Market cap for company is currently about 850,000 Someone will be along soon to nibble at the scraps.
FutureMetrics is the exclusive consultant for the sale of Viridis Energy Inc. Viridis Energy Inc. is a publicly traded company (Toronto Venture exchange: VRD - Public documents HERE) and has been a producer and trader of residential and industrial wood pellet fuel. Viridis is working with FutureMetrics for the potential sale of all of it's assets. Viridis Energy has three subsidiaries: Okanagan Pellet Company (OPC), Scotia Atlantic Biomass (SAB), and Viridis Merchants Inc. (VMI). Viridis will consider offers for each subsidiary separately or as a whole. The sale will either be a stock purchase sale of the entire company or an asset sale of each individual subsidiary. That will be determined by the offers that Viridis receives. The potential structure and timing of the sales/acquisitions are discussed in a Confidential Information Memorandum that is available to interested parties after the execution of a Non-Disclosure Agreement. FutureMetrics is working with Viridis on the process of finding a buyer or buyers. Interested parties should contact William Strauss. [email protected] Office Direct: 1-207-824-6702 www.FutureMetrics.com
Will there be a Fire Sale on pellets? Wonder what happens now to all those pellets at the Upton location?
Good question - or will the pellets go to auction and someone like Pellets-R-Us buys up the lot up for a song to sell next winter?
Multiply the shares outstanding of the company by the current stock price (6 cents) to arrive at the amount of money the investment community puts as value on a Corp. In theory someone could come along and snatch a big chunk of shares and own the company. Course anyone who would do this would surely put a bunch of research into the underlying assets of the Corp such as real estate (if any), equipment, inventory, and good will. They would also assess the opportunity to turn the Corp around and how much cash infusion it would take to put the Corp back on solid footing. Virdis' balance sheet is horrible. So it is unlikely this will happen unless there is a BIG potential upside. It is far more likely (historically) that there will at some point be what MTDew so eloquently called a fire sale at an auction. What is pretty certain, unless current ownership can raise money rather quickly, is that current top management and ownership are history, and normally in companies of this size management and majority ownership are often one and the same.
Hard for me to understand how a company who's product was considered top of the line and demanded premium prices which a huge following could be among first large companies to fail. Would have thought that Okie name would be among the last to fall. Can't help but question if their expansion and rapid changes in the energy market caused this dramatic shift. We have issues with the biomass industry here in Maine. Seems the state is working with them to keep them solvent for a while. We have a few very good pellet plants here that I am hoping will be able to hang in there. Oil is creeping back up. Predictions are that it will level off somewhere in the $40-50 per barrel range. That should translate to gas in the $2.50 range. Pellets would need to sell under the $250/ton range to be just competitive. Cost associated with transportation of the product will have a major influence on the retail cost. Betting the BBS will shy away from getting burned again.
Virdis is a small not big company. I think this will be the first in a growing line of heavily leveraged pellet companies to either close their doors or search out a bigger player. I have spent some time the past couple of weeks researching pellets as a mental exercise. It seems the players fall into three categories. One is the small independent Company that makes pellets only (might also make bedding). The second is the company that produces another product such as flooring or lumber. The third is the big player who is either well capitalized via the stock market or has very large European contracts with forward pricing. The first will be (is) in trouble, the second should be fine as long as it sells based on quality. The third, like in every industry will dominate mass markets. I can not say I am in favor of that. It simply uses public funds to shore up weak companies. I would bet that within a few years the BB are THE major retail channel for pellets by a whole lot more than they are now. As the big players become more dominate they will tend to gravitate to other big players for distribution.
I wonder if they will be dumped into the market like Blazer did , to raise some cash too help pay off that big note .
I responded the same way. But the forest industry here has a lot of support. Way too much invested by the state to get industries and public buildings switched over to biomass to avoid the then high cost of fuel. There would be a huge collapse all over the place if that were to be allowed. schools and hospitals were among those who went to biomass just before natural gas started coming in to the state two years ago. My thoughts also. why pay 30% more for something that gave, at best, 6 % more heat?
Kind of depends on who gets them. If a company steps up and purchase the Okies name. I'd expect some sort of price break offered to the dealers. If Okies isn't sold and Upton(Dana corp) ends up with them, IMHO there's an even better chance they try to cut their loss. Crystal ball is still kaputed so these are only guesses! Lots of different factors could sway the outcome.
Much will depend on whether the Company files for protection. If they do it will be pretty much business as usual outside the ivory tower. The other kicker would be whether the debt is secured and by what.
And that is why I didn't buy until someone came thru with a price that was reasonable (to me anyway - other people have higher price tolerances).
Us electric folks seem to be willing to pay a bit more than the folks with the oil or NG option. But certainly enjoy the steals(so cheap ya can't say no) that have happened. Seems even some of the oil folks are willing to forgo a bit more $$ to enjoy pellet heat instead of listening to the oil hog rumble. Unfortunately that still equals much lower sales for the pellet folks. Many have road the oil truck and will again if the price of oil is the cheaper option. Curious to what pellet prices will be come fall. Should be an interesting time if oil stays low and pellet stacks stay large.
Jeez Louise, what a fine mess this is. Hope Douggie lands on his feet when the dust settles. Any thoughts who'd be willing to acquire this albatross, in whole or in part?
There is a company that has been negotiating with the Province of Ontario and Prescott to open a pellet mill just outside of Prescott, On. I can't remember off hand who it is. Anyone know if it is related to company in this thread?
