Billabong founder Gordon Merchant has decided to pay $8 million dollars to help save a business that makes biodegradable plastics. Plantic Technologies is a Melbourne, Australia-based company that creates “green” plastics made from corn starch, according to as story on Goldcoast,com.au.
Since Plantic’s shares listed at 64 pence ($1.02) each in 2005, they have fallen to ‘penny dreadful’ status, trading around 4 pence for most of the year and creating a sizeable hole in the value of Mr Merchant’s original investment. . . The businessman, who is currently in the US attending the funeral of surfer Andy Irons, has proposed a scheme of arrangement where he would acquire the remaining capital of Plantic that he does not already own. . . Mr Merchant made the offer of 8 pence a share on July 24, and this has since boosted the Plantic share price to around the offer level over the past three months. . . The Plantic board has recommended shareholders accept the offer, in the absence of a superior bid.
Hopefully, it will all work out. The world could use better plastic.
[Link: Goldcoast.com.au]
corn starch? No wonder the company is failing. Mr. Merchant, I strongly urge you to use HEMP if you wish to save the company as well as the planet. Do the research. It’s a sound solution.
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