RE:Next Steps for Adage with 11.9% of TWM?TVR wrote: The U.S. hedge fund (Adage) that recently accumulated 11.9% of TWM's shares is now sitting on a 50% loss or somethng around $20 million. I am sure the analyst/fund manager there who recommended this purchase is not happy about what has happened, assuming he/she stil has a job there. Not sure if this loss is enogh for them to be looking at taking action of some sort.
If this was America the class action lawyers would be all over this - failure to disclose material information, etc. and would be suing the company to get some shareholder recovery.
Interesting that things went off the rails so quickly. The Q2 financial report for renewables is not bad, showing a small $4.9 million profit during the ramp-up period for the new RD facility. The credits problem does not appear to have had a big impact on Q2 results. What the financial impact is likely be on Q3 has not been disclosed by TWM or Renewables, unless they said something about this in the Q2 conference call Q&A whcih I have not listed to yet.
I hope Adage is talking to Birch Hill and looking for some remedy. I think the best we can hope for is the BC government to step up and admit they did not intend to have the credits used by US producers and that they will remedy this problem ASAP with future credits only going to Canadian producers.
Must be lots going on behind the scenes here.
Cart before horse? US LCFS credits being sold in Canada more like. Double dipping by the over supplied CARB market. Imports of used cooking oil from China. Imports of renewable diesel from Europe and Singapore. Sounds like something government WILL fix with tariffs.
Don't forget the scale up of RD by 2030. Big oil may not like but .....