E33 - East 33 Limited

[System]

East 33's mission is to create Australia’s largest vertically integrated Sydney Rock Oyster producer and supplier and build East 33 into an iconic luxury brand.

East 33 was formed to acquire and operate a portfolio of oyster businesses to be acquired in two stages. The initial portfolio, referred to as the ‘Stage 1 Assets’, was acquired in December 2019 by way of the Stage 1 Acquisitions and consists of:

• the shares in Mid Coast Exco Pty Ltd ACN 624 589 822 (MCE) from entities related to and controlled by James Garton, Guy Burnett and Mark Nagy (all Directors of East 33) by way of a scrip for scrip rollup;
• the shares in Hamilton Supervisory Pty Ltd ACN 637 291 706 (which holds the issued share capital in Hamiltons Oysters Ltd Pty Ltd ACN 110 432 150) (Hamiltons Oysters);
• The oyster assets of Trevor Dent Oysters Pty Limited ACN 069 621 165 (Dent Assets); and
• An Oyster Lease from Oyster Bay (NSW) Pty Ltd ACN 113 506 700 (Port Stephens Assets).

In essence, the Stage 1 Assets consist of:

• Export approved facility: an export approved processing facility at Point Road, Tuncurry;
• Export Licence: an Export Licence;
• Oyster Leases: 45 hectares of oyster leases located in Wallis Lake and Port Stephens; and
• Retail operations: the Hamilton Restaurant, Oyster Bar and Marina and a liquor shop and packaged liquor licence in Oatley.

A second stage of acquisitions, referred to as the ‘Stage 2 Acquisitions’ will be acquired as a condition to Listing. As part of this strategy, East 33 has entered into Stage 2 Acquisition Agreements to acquire the following assets (referred to as the ‘Stage 2 Assets’):

• Browne: 100% of the issued share capital in HR Browne & Sons Pty Ltd ACN 001 531 406 plus land held by related parties (Browne Acquisition);
• CMB Seafoods: 100% of the issued share capital in CMB Seafoods Pty Ltd ACN 113 595 029 (CMB Acquisition);
• Verdich: 100% of the issued share capital in MS Verdich & Sons Pty Ltd ACN 003 308 852 (Verdich Acquisition);
• Sciacca: The assets held by MW & EA Sciacca Pty Ltd ACN 002 520 158 as trustee for the Sciacca Trust (Sciacca Acquisition);
• Wilson: The assets held by Mr John Wilson (Wilson Acquisition); and
• Wren: The assets of C.Wren Oysters Pty Ltd ACN 616 477 724 and related parties (Wren Acquisition).

The Stage 2 Assets consist of:

• Oyster farming assets: 116 hectares of Oyster farming assets in Wallis Lake, Port Stephens and the Manning River – comprising part of the Browne, Verdich, Sciacca, Wren and Wilson Assets; and
• Distributor and processor: Established oyster distributor and processor – comprising part of the CMB Assets

It is anticipated that E33 will list on the ASX during December 2020.

east33sydney

east33sydney

east33.sydney

 

[Dona Ferentes]

"It's always best not to try too hard and if the market is not receptive to an IPO walk away," says Regal Funds Management's Phil King, explaining why it was right to pull the planned ASX listing of oyster producer East33 this week.

Regal is an investor in the Sydney rock oyster business, which was raising $32 million to consolidate leases and push into live exports to Asia. But even the promise of directors buying extra shares failed to offset the combination of strained relations with China, uncertainty about the restaurant trade and some minor queries from the securities regulator.

"It was one too many IPOs at the end of the year, when everyone is fatigued," King says, adding the company may come back later with a more attractive pitch for investors.

- or, maybe, just tired of the hype

 

[Dona Ferentes]

Listing date	29 July 2021 12:30PM AEST ##
Company contact details	https://east33.sydney/ Ph: +61 2 8001 6310
Principal Activities	Sydney Rock Oyster producer and supplier
GICS industry group	TBA
Issue Price	$0.20
Issue Type	Ordinary Fully Paid Shares
Security code	ETT
Capital to be Raised	$32,000,000
Expected offer close date	2 July 2021
Underwriter	This offer is not underwritten. Shaw and Partners Limited (Lead Manager)

Listing today .... I wonder how lockdown will impact the opening?? Venues closed an restrictions applying. And no China market !

 

[Dona Ferentes]

to market; opened at 21c and now a cent or so higher.

 

[Garpal Gumnut]

to market; opened at 21c and now a cent or so higher.

Do you plan to mussel in DF?

gg

 

[Dona Ferentes]

I'm a South Coast bloke. Clyde River, no agriculture, no cattle upstream

Also, this looks like a collection of sole traders coming together. Three times book??

 

[System]

On August 4th, 2021, East 33 Limited changed its ASX code from ETT to E33.

 

[Dona Ferentes]

from a successful float last July, the SP has suffered an ebbing tide, as bad news washed over it. As high as 25c at IPO, then found a level around 20c till the start of 2022, but its been well underwater since with a slide to 8c last week and a dramatic drop over the last few days to 2c. Probably one of the worst listings for a while.

There have been a succession of events, These are highlighted then followed by the IMPACT then what has been done by management to MITIGATE .

1. COVID
Closed restaurants in Q1/Q2 FY22

• Pivoted Sales Channels to maximize sales rate

2 Labour Shortfall & Structural change to labour costs
Change to labour availability and fundamentally increased labour rates

• Increased pricing at farm gate & distribution price to enable a response to change to labour rates
• Recruited and secured labour force to fulfil the business plan
• Move entire workforce to 7 day per week two shift to eliminate overtime and lower labour rates

3. Unprecedented rainfall in Summer 2021/22
Wettest summer in 30 years .... resulted in oysters upstream having prolonged exposure to low/no salinity water

Reduced entire industry availability of Sydney Rock Oysters

• Multi Estuary asset position ensures that majority of inventory was not impacted
• On water infrastructure designed to withstand floods
• Ramped up pacific oyster trading to meet market demand

4. QX in Port Stephens.

Never occurred before in Port Stephens, resulted in: Stock loss and Structural change to farming practices

• Multi Estuary asset position ensures that majority of inventory was not impacted
• E33 Hatchery is largest producer of QX resistant stock ... in train process of migrating all inventory to QX resistant

 

[Dona Ferentes]

Monoculture, who'd anchor their boat to such an industry?

Flooding in estuarine locations, even tsunami surges getting into the beds (Samoan volcano) and now a QX virus decimating yields.

I was on the sth coast and oysters hard to come by. At least $25 for a dozen. Tathra guy (Neil Perry supplier) closed, ditto Tuross. Clyde River has only just reopened with limited supply.

E33 has not had a good listed life on the ASX

 

[System]

On November 15th, 2024, East 33 Limited (E33) was removed from the ASX's Official List in accordance with Listing Rule 17.14, following compulsory acquisition of its remaining securities by Yumbah Aquaculture Limited.