EDE - Eden Innovations

[basilio]

I wonder if the Management has reduced their costs as the COVIV 19 virus has devastated the economy ? We would have heard about it surely ? I know other companies have highlighted such sacrifices by management..

 

[basilio]

Back to the trough.

Management want to raise another $5m in share sales at 28c . Not a single figure about their finances. They just need/want more money. Grand stories about interest and sales and research - but they are bleeding like a stuck pig. Be interesting to see what proportion of current costs are taken by management and directors fees.

The financial statement in March noted they had borrowed $1.85m against their freehold properties in the US.

https://www.asx.com.au/asxpdf/20200619/pdf/44js19ktjc9h90.pdf

file:///C:/Users/PCUSER~1/AppData/Local/Temp/20200619_02246062-1.pdf

 

[basilio]

EDE share price currently 26c. It's going to take some creative selling to persuade investors to buy $5m of shares at 28c.

The other interesting part is that their litany of "world wide activities" they threw up a few days ago looks like a shopping list grab bag. And not a single financial figure in the whole lot.

I wonder if this is the last roll of the dice for EDE ? If they have to suspend the shares becasue of financial pressure that will be it. The shares will be effectively worthless. Todays sales of 3.6 million shares suggests some serious exits IMO.

 

[basilio]

Oops ! Just realised I missed a decimal point in EDE share price.
Current SP is 2.6 cents

 

[Dona Ferentes]

niche ... but encouraging

EDE's 100% owned U.S. subsidiary Eden Innovations LLC, has signed a long term agreement under which Eden US will sell EdenCrete®, and potentially other products, over the next 8 years to Silent Partner International, Inc. , a US company based in Florida.

The products will be used in the construction and maintenance of a number of proposed facilities that SPI plans to build in the USA and in other countries. SPI has developed a proprietary design that is to be used in the proposed facilities for mitigation of the impact of a broad spectrum of radio frequency interference and/or electromagnetic pulses that can result from natural occurrences such as solar flares, or human generated causes such as nuclear explosions. The proposed facilities will be designed for energy generation coupled with one or more of desalination, IT/data storage, aquaculture and/or agri-tech. In addition to increasing the strength and durability of the concrete, the EdenCrete® and other products are to be included to help SPI achieve the Purpose and mitigate the impact of RF interference and EMP on the Facilities.

 

[basilio]

niche ... but encouraging

EDE's 100% owned U.S. subsidiary Eden Innovations LLC, has signed a long term agreement under which Eden US will sell EdenCrete®, and potentially other products, over the next 8 years to Silent Partner International, Inc. , a US company based in Florida.

The products will be used in the construction and maintenance of a number of proposed facilities that SPI plans to build in the USA and in other countries. SPI has developed a proprietary design that is to be used in the proposed facilities for mitigation of the impact of a broad spectrum of radio frequency interference and/or electromagnetic pulses that can result from natural occurrences such as solar flares, or human generated causes such as nuclear explosions. The proposed facilities will be designed for energy generation coupled with one or more of desalination, IT/data storage, aquaculture and/or agri-tech. In addition to increasing the strength and durability of the concrete, the EdenCrete® and other products are to be included to help SPI achieve the Purpose and mitigate the impact of RF interference and EMP on the Facilities.

It's an interesting and encouraging story. Having said that how much will it be worth ?

From their release $48m over 8 years...
$2m in the first 18 months.
I'm not sure if that even pays the Solomon Brothers chits..

 

[Dona Ferentes]

At the request of the ASX, in order to correct the significant level of misinformation being circulated on social media, Eden advises that it conducted a due diligence review before it entered into that agreement, and that review included the following:

1. In addition to both Eden US’s CEO and its executive director travelling to Florida and spending a day meeting with Mr Dale Hobbie, CEO of SPI, Eden US spent many further days discussing the proposed agreement, and enquiring further about the various projects that were proposed to be undertaken; and
2. Eden US also made other enquiries including a number of enquiries of US companies that we were advised were involved in the proposed projects in one way or other.

("other enquiries including a number of enquiries" - clumsy)

< never held>

 

[peter2]

Blast from the past. EDE popped up in my scan today. I've started a spec position due to the recent increase in volume and price.

EDE continues to show their additive strengthens concrete but is having trouble converting this benefit to sales.

 

[greggles]

Up from 2.5c in early January to a high of 4.3c today. Could EDE have finally bottomed out?

On 13 January they announced that they have received approval to import EdenCrete into Australia, so I'm assuming that this will result in increased revenue.

I noticed that they booked a $1,632,000 loss in the most recent quarter, although that was an improvement on the previous quarter's loss of $2,115,000. Gross revenue is up from $458,000 to $1,135,000 over the same period.

Things do seem to be turning around. The market will be looking for an even better quarter in Q1 2021.

 

[jbocker]

Picked this on for May 2021 comp. No real reason. Has done me good and Bad in the past. Too frustrating to hold like nearly everything else.

 

[basilio]

I keep wondering about this share... I mean how many times can the Solomon Brothers come to the market and tap extra shareholders to keep EDE solvent (and paying their tabs...)

I had shares in them at a couple of stages but gave up as they relentlessly tried to "prove" they could actually make the multi millions they predicted from the development and sale of Edencrete.

I think the product is outstanding. But time is proving this company is incapable of creating sufficient surplus to even get close to survival.
Sad really. But I suppose there is an opportunity for someone else to pick up the plant and rights and progress the technology.

 

[peter2]

I agree with your sentiment re EDE. It's been very disappointing. Edencrete products have been sold in the US since 2015. I know the trials need years to show the superior performance to the normal concrete but they've had more than adequate time to show this in multiple locations across the US.

Their latest news regarding a sale of Edencrete additive for an important historical restoration (Moffat Tunnel portal) involves a sale of only $2100 worth the product. Mgt calls this sale a significant milestone!

Meanwhile the company is issuing more and more shares as performance rights. Their issued # of shares is now >2 Billion.

 

[Smurf1976]

Their latest news regarding a sale of Edencrete additive for an important historical restoration (Moffat Tunnel portal) involves a sale of only $2100 worth the product. Mgt calls this sale a significant milestone!

There's been a few announcements like that from this company.

Sales volumes that in any other business wouldn't rate a mention even internally.

$2100 is the sort of budget you give to someone in training who's never run even the simplest project before. It's not something that ought be newsworthy from a listed company.

 

[Tommy Shelby]

I thought this was a joke (or a typo) at first, surely it cost far more to have this typed up, reviewed approved and submitted for the public share market... the report reads like my essays at uni - waffles

 

[Smurf1976]

I thought this was a joke (or a typo) at first

They've sold 85 Gallons, presumably that is US Gallons, of product then.

That's two barrels full. Not two ships or two tankers but two barrels that would fit on the tray of any ute or in a van quite easily.

That's the kind of order you'd send some junior employee out to collect, it's not the sort of thing that warrants management attention in any normal company.

This is quite ridiculous really.

 

[basilio]

And Eden lives on ! Truly this has to be most amazing vampire company on the market.

Currently, for the umteenth time, they are trawling for new suckers to buy into the dream. SP stands at 1.2 c so "God Only Knows" how they intend to reel in more bunnies.

But on their long and illustrious history of ensuring that the Solomon Brothers get paid their due I reckon they will succeed.

I did check out their most recent Quarterly activities report. 9 pages of earnest analysis on a series of ventures that earn (drumroll) $3m in the first 9 months of the year. And how much of this $3m is above the line ?

Zilch naturally. Zero, neinte etc. In fact Eden lost $5m in first 9 months of 21-22. Page 10 of the Quarterly Report offers an insight it just how deeply unprofitable this dog is.

Consider this. The company has total sales of $3 m for the first 9 months of the year.
Product production costs are........................... $3.8 m
Staff and admin costs are ..................................$4.1 m

Quarterly Activities/Appendix 4C Cash Flow Report

 

[basilio]

Any person in a bull market can make money.
Even stocks with no merits can and do rise.

This company raised not 8 months ago 5.7 million at 11 cents.
Its now .... just over half that with a low 25% of that PRIOR to this ramp ramp ramp announcements.

Paying 2 million to two lawyers, for such a tiny company is absurd.

Personally and with a lot of experience, I DOUBT .... even if sales increased 10 fold .... 10 times this company would even break even.

I suspect, the money raised less than 12 months ago at end of June .... 7 months ago ... for the cap raising ... if there is 3 million left, I would be surprised as of end of June and by end of Sept ... another cap raise.

With 1.7 billion shares ... market cap of 110 million, and this company has been touting similar pie in the sky stuff for 10 years, if not 15 ....

SHOW ME THE MONEY and cut the needless overheads. That of course will never happen and its a money pit with not much hope in sight.

Time will only tell and I am not amused .. then again because some squiggly line suggests its going up, to the technical trading and TAB betting types, whilst it is very clear they will need MUCH MUCH MORE ... capital ...by a very casual look at the accounts and a state of perpetual loss is ... well ... like betting on horse three in race 7 because it did a poo in the yard prior to the race.

Oh please !! Spare me ...

PS ... I note 10 years ago, in 2009, there were 181 million shares ... now 1.6 billion so that's only say 1.4 billion SUCKERS say at 5 cents .... or 70 million that has evaporated ?

728 million shares early 2014 .... so 900 million at 5 cents issued in 5 years .... likely higher ... and still no end in sight.

Tee hee 15 million raised in 2016 at 15.5 cents per share to Institutions .... Was it mental institutions ? another 6.2 million early 2018 at 11 cents per share ....

ooh and 7.8 million at 8 cents in 2019 ...

Its basically gone ... we NEED MORE .... I suspect by end of Sept.
Gotta pay those management fees.

Seriously ...

Is that on my chart ?

End of March 2019 ... 5 mio left ... cash burn rate for 9 months 10 mio ...
So end of June 2019 .... likely 2.5 mio or less.
Management fee 339 k per quarter on the books PLUS other stuff if one looks.

Worth requoting an exceptionally detailed post by Kahuna a few years ago. Crazy stuff for years.

 

[mullokintyre]

EDE put out another of those great new sales reports that will cheer us all no end.

HIGHLIGHTS  Three-year, bulk EdenCrete® supply agreement signed with Delta Industries, Inc.  Delta (established 1945), a ready-mix company, operates over 30 ready-mix plants in 4 US states, with an aggregate population over 19.5 million people: o Mississippi, o Alabama, o Louisiana, and o Tennessee,  Mississippi, Alabama and Louisiana are all new EdenCrete® markets.  The first three 1,000-gallon tanks and dispensing equipment are being installed by Eden in three Delta plants (two in Tennessee and one in Mississippi  Initial orders from Delta, worth US$75,000 (A$105,927) for 3,000 gallons of EdenCrete®, will follow installation of the tanks and dispensing equipment.  This supply agreement follows extensive trialling undertaken by Delta with shotcrete contractors.

All that or USD75,000.
If they made some sales worth 7.5 million, it might be noteworthy.
Sadly, it has promised so much, and delivered so little.
Mick

 

[mullokintyre]

EDE qtrly/yearly report shows increases in sales to the whopping 4.1 mill for the year, a 26% increase on last years figures.
Now selling to retail customers via Lowes stores in two states.
Trouble is, they have barely two months worth of cash to survive.
They say monthly deficits will decrease as sales receipts increase, but they need to double their sales just to break even.
The big question is, will they still be in existence this time next year??
Mick

 

[basilio]

EDE qtrly/yearly report shows increases in sales to the whopping 4.1 mill for the year, a 26% increase on last years figures.
Now selling to retail customers via Lowes stores in two states.
Trouble is, they have barely two months worth of cash to survive.
They say monthly deficits will decrease as sales receipts increase, but they need to double their sales just to break even.
The big question is, will they still be in existence this time next year??
Mick

They should have died years ago. However I think this "parrot" has been diligently propped up for as long as the directors can extract their fees. Just requires more and more investors to buy fresh shares.