Tecnotree (OMXH: TEM1V) got out of immediate harm’s way with a successful stock offering a short while ago. Following that it announced several large deals from its new product offering. The company has rarely had problems with sales but profits have been hard to come by and in order to build a sustainable long-term business, there needs to be on the bottom line as well.
Today’s major profit warning raises more questions that answer. The company changes profit guidance from positive to negative due to higher costs and foreign exchange losses incurred during Q3. Sales and adjusted operating profit are still expected to top 2011 level. Further numbers are expected in two days in connection with Q3 2012 interim report.
Showing posts with label tecnotree. Show all posts
Showing posts with label tecnotree. Show all posts
Monday, 29 October 2012
Wednesday, 27 June 2012
Tecnotree rights offering oversubscribed
Tecnotree (OMXH: TEM1V) said that preliminary results of the rights offering ended on June 19th show that approximately 49.9 million shares representing 101% of the 48.9 million shares offered were subscribed to. Many of the subscriptions were allotted to those oversubscribing, meaning plenty of investors simply lost a portion of their investment after their subscription rights were left unused and unsold. The results shows 64.1% of offered shares were subscribed using subscriptions rights and 35.9% without them. The subscriptions rights were trading very near zero in the final days of trading so there wasn’t much of a chance for many, particularly since Tecnotree’s ownership is relatively evenly spread out to mainly small Finnish retail investors.
Tecnotree has been saying the main reason for the issue is to raise working capital in order to work through the current record-high order book. While it is true that Tecnotree now has a lot of orders in its books following a strategic shift in the product mix, it needs to show it is able to make a profit out of those, something that has been lacking recently, or face another cash constraint soon enough. The proceeds are above the 5 million threshold, which should allow the company to receive a 5 million credit limit. The company has been using social media to affect markets as well, as evidenced by a tweet suggesting operators are spending a lot. An arbitrage opportunity has been available in the last few days since the newly subscribed shares have been trading under their own ticker, with a discount, before the combination of the two series of shares is expected on the 29th.
Tecnotree has been saying the main reason for the issue is to raise working capital in order to work through the current record-high order book. While it is true that Tecnotree now has a lot of orders in its books following a strategic shift in the product mix, it needs to show it is able to make a profit out of those, something that has been lacking recently, or face another cash constraint soon enough. The proceeds are above the 5 million threshold, which should allow the company to receive a 5 million credit limit. The company has been using social media to affect markets as well, as evidenced by a tweet suggesting operators are spending a lot. An arbitrage opportunity has been available in the last few days since the newly subscribed shares have been trading under their own ticker, with a discount, before the combination of the two series of shares is expected on the 29th.
Wednesday, 28 March 2012
Tecnotree Atul Chopra saga to continue?
On first of February 2011 Tecnotree (OMXH: TEM1V) said Atul Chopra had been fired. The company cited lack of confidence, disturbance of the group's business and an unspecified claim presented to the company on Atul Chopra’s initiative regarding the Lifetree acquisition as reasons for dismissal at that point.
Couple weeks later the decision was suddenly reversed (although he did not return to the Management Board), but it was clear that the mutual trust had been broken. Tecnotree then started shutting him out of little by little, this time doing so in relative silence.
In October it was first noted deep within the new organization announcement, that Atul Chopra was being replaced by Padma Ravichander as head of Tecnotree Convergence Ltd. (India). The company said that Atul Chopra would focus on his role in the Board of Directors. Several days later the company notified that he had resigned from the Board and would not be seeking re-election
Although as a part of the settlement with Chopra where all Parties agreed to withdraw all claims and acquisitions against one another, former Lifetree shareholders that at the time of the acquisition of Lifetree received Tecnotree (then Tecnomen) shares were given a waiver on the three year halt, as of February 29 2012 Chopra still maintained his shares (directly around 1.6 million and over 1.3 million indirectly via Aparna Advisory Services Private Ltd, totaling somewhat over 4% of all shares according to Tecnotree website).
Today Tecnotree released resolutions of the Annual General Meeting. The company said that that everyone except Atul Chopra was discharged from liability. Tecnotree CEO Kaj Hagros told Kauppalehti, that this stemmed from the fact that Atul Chopra has challenged the settlement agreement in an Indian court. The main issue is money. He has also been very disappointed at the Tecnotree share price development. Atul Chopra is among other things a Bachelor of Laws
Couple weeks later the decision was suddenly reversed (although he did not return to the Management Board), but it was clear that the mutual trust had been broken. Tecnotree then started shutting him out of little by little, this time doing so in relative silence.
In October it was first noted deep within the new organization announcement, that Atul Chopra was being replaced by Padma Ravichander as head of Tecnotree Convergence Ltd. (India). The company said that Atul Chopra would focus on his role in the Board of Directors. Several days later the company notified that he had resigned from the Board and would not be seeking re-election
Although as a part of the settlement with Chopra where all Parties agreed to withdraw all claims and acquisitions against one another, former Lifetree shareholders that at the time of the acquisition of Lifetree received Tecnotree (then Tecnomen) shares were given a waiver on the three year halt, as of February 29 2012 Chopra still maintained his shares (directly around 1.6 million and over 1.3 million indirectly via Aparna Advisory Services Private Ltd, totaling somewhat over 4% of all shares according to Tecnotree website).
Today Tecnotree released resolutions of the Annual General Meeting. The company said that that everyone except Atul Chopra was discharged from liability. Tecnotree CEO Kaj Hagros told Kauppalehti, that this stemmed from the fact that Atul Chopra has challenged the settlement agreement in an Indian court. The main issue is money. He has also been very disappointed at the Tecnotree share price development. Atul Chopra is among other things a Bachelor of Laws
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