Announcement • Mar 19
Ecofibre Limited Announces Chief Financial Officer Changes, Effective March 24, 2025 Ecofibre Limited announced the retirement of Jonathan Brown and the appointment of Amy Elizabeth Donley as Chief Financial Officer (CFO) of Ecofibre, effective March 24, 2025. Amy is a dynamic finance leader with a track record of driving successful C-suite financial performance, and developing and implementing commercial strategy and business improvement plans in both large corporate and smaller entrepreneurial companies. She has extensive experience in technical accounting (IFRS and US GAAP), ERP implementations and working within regulated industries. Amy is based in North Carolina and is passionate about sustainability and the opportunities for Ecofibre as the market for sustainable solutions continues to grow. Amy replaces Jonathan Brown as CFO, as Jonathan retires from Ecofibre after many years of service. There will be a one-month transition period. New Risk • Feb 28
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Australian stocks, typically moving 16% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$15m free cash flow). Share price has been highly volatile over the past 3 months (16% average weekly change). Earnings have declined by 56% per year over the past 5 years. Market cap is less than US$10m (AU$9.17m market cap, or US$5.69m). Reported Earnings • Feb 21
First half 2025 earnings released First half 2025 results: Revenue: AU$12.4m (down 2.5% from 1H 2024). Net loss: AU$6.00m (loss narrowed 87% from 1H 2024). Announcement • Feb 14
Ecofibre Limited to Report First Half, 2025 Results on Feb 19, 2025 Ecofibre Limited announced that they will report first half, 2025 results on Feb 19, 2025 Announcement • Sep 02
Ecofibre Limited, Annual General Meeting, Oct 16, 2024 Ecofibre Limited, Annual General Meeting, Oct 16, 2024. Reported Earnings • Aug 28
Full year 2024 earnings released: AU$0.11 loss per share (vs AU$0.12 loss in FY 2023) Full year 2024 results: AU$0.11 loss per share (improved from AU$0.12 loss in FY 2023). Revenue: AU$28.0m (down 14% from FY 2023). Net loss: AU$38.2m (loss narrowed 4.3% from FY 2023). Over the last 3 years on average, the company's earnings growth rate has exceeded its share price growth rate by 3 percentage points per year. New Risk • Jun 19
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: AU$12.8m (US$8.52m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$12m free cash flow). Share price has been highly volatile over the past 3 months (21% average weekly change). Earnings have declined by 71% per year over the past 5 years. Market cap is less than US$10m (AU$12.8m market cap, or US$8.52m). Minor Risk Shareholders have been diluted in the past year (8.9% increase in shares outstanding). Announcement • Mar 28
Elixinol Wellness Limited (ASX:EXL) completed the acquisition of Ananda Food Pty Ltd from Ecofibre Limited (ASX:EOF). Elixinol Wellness Limited (ASX:EXL) entered into Conditional agreement to acquire Ananda Food Pty Ltd from Ecofibre Limited (ASX:EOF) for AUD 3 million on February 12, 2024. Under the terms of agreement, Elixinol Wellness will pay AUD 2 million as upfront payment and AUD 1 million as earnout consideration. Elixinol Wellness Limited will raise AUD 3.16 million through Rights Issue Offer which will be used in part to finance the acquisition. The deal is expected to be completed by the end of March, 2024. Completion of the Ananda Food acquisition is conditional on raising sufficient funds under the Rights Issue Offer and the satisfaction of a number of customary conditions. As of March 20, 2024, the transaction is expected to close on March 28, 2024.
Elixinol Wellness Limited (ASX:EXL) completed the acquisition of Ananda Food Pty Ltd from Ecofibre Limited (ASX:EOF) on March 28, 2024. Ron Dufficy will now be stepping down from the role of Group Chief Executive Officer and Natalie Butler will join the EXL Board. New Risk • Feb 25
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -AU$6.9m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$6.9m free cash flow). Earnings have declined by 66% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (15% average weekly change). Shareholders have been diluted in the past year (8.9% increase in shares outstanding). Market cap is less than US$100m (AU$31.1m market cap, or US$20.4m). Announcement • Feb 20
Ecofibre Limited to Report First Half, 2024 Results on Feb 23, 2024 Ecofibre Limited announced that they will report first half, 2024 results on Feb 23, 2024 Announcement • Feb 14
Elixinol Wellness Limited (ASX:EXL) entered into Conditional agreement to acquire Ananda Food Pty Ltd from Ecofibre Limited (ASX:EOF) for AUD 3 million. Elixinol Wellness Limited (ASX:EXL) entered into Conditional agreement to acquire Ananda Food Pty Ltd from Ecofibre Limited (ASX:EOF) for AUD 3 million on February 12, 2024. The deal is expected to be completed by the end of March, 2024. Announcement • Oct 05
Ecofibre Limited, Annual General Meeting, Nov 23, 2023 Ecofibre Limited, Annual General Meeting, Nov 23, 2023, at 11:01 AUS Eastern Standard Time. Reported Earnings • Oct 01
Full year 2023 earnings released: AU$0.12 loss per share (vs AU$0.044 loss in FY 2022) Full year 2023 results: AU$0.12 loss per share (further deteriorated from AU$0.044 loss in FY 2022). Revenue: AU$32.5m (up 7.6% from FY 2022). Net loss: AU$39.9m (loss widened 172% from FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 44 percentage points per year, which is a significant difference in performance. New Risk • Sep 02
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 8.3% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$8.6m free cash flow). Earnings have declined by 53% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Shareholders have been diluted in the past year (8.3% increase in shares outstanding). Market cap is less than US$100m (AU$65.4m market cap, or US$42.2m). Reported Earnings • Aug 23
Full year 2023 earnings released: AU$0.12 loss per share (vs AU$0.044 loss in FY 2022) Full year 2023 results: AU$0.12 loss per share (further deteriorated from AU$0.044 loss in FY 2022). Revenue: AU$32.5m (up 7.6% from FY 2022). Net loss: AU$39.9m (loss widened 172% from FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 44 percentage points per year, which is a significant difference in performance. Announcement • Aug 18
Ecofibre Limited to Report Fiscal Year 2023 Results on Aug 22, 2023 Ecofibre Limited announced that they will report fiscal year 2023 results on Aug 22, 2023 New Risk • Aug 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$13m free cash flow). Earnings have declined by 45% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Market cap is less than US$100m (AU$67.1m market cap, or US$44.2m). Recent Insider Transactions • Mar 22
CEO, MD & Director recently bought AU$58k worth of stock On the 15th of March, Eric Wang bought around 289k shares on-market at roughly AU$0.20 per share. This transaction amounted to 1.9% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Eric has been a buyer over the last 12 months, purchasing a net total of AU$249k worth in shares. Board Change • Feb 22
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. 1 experienced director. No highly experienced directors. CEO, MD & Director Eric Wang is the most experienced director on the board, commencing their role in 2015. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 21
First half 2023 earnings released: AU$0.052 loss per share (vs AU$0.02 loss in 1H 2022) First half 2023 results: AU$0.052 loss per share (further deteriorated from AU$0.02 loss in 1H 2022). Revenue: AU$16.5m (up 6.4% from 1H 2022). Net loss: AU$17.6m (loss widened 163% from 1H 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 62 percentage points per year, which is a significant difference in performance. Announcement • Feb 20
Jon Meadmore to Retire as A Non-Executive Director of Ecofibre Limited Ecofibre Limited announced that Jon Meadmore will retire as a non-executive director of the company as at the Half Year Results announcement on 20 February 2023. Meadmore has been on the Ecofibre Board since October 2017 and was the company's first non-executive director. Announcement • Feb 16
Ecofibre Limited to Report First Half, 2023 Results on Feb 20, 2023 Ecofibre Limited announced that they will report first half, 2023 results on Feb 20, 2023 Recent Insider Transactions • Nov 22
CEO, MD & Director recently bought AU$58k worth of stock On the 16th of November, Eric Wang bought around 217k shares on-market at roughly AU$0.27 per share. This transaction amounted to 1.5% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth AU$133k. Eric has been a buyer over the last 12 months, purchasing a net total of AU$626k worth in shares. Recent Insider Transactions • Nov 17
CEO, MD & Director recently bought AU$133k worth of stock On the 10th of November, Eric Wang bought around 588k shares on-market at roughly AU$0.23 per share. This transaction amounted to 4.1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Eric has been a buyer over the last 12 months, purchasing a net total of AU$567k worth in shares. Announcement • Sep 27
Ecofibre Limited Provides Earnings Guidance for the Fiscal Year 2023 Ecofibre Limited provided earnings guidance for the fiscal year 2023. For the period, the company expects to incur a smaller loss, with a clear pathway to profitability and positive cash flow in fiscal year 2024. Announcement • Sep 16
Ecofibre Limited Launches Green II Gold, a Professional Quality, CBD-Infused Skincare Line for Spas and Salons Ecofibre announced the launch of Green II Gold, an innovative, new CBD-based skincare line. Green II Gold is the first skincare line formulated from the ground up to pair Ananda Professional's clinical strength, full spectrum hemp extract with potent botanical-based ingredients to provide professional-level products for spas and salons. Already the leader in sustainable, hemp-based tinctures, soft gels, fruit chews, and topicals, AnandaProfessional is the preferred CBD choice of over 4,000 independent pharmacies. While many companies repurpose existing tinctures and topicals, Green II Gold is specifically formulated to address the needs of licensed spa and salon professionals and their clients. Green II Gold products are certified cruelty free and vegan while utilizing green chemistry and ethical sourcing that align with Ecofibre's mission to improve the lives of customers as well as genuinely improve all the environments Ecofibre works in. Green II Gold will be available through salons and spas in the United States. Announcement • Sep 10
Ecofibre Limited, Annual General Meeting, Nov 08, 2022 Ecofibre Limited, Annual General Meeting, Nov 08, 2022, at 11:00 AUS Eastern Standard Time. Reported Earnings • Aug 23
Full year 2022 earnings released: AU$0.044 loss per share (vs AU$0.022 loss in FY 2021) Full year 2022 results: AU$0.044 loss per share (down from AU$0.022 loss in FY 2021). Revenue: AU$30.2m (up 5.0% from FY 2021). Net loss: AU$14.7m (loss widened 110% from FY 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 54 percentage points per year, which is a significant difference in performance. Announcement • Aug 16
Ecofibre Limited to Report Fiscal Year 2022 Results on Aug 22, 2022 Ecofibre Limited announced that they will report fiscal year 2022 results on Aug 22, 2022 Announcement • Aug 02
Ecofibre Limited Appoints Mark Bayliss as Director, Effective 1 September, 2022 Ecofibre Limited announced that Mark Bayliss will be appointed as a new director of the Company, effective 1 September, 2022. Mr. Bayliss is a director and senior executive with extensive experience in a variety of roles across listed and private companies, management buyouts, private equity and turnarounds in Australia, NZ, UK and US. He has been the CEO of three listed companies and one private company and the Chairman of 3 companies and 2 non-for-profits. His industry experience is broad including eCommerce, Technology, Credit Finance, Retail, FMCG, Media & Publishing, Advertising & Marketing Services and Manufacturing. Announcement • May 31
Ecofibre Limited Announces Resignation of Kristi Woolrych as Non-Executive Director Ecofibre Limited announced that Kristi Woolrych has resigned from the Company's Board, effective immediately. Woolrych joined the Company's Board as a non-executive director in October 2020, a position she held while also acting in a full time executive capacity as Chief Marketing Officer at KFC South Pacific. Ms Woolrych's resignation allows her to focus on a new role leading that business as general manager, KFC South Pacific. Announcement • Apr 28
Ecofibre Limited (ASX:EOF) acquired New Composite Partners for AUD 0.3 million. Ecofibre Limited (ASX:EOF) acquired New Composite Partners for AUD 0.3 million during the third quarter ended March 31, 2022.
Ecofibre Limited (ASX:EOF) completed the acquisition of New Composite Partners during the third quarter ended March 31, 2022. Announcement • Apr 27
Ecofibre Limited (ASX:EOF) acquired Soul Seeds for AUD 0.3 million. Ecofibre Limited (ASX:EOF) acquired Soul Seeds for AUD 0.3 million in third quarter, 2021.
Ecofibre Limited (ASX:EOF) completed the acquisition of Soul Seeds in third quarter, 2021. Board Change • Apr 01
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 2 experienced directors. No highly experienced directors. CEO, MD & Director Eric Wang is the most experienced director on the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Recent Insider Transactions • Mar 09
CEO, MD & Director recently bought AU$435k worth of stock On the 4th of March, Eric Wang bought around 1m shares on-market at roughly AU$0.43 per share. This was the largest purchase by an insider in the last 3 months. This was Eric's only on-market trade for the last 12 months. Board Change • Feb 01
High number of new and inexperienced directors There are 5 new directors who have joined the board in the last 3 years. The company's board is composed of: 5 new directors. 2 experienced directors. No highly experienced directors. CEO, MD & Director Eric Wang is the most experienced director on the board, commencing their role in 2015. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Reported Earnings • Aug 04
Full year 2021 earnings released: AU$0.022 loss per share (vs AU$0.044 profit in FY 2020) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2021 results: Revenue: AU$28.8m (down 43% from FY 2020). Net loss: AU$6.99m (down 153% from profit in FY 2020). Major Estimate Revision • Jun 04
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast fell from AU$57.6m to AU$37.6m. EPS estimate reaffirmed at -AU$0.022 per share. Pharmaceuticals industry in Australia expected to see average net income growth of 18% next year. Consensus price target down from AU$2.39 to AU$1.65. Share price rose 35% to AU$0.74 over the past week. Announcement • May 06
Ecofibre Limited Provides Earnings Guidance for the Second Half of 2021 and Fiscal Year 2021 Ecofibre Limited expected to have a loss of around $1.5 million in second half of 2021 resulting in a fiscal year 2021 loss of around $7 million. Announcement • Mar 05
Ecofibre Limited Appoints Bruce Robinson AC as Director Ecofibre Limited announced the appointment of Professor Bruce Robinson AC as a director of the Company effective 4 March 2021. Prof. Robinson has over 25 years leadership experience as a board director, academic physician and scientist across research, healthcare and medicine, and tertiary education. He has extensive experience covering academia, government, public and private health providers, research institutes and philanthropic organisations. He is currently a director of Cochlea; MaynePharma. He will be a non-executive Director and is considered by the Board to be independent. As noted by the Company at the 2020 Annual General Meeting, a further significant Director appointment is expected to be announced prior to Mr. Lambert's retirement from the Board later in 2021. 2015 - present he is the Chair of the National Health and Medical Research Council. Major Estimate Revision • Feb 13
Analysts lower EPS estimates to -AU$0.022 The 2021 consensus revenue estimate was lowered from AU$59.8m to AU$57.6m. The company is forecast to report a loss instead of a profit with analysts lowering their EPS forecasts from AU$0.0037 to -AU$0.022 for the same period. The Pharmaceuticals industry in Australia is expected to see an average net income growth of 18% next year. The consensus price target was lowered from AU$2.26 to AU$1.65. Share price is down by 7.2% to AU$1.60 over the past week. Is New 90 Day High Low • Feb 12
New 90-day low: AU$1.60 The company is down 1.0% from its price of AU$1.62 on 13 November 2020. The Australian market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is up 30% over the same period. Announcement • Jan 22
Ecofibre Limited Appoints Ms. Robin Sheldon as General Counsel and Joint Company Secretary Ecofibre Limited announced that Ms. Robin Sheldon has been appointed as General Counsel and Joint Company Secretary of Ecofibre. Ms. Sheldon will be a joint Company Secretary with Mr. Jonathan Brown, the current Company Secretary and Chief Financial Officer of Ecofibre. Pursuant to Listing Rule 12.6, Mr. Brown will remain responsible for communication with the ASX in relation to listing rule matters. Ms. Sheldon has 29 years experience in corporate law. Prior to joining Ecofibre, Ms. Sheldon was employed by Thomas Jefferson University as Sr, VP of Jefferson Strategic Ventures, VP of its Innovation Pillar and Associate Counsel. Announcement • Jan 20
Ecofibre Limited Enters into an Exclusive Distribution Agreement with MEDISCA Ecofibre Limited announced that the Company has entered into an exclusive distribution agreement with MEDISCA. Under this agreement, in the US, Canada and Australia, MEDISCA is the exclusive compounding pharmacy distributor for Ananda Health products and Ananda Health is the exclusive CBD finished product to be distributed by MEDISCA. Key terms of this agreement: Term 3 years, plus 2-year options to extend; Exclusive regions are United States, Canada and Australia. MEDISCA can distribute to other geographies on a non-exclusive basis; Ananda Health is the exclusive provider of all CBD finished products; Product range for MEDISCA includes all Ananda Health products to include ingestibles, topicals, women's health and diabetic health; Minimum sales requirements will be established six months from contract start date. Recent Insider Transactions • Dec 18
CEO, MD & Director recently bought AU$745k worth of stock On the 11th of December, Eric Wang bought around 350k shares on-market at roughly AU$2.13 per share. This was the largest purchase by an insider in the last 3 months. This was Eric's only on-market trade for the last 12 months. Valuation Update With 7 Day Price Move • Dec 03
Market bids up stock over the past week After last week's 16% share price gain to AU$2.00, the stock is trading at a trailing P/E ratio of 45.1x, up from the previous P/E ratio of 38.8x. This compares to an average P/E of 44x in the Pharmaceuticals industry in Oceania. Total return to shareholders over the past year is a loss of 36%. Major Estimate Revision • Oct 22
Analysts lower revenue estimates to AU$59.8m The 2021 consensus revenue estimate decreased from AU$86.7m. Earning per share (EPS) estimate was also lowered from AU$0.045 to AU$0.0037 for the same period. Net income is expected to shrink by 90% next year compared to 22% growth forecast for the Pharmaceuticals industry in Australia . The consensus price target was lowered from AU$3.20 to AU$2.26. Share price is down by 31% to AU$1.78 over the past week. Price Target Changed • Oct 21
Price target lowered to AU$2.26 Down from AU$3.33, the current price target is provided by 1 analyst. The new target price is 23% above the current share price of AU$1.83. As of last close, the stock is down 43% over the past year. Announcement • Oct 20
Ecofibre Limited Appoints Kristi Woolrych as Independent Non-Executive Director Ecofibre Limited announced the appointment of Ms. Kristi Woolrych as an independent non-executive director of the Company effective 20 October 2020. Ms Woolrych has over 20 years' experience in brand strategy, acquisition, retention, customer experience, eCommerce and retail marketing. She is currently the Chief Marketing Officer for KFC in Australia and New Zealand with accountability for sales growth, eCommerce and overall brand performance. In accordance with Ecofibre's Constitution, Ms Woolrych will be presented to shareholders for election at Ecofibre's 2020 annual general meeting on 25 November 2020. Valuation Update With 7 Day Price Move • Oct 20
Market pulls back on stock over the past week After last week's 29% share price decline to AU$1.81, the stock is trading at a trailing P/E ratio of 40.9x, down from the previous P/E ratio of 57.6x. This compares to an average P/E of 49x in the Pharmaceuticals industry in Oceania. Total return to shareholders over the past year is a loss of 45%. Is New 90 Day High Low • Oct 20
New 90-day low: AU$1.81 The company is down 26% from its price of AU$2.45 on 22 July 2020. The Australian market is up 3.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Pharmaceuticals industry, which is down 1.0% over the same period. Announcement • Aug 25
Ecofibre Limited (ASX:EOF) completed the acquisition of portfolio of businesses and assets of TexInnovate, Inc. Ecofibre Limited (ASX:EOF) entered into an asset sale agreement to acquire portfolio of businesses and assets of TexInnovate, Inc. for $42 million on July 29, 2020. Out of the total consideration, $21 million will be paid at completion and remaining $21 million will paid as earn out in three equal tranches on third, fourth and fifth anniversaries after completion. Each such payment will consist of 50% cash and 50% Ecofibre shares at the scrip value. Earn out is subject to the acquired businesses delivering $6 million EBIT for two consecutive annual periods. Portfolio of businesses and assets of TexInnovate, Inc. is consists of Triad Polymers, Trident Fibers, Fibex, Knitmasters and business of TexInnovate. To fund the cash component payable at completion, Ecofibre has conducted a placement under its Listing Rule 7.1 capacity to existing institutional shareholders of $29.5 million in aggregate at an issue price of $2.50. Ecofibre intends to employ all of TexInnovate’s staff at completion. Transaction is subject to satisfactory due diligence by Ecofibre over a 30-day period. The due diligence period is completed on August 21, 2020. Transaction is expected to close on September 1, 2020.
Ecofibre Limited (ASX:EOF) completed the acquisition of portfolio of businesses and assets of TexInnovate, Inc. on August 21, 2020. Ecofibre Limited issued 5.9 million shares for the consideration on August 24, 2020 and will issue 5.9 million shares for earn-out payment as well. The Initial consideration shares expected to commence trading on August 26, 2020. Jeff Bruner and his team will be part of the Ecofibre family. Announcement • Jul 31
Ecofibre Limited (ASX:EOF) entered into an asset sale agreement to acquire Portfolio of businesses and assets of TexInnovate, Inc. for $42 million. Ecofibre Limited (ASX:EOF) entered into an asset sale agreement to acquire Portfolio of businesses and assets of TexInnovate, Inc. for $42 million on July 29, 2020. Out of the total consideration, $21 million will be paid at completion, remaining $21 million will paid as earn out in three equal tranches on third, fourth and fifth anniversaries after completion. Each such payment will consist of 50% cash and 50% Ecofibre shares at the Scrip Value. Earn out is subject to the acquired businesses delivering $6 million EBIT for two consecutive annual periods. Portfolio of businesses and assets of TexInnovate, Inc. is consists of Triad Polymers, Trident Fibers, Fibex, Knitmasters and business of TexInnovate. To fund the cash component payable at completion, Ecofibre has conducted a placement under its Listing Rule 7.1 capacity to existing institutional shareholders of $29.5 million in aggregate at an issue price of $2.50. Ecofibre intends to employ all of TexInnovate’s staff at completion. Transaction is subject to satisfactory due diligence by Ecofibre over a 30-day period. Transaction is expected to close on September 1, 2020.