Otaq Share Discussion Threads

[serratia] 19/4/2022 17:09

Fair enough if they weren't from a past company I misunderstood your comments. So he failed to hit whatever targets he had so given new free ones is that correct ? Brilliantly successful ? Just posted the biggest loss in recent years !

[hedgehog 100] 19/4/2022 17:05

What on Earth are you taking about, mate?

I am talking about what P.N. has done here at OTAQ, where he's been brilliantly successful in building it up from start-up status.

And the options are absolutely not new to OTAQ: the RNS states very clearly that they are replacing P.N.'s pre-existing OTAQ options: i.e. they are not new at all.

What more can I say?

'I'm pointing at the moon, and you're looking at my fingertip.'

[serratia] 19/4/2022 16:53

I can see you're getting stroppy. What he did elsewhere is of no concern to me this is OTAQ and shareholders have to cough up for something he did in another company if I read you right ? The options are new to OTAQ.

[hedgehog 100] 19/4/2022 16:32

"The grant of Options to Phil Newby replaces previous share options that he held, which have now been cancelled."


Serratia,

You were clearly giving a false impression by ignoring the fact that P.N.'s options were not new, but were replacing pre-existing options that he may have held since 2014.
He paid for the new options by giving up the old ones, which he had worked hard for many years, probably at a lower salary than he could have earnt elsewhere, to give them the value that they had accrued.

So you're quite happy to unfairly trash the reputation of others, but then object when your misleading posting is flagged up.

The key issue is not whether a company insider has free shares, but when, and in what circumstances, the free share were issued.

Do you think that Bill Gates paid for his shareholding in Microsoft?

Of course not.

If you have played a lead role in building up a company from start-up to a successful, multi-million pound turnover listed company, over nearly a decade, giving up leading opportunities elsewhere, like P.N. has with OTAQ, then why shouldn't you have some free shares stemming from near the start of that?

There's absolutely nothing wrong with that, so you are being utterly ridiculous.

[serratia] 19/4/2022 16:03

Not going to argue with you or play on words. The accounts show a large number of options at zero cost. That's clear to me. Only responding as I do not post false info.Loss making start ups are fine by me but the seal issue has sent them backwards.

[hedgehog 100] 19/4/2022 15:30

Serratia,

Why is it "touchy" to flag up the fact that you are posting false information?

The options concerned weren't lost - they were replaced, which is different.

And they weren't replaced at zero cost: P.N. paid for them by giving up his pre-existing options.

When OTAQ floated in 2020 that was an obvious point to set up a new share option scheme, which was approved at the AGM in September 2020, and it made perfect sense for P.N. to in effect move his old options into the new scheme.


If loss-making technology companies aren't your cup of tea then fair enough, but if that's the case then I'm surprised that you have even seriously looked at OTAQ, let alone posted about it.

To illustrate the potential valuation upside of OTAQ, even just on its existing numbers, then consider the example of Atlantic Sapphire (OB:ASA).

At the end of August it was valued at US$490M., on revenue similar to OTAQ's, and despite being loss-making like OTAQ.


"Investing in Seafood Stocks

See what's fresh in the seafood industry these days.

Jeremy Bowman(TMFHobo)
Updated: Dec 7, 2021 at 9:48AM

... Atlantic Sapphire (OB:ASA) $490 million

... SOURCE: YAHOO! FINANCE. MARKET CAP DATA AS OF AUG. 30, 2021.

... For the seafood industry, Atlantic Sapphire is a young company and was founded in 2010. It's still far from turning a profit and brought in just $6.3 million in revenue last year. However, the stock is being valued based on its disruptive potential, ..."

[serratia] 19/4/2022 14:53

H,

I didn't come on here for an argument, just to check progress re the seal deterrent and anything I may have missed. As you seem to be touchy I'll summarise and leave to watch from afar.

Options -


"The grant of Options to Phil Newby replaces previous share options that he held, which have now been cancelled."


If his previous options were lost I assume they didn't hit the targets so why replace them at zero cost.
Sure revenue has risen but at the last half year the OP was at it's highest loss rate so far although I only checked back to 2018. Growing revenue doesn't mean a lot if you also grow losses.
RB's options are the way to go.

Business -

I'm still watching due to the potential. Revenue was increasing 2018 - 2020. OP was improving - loss £343k, 898k, then improving to a £668k loss so worth watching the progress. Then the seal issue and half year 2021 OP loss jumped to £747k with GM percentage also falling from high 50's to mid 40's. Outlook for the year, revenue flat and higher costs.
Doesn't look too good this year from their comments but it's about the future. Can they get the seal deterrent back running and new stuff paying ?
Worth watching to see if they can get back on track. With GM's at say 50% I'd look for evidence they can get revenue up from the half year rate of £3.7m / yr to £5.7m to justify the present share price. Possible but too early to say. Will keep watching to see if they can get it back on track.
It's too early to say but until they get back on track with actual improvements showing in the figures this company is uninvestable unless you're prepared to take on more risk than me.
Anyway good luck with it.

[hedgehog 100] 19/4/2022 10:17

JUNE 10, 2021

Turning research into commerce

Engineering alumnus recognized for 'first-of-its-kind' AI water testing tech for fish farming

By Brian Caldwell
Faculty of Engineering

An alumnus of Waterloo Engineering who parlayed his graduate research into a startup company that is out to solve worldwide water problems has been recognized by a national innovation organization.

Jason Deglint, a co-founder of Blue Lion Labs, is one of five winners of a Mitacs Entrepreneur Award for turning research into businesses that impact the lives of Canadians.

The honour in the global impact category comes a month after Blue Lion, which was launched in 2018, teamed up with a leading marine technology company in the United Kingdom to develop an imaging system to warn fish farmers of harmful plankton and algae blooms.

OTAQ announced it is investing $300,000 for an approximate 10-per-cent stake in the Waterloo-based company. The partners are aiming to commercialize the technology within the next 18 months.

Deglint (MASc ’16, systems design engineering, PhD ’19, systems design engineering) was described by Mitacs, a non-profit organization backed by federal and provincial governments, as “an up-and-coming entrepreneur” who is advancing “first-of-its-kind technology.”

The system based on his doctoral research combines artificial intelligence (AI) software with a custom digital microscope to automatically detect harmful algae in water.

Current testing methods rely primarily on analysis of water samples at off-site labs and results can take up to a week to obtain.

The technology being developed by Deglint and Blue Lion co-founder Katie Thomas, who has a doctorate in biology from the University of Waterloo, would yield results in minutes and effectively function as an early warning system.

Current testing 'prone to human error'
“Essentially, if fish farms want to know what types of organisms are in their water today, the sample ends up on a slide with a human looking at it,” Deglint said in a media release. “It’s a tedious, time-consuming task that’s prone to human error.”

A growing industry, aquaculture represents about a third of the total fisheries value in Canada. Harmful algae blooms are a major source of damage and losses.

Deglint, who worked at Waterloo Engineering as a Mitacs postdoctoral researcher, accepted his award during an online ceremony today.

“Supporting innovation is essential to help Canada rebound from the repercussions of the global pandemic, and Mitacs is extremely proud of the remarkable accomplishments achieved by our network of talented entrepreneurs,” John Hepburn, the CEO and scientific director of Mitacs, said in the release.

[hedgehog 100] 19/4/2022 09:02

Serrtia,

New zero-cost options in a listed company don't sit well with me either, but that hasn't happened here, despite what you are trying to suggest.

In your post 58 above, you stated that Phil Newby was given his current options at zero cost, when that wasn't the case, as you completely ignored this:
"The grant of Options to Phil Newby replaces previous share options that he held, which have now been cancelled."

Those initial options could have been granted to P.N. about eight years ago, but you appear to be trying to smear him by falsely suggesting that he has taken options unscrupulously now.

When P.N. joined OTAQ in 2014, he had already been a general business or CEO of similar businesses for over 20 years, and was joining a 'start-up' company, almost like a co-founder.

Even since 2017, the group's annual revenue has risen about tenfold:

Year to 31 March 2017: £374,000
Year to 31 March 2018: £919,000
Year to 31 March 2019: £1,570,000
Year to 31 March 2020: £3,420,000
Year to 31 March 2021: £4,053,000

So his pre-existing options were entirely reasonable, and he has earnt their current value, and shown his worth, by his fantastic work in growing the business since then.


OTAQ's newest share options are those granted to Richard Beesley, who joined OTAQ as Chief Commercial Officer in October:

16/12/2021 14:00 UK Regulatory (RNS & others) Grant of Share Options to PDMR LSE:OTAQ Otaq Plc
"... Option Holder Number of Shares under Option Option Price Type of Option Vesting Date
Richard Beesley 250,000 Shares GBP0.60 EMI Option 31 March 2024 ..."


I.e. exercisable at a price of 60p/share, even though they were issued when the market price was 23p/share.

[serratia] 18/4/2022 22:38

Not going to get into an argument here. The £28k wages company was a start up flotation the other was already in the market. Another company I follow floated with low wages and options at the flotation price. We'll just have to differ. Zero cost options don't sit well with me. You're Ok with it fair enough.

[hedgehog 100] 18/4/2022 22:22

Serratia,

As those two examples you quote have share prices, presumably they are listed, so are far more advanced than OTAQ was when Phil Newby joined it in 2014, six year before the company's 2020 floatation.

I repeat that the founder/co-founders of companies typically have large number of shares at 'zero cost'.

Phil Newby's situation is similar to that, though the number of shares options concerned is only about 2.7% of the shares in issue, so isn't a big deal in terms of dilution.

He had to do a great deal to make those options worth what they are today, i.e. building up the company, and floating on the stock exchange, so it's misleading to suggest that he hasn't had to achieve good company performance to be well rewarded through these options, when he has.

There is no 'warning sign' for me at all on this, or apparently for Nigel Wray, 'the British Buffett' - who is a very shrewd investor, and who has invested very significantly into OTAQ.


"Blue Lion Labs

We use biology and machine learning to build tools which help monitor and preserve aquatic systems.

Blue Lion Labs - Pitch Video"

At 2:50 - "But this is just the beginning. Our solution can be applied to drinking water, recreation, and many other sectors, to help safeguard our water."

[serratia] 18/4/2022 20:43

H,

On options I have no info on his past income etc only that it's a large number at zero cost in OTAQ. I'm tracking two other companies in their early stages. One gave significant options at from memory a target around 40% above the then share price. The board also only take a £28k wage to conserve cash. The other took on a new CEO from a private concern. His options require the share price to double in 1 year from his start. So I still feel uncomfortable with his options.
It's not a deal breaker for me just a warning sign. I'm still interested if the financials look good so will follow up on that part of your reply.

[hedgehog 100] 18/4/2022 19:46

World food production and supply is facing some huge challenges: a growing world population, climate change, and more recently the COVID-19 pandemic and the Ukraine-Russia war.

Aquaculture can play a vital role in helping to meet these challenges, and is crying out for new technologies to help its growth and efficiency:

"Big data and artificial intelligence in the fish industry

New methods reduce costs and increase efficiency

From a global perspective the fish industry has lagged far behind most other industries with regard to the introduction of information technologies. In neither the fishing nor the aquaculture sector have these advanced technologies made sufficient headway so far. Over the past few years, however, a race has begun to catch up and improve the state of the seas and the sustainability of human activities in these important areas. ..."




So OTAQ is at the forefront of a hugely exciting market opportunity.

With its successful Sealfence acoustic deterrent device set to be complemented by two other major technologies:

1. Biomass Measurement.
Marine farming demands a real-time and accurate method of measuring average weight and total in-cage biomass.
OTAQ has developed its shrimp biomass measurement technology through its strategic partnership with Minnowtech, which is now commencing commercialisation.

2. Plankton Detection.
Phytoplankton, or "algal bloom", is a major disease challenge for the aquaculture industry generally and it is estimated the global aquaculture industry suffers $3.4 billion in damage and losses annually due to organisms such as algal blooms and harmful phytoplankton. Early detection of this problem should allow farmers to deploy their defence systems early enough to markedly reduce the losses and improve overall fish welfare.
OTAQ has accelerated the development of its phytoplankton early warning detection technology through a collaboration with Blue Lion Labs in Canada, and expects to be able to demonstrate its effectiveness in the first half of 2022.


OTAQ has strategic shareholdings in both Minnowtech and Blue Lion Labs, and in the future both could potentially become part of the OTAQ group, to complement its organic growth.

OTAQ non executive director Malcolm Pye built up Benchmark (BMK) from its initial start-up into a major international aquaculture technology business, serving the global salmon, shrimp, tilapia and farmed fish industries.

BMK's current market cap., at 48.6p, is £342.12M.
Which is nearly fifty time larger than OTAQ's current market cap., at 18.7p: £7.05M.

[hedgehog 100] 14/4/2022 18:25

Minnowtech to Introduce First-Ever Biomass Reader for Shrimp in Special Product Launch Digital Event, April 21

Minnowtech’s BRS-1 will be unveiled as part of a launch initiative to invite a select group of industry aquaculture partners to join a special six-month product trial

April 5, 2022, Kekaha, HI – Minnowtech, an aquaculture technology company that enables shrimp farmers to calculate shrimp abundance for optimizing feed and harvest, will host a special digital event, April 21, to introduce the BRS-1, the first-ever subsurface biomass reader for shrimp aquaculture farming.

Until now, shrimp farmers had almost no way of determining how many shrimp were actually in their pond.

With the BRS-1’s groundbreaking subsurface technology, shrimp farmers now can determine the total count and biomass of their shrimp with 95% accuracy, allowing them to rest easy knowing their investment is safe and optimize their harvests and profits.

With shrimp a growing, vital source of protein worldwide, the BRS-1 provides farmers, for the first time, a tech-enabled way to meet global shrimp demand while optimizing their individual livelihoods and fueling local economies.

As part of the BRS-1’s launch event, Minnowtech will introduce its Trial Partnership Program in which Minnowtech’s team will invite and select a limited group of partner organizations to participate in a six-month trial of the BRS-1 biomass reader for shrimp.

Media are invited to attend the live streamed launch event

What: Minnowtech’s Launch Event to Introduce the BRS-1 Shrimp Biomass Reader

When: Thursday, April 21, 2022, 9:00pm ET

Virtual Event Registration: hxxps://minnowtech.com/register

About Minnowtech:
Minnowtech is an aquaculture technology company, founded in Baltimore, MD and with operations in Hawaii, that enables shrimp farmers to measure shrimp biomass with precision. Using Minnowtech’s sonar-based system, shrimp farmers optimize the health and growth of their animals, enhancing harvest of market-size shrimp while minimizing risks to juvenile shrimp. Learn more: www.minnowtech.com

[hedgehog 100] 14/4/2022 17:27

Recent Share Trades for Otaq. (OTAQ)
Date Time Trade Prc Volume Buy/Sell Bid Ask Value
14-Apr-22 16:35:11 18.70 1 Sell* 19.00 20.00 0.19 UT
14-Apr-22 16:15:45 20.00 10,000 Buy* 19.00 20.00 2,000 O
14-Apr-22 15:50:40 19.85 4,500 Buy* 19.00 20.00 893.25 O
14-Apr-22 14:50:59 18.50 8,000 Sell* 20.00 21.00 1,480 O


"Journal of Banking & Finance
Volume 75, February 2017, Pages 109-117

1-share orders and trades

Ryan L. Davis a, Brian S. Roseman b, Bonnie F. Van Ness c, Robert Van Ness c

Abstract

1-share trades are the most common odd lot trade size, accounting for 9.62% of all odd lot transactions and 3.65% of all trades on NASDAQ in 2012. While 50.41% of 1-share trades result from broken orders, 34.89% of 1-share trades are intentional. We provide substantial evidence that traders use 1-share trades to “ping” for hidden liquidity. In particular, our results indicate that 1-share trades are disproportionately aggressive and also execute against hidden liquidity more than any other odd lot trade size. We also find a relative increase in trading immediately following a 1-share trade. Our results are in line with Clark-Joseph (2014), who suggests that traders may use small, unprofitable trades to detect information from other traders. Specifically, 1-share trades represent the minimum cash outlay necessary to trade, while simultaneously producing the smallest possible effects on a market maker's inventory, and in turn, a security's price."




From the Financial Spread Betting Ltd. website:

"Q. When you see a trade go through for say 12 shares or even 1 share, what is that all about?
Surely it can't be a personal investor, is it some sort of balancing act?"

"A: Say there are 1,100 shares available to buy on the order book. Someone buys 1,080 leaving 20 shares there on the book. The next buyer may buy 2,000 shares but the 20 shares left on the book go through as a separate buy even though the buy was for much more. In the US you actually see these separate buys on your contract note so a purchase of 200 DELL might show as 2 80s and a 40 making up the 200 that you have bought.

Also, not a lot of people know this and there is a reason why, its pretty useless information but...Crest, Bloomberg, UBS, RBS, etc. anyway, most brokers, clearers, settlement banks, data people, all buy 1 share in almost every listed company so that they automatically receive and are entitled to any corporate information. It may not be the reason for any specific purchase or sale but its one of the reasons a buy/sell of 1 share."

[hedgehog 100] 14/4/2022 08:44

"Philip Newby
Chief Executive
Phil joined OTAQ in June 2014 as commercial director and was appointed chief executive in March 2016. From 1993 to 1997 he was general manager of Unique Systems LLC an offshore equipment rental business operating in the Middle East and India. From 1997 to 2011 Phil was chief executive of Trelleborg Offshore a business that supplied flowline and cable protection to the offshore oil and gas industry."



Phil Newby joined OTAQ eight years ago, when it was an unlisted 'start-up' company.

I would imagine that his original share options stemmed from then, and reflected a lower salary than someone of his calibre could have earnt elsewhere - in which case they wouldn't have really been 'free' as such.

Such early stage companies tend to be short of cash, so the use of share options like this is useful to them, and they have a high failure rate, so it's risky for the employee concerned.

But in this case OTAQ has grown strongly over the period, with P.N. playing a major part in this, and has become an established listed company.

And part of P.N's reward is that his original share options have now become far more valuable.

So it's a totally different situation to where directors are given entirely new free share options in a listed company, which hasn't happened at OTAQ.

Indeed those entirely new Long Term Incentive Plan ("LTIP") share options granted in October 2020 have a strike price of 57.5p, even though the market price at the time was about 40p.

P.N.'s situation is far more like cases where a founder or co-founder has a significant shareholding in a company, that they didn't explicitly pay for.
And this tends to be seen positively, as they have 'skin in the game'.

[hedgehog 100] 13/4/2022 22:28

From 20.10.20:
"The grant of Options to Phil Newby replaces previous share options that he held, which have now been cancelled."

Serratia,

It's a bit misleading to say that P.N. was just given the options at zero cost: because he actually paid for them by giving up the options he held when OTAQ was unlisted.

As regards the valuation: for an exciting, growing technology company with such huge potential, to be trading at a market cap. near net asset value, and near potential revenue for this year, seems very cheap.

The losses aren't that big considering the investment the company is making into its business, and very good profitability seems quite possible within the medium term.

And the share price could move up a great deal ahead of that.

[serratia] 13/4/2022 21:53

H,

Not into knocking any share . I just do my DD and ask questions / make observations. Happy to hear other views. I tend to focus on a version of operating cash flow.
In 2020 it was £1998k loss, 2021 £85k loss, Recent H1 £305k loss. It looks to be related to a drop in aqua revenue re salmon protection. Getting that back on track seems critical.
In terms of valuation I look at OCF multiples. To support the present M.Cap I'd be looking for £500k so a way to go. Looking at the GP this would need an increase in sales of around £2.5m over 1 year. Not unreasonable pre the acoustic stuff hold but a stretch at present.
Post cash flow I check the board and a quick look shows Newby was given 814k options at zero cost this is a red flag for me.

Sorry I can't be more positive but I'll keep watching. Happy to be corrected if I'm missing something.

[hedgehog 100] 13/4/2022 20:12

Serratia,

The current situation is that lower-frequency (newer) ADDs are still in widespread use in Scotland.

(The Scottish salmon industry voluntarily withdrew older, higher-frequency ADDs from use last year.)

There's nothing in this new report that suggests that should change.

Further research is recommended to better inform the management of ADDs:

"6.3 Summary of research priorities
To monitor, manage and measure the efficacy of ADD use and any resulting effects on non-target species there is a need for comprehensive and systematic collection of standardised data on the nature and extent of ADD use in Scottish aquaculture. ..."


This research should also inform the detail of any new ADDs licencing regime.

It's also significant that the report is sympathetic to the stress effect of seals on salmon health:

"In addition, there is a requirement for research into the effects of stress caused by predation on finfish health, growth and disease. Understanding the effects of predator presence of fish health will help in the design of control measures to ensure that all negative effects of seal presence and depredation can be reduced though active management."

[serratia] 13/4/2022 19:48

Does that mean they're clear to go in Scotland or is more research needed ?

[hedgehog 100] 13/4/2022 19:07

"PUBLICATION - RESEARCH AND ANALYSIS
Aquaculture - use and efficacy of Acoustic Deterrent Devices (ADDs): report
Published 8 April 2022
From Cabinet Secretary for Rural Affairs and Islands
Directorate Marine Scotland Directorate
Part of Marine and fisheries
ISBN 9781804350690
A report into Acoustic Deterrent Devices (ADDs) in the aquaculture sector to provide a better understanding of how they are being used, their efficacy and any potential for impact on sensitive non-target species. Records described the extent of ADD use in Scotland from 2014 to 2020."



Published on Friday 8th. April 2022, this much-anticipated report on the use of ADDs in Scotland is great news for OTAQ, as it's broadly supportive of use of lower-frequency (newer) ADDs, such as OTAQ's.

The report says that there's no real evidence of real negative ADDs effect on cetaceans (i.e. whales-dolphins-porpoises).

And moreover, it says that the stress effect of seals on salmon health should be considered.

In addition, the report indicates that ADDs are effective.

In terms of recommendations, the report recommends more research into the detail of the above aspects, in order to better inform the management of ADDs.
I.e. it is accepted that ADDs use should continue, but that such use should be as efficient, effective, and appropriate as possible, which I'm sure OTAQ would agree with.

(It's funny how researchers often recommend that more research is needed!)

I expect that OTAQ will be involved in any such ongoing ADDs research, which will provide terrific credibility & publicity for the company in the Scottish aquaculture community, and further afield.

And I expect that now this element of uncertainty hanging over OTAQ's ADDs business in Scotland has been removed, that the share price will be able to move ahead strongly ... especially from the current very depressed level of just 20.5p.

[hedgehog 100] 23/3/2022 19:14

You're welcome Serratia.

Note that the Scottish ADDs review seems to be separate from, but linked to, the overall Scottish aquaculture licensing system review, which reported last month (the Griggs Report).

There was an article on the Griggs Report in the March "Fish Farmer": though the article doesn't specifically mention ADDs, the industry body Salmon Scotland (which is obviously very keen to control seal attacks on salmon) has welcomed the report.

"The March issue of Fish Farmer is out now
By Editors - 8th March 2022
... Also in March’s Fish Farmer, we look at reactions to the Griggs Report on reforming Scotland’s aquaculture licensing system, and at how cage and pen manufacturers are aiming to improve their use of plastics. ..."


So all the indications are that new generation ADDs, like OTAQ's Sealfence, will be embraced by the new Scottish aquaculture licensing system ... and indeed it would be unthinkable that it could be otherwise.

So if that is a factor weighing on the OTAQ s.p., then it looks an even more compelling buy opportunity.

Finally, I would add for for an illiquid share like OTAQ, if you want a decent stake at a great price, then you really have to buy when there is a bit of stock available.

It can go very fast, especially if there is news.

[serratia] 23/3/2022 18:53

Thanks for your input I'll wait for the overdue government response and give it more thought.

[hedgehog 100] 23/3/2022 18:43

Benchmark Holdings (BMK), the global aquaculture and livestock business founded by OTAQ director Malcolm Pye, reported strong Q1 results last month, which illustrates how aquaculture can be 'insulated' from current economic challenges.

And OTAQ even more so than BMK, as the more technological nature of its business means that supply chain challenges have less impact.

It's also interesting to note BMK's strong cash position:
"Cash of £50.6m and Liquidity (cash and available facility) of £61.6m as at 21 February 2022"

Considering the buy-&-build strategy employed by BMK, OTAQ at its current share price of just 20.5p looks a sitting duck for a BMK takeover attempt, and looks a prefect fit.

Thought I think that it would have to pay at least double or treble OTAQ's current share price to succeed.


"Malcolm Pye
Non Executive Director
Malcolm founded, and from 1999 to 2019 was Chief Executive of, Benchmark Holdings plc ("Benchmark"), the world's leading aquaculture health, nutrition and genetics business. Malcolm has over 35 years' experience in international agribusiness through his various roles at Hillsdown Holdings (then HMTF Group), and through building Benchmark from the initial start-up into a major international aquaculture technology business serving the global salmon, shrimp, tilapia and farmed fish industries. Malcolm focused Benchmark's activities on animal health, breeding and genetics, advanced nutrition and knowledge/technology delivery and led the flotation of Benchmark in 2013, maintaining a lead role in investor engagement."


From the Equity Development website:

"08 MAR 2022
Strong outlook in uncertain times
Benchmark’s recent Q1 FY22 results highlighted strong operating trends in its three business areas and a positive outlook in key end-markets, especially farmed salmon. The group’s strong position serving the aquaculture industry should, in our view, insulate it from economic shocks resulting from the geo-political situation and thus make for attractive, safe haven investment.
The company has a strong balance sheet and liquidity position following its £20m equity fundraising last year, which we consider will become a more prominent positive element in its investment case. However, Benchmark will have to refinance its NOK855m senior bond, which falls due on in July 2023. Doing so would remove something that may otherwise become an overhang as it approaches the due date. ..."

[hedgehog 100] 23/3/2022 17:43

Regarding the OTAQ Share Incentive Plan (the "SIP"), Serratia: the amount of free shares issued each month is only about £2K. or so, so is fairly negligible re. overall shareholder dilution.

And importantly, in order to qualify for the free shares, each participant has to buy a matching number of shares at the prevailing market price.

This has sometimes required purchases at prices far higher than now, e.g. 40p last September:

17/09/2021 15:53 UK Regulatory (RNS & others) SIP Purchase, PDMR Shareholding & TVR LSE:OTAQ Otaq Plc
" ... Details of the number of Partnership Shares purchased by the PDMRs at a price of 40 pence per Ordinary Share, and the number of Matching Shares allocated by the SIP Trustee to the PDMRs for no consideration, are set out against their names in the table below. ..."


The directors have also bought extra shares on the market, e.g. c. £45K. of buying at 35p in August 2020.

And directors also invested c. £75K. in the placing three months ago at 22p.

(In which Nigel Wray, 'the British Buffett', increased his OTAQ shareholding by c. £305K.)

In addition, those entirely new Long Term Incentive Plan ("LTIP") share options granted in October 2020 have a strike price of 57.5p, even though the market price at the time was about 40p.