Hush hush Avocet 'deal' heading offshore

by DOUG COLLIE

The identity of new investors who are set to plough millions of pounds into the Avocet 'disruptive technology' group remains a closely guarded secret as company executives prepare for a crunch meeting on a ship off Cyprus.

Details of the Mediterranean rendezvous and a follow-up discussion scheduled for Vancouver are contained in a shareholder letter circulated by Avocet chairman Martin Frost which also takes a swipe at the 'feuding people' of the Scottish Borders where the group once promised to revolutionise agricultural production.

The latest developments in the fast moving Avocet saga follows confirmation at the weekend that Mr Frost had relinquished his directorships of no fewer than 13 companies bearing the Avocet title. These outfits are largely dormant, and Mr Frost has been replaced in twelve cases by Avocet Natural Capital PLC [ANC] of which he remains a board member.

Lancashire-based chartered accountant Paul Newsham is now involved in the running of six Avocet companies having been appointed to the board of four subsidiaries on August 9th. Mr Frost retains his position with ANC as well as Avocet Americas, Avocet IP, Avocet Faculties and six other group businesses.

Last night's update to 650 shareholders - again it carried a warning not to share the contents with third parties - set out a timetable for Avocet's transformation should the new investors come on board.Mr Frost wrote:

"Thursday 3rd September, English lawyer Mr. David Southern will produce the revised Articles of Association of Avocet N C Limited and the revised management contract between Avocet NC Limited and ANC Plc.

On Saturday 5th September, the Revised Articles of Avocet NC Limited shall be adopted.

Week commencing Monday 7th September ownership control of Avocet NC Limited will pass to the proposed new investors in ANC Plc.

On Thursday 10th September, Dr. ‘Bob’ Jennings and I meet our proposed investors aboard ship at sea outside Cyprus.

On Wednesday 16th September Dr. ‘Bob’ Jennings and ‘Dr. Glyn Short’ will meet our proposed investors in Vancouver, Canada.

On Friday 9th October, those Avocet Natural Capital Plc shareholders who choose to vote will hopefully have given ANC Plc’s directors a mandate to alter the Articles of Association to permit a Drag-Along Rights."

The Avocet chairman goes on to explain that the purchasers' North American lawyers will individually write to ANC Plc shareholders offering to purchase so many shares from them at the price of £3 per one-pound share. 

"Upon acceptance the physical share mechanics will be overseen by Asset Match with the payment emanating from the US. The passage of money is expected to happen by cheque during the 21 days following the modification of ANC Plc’s Articles of Association. Note: ANC Plc shares are likely then to become tradeable on a platform such as Asset Match."

The update also contains a question and answer section which sets out to address some of the issues raised by concerned investors and others which have not featured so far.

And it claims that some of the agreed creditors of insolvent businesses Orrdone Farms Limited; Omega Infinite Plc, and Avocet companies associated with Avocet Bio Solutions Plc have sold their debt to Mr Frost or associates at the rate of one pound ANC Plc share for each one pound of debt?

Not Just Sheep & Rugby reported last week on a damning report from Orrdone Farms joint administrators Emma Porter and Joanne Brown that directors of that company had failed to provide information needed to progress the administration.

Some of the other Q&As dealt with include:

"Question: There is a rumour doing the rounds that the prospective buyers are Israeli and therefore we should not sell our ANC Plc shares to a ‘rogue’ state?

Answer: Avocet Natural Capital Plc has a diverse investor base which is made up of many religions:  to date some 11% is Moslem and 3% is Jewish. For reasons which in time will become obvious the prospective buyers do not wish to become visible until their 20% purchase of ANC Plc equity and their subsequent option to buy are complete.

"One can say that the prospective buyers'  driving force is one of philanthropy rather than profit but obviously the sums must add up. So, one confirms that the prospective buyers are NOT the State of Israel and one does confirm that the prospective buyers are polynational with British, Indian, US, Russian, and German roots.  

"Question: Why has not the negative messages portrayed by much that is written in the Avocet Forum and by Bloggers destroyed the Avocet story?

Answer: Shortly put, the Avocet story is bigger than its critics. From afar, the Scottish Borders is romantically seen as Walter Scott’s home. A region, full of colourful feuding people pursuing lives of yesteryear. Perhaps Rudyard Kipling’s poem ‘If’ sums up the prospective buyers understanding of existing management’s resilience though in truth our prospective buyers perceive that these naysayers risk their own nemesis by their utterances."