BFC - Beston Global Food Company

Listing of new food group on ASX as Beston Global Food aims to raise more than $100 million capital for premium product for Asia

A new food investment group says Australia is poised to see major investment in food processing over the next 12 months.

Beston Global Food Group has recently bought into South Australian biodynamic dairy farm Paris Creek, a meat processor, health food and seafood company Ferguson Lobsters, as its flagships.

It plans to raise $100 million in an initial public listing on the Australian Stock Exchange later this year.

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More: http://www.abc.net.au/news/2015-04-20/beston-global-food-capital-raising-ripe-pickings/6405500

Some strong accumulation today. A buy signal has been triggered as it moves above 50cents. For it to have moved up during these Chinese market woes, it shows that this stock is a strong defensive stock and that there is definitely growing interest. The company has a Baby Formula getting ready for sale, and a ground breaking counterfeiting app/barcode system that verifies customers the origin of the product. They are prepared to pay 1.5 to 2.0 cents in dividends per share. Also all that is mentioned in the above post. Lobster prices are rising. and regardless of the chinese market issues; people need to eat. :bananasmi

here is a link to an article about the food app

http://www.smh.com.au/business/best...ight-food-counterfeiters-20151223-glty1o.html

Another article
http://www.abc.net.au/news/2015-08-06/beston-global-food-company-china-export-deal/6677140

Some news on Lobsters
http://www.seafoodnews.com/Story/93...of-lobster-in-China-pushes-up-price-in-Boston

I found this one. Very informative.
http://bluelakeinvest.co/2015/09/17/the-resource-boom-isnt-over-its-shifted/

Here is the second part to this article
Throwback Thursday: BFC and the ‘White Gold Rush’

07/01/2016 / MICK
Back in September we bought to your attention a little company called Beston Global Food Company (ASX:BFC). You can read what we wrote then here, but in summary this is a company that offers investors access to a broad range of agricultural assets including seafood and dairy.

The group is more a property management company, as opposed to an operationally active agricultural player.

If like me you bought back then you’d currently be sitting on 50% more money.

Well done!

Now it hasn’t been smooth sailing the entire time. October saw the group pull out of a planned purchase of the Weneeda Dairy Farm which formed part of the original IPO.

This spooked some investors and the price of the stock was adversely affected. However following the low resulting from the failed purchase BFC has rocketed up the market.

More recently management announced to the market that in addition to the asset management strategy, they were launching an offshoot called Beston Technologies Pty Ltd (wholly owned by ASX:BFC) to manage a new application. This app, which was awarded patent approval will track and trace fresh produce from source to plate to counteract the growing trend of ‘counterfeit’ produce.

This technology will be leveraged to guarantee existing customers that the products they are buying are in fact of high quality, and are sourced as per the labelling. Further still a ‘fee’ will be applied to other producers wishing to employ the same technology.

Yeah that’s right, another revenue stream. One can speculate that the establishment of the ‘offshoot’ Beston Technologies could prepare it for sale down the track.

The assets/brands which BFC own involve several dairy farms, but most importantly in the current market environment is the infant formula. I would be expecting this segment of the business will drive strong returns. There is also a meat (Scorpio Foods) business unit which can expect to capitalise from the growing demand and increasing value from Asia.

It’s worth noting that a business that exports a significant amount stands to benefit from the low Aussie dollar.

Moving forward I expect that the decision to withdraw from the Weneeda Dairy Farm purchase will leave funds available for investment elsewhere. There is a real chance that any movement in this space could further accelerate the rise in the stock’s value.

Like I said in the first article linked above, this remains a good long term stock. It caterers perfectly to the demand placed on Australia to be Asia’s ‘Food Bowl’. Despite the short term gain, I won’t be selling this stock anytime soon.

We called BFC early, want to be first in getting our next great tip? Subscribe below today.

Here is the announcement regarding the technology

23rd DECEMBER 2015 ASX CODE: BFC
BESTON GLOBAL FOOD COMPANY LIMITED (BFC) ANNOUNCES AWARD OF
PROVISIONAL PATENT PROTECTION FOR ITS FOOD SAFETY TECHNOLOGIES
Beston Global Food Company Limited (BFC) is pleased to announce that its food
safety technology has been awarded Patent protection.
The BFC food safety technology embodies a proprietary OZIRIS food traceability
App and builds on verification and anti-counterfeiting applications developed by
DataDot Technology Limited and Brandlok Brand Protection Solutions Pty Ltd.
The Chairman of BFC Dr Roger Sexton said that the company’s food safety
technology was a fundamental part of the company’s business strategy to deliver
healthy, safe, clean, green and authentic food and beverage products from
Australia to the worlds growing communities.
Dr Sexton said that the awarding of patent protection to the Company’s OZIRIS
and related technologies acknowledged the uniqueness and sophistication of the
technologies which had been developed by BFC.
In recognition of the value of these technologies, BFC has made a decision to vest
the technologies into a separate company, Beston Technologies Pty Ltd, which is
wholly owned by BFC.
The World Health Organisation has warned that unsafe food is a “growing global
threat” as a result of higher quantities of food becoming contaminated with
harmful bacteria, viruses, parasites and/or chemicals.
As the demand for food continues to outstrip supply, it is clear that consumers are
becoming increasingly concerned about “food safety”, particularly in China and
many ASEAN countries, as well as in the Middle East and Africa.
The issue of food safety has also been compounded by the problem of
counterfeiting in some of these countries. A recent report from the Chinese
Ministry of Commerce for instance, showed that in the second half of 2014, nearly
40 percent of the products sold online were either fake or illegal.

Dr Sexton said that the OZIRIS and related food safety technologies developed by
BFC were designed to combat both of these issues – that is, food safety and
counterfeiting.
He said that BFC believed that its technologies were a world first in combining
food traceability with anti-counterfeiting.
The achievements of BFC in developing the technologies are in line with the
undertakings in the company’s Prospectus at the time of its IPO in late August
2015 to “build a customised track and trace system for verification of food
integrity, utilising BRANDLOK technology, to enable consumers to obtain
information about the source, quality and integrity of the product they are
looking to purchase”.
The Chief Executive of BFC Mr Sean Ebert noted that a live demonstration of the
OZIRIS App had been made at the Company’s Annual General Meeting on 27
November, 2015 and that the company expected to release the first version of the
technology to the market in late January/early February 2016, slightly ahead of
the earlier advised schedule.
Mr Ebert said that it was the intention of BFC to equip all of its export products, as
far as is practicable, with its food safety technology as from the date of its public
release.
The OZIRIS technology will also be made available to other Australian food
exporters on a user-pays, fee for service basis and will generate another earnings
stream for the company in due course.
He said that the achievements which had been made with the development of
the OZIRIS technologies, including the awarding of patent protection, far
exceeded the company’s expectations and had provided a basis for other
Australian food producers to capitalise on the demand from global consumers for
âœfood safe” products

The government is pouring money into the agriculture sector
http://www.agricultureminister.gov.au/Pages/Media-Releases/farm-production-to-boom-in-15–16.aspx

Paris Creek has acquired a large herd of A2 Protein milk cows. The A2m patent on A2 Milk expired last year.

http://www.afr.com/business/energy/...-agriculture-resources-energy-20151223-glu6rs

"Moore says companies like Beston Global Food are good examples of how businesses can capitalise on a fast-growing middle class across the Asian region."

"It has every thing that's sexy in ag at the moment, whether it's a2 or dairy, organic... traceability, China, e-commerce – it's got everything in its portfolio,"

https://youtu.be/71Tw4yH2doA
A video that explains the DATAdot technology. DDT is the company code if you are interested

Food security...ie, protecting products from counterfeiting is a high profile topic worldwide currently. The text from a Dec 2015 60 minutes report into the Agromafia is below.
http://www.cbsnews.com/news/60-minutes-agromafia-food-fraud/

No Pizzo

New article I found
http://www.heraldsun.com.au/busines...s/news-story/acd023fc0ab006896268bd9e99c2273c

BFC has moved up to $0.55. In these market conditions that is awesome. This badboy has heaps to go. It's still very cheap relative to A2M and BAL. I wonder If I'm just talking to myself in this thread

cryptocoins said:

BFC has moved up to $0.55. In these market conditions that is awesome. This badboy has heaps to go. It's still very cheap relative to A2M and BAL. I wonder If I'm just talking to myself in this thread

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You may be talking to yourself? I've been keeping an eye on this one for a little while.
Agree that there could be potential with these guys

Has anyone run a ruler over the prospectus and the FY15 Financial Report? I downloaded it to read through the balance sheet and P&L but didn't get further than the Directors report before getting caught up in the number of options on issue.

Currently there are 363,241,052 ordinary shares.

The prospectus states that no options existed under the capital structure prior to the IPO. The Financial Report states that at year end there were 15,221,316 Founders rights share options issued "up to the date of signing the Directors report" (Directors report, section 7) which was signed 30 September 2015. Section 10 of the Directors report states:

Unissued shares
As at the date of this report, there were 716,047,775 unissued ordinary shares under options (zero at the reporting date). Refer to section 3C of the remuneration report for further details of the options outstanding.

Shares issued as a result of the exercise of options
During the financial year, no options have been exercised.

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Section 3C Detail of incentive plans states

Post year-end the Group established a scheme to incentivise specific key personnel to maintain ongoing involvement with the group via the issue of Founders Right. These Founder's rights are convertible into shares 15 months after being granted at zero cost to the recipients, subject to certain conditions being met. This scheme allocates 5% of the share capital to the participants.

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Where does this figure of 716M unissued ordinary shares under options come from? It represents two times the current number of ordinary shares on issue?

Beston was criticised at the time of its listing last year, with some analysts questioning the unrelated nature of its various assets (the Beston Pure Food brand and part-owned brands Paris Creek dairy, meat producer Scorpio Foods and Ferguson’s seafood) and the lack of a track record of its management in running the businesses it acquired in the lead-up to the float.

Dona Ferentes said:

Beston was criticised at the time <at> the lack of a track record of its management in running the businesses it acquired in the lead-up to the float.

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from the Ann of 10 Dec 2015 ... "bringing the operations here at Murray Bridge and Jervois back into production was no small task. Unfortunately, the Receiver had allowed the factory export licences to lapse which meant that we had to start from scratch in building the case to the Commonwealth Department of Agriculture and AQIS for a new Export License. A lot of plant maintenance and factory upgrading work which should have been done years ago under the previous ownership had to be done by BGFC in order to gain the new licence"

Doesn't sound like thorough Due Diligence to me.

and ... Beston’s assets are also managed by a management company, Beston Pacific Asset Management, which charges Beston fees