Woodbois - WBI - Share Chat

Bought back in… already 8% down ! Lol

Well I could use a few different ones but figured that one wouldn’t break any rules or upset anyone. :joy::joy:

Bought back in a bit, dropped my average right down. Let’s see what the coming weeks bring - didn’t have much and even with what I purchased today, worse case all I have lost here is £190.

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Hope it goes well :stuck_out_tongue_winking_eye::rofl:

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Me too!! :stuck_out_tongue_winking_eye::stuck_out_tongue_winking_eye::stuck_out_tongue_winking_eye::stuck_out_tongue_winking_eye::joy::joy::stuck_out_tongue_winking_eye::stuck_out_tongue_winking_eye::joy::joy::stuck_out_tongue_winking_eye::joy::joy:

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Ive bought back in. Sort of lost track since i sold in November.

Other than the sudden drop (thanks for the link to the article) , are we expecting any news in near future ?

Considering the loss of the debt facility I would imagine you will hear something sooner than later.

A decrease in the line of available funding and a request to pay it back to me, does sound like the kind of thing a company would need to address as priority.

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Wouldnt they try to find another source of credit ?

Not sure what projects they have on ? I guess they will need to suspend everything anyway.

Bit of a jump back up to end the day on… :grin:

Spiked at -10% at one point then settled back to opening price. Im only 8.7% down, consider myself lucky

Hi all,

I invested recently in £WBI and it dropped 60% on April 19th. I’m not really concerned (not holding much) but I’m trying to make sense of the situation as a learning opportunity. I found on their company website a statement which I don’t fully understand: https://woodbois2022tf.q4web.com/news/news-details/2023/Woodbois-Limited—Facility-with-Sydbank-AS-Sydbank/default.aspx

Is it a bank that decided to get all of their debt back? How is that possible? How does it relate to the stock price? Is it that a lot of people sold their shares when it was announced?

Any insight is welcome

I know nothing!

But…I’m gonna say you withdraw credit if you think there is a potential insolvency risk.

And if investors get a whiff of that, they are out of there asap…so share price plunges.

Maybe.

Sydbank advised that they were terminating a debt facility. While I don’t claim to be an expert but my understanding is that it has essentially stopped offering a loan to the company and have requested it to be repaid.

That in itself isn’t a particularly good state of affairs, and would naturally mean a decrease in the share price, however the below RNS was also issued on the same day:
https://www.londonstockexchange.com/news-article/WBI/tr-1/15923079

This to me, suggests a major shareholder disposed of a significant number of shares, which would have likely been in response to the termination of the debt facility - companies want to make money after all… I would imagine that this action would have caused the majority of the decrease.

(edited for a bit of readability)

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In other words it looks like someone saw which way the wind was blowing and thought I’m getting out of this!

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That’s a much simpler way of putting it! :smile:

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Thanks I see my question was merged here, it’s good to see an article about it.

I guess this part is chinese to me:
“Management said that Sydbank had agreed a USD6m facility that was fully-drawn and an additional USD3.1m ancillary account. The bank raised a “floating charge” against Woodgroup APS, which was reduced by the withdrawal of the USD3.1m ancillary line of credit.”

I’m not well versed in loans, but I thought: I take a loan, there’s a payment plan and that’s it. It doesn’t seem that way here, what is an ancillary account and a floating charge?

Also this part: “pulled its debt facility” → Debt facility = The ability to get a loan easily when cash flow is negative?

Basically I have a hard time understanding what the deal between the bank and Woodbois was and how it was so easy to pull out and ask for so much money in such a small amount of time. Is it a regular financial instrument or was it lacking a contract to protect Woodbois? (Management mistake?)

I would imagine do not know that it is the business equivalent of a credit card.

You have a limit, a rate, a set charge.

And then they decide to change terms / withdraw agreement / seek repayment as a credit card company would do if they assessed you had become a risk.

According to that filing Premier Miton would have had close to 250m shares. Volume was almost 1 billion on the 19th, so they clearly had a large influence on the move.

Just a quick glance at the volume in the last few months has shown that pretty much the entire 2.5b float has been traded so the company has a refreshed ownership profile.

Wondering if my next move is to avg down even more or just wait for a miracle after the recent news.

Same here, it is tempting to average down but perhaps it is throwing good money after bad. Unconvinced.

Slight upward trend this last 7 days so far though…

Hey folks,

Quick update: Woodbois Limited snagged £6 million with new shares and did a debt-for-equity swap to bolster the balance sheet.

They’ve got two Monaco investors onboard and some management shuffling happening.

If you’re holding Woodbois, might be worth considering an avg down right now.

Stay sharp!

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