UK 03:25 Sunday, 27 September 2026
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Obtala Resources (OBT) has announced it has entered into agreements to secure an investment of approximately $3 million for its forestry division in return for minority interests and certain off-take rights over specified forest concessions in Mozambique.
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Comments
wildrides
Naah ………… the market is spot on ………. its simply priced in vacillating and incompetent management.
Steve Sutton
Indeed the market does seem to have this wrong, as you point out some felt that Obtala had given away close to 45% of the forestry asset for only $3m. Not so, they have only given a fraction away, under 5%.
More interesting was the late holdings RNS yesterday. A wealthy Hong Kong based investor, namely Valentin Bovykin, has picked up 5% of the equity, he was formally VP of Nordmet SA.
With a diverse range of assets & strong revenues expected from the farms in 2017 the current low rating could make Obtala a candidate for takeover. The key is Frank S with near 30%, talk was he re-buffed a 23p ‘approach’ last year when the share price was north of 10p.
Hopefully some news on the farms next.
Tim reynolds
Very confusing rns . Who is meradell trading ? The spvs receive a fixed 5 % coupon forever of the $3 mill .i make it about 4 % they have given up. So the investors get 5 % forever which isnt bad plus 4 % of the forestry for free.
Apparently the forestry is worth c $160 million plus .given its virtually non income producing and obt for years have never generated any significant income despite all the talk makes you wander where the 5 % coupon will come from . Probably just keep giving them their initial investment back like those ponzi schemes work and every year get some more investors in and give up more forestry until its all gone repaying the coupons from investment . Then eventually liquidate and declare the forestry worth the square root of zero . A forestry ponzi scheme . Perhaps i am exaggerating but it emphasises that the forestry is worth nowhere near the valuation some have been claiming .
Tim reynolds
Also look what the $3 million is for .a couple of kilns and a sales office … But the real reason working capital. To prop up the business. Its loss making home stores directors renumerations and expenses etc .over the last five years they have made loss after loss on average $8 million per annum . This $ 3 million will be gone pronto . I wouldnt invest here until its comfirmed if scolaros daughter has a company credit card or not…..