Plant Health Care Share Discussion Threads

[cerrito] 27/3/2021 09:28

Very much one of the better IMC calls I have listened to with a good presentation and good questions and well worth a listen.
Some of the main points for me.
One was a question posed on a dual listing which we were told is not on the cards at the moment but what they are looking at seriously is an US OTC listing following what other European companies are doing and reflects the fact that their shares undervalued in a US context. No timescale given.
He was asked why no retail/Primary Bid offer in the recent equity raise. We did not get a clear answer but we were told that one thing they wanted to achieve was to balance out the shareholder register with the combined holdings of Ospraie and Griffiths over 50%. Both had agreed to stand aside in this fundraising and hopefully there will be more liquidity now in the shares. I applaud this but still not clear to me why there was no primary bid mechanism.
He was asked why given that it was oversubscribed they did not raise more money. I did not get a very clear answer . We were told that they spend the cash very carefully but recognized that pretec investment is growing-my notes tell me $2.7m last year to a projected 2022 figure of $5m. I a m comfortable with the amount raised as it gives them enough for their identified requirements . I go on the basis that another fund raising may well be required in 18/24 months and touch wood the share price will be higher.
He cautioned us not to expect big sales in Brazil soya this year. He said that the authorization from the Brazilian authorities came through faster than they had predicted so do not have all their ducks in a row.Their product is used to treat the seeds before planting ie in the August/October period depending on where they are in Brazil. Sales will thus be only a few months away and they have yet to finalize their discussions with potential distributor- at this stage looking to have 1 or 2 national ones. We were reminded that they do not have their manufacturing properly set up and will be using Penn State. Emphasized that when they are up and running they will not be doing their own manufacturing and are in discussions with 2 toll manufacturers.
Where does this leave us?
On the assumption that the US/£ FX rate is in the area of 1.35, I anticipate the share price in the 14/18 area for the near term. I think the key financial figures for 2020 have been well trailed so do not see the AR changing the price much. The mid year filing for authorization of 949 could provoke some movement and the interim figures hopefully will. Having the shares OTC in the US would move the dial.

[dlem] 24/3/2021 17:24

More big transactions printed after hours. 2 x 2.6m share trades.

[dlem] 22/3/2021 17:19

17:07 - 1,279,643 trade @ 18.4p. Somebody was impressed by the shareholder presentation!

[vsb234] 22/3/2021 11:10

RNS Number : 9378S
Plant Health Care PLC
22 March 2021


Investor Presentation

Plant Health Care® (AIM: PHC.L), a leading provider of novel patent-protected biological products to global agriculture markets, is pleased to announce that Dr. Christopher Richards, CEO, and Jeffrey Tweedy, COO, will provide a live presentation via the Investor Meet Company platform on the 26th of March, 2021, at 2:00pm GMT.

The Company is committed to ensuring that there are appropriate communication structures for all elements of its shareholder base so that its strategy, business model and performance are clearly understood.

Highlights

- The online presentation is open to all existing and potential shareholders.

- Questions can be submitted pre-event via your IMC dashboard up until 9am the day before the meeting or any time during the live presentation via the "Ask a Question" function. Although the Company may not be in a position to answer every question it receives, it will address the most prominent within the confines of information already disclosed to the market. Responses to the Q&A from the live presentation will be published at the earliest opportunity on the Investor Meet Company platform.

- Investors can sign up to Investor Meet Company for free and add to meet Plant Health Care plc via: hxxps://www.investormeetcompany.com/plant-health-care-plc/register-investor

Investor feedback can also be submitted directly to management post-event to ensure the Company can understand the views of all elements of its shareholder base. Investors who already follow Plant Health Care plc on the Investor Meet Company platform will automatically be invited.

[vsb234] 22/3/2021 11:08

Arden Partners says there is ‘significant value’ in Plant Health Care’s PREtec platform (www.voxmarkets.co.uk/articles/arden-partners-says-there-is-significant-value-in-plant-health-care-s-pretec-platform-a2d3732)

New research from UK-based institute Arden Partners has highlighted the ‘significant value’ in Plant Health Care’s (PHC) technology platform, PREtec, within the global agriculture industry.

PHC, which provides patent-protected biological products to global agricultural markets, announced its intention to raise up to US$10 million on Thursday through an oversubscribed placing at a price of 14p, a c.12% discount to its closing mid-market price on Wednesday.

The funds will be used to accelerate the development of products from the PREtec platform, seek regulatory approval in Europe, support the expansion of the group’s commercial business which it said is ‘performing very well’, as well to strengthen PHC’s balance sheet.

The group’s PREtec technology platform works by inducing natural defensive and metabolic responses in crop plants, helping to reduce harm from stresses during the growing season.

To date, the company has invested more than US$20 million over the last eight years into its PREtech technology platform, with the first commercial product launch anticipated in 2H21.

In a research note released yesterday, analysts at Arden said the group’s recent newflow indicates that its PREtec technology is continuing to gain traction, and with further funding now secured, ‘investors should focus on execution and growth across the Group’s portfolio.’

It said recent research on PREtec confirms ‘huge market opportunities for the products with demand built on robust, demonstrable efficacy and excellent sustainable credentials which align very well with the global ag industry’s current practices and overall direction of travel.’

It said its discussions with PHC’s distribution partners indicate excellent support for the products with many medium-term expansion opportunities built on patented technology.

As a result of PHC’s recent positive newsflow, Arden has updated its earnings estimates in order to reflect the new equity and increased expenditure, as well as upgraded its medium-term revenue forecasts which it said reflects the added investment and expenditure.

The research firm said it anticipates increased visibility through 2021 as the exact phasing and targeting of PHC’s resources takes shape. Meanwhile, it highlighted that the increased expenditure ‘should ultimately raise value creation in the medium term’ in its view.

Shares in Plant Health Care have increased by nearly 30% since the beginning of 2021. The stock saw a strong start to the year after PH279 (now known and branded as Saori) became the first product from its PREtec platform to receive federal approval for sale in Brazil. Shares in the stock ticked up by 3.74% this morning to 18.31p following the fundraising.

London-listed Plant Health Care is a leading provider of proprietary agricultural biological products and technology solutions focused on improving crop performance.

Its commercial business is driven by sales of Harpin αß, a recombinant protein which acts as a powerful biostimulant, promoting the yield and quality of crops. PHC sells the proprietary soil treatment Myconate in selected countries and sells both Harpin αß and Myconate through specialist distributors globally. In Mexico, PHC distributes third-party biological products.

PHC utilises its PREtec platform to generate numerous products and it is focusing on three products targeting very large market opportunities with a value of more than $5bn.

The Group said these products are currently under evaluation with six potential commercial partners. Meanwhile, PHC also continues to evaluate further candidate products from its robust pipeline of development candidates for additional crops and indications.

In a trading update released in January 2021, the Group reported robust in-market sales growth of Harpin αβ with in-market sales in Brazilfor sugarcane coming in at three times those of 2019, while in-market sales to corn came in at 1.8 times higher than the prior year.

Meanwhile, the Group hailed its progress in bringing the first products from the PREtec platform to market. It highlighted it is planning for initial commercial launch in Brazil during the second half of 2021.

[cerrito] 20/3/2021 22:00

Thanks kenwright and I missed that.
Very clear.
Obvious by the shortness of his hair that he is not in the UK.
I am surprised that it may be months before they announce their distributors in Brazil given that we are looking for an H2 launch. From what he inferred you use PHC 279 just after planting which in Brazil will be in November but may be I have got that wrong.

[kenwright] 20/3/2021 21:14

PHC explanation for the fund raise

[dlem] 19/3/2021 15:10

25% is a notifiable holding and is sufficient to block a special resolution.

[cerrito] 19/3/2021 12:33

To answer my own question, Richards seems to be based in the US given that the telephone number given in the RNS has a North Carolina number.
At least with this fund raise we have a stronger pound than the previous one.
Be interesting t see the shareholder line up when the results of this raise are known and I hope that Osparaie participated.
I am not very happy that 25% of the shares are with Mr Griffiths as we have no way of knowing when he sells up and moves on.

[dlem] 19/3/2021 12:02

Arden Partners say there is significant value in Plant Health's technology PREtec. Will try and post research note later.

[cerrito] 18/3/2021 18:53

I have to say I did not see this fund raise coming and indeed I note that their cash out flow in H2 2020 reduced to USD1m.
Irritated that there was no primary bid option but note that we were not offered this last time.
Did not expect the share price to finish so strong. Congrats to those who bought first thing.
A good deal of execution risk for the Brazil launch and not helped by the Covid situation.
Btw, does anyone know if Richards based in UK or USA?

[dlem] 18/3/2021 17:11

Placing complete and more buying!!! PHC must have presented a compelling sales pitch.

[dlem] 18/3/2021 12:58

They are moving into business development and marketing mode which needs resourcing. This should be income generating expenditure. The technology would be better exploited by a bigger industry player.

[1pencil] 18/3/2021 12:46

Lets see if they get the placing away first, are the board participating ?

$10m indicates they don't expect to be cash positive some some time, perhaps 2/3 years out.

[dlem] 18/3/2021 11:53

This will be taken-over. Market cap less than investment in product development costs, products approved, launching and providing exceptional plant yields. The products will become disruptive to big industry players. Major VC shareholder (with exit strategies built into their DNA).

[1pencil] 18/3/2021 09:55

From 30th Sept 2019 Interim Results

"The Commercial business is forecast to be profitable and cash generative in 2019, with profitable growth continuing in future years. The Board is committed to achieving cash breakeven within existing resources and will take the necessary steps to achieve it."

[cerrito] 01/3/2021 23:36

share price reaction to the RNS understandable.
In some ways I had taken these results for granted.
The higher hurdle to jump is manufacturing and more important basic distribution and then key good old fashioned salesmanship.

[kenwright] 01/3/2021 16:54

RNS out today, but not showing on advfn site ?

[kaos3] 25/1/2021 19:17

I cant find a link to the webcast???

[dubai123] 25/1/2021 15:33

Just listened to update. Well positioned after all these years and excited holder

[cerrito] 25/1/2021 14:28

In the December IMC, Richards said that he would reinstate expectations in this TU and I was looking for something more specific than the generally upbeat tone.
I see that in H2 20 cash and equivalents decreased from $5.1m to $4.1m which is pretty good especially as their 6 month R&D spend has been around $1.4m.
I note their comments about working capital reduction which is also good given that their working capital position at June 2020 was in line with recent figures
I do not want to be a party pooper but Richards did say in the outlook in the interims about having material revenue growth in 2020 and it is for each of us to consider if we think the 9pc constant currency growth was material.
What I do not have a good insight if they will need to do an equity raise especially given the working capital requirements in Brazil. I see they did have bank borrowings at the half year but we are not told the size of the facility. I get the feeling that a small equity raise of say $4m would be useful which would mean that retail investors like me would be shut out but they would be able to get it away with a small discount to the then current market price.

[red army] 25/1/2021 11:48

Not without risk but growing nicely as demand picks up from known product benefits.