 38.23% and they will not want to see this disappear. From the company's last trading statement in December 2007 they said "the company is debt free which provides sufficient headroom for suitable bank funding". They very much stress that this funding is to be used for expanding the company which has new premises in Italy, and not just to prop up existing operations.

[paddywak1967] 03/6/2008 12:36

Strangely enough you can't buy or sell these shares online at the moment at all.....not even £500 worth. Anybody else found the same problem?

[paddywak1967] 03/6/2008 12:30

not really clutching at straws more talking aloud. I'm not an investor but am interested in what is currently going on. Can't believe the company haven't issued some kind of RNS clarifying the situation.....especially given the way the shareprice has dropped so dramatically in the last 2 months. You'd think the LSE would ask for this anyway or else suspend the company. Never seen a situation like it before. I do believe, however, that RAB are not the sort of people to throw good money after bad so they must see a future for this company. There's also no way that they could have spent almost £700000 in less than 3 months. The company is probably currently worth what the loan notes were!

[3celtic] 03/6/2008 12:21

clutching at straws here paddywak.

[paddywak1967] 03/6/2008 12:20

The company cannot have spent the £653000 it got from RAB in exchange for its loan notes so it must still have a sizable chunk of cash left in the bank! What is the company worth on current sp? Also, RAB are shrewd operators and would not have funded BSN if they thought there was no future.

[3celtic] 03/6/2008 12:16

3 months gone by and no cash

[3celtic] 03/6/2008 12:15

funding is the problem as with all companies who need cash at the moment.banks have none so collapse im afraid.