TZL - TZ Limited

[UBIQUITOUS]

These questions may sound silly, but there is little to no information floating around about this company anymore.

I agree with you. It is a silly question considering that the 71 page annual report was released 2 weeks ago. Plenty of information 'floating around' in there buddy.

 

[YELNATS]

I agree with you. It is a silly question considering that the 71 page annual report was released 2 weeks ago. Plenty of information 'floating around' in there buddy.

Also received their notice last week of their AGM to be held in Sydney on February 26.

Chairman Mark Bouris gives a very good summary of the current state of play.

One item shareholders will be voting on is the debt to equity conversion which will see major creditor QVT Funds being assigned 18.6 million shares at $1/share, with the possibility of a second conversion later this year at $1.20/share.

This looks like a massive dilution for existing holders but it seems like the only way the company can survive financially.

 

[UBIQUITOUS]

Also received their notice last week of their AGM to be held in Sydney on February 26.

Chairman Mark Bouris gives a very good summary of the current state of play.

One item shareholders will be voting on is the debt to equity conversion which will see major creditor QVT Funds being assigned 18.6 million shares at $1/share, with the possibility of a second conversion later this year at $1.20/share.

This looks like a massive dilution for existing holders but it seems like the only way the company can survive financially.

Agreed Yelnats. ALL of thsse resolutions need to be voted for with a 'Yes' (QVT, Resurgence, Sydcomp). If so, TZ will be debt free which would be a great platform to move off from. If not, then TZ would, against the odds, need to find the money to repay these entities. I envisage certain administration in this scenario. A smaller slice of a big pie is better than no pie or crumbs at all.

It is ESSENTIAL that ALL shareholders vote on this, and not leave it to the others to carry these resolutions. The former board (and associates), still retain voting rights until the court case in March. We should assume that they will vote against ALL resolutions, and they do carry a fair few votes.

As for the renumeration resolutions for Ting and Vlugt, shareholders need to make their own minds up as to whether these guys are worthy of such reward. Personally I would like to know a little more of what they do/would be doing. It should go without saying as to what Mark Bouris brings to the company, and the value which he will add.

So lets get those proxy forms in guys and keep our fingers crossed that we can herald a new beginning on 26Feb.

 

[YELNATS]

As for the renumeration resolutions for Ting and Vlugt, shareholders need to make their own minds up as to whether these guys are worthy of such reward. Personally I would like to know a little more of what they do/would be doing. It should go without saying as to what Mark Bouris brings to the company, and the value which he will add.

I would support a vote of "yes" to all resolutions including the remuneration packages for Ting and de Vlugt.

It seems that these 2 directors together with Bouris have basically been keeping the company alive over the last 6 months or so.

Apparently there will be future performance hurdles in place which have to be achieved before they receive their remunerations.

 

[surfingman]

As already been said if there is a NO for the vote for conversation of the debt facility the company will be finished, its great opportunity to convert this debt and watch the company with some good management be slowly built back to profitability.

The current directors have steered this back from the abyss, I have been following this one closely and I am keen to buy some once the dust has settled.

 

[surfingman]

Did anyone go to the AGM today?

I heard its good news, Debt is converted and Bouris get's his Shares and Oppies.

Any thoughts?

 

[UBIQUITOUS]

Did anyone go to the AGM today?

I heard its good news, Debt is converted and Bouris get's his Shares and Oppies.

Any thoughts?

I was there, sat in front of an incredibly large and smelly 'shareholder', who was being quite disruptive. Why he showed up, and how he fitted into the already full room, still amazes me. It was good to see Mark Bouris put him in his place.

I met many nice shareholders who seem very loyal and want to see nothing more than have this technology succeed. Special thanks was rightly reserved for Patrick Chew, as well as some other parties.

The general vibe I got from the meeting was extremely positive. Yesterday is being viewed as a new beginning for the company. Time to draw a line under this and move on, despite disagreements between shareholders on some matters. The board has been entrusted, and will now be allowed to continue with minimum disruption. Criticism will be reserved for them if they do not meet realistic expectations.

After this close brush with 'death', I do not think many shareholders will be taking their eyes of the company now. We have all learned a valuable lesson.

Now the work can really begin and we should see the fruits of the company's labours.

The company should be relisting in the very near future.

 

[birdmanz]

Ubi....the meeting was a great success and now "all systems are go".

some have been calling you back to the other forum...hope to see you there again soon
Cheers
G

 

[akira99]

Just got notice that TZ are de-listing from the ASX - asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=TZL

Does anyone have further details on why?

 

[UBIQUITOUS]

Just got notice that TZ are de-listing from the ASX - asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=TZL

Does anyone have further details on why?

It's an S&P rebalance. You have nothing to worry about. Next time around we will be back in the All Ordinaries.

 

[akira99]

It's an S&P rebalance. You have nothing to worry about. Next time around we will be back in the All Ordinaries.

Hopefully!!! Given all that has happened, confidence is at an all time low...thanks for the response!

 

[UBIQUITOUS]

Hopefully!!! Given all that has happened, confidence is at an all time low...thanks for the response!

Akira, I beg to differ. With all that has happened recently, confidence appears to be at an all time high! I received this impression by speaking to MANY people at the AGM.

This is a new beginning for TZ, led by a high profile and charismatic chairman, who has the contacts and ability to open doors.

I expect $2+ very soon after listing.

 

[oldblue]

Akira, I beg to differ. With all that has happened recently, confidence appears to be at an all time high! I received this impression by speaking to MANY people at the AGM.

This is a new beginning for TZ, led by a high profile and charismatic chairman, who has the contacts and ability to open doors.

I expect $2+ very soon after listing.

You've sparked my interest in TZL again!

Do you have any hard facts/research to back the $2+ claim, or is it just a hunch?

 

[UBIQUITOUS]

You've sparked my interest in TZL again!

Do you have any hard facts/research to back the $2+ claim, or is it just a hunch?

Can you name me one stock EVER where hard facts/research have predicted the future? It's all a judgement game.

I judge the 96c shareprice is not at all realistic as to the current position of TZL. Here is how I've formed my judgement:



In Mid April 2009, the share price was heading up. This was on the back of what appeared to be a breakthrough deal with Anixter. The market viewed this as commercialization of Intevia, after years of waiting.

On 16April, the shareprice hit $2.25. It then started falling rapidly. On 24 April, the date on which the substantial shareholder notice containing a list of about 50 shareholders, was issued, the price was $1.75. It is quite obvious that some who agreed to form the list, after having it explained to them as to what the former board were up to, had sold stock between these 2 dates. Who can blame them? How I wish I was on that list! Meanwhile, people were still buying, believing that TZ was on the verge of commercializing it's technology.

As the next couple of month's panned out, shareholders were in a panic and many sold, sending the price dropped to 96c. This was despite the buying from those who couldn't believe 'rock bottom' prices. During this period, Mark Bouris appeared on the scene, and TZ after a brief suspension, relisted for an even briefer period. In this trading window, the selling was intense leading to speculation that it was the former board liquidating stock. I buy into this theory.

Fast forward to today, and how things have changed:

1. The company and board is led by a chairman who's name doesn't even deserve to be uttered in the same breath as the former chairman's. One offers above average qualities. The other....

2. TZ are now becoming a high profile company. Many eyes are on Mark Bouris and TZ. With this comes investment in TZ as there are many who will follow what Mark Bouris does. Mark Bouris, due to his successful track record, also has the ability to open doors for TZ, whether it is through contacts, or the ability to engage potential customers who never would have listened to Sigalla.

3. Products have been successfully commercialized and TZ's technology is getting noticed through Dell and Anixter.

4. PDT have been doing very well. From memory, they increased revenue by 12% over the previous 6months. When viewed in functional currency, and considering the stresses that the company had been going through, this increase in revenue is even more admirable.

5. When the shareprice was 96c, TZ was on the verge of administration with over $26m payable immediately. Compare that financial position to that at 31Dec, when TZ had about $4m issued in convertible notes (which will probably be converted to equity), and no other debt. The cash balance was +$1.3million.

6. Diluted equity will have almost doubled. No shareholder likes dilution, but in this situation it was the best possible outcome. QVT, who were $24m creditor, are now a shareholder, owning close to 40% of the company. Although there may be nerves from some shareholders about one single party owning so much, the positives are (i) TZ have a US hedge fund one the registry which has shown its commitment to the company, (ii) QVT are paying $1 and $1.20 for 40% of the company. This underpins the share price. (iii) For QVT to pay this amount, when they could have taken as much as they wanted of the company at whatever price they wanted to pay, speaks volumes as to where they believe the share price will go (they wouldn't overpay when calling the shots would they?)

I'm sure there are many other points. The bottom line is that TZ have reinvented themselves, but the shareprice (due to suspension) remains frozen in the past - a dark dark past.

 

[oldblue]

Thanks, U, for explaining the reasons for your confidence at such length.

I'll await the re-listing with much interest.

 

[UBIQUITOUS]

Well well well. Look at what we have here. I will be waiting on the sidelines to pick up the inevitable distressed sales.

Application for reinstatement of the Company’s securities to quotation
The Company’s shares have been suspended from quotation at the Company’s
request since late June 2009. In light of the fact that the workout plan with QVT
has now been successfully implemented, the Company advises that it intends to
submit a request to the ASX on Monday, 22 March 2010 seeking reinstatement of
the Company’s securities to quotation. The ASX has discretion under ASX Listing
Rule 17.7 to reinstate an entity’s securities to quotation at any time and accordingly
the Company cannot currently confirm if and when its securities will be reinstated
to quotation.

 

[oldblue]

Well well well. Look at what we have here. I will be waiting on the sidelines to pick up the inevitable distressed sales.

Not before time!

A big job ahead of the company now to restore some investor confidence. I'll be waiting for a trend up in the SP, myself.

 

[UBIQUITOUS]

Not before time!

A big job ahead of the company now to restore some investor confidence. I'll be waiting for a trend up in the SP, myself.

Investor confidence should have already been fully restored based on QVT's willingness to convert almost $30million in debt to equity, Bouris' willingness to come on board and the recent capital raisings. A sales agreement or two will really put a rocket under the share price. I am certainly keen to know how the well the TZ Inbox is doing and where the first commercial installation was.
Then there is Dell, Anixter and Cardinal all of which happened during the suspension!
There may well be a buying opportunity if the market is caught off guard with the share price. However, I think this can only last for a few days at most.

 

[Eddyl]

Can you name me one stock EVER where hard facts/research have predicted the future? It's all a judgement game.

I judge the 96c shareprice is not at all realistic as to the current position of TZL. Here is how I've formed my judgement:



In Mid April 2009, the share price was heading up. This was on the back of what appeared to be a breakthrough deal with Anixter. The market viewed this as commercialization of Intevia, after years of waiting.

On 16April, the shareprice hit $2.25. It then started falling rapidly. On 24 April, the date on which the substantial shareholder notice containing a list of about 50 shareholders, was issued, the price was $1.75. It is quite obvious that some who agreed to form the list, after having it explained to them as to what the former board were up to, had sold stock between these 2 dates. Who can blame them? How I wish I was on that list! Meanwhile, people were still buying, believing that TZ was on the verge of commercializing it's technology.

As the next couple of month's panned out, shareholders were in a panic and many sold, sending the price dropped to 96c. This was despite the buying from those who couldn't believe 'rock bottom' prices. During this period, Mark Bouris appeared on the scene, and TZ after a brief suspension, relisted for an even briefer period. In this trading window, the selling was intense leading to speculation that it was the former board liquidating stock. I buy into this theory.

Fast forward to today, and how things have changed:

1. The company and board is led by a chairman who's name doesn't even deserve to be uttered in the same breath as the former chairman's. One offers above average qualities. The other....

2. TZ are now becoming a high profile company. Many eyes are on Mark Bouris and TZ. With this comes investment in TZ as there are many who will follow what Mark Bouris does. Mark Bouris, due to his successful track record, also has the ability to open doors for TZ, whether it is through contacts, or the ability to engage potential customers who never would have listened to Sigalla.

3. Products have been successfully commercialized and TZ's technology is getting noticed through Dell and Anixter.

4. PDT have been doing very well. From memory, they increased revenue by 12% over the previous 6months. When viewed in functional currency, and considering the stresses that the company had been going through, this increase in revenue is even more admirable.

5. When the shareprice was 96c, TZ was on the verge of administration with over $26m payable immediately. Compare that financial position to that at 31Dec, when TZ had about $4m issued in convertible notes (which will probably be converted to equity), and no other debt. The cash balance was +$1.3million.

6. Diluted equity will have almost doubled. No shareholder likes dilution, but in this situation it was the best possible outcome. QVT, who were $24m creditor, are now a shareholder, owning close to 40% of the company. Although there may be nerves from some shareholders about one single party owning so much, the positives are (i) TZ have a US hedge fund one the registry which has shown its commitment to the company, (ii) QVT are paying $1 and $1.20 for 40% of the company. This underpins the share price. (iii) For QVT to pay this amount, when they could have taken as much as they wanted of the company at whatever price they wanted to pay, speaks volumes as to where they believe the share price will go (they wouldn't overpay when calling the shots would they?)

I'm sure there are many other points. The bottom line is that TZ have reinvented themselves, but the shareprice (due to suspension) remains frozen in the past - a dark dark past.

Pommie/Ubi,

I have read through this forum many times, and your fundamental analysis seems to be always very far fetch and in EVERY occasion wrong.
I don't mean to sound like I am stoking the fire, but it seems like are trying to drive up the price with hype rather than fact.

As a small shareholder, I can see no way in which the remunneration packages offered to bouris are co were fair. In a company that was about to go bankrupt, and all time price lows, we have given away MASSIVE chunks of the company to someone who had basically done nothing at that point. The most that Bouris had done was offered his name as some sort of credibility. I am very much a believer in remunneration once work has been accomplished.

 

[UBIQUITOUS]

TZ have relisted (not a ramp mod - a fact).

Once the margin call sellers are out of the way , the selling pressure will obviously abate.
(not a ramp - also fact and I am happy to sign a legal affadavit on this stating that I know this information through conversations with selling brokers)