# NOU - Noumi Limited



## System (31 May 2011)

Freedom Foods Group Limited (FNP), formerly Freedom Nutritional Products Limited, is a diversified food company operating in the Health and Wellness sector. 

The Company has consumer brands with leading or growing market shares in their categories, including Freedom Foods, a2 milk, So Natural, Australia's Own, Paramount and Brunswick.

http://www.fnpl.com.au


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## PinguPingu (19 September 2013)

Inherited a few of these at 50c, been a parabolic rise lately...demand for milk from China?


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## Ves (19 September 2013)

PinguPingu said:


> Inherited a few of these at 50c, been a parabolic rise lately...demand for milk from China?



More to do with the US expansion.... could be massive if it is profitable.


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## pixel (27 June 2016)

Picking up from the "Breakout" thread, where Tape Trader commented on a recent flag pattern, yet asked, why no announcement? 
I believe the announcements of recent months, concerning Director interest and option exercises, would have spoken volumes! A few progress reports about China and Vietnam were hidden among them...

The long-term chart paints an even clearer "flag" picture. (I'd ignore the brief jump to extremes before the current rectangle.) 





Not holding yet, but I am watching, cash ready, for the next move *underpinned by volume.*.


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## Tape Trader (27 June 2016)

pixel said:


> Picking up from the "Breakout" thread, where Tape Trader commented on a recent flag pattern, yet asked, why no announcement?
> I believe the announcements of recent months, concerning Director interest and option exercises, would have spoken volumes! A few progress reports about China and Vietnam were hidden among them...
> 
> The long-term chart paints an even clearer "flag" picture. (I'd ignore the brief jump to extremes before the current rectangle.)
> ...




Looks good Pixel- Nice chart


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## Ann (17 April 2019)

A chart for FNP, it may see a bit of price resistance coming from a triple top resistance and a rising support/resistance at its current level between $5.20 and $5.40. There was a volume spike on March 15th, there was no ASX notice around this time to explain it.


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## ashainp (3 September 2019)

Ann said:


> A chart for FNP, it may see a bit of price resistance coming from a triple top resistance and a rising support/resistance at its current level between $5.20 and $5.40. There was a volume spike on March 15th, there was no ASX notice around this time to explain it.
> 
> View attachment 93858



Broke the resistance!


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## Miner (4 June 2020)

Folks
Could any one  holding or following FNP, please advise what made these directors (same family) so loving about FNP's future to spend millions even after a not so impressive trading update.
https://www.asx.com.au/asxpdf/20200604/pdf/44jdc0s84zk8qb.pdf
https://www.asx.com.au/asxpdf/20200604/pdf/44jdbyrjw8frmb.pdf
https://www.asx.com.au/asxpdf/20200604/pdf/44jdbwqtk9m7dd.pdf
https://www.asx.com.au/asxpdf/20200529/pdf/44j6tmhcz8j7kb.pdf COVID UPDATE
https://www.asx.com.au/asxpdf/20200506/pdf/44hm62y2sthz18.pdf
https://www.asx.com.au/asxpdf/20200306/pdf/44ft8142j2j1w4.pdf


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## Huskar (4 June 2020)

Miner said:


> Folks
> Could any one  holding or following FNP, please advise what made these directors (same family) so loving about FNP's future to spend millions even after a not so impressive trading update.
> https://www.asx.com.au/asxpdf/20200604/pdf/44jdc0s84zk8qb.pdf
> https://www.asx.com.au/asxpdf/20200604/pdf/44jdbyrjw8frmb.pdf
> ...



Very interesting Miner - there's gold in 'dem hills surely  (can't help myself....)

Former market darling, I haven't looked at it in quite a while. Still very expensive with $1bn market cap on $472m sales and $55.2m EBITDA for FY2019. 

But it has made significant investments ($170m in FY19) and so fruits of that should show through in next year or so. 

Their key products are dairy & nutritional ingredients and plant-based beverages - are people going to be using these if there's an economic downturn? And aren't people drinking less dairy these days? 

I'm very interested and will look into it closer


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## Miner (5 June 2020)

Huskar said:


> Very interesting Miner - there's gold in 'dem hills surely  (can't help myself....)
> 
> Former market darling, I haven't looked at it in quite a while. Still very expensive with $1bn market cap on $472m sales and $55.2m EBITDA for FY2019.
> 
> ...



Hey  @Huskar
I could not stop myself commenting with a hope that you would return on this thread with your research.
With your question "_And aren't people drinking less dairy these days" - M_y response is really? Why A2M is sky rocketing constantly - Just for China? Or quality food consciousness ? I know our home purchase is A2 milk for a while even that costs $5 per 2 litres compared to  Harvey Fresh Milk ($2.65 in IGA).
Regardless recession, people will still be eating plant based beverages, dairy product and nutritional products - smaller no of mass who would be prepared to pay premium.

Ironically what often I see, comes true after 2 years time when I sold off the original investments - like it happened with A2 M, FMG, PRN, MIN and few others. It is my bloody lack of patience and lack of faith on my own research.

Hopefully would hold FNP until 2022 unless things get pear shape. Once again the directors would like to have return of their investments and my bought out price is lesser than what they reportedly paid. Oh yes, Black Rock probably increased their stake too (unless I am mixing up between Black's investment with other stock ).
_Happy Investing and Happy Wining.  _


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## Dona Ferentes (8 June 2020)

The Perich family holds something like 59% of FNP, so the free float tends to be restricted. Directors Michael, Ron and Anthony P plus Tom Bryan all added to holdings recently, buying on-market.

Latest update, 31 May, was eventually seen as 'less bad than it might have been', and Directors buying; SP is up bit since early June low of $3.40:
_• Sales normalising through May to pre COVID volumes in retail grocery in Australia. 
• Lower demand in Out of Home and Industrial Channels through April and May, with tentative signs of recovery arising from changes to stay at home restrictions.  
• Increasing export demand in SE Asia and China from retail grocery channels after periods of significant decline in the first quarter of calendar 2020. 
• Margin decline against pre COVID plan given shifts in channel and portfolio mix. 
• No delays in supply chain arrangements have been experienced into China and SE Asia. 
• Reshaping of operational footprint to increase efficiency and realise material cash savings into FY 2021. Costs of restructuring and write-down of non-cash obsolete and discontinued stock provision to be required for FY 2020.   
• Material impact on second half profitability with consequential flow on impact to our pre COVID 19 expectations_

Also, sneeking in on the bottom point, as indicated, 







> the Company as a prudent measure to ensure financial flexibility deferred the H1 FY2020 dividend as announced on 28 February 2020 to a payment date to be determined. The Company has now decided to cancel this dividend.  The Company does not anticipate paying a full year dividend.




The Company remains focused on "delivering on its unique capabilities and opportunities across Dairy Beverages and Nutritionals, Plant Based Beverages and Specialty Cereals and Snacks."

- 20% of branded UHT milk ("Australia's Own", + MilkLab) ... big in Asia
- largest on-roof solar battery project in Vic (Shepparton factory) ... offset for dairy 
- coming to an end of the 5-year spend for new facilities and marketing
- am somewhat suss for their cereal and snack offerings, as they are relegated to the niche end of the supermarket aisles


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## Miner (8 June 2020)

Dona Ferentes said:


> The Perich family holds something like 59% of FNP, so the free float tends to be restricted. Directors Michael, Ron and Anthony P plus Tom Bryan all added to holdings recently, buying on-market.
> 
> Latest update, 31 May, was eventually seen as 'less bad than it might have been', and Directors buying; SP is up bit since early June low of $3.40:
> _• Sales normalising through May to pre COVID volumes in retail grocery in Australia.
> ...



Very good update.
I looked back and found their PE is significantly high 81.25 compared to 42.1 fo A 2M,  SM1 17.2 raises some serious questions. But my original query remains, if the directors from one family do not see any benefits then without receiving dividend for full year, how their own investment model works with continuous investment ?? 
This is the policy of disclosure - good one.
https://ffgl.com.au/wp-content/uploads/2020/03/20200212-Continuous-Disclosure-Policy.pdf
Annual Report https://ffgl.com.au/wp-content/uploads/2019/10/2-9188-FFGL-AR-2019-FINAL-1-updated-pages.pdf 
The annual performance was reasonably good with 35% net sales and 40% net profit  increased, the directors have taken a reasonable fee and salaries  of the executives not sky rocket amount. Not sure however  why then did they cut dividend ?
What is the motivation for the directors when there is no additional return to them.
Probably I hold myself and not look at it for next 6 months. 





https://ffgl.com.au/


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## Dona Ferentes (8 June 2020)

I have no proof, but  a sneaking suspicion about the dividend being withheld. Some call it _Prudent allocation of Capital_ (in these challenging times), but there may be the China factor overhanging the growth strategy.

From AFR 13 May;







> One of China’s biggest investors in Australian agriculture is caught up in Beijing’s bans on beef imports apparently over trivial labelling issues.
> 
> New Hope Group-controlled Kilcoy Global Foods was also hit by not-so-friendly fire in 2017 when a Chinese ban on its beef imports dragged on for three months....



which is early in the Trade Standoff argy-bargy being played out by Beijing.

.... article goes on to say:







> New Hope formed Australian Fresh Milk Holdings in 2015 through a $100 million deal with the Moxey and Perich dairy farming families in NSW. The other shareholder is ASX-listed Freedom Foods [with 10%].
> 
> Australian Fresh Milk Holdings expanded its vast dairy footprint in January with the $40 million acquisition of four linked properties in northern Victoria covering 4000 hectares and with annual water entitlements of more than 6700 megalitres



... and my suspicion is that New Hope Group may sit on the wrong side of current CCP power struggle, and/or maybe being a bit too 'autonomous' for Beijing's liking. There's a picture dated 2015 of New Hope's Liu Yonghao, Pres Xi Jinping, PM at the time Tony Abbott and Twiggy Forrest signing a food and farming agreement in Beijing.

And with FNP putting money in, recently, they'd be wanting a return on that investment.


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## Chronos-Plutus (8 June 2020)

Dona Ferentes said:


> I have no proof, but  a sneaking suspicion about the dividend being withheld. Some call it _Prudent allocation of Capital_ (in these challenging times), but there may be the China factor overhanging the growth strategy.
> 
> From AFR 13 May;
> which is early in the Trade Standoff argy-bargy being played out by Beijing.
> ...



Dona; I thought we were going to have a chat about Vulcan Energy?


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## Miner (8 June 2020)

Dona Ferentes said:


> I have no proof, but  a sneaking suspicion about the dividend being withheld. Some call it _Prudent allocation of Capital_ (in these challenging times), but there may be the China factor overhanging the growth strategy.
> 
> From AFR 13 May;
> which is early in the Trade Standoff argy-bargy being played out by Beijing.
> ...



Let's hope positive (not corona) on money


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## Dona Ferentes (24 June 2020)

Wednesday morning, Freedom Foods announced its chief executive Rory Macleod was "on leave pending a further announcement", the day after its chief financial officer Campbell Nicholas resigned.


> "To lose one senior manager may be regarded as a misfortune; to lose two looks like *carelessness*"


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## Miner (24 June 2020)

Dona Ferentes said:


> Wednesday morning, Freedom Foods announced its chief executive Rory Macleod was "on leave pending a further announcement", the day after its chief financial officer Campbell Nicholas resigned.



Hush up for a big trading halt with sob?


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## galumay (24 June 2020)

Fraud.


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## Miner (24 June 2020)

galumay said:


> Fraud.



You are too polite


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## Dona Ferentes (24 June 2020)

galumay said:


> Fraud.



A legged


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## Dona Ferentes (24 June 2020)

The polite version







> ...the spotlight remains on the group over the carrying value of assets and how they are capitalised. For FY 2020, Freedom Foods capitalised development costs of about $62.4m and about $171m of construction costs in the previous financial year.





> The company had a plan to outlay about $160m a year on capital spending at a time that some say cashflows have been poor. It has net debt of $300m and equity of $671m, so some expect a capital raising could be on the cards.
> Sources say it is also worth noting that the number of parties shorting the stock had surged in the days before the announcement.


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## finicky (24 June 2020)

Chart. Might buy a few @ $1. Won't bore anyone with my hit and miss auto-didact t/a 
#glib

Not Held
Sentiment: Sell

All Data Qtrly


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## galumay (25 June 2020)

Miner said:


> You are too polite




The signs were there, the massively increasing capital costs with no impact on cash flow in a business where they should be fairly closely correlated. Also the large increase in inventories - in a business where inventory shelf life is very short. Final straw, (too late for those who missed the other signs), was the management deserting ship like rats off the titanic. 

There were some astute shorters here who had done the legwork on the financials.


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## Dona Ferentes (9 July 2020)

"*A number of issues*". Oh dear



> Freedom Foods has extended its voluntary suspension until October 30, saying it may be some time before the embattled company can resurrected. The company said a number of activities needed to be considered by the broad before it could be in a position to provide information on the historical issues identified, the financial position and outlook of the
> company.





> The company said it will need to conclude its investigation into the historical issues referred to in previous announcements, complete its annual accounts, provide appropriate guidance, search for a new chief executive officer and chief financial offer, and complete any necessary capital initiatives.





> The company said it will keep investors advised of any material developments in accordance with ongoing continues disclosure obligations.
> 
> The company said it had received a waiver from its financiers in relation to its financial covenant obligation at June




Carcass awaits to be picked over.


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## Miner (6 August 2020)

A clear sign of a family affair giving enough time to wind up personal finances.
https://www.asx.com.au/asxpdf/20200806/pdf/44l8dn118n7z50.pdf
They can let the investors and shareholders wait until Oct but realised with reshuffling within house give the family to wind up.
Can not recall such tacit game and such a helpless ASIC to come into investigation instead of waiting Rome to burn. Unfortunately a holder.


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## Dona Ferentes (8 August 2020)

galumay said:


> Fraud.



it may not be. Just withering lack of process, or competence.  There's an _AFR _article today
https://www.afr.com/companies/retail/perich-family-pays-high-price-for-freedom-20200723-p55etv
saying there was $60million in stock in Shepparton warehouses dating from 2017 and hence well past the use-by date.... thousands of pallets of "_out-of-date UHT milk and cereals piled up without being noticed, bypassing basic inventory controls, pest management protocols as well as both the internal and external audits_."


> On its share price alone, Freedom looked like a winner. Shares had risen from about 35¢ when the Perich family bought in back in 2005 to above $5 a share, fuelled by a series of acquisitions and capital raisings.
> 
> Its products, including Messy Monkey kids snacks and So Natural soy drinks, popped up on major supermarket shelves, and the company seemed to have successfully found a market in Asia. It went from a small company to a much larger one very quickly.





> Not every decision was perfect. Much has been made of the decision to sell a minority stake in The a2 Milk Company, but it seemed to be delivering on its core strategy and there was little attention given to whether its internal systems were keeping up with its growth.
> 
> But despite the outward success, institutional investors were relatively scarce, quietly questioning the company's lack of cash earnings for at least two years, despite an impressive and growing brand portfolio.



Someone has been asleep at the wheel. The Board hasn't handled the growth well, there are hints that 'performance bonus structure' was misaligned. The CEO was described variously as "controlling", "personable" and with a "short temper". The CFO abruptly resigned. When it all came to a head, an Announcement flagged the old stock couldn't be repurposed; this raised some accounting issues as the cost of goods had been carried forward as a capital item, when it should have been included as a cost of sales.

You would have to worry about oversight and processes, and the role of auditors. The Perich family now own 53%. It would be a brave investor willing to put money in FNP and go along for the ride, in the hope this company can be turned around.


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## Dona Ferentes (27 October 2020)

Freedom Foods is facing a_t least one unfair dismissal claim, a potential class action and a looming capital raising. The Perich Family is are also in the uncomfortable position of recommending to many family and friends a stock that lost nearly a quarter of its value in less than a week before being suspended amid concerns of accounting issues and mismanagement._

_Sources suggested Tony Perich is devastated by the recent events. Now the Perichs are in clean-up mode: they recently hired a new CFO and are rationalising business units on top of the very messy job of physically disposing of millions of litres of milk and tonnes of expensive packaging.

But they also have a fresh problem they are throwing big money at, which could impact any capital raising (a key supplier of Almond Breeze milk products is suing the snacks and dairy group for $US16 million ($22.3 million) in a California court. It has accused Freedom's former chief executive of being complicit in alleged fraud and breach of contract. )_

_On Monday, October 19, at 5.11pm Freedom Foods sneaked in an ASX announcement requesting that its stock be suspended from trade for another month until November 30. If it sticks to this date, all up that will be five months suspended while it works through accounting irregularities and fraud allegations arising in a US court case...._


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## galumay (27 October 2020)

Dona Ferentes said:


> it may not be.




Then again, it may be!


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## Miner (28 November 2020)

Could company expecting lot many legal cases when it arrives early December


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## galumay (30 November 2020)

A train wreck, equity gone, debt huge, impairments, serial incompetence if not outright fraud. Sad for anyone caught holding.

From the AR today,

"Most significantly, the reviews determined that most of the costs capitalised during the commissioning phase of the Group’s capital investment program should be more appropriately treated as expenses. These accounting treatments contributed to decisions on new products and expansions that were based on unrealistic assessments of market opportunities and margin assumptions that were not realised. As a result, too many *Group products were sold at prices that did not fully recover their costs*."


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## basilio (1 December 2020)

Seems as if the ASIC cort cases are imminent.








						Freedom Foods accounting scandal worsens, with ASIC now investigating
					

Cereal and snack-maker Freedom Foods has announced half a billion dollars in write-downs, and is being investigated by the corporate regulator ASIC for some "significant" accounting problems.




					www.abc.net.au


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## Dona Ferentes (16 December 2020)

shrinking to greatness (sorry, current shareholders)


_Freedom Foods says it is assessing options for its cereal and snacks division as it looks to *simplify its business *as part of its recapitalisation plan.

The company also announced it will conduct a capital raising of up to $280 million. It said it had hoped to be in a position to announce the recapitalisation by mid-December but now expects an update on the capital raising will instead occur on January 2021._


> "The company has made good progress in this regard and remains in advanced discussions with a new investor to support the capital and operational turnaround of the business," said a spokesperson.



Oaktree?! Yikes


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## frugal.rock (16 December 2020)

Dona Ferentes said:


> Freedom Foods says it is assessing options for its cereal and snacks division as it looks to *simplify its business *as part of its recapitalisation plan.






galumay said:


> ..."serial incompetence if not outright fraud. "



Cereal incompetence.
They need a All Bran new approach without the corny flakes..
I had better go and wash the dishes now, before my Honey Smacks me


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## Dona Ferentes (16 December 2020)

frugal.rock said:


> Cereal incompetence.
> They need a All Bran new approach without the corny flakes....



Marginally better than cereal incontinence?

A while ago, maybe not on ASF, I posted that any inspection of the retail aisles revealed gimmicky product, uncompetitively priced and poorly positioned / marketed on the range of offerings. Enough for me to sell FNP. ... and so glad I did.


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## Garpal Gumnut (16 December 2020)

@Dona Ferentes @Miner @basilio and others.

The posts this year on Freedom have been such an enjoyable read with excellent links. Thanks all

The Perich family seem to have taken their eye off the ball. They are a resilient mob but may be suffering generational fatigue, ( ole Jamie is a good example at Crown ) and could bounce back. Could, I say, but not with any of my dosh.

For those new to ASF, NSW/Queensland and Australia, this is how business was done in the 70's and 80's. My eyes misted over with nostalgia.

One of the Ross Island Hotel regulars has asked me to fly down with him and another pilot for the repo of an aircraft in the Mackay hinterland   ( not the Perich's ). I may drop in and say g'day to old man Perich if he is still thereabouts and not back in Sydney. 

gg


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## PetEarwig (17 December 2020)

Earlier in the year I had looked at this stock as the SP had drifted lower. On looking into the business a bit more, I found that they had rebranded many of their cereals and this had caused a customer backlash. If you have a visit to their facebook page, there were hundreds of furious customers venting their frustrations with the company's decisions, the main one being merging the production facilities that now meant that none of their cereals qualified as lactose free. Many customers bought their cereals based on gluten or lactose intolerances and it seems they wiped out that entire customer base with their rebranding and hoped expansion of the cereal market. We now know that there was far more going on behind the scenes. I don't always go digging on companies, but this was a lesson on why I should trust my instincts and do more work when investing my money. Thankfully, I avoided the mess. Craig


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## Dona Ferentes (19 March 2021)

Shares in Freedom Foods Group will begin trading on Monday after a nine-month hiatus as the troubled company aims to raise $265 million in fresh capital to stabilise the group.

But analysts have questioned whether the market will be fully informed after the company lodged a slew of documents for its capital raising, including a 271-page prospectus, after 5pm on Friday.

_The Perich family is stumping up $200 million via _*a subordinated secured convertible note issue. *_The billionaire family is invested via its investment vehicle, Arrovest, which owns 52.5 per cent of Freedom Foods. The family would like to have the ability to scale back Arrovest’s investment to a minimum of $135 million, depending on the level of participation under the $130 million wholesale investor offer priced at $1 a share.

Existing shareholders will be given preference allocation. For the first 30 months the notes will have a coupon rate of 7 per cent.

Subject to obtaining shareholder approval, 40.8 million options will also be issued pro-rata to all shareholders, excluding Arrovest. This is equivalent to approximately 1 option for every 3.2 shares held.

The offer is not underwritten, but Arrovest has provided a binding commitment to subscribe for $200 million of notes. The company will seek to raise a further $65 million from new and existing shareholders. Terms are on par with that of the Arrovest offer._

the notes will have a dilutionary effect on shareholders, indicating that if the notes convert at the end of year three then current shareholders will control about 40 per cent (assuming all options exercised) while the note holders will control 60 per cent of the company.


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## Miner (20 March 2021)

Garpal Gumnut said:


> @Dona Ferentes @Miner @basilio and others.
> 
> The posts this year on Freedom have been such an enjoyable read with excellent links. Thanks all
> 
> ...











						The Ross Island Hotel
					

The Ross Island Hotel - Ross Island Hotel, 99-101 Boundary St, Railway Estate QLD 4810, Australia




					the-ross-island-hotel.edan.io


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## Dona Ferentes (22 March 2021)

how does this even get captured?

One year timeframe


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## frugal.rock (13 September 2021)

Another screwy chart... that first big bar of volume 6 months ago puts it all out of proportion, dunnit?


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## Dona Ferentes (18 November 2021)

Freedom Foods Group has shed its name, and part of its rocky past, as shareholders voted in favour of its new moniker, *noumi Ltd. *The name change is required following the sale of the Freedom Foods brands with the Cereal and Snacks division this year.

At its AGM on Thursday, a largely refreshed board survived a spill motion after a small protest vote on the remuneration report meant no second strike was recorded.

New chairman Genevieve Gregor said the UHT *milk and plant-based drinks* maker’s remuneration framework has been completely overhauled to offer appropriate rewards and incentives.


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## galumay (18 November 2021)

I am amazed its survived in any form. It fascinates me that any investor would consider putting their capital into something like this, or that any existing shareholders would leave any capital in it. Just mind boggling.


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## Dona Ferentes (18 November 2021)

galumay said:


> I am amazed its survived in any form.



Yep. But we aren't of that ilk, corporate cowboys. At least we recognise their form


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## System (30 November 2021)

On November 30th, 2021, Freedom Foods Group Limited (FNP) changed its name and ASX code to Noumi Limited (NOU).


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## JohnDe (3 December 2021)

I hope I'm wrong, but I get a feeling that this company has chopped off so many limbs it has become structurally unsafe and any small gust of ill winds will see it topple to the ground.

The current portfolio of products is trying to aim at the health conscious public, both dairy and plant based. This is a growing market, but there is a lot of competition and it is a controversial one.  People with no dietary concerns will have no problems with *noumi*, but Vegetarians and Vegans may look elsewhere.

Good luck.


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