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Itafos Inc V.IFOS

Alternate Symbol(s):  MBCF

Itafos Inc. is a phosphate and specialty fertilizer company. Its businesses and projects include Conda, Arraias, Farim, Santana and Araxa. Conda is a vertically integrated phosphate fertilizer business located in Idaho, United States with a production capacity of over 550 Kiloton (kt) per year of mono ammonium phosphate (MAP), merchant grade phosphoric acid (MGA) and ammonium polyphosphate (APP), and approximately 27kt per year of hydrofluorosilicic acid (HFSA). Arraias is a vertically integrated phosphate fertilizer business located in Tocantins, Brazil with a production capacity of approximately 500kt per year of single superphosphate (SSP) and SSP with micronutrients (SSP+). Farim is a phosphate mine project located in Farim, Guinea-Bissau. Santana is a vertically integrated high-grade phosphate mine and fertilizer plant project located in Para, Brazil. Araxa is a vertically integrated rare earth element and niobium mine and extraction plant project located in Minas Gerais, Brazil.


TSXV:IFOS - Post by User

Bullboard Posts
Post by Psalm9012on Sep 29, 2015 4:03pm
176 Views
Post# 24146573

Timing of CFO's Leaving

Timing of CFO's LeavingThere is only one reason for the CFO to leave at this time he does not want to be officially associated with the deal to be recommended by this management as already mentioned here. He is even willing to forego a $300,000 severance to separate himself from this mess. How would anyone know it will be so bad? there is only one metric of comparison and that is to the original bids. Its not just his reputation that is at stake but rather the fact that the directors take on a personal liability should they be choosing an option that is not in the shareholders best interest. Once the severance cases are settled and management brings forth its plan to likely dilute shareholders almost out of existence - thats what a formal plan for restructuring from the July 27th press release means then one or more of the original bidders will likely take their buyout offers directly to shareholders. Unlike a typical hostile bid, the bidders were officially invited earlier in the year to go over the books and assets and so know exactly what a fair deal to shareholders is. And the conditions for a hostile bid keep improving with the Brazilian Real continuing to hit new lows against the U.S.$ - now over 4 Real to 1 U.S.$ - international fertilizer producers are losing Brazil as an export market but internal fertilizer prices are skyrocketing. You want to be a producer inside Brazil. Mosaic put out a three minute commercial this past spring of their growth in fertilizer operations in Brazil: https://www.youtube.com/watch?v=TgqOixNNYOg And then this past summer another two minute commercial in Spanish aimed at Brazilians of their fertilizer services in that country. https://www.youtube.com/watch?v=upAjDwnUKvI Second in size only to their operations in the U.S., Mosaic sees Brazil as the country with the greatest growth potential. My bet is on a bid coming from them directly to shareholders unless this management decides to do the right thing at the last minute. Greg
Bullboard Posts