Potential sale of 10 million shares means 'jam today'

by DOUG COLLIE

Members of a Berwickshire farming family have told of their 'relief' after learning the chairman of the Avocet group of 'disruptive technology' companies is to cease his long running written attacks on them.

The pledge was made today by Martin Frost in a letter to 650 Avocet Natural Capital (ANC) shareholders, and follows months of "verbals" aimed in particular at Aileen Orr, an investor in the company, whose farm was one of the Borders locations for Avocet's agricultural operations.

Mr Frost has used a string of correspondence with Avocet stakeholders over recent months to vilify Mrs Orr, blaming her for costing the business millions of pounds as well as levelling accusations of possible criminal activity at her and 'her acolytes'. The letters frequently included unseemly name calling and insults.

A number of investors had expressed shock and dismay at the conduct of Mr Frost in his role as a company director and chairman of a 'multi-million pound' group boasting 50 million £1 shares.

But in today's update carrying the title 'Jam Today' Mr Frost writes: "On Monday evening I had very constructive chats with some of ANC Plc’s well-informed shareholders.The result of which is that there will be no more ANC Plc share letters which dwell upon the Orr family and their acolytes. The Orrs will be dealt with by other means."

Not Just Sheep & Rugby asked the Orrs if the family wished to comment after reading of Mr Frost's pledge to apparently 'lay off''.

A family spokesperson told us:"We are relieved the shareholders'  communications will be Orr free from now on, and we are sure the shareholders will be equally relieved.  We don't have to go into detail about our investment because the truth about our involvement in the birth of Avocet has already been revealed to shareholders at the first AGM.  What happens now is in the hands of the directors and that will be addressed as it happens."

Mr Frost also reveals in today's letter that potential buyers may be ready to snap up millions of Avocet shares depending on the outcome of talks later this week.

He says: "On Thursday 20th August, Dr. Bob Jennings [another Avocet director] and I travel to Manchester to meet two buyers who wish to acquire 10 million ANC Plc shares."

He urges investors who wish to sell their stakes in Avocet to contact company secretary Eirlys Lloyd by 4 pm tomorrow (Wednesday) indicating the number of shares they would like to sell and the minimum price that they would accept. 

Mr Frost adds: "These prospective ANC Plc share buyers will take a significant shareholding in Avocet NC Limited though they are requesting options on additional convertible loans which would give them control of Avocet NC Limited. Prior to any agreement on the convertible loan, Avocet NC Limited shall seek professional advice from Avocet shareholders such as Mr. Stuart Lucas [chairman of share dealing platform Asset Match]"

Avocet investors have largely pinned their hopes of a return on the so-called 'avocet' fuel additive, methanol based and claimed to be cheaper than petrol and diesel. It was originally meant to be produced in large quantities as far back as 2017/18 but has yet to be marketed.

According to the latest update: "Mr. Paul Newsham [a chartered accountant and director of a number of Avocet companies] has shortlisted proven administrators to run the avocet methanol business in the N W of England. A decision shall be reached on Monday 24th August.

"Avocet Fuel Limited (a wholly owned subsidiary of Avocet NC Limited) plans to commence in January 2021 with fossil methanol imported from Israel into which water shall be added to make a 5% water / 1% avocet additive / 94% methanol mix. With tax breaks, Avocet Fuel Limited expects to sell a matching Avocet fuel at the pump price of £0.70p which compares well with current diesel prices of £1.10p or more.

"As previously explained Avocet has secured an option of one million tons of fossil methanol at an extremely good price. The blending of avocet shall happen in the UK whilst the water blending is likely to occur in Israel. A vehicle will require little modification to use this new blend of avocet methanol. Separate avocet fuel discussions have commenced with prospective master franchise purchasers who Dr Bob Jennings and I also meet this Thursday."

In a previous shareholder letter dated October 2019 and titled 'Jam today and Jam tomorrow' Mr Frost told investors: "I enclose two Coller Intellectual Property (IP) Reports from late 2018. Please read and digest these.

"As prior noted Avocet’s intellectual property is housed within Avocet IP Limited. Throughout 2019 additional IP has been added into Avocet IP Limited and during November and December substantial new IP shall be added – indeed Avocet plans to have its intellectual property revalued in January 2020. Obviously, one cannot fully forecast future events and valuations, but my personal opinion is that I will be disappointed if Avocet’s intellectual property does not command in 2020 a £100 million plus valuation."

And Mr Frost stated: "As per the Coller IP 2018 £50 million valuation your 2015 one-pound share is potential worth two pounds. As per the expected Coller IP 2020 £100 million plus valuation your 2015 one-pound share is potentially worth four pounds."