- Pearling business, Atlas Pearls (ATP) is expecting its sales to be down due to the coronavirus
- In February, a private sales event was scheduled for Hong Kong but was relocated to Japan
- The company said that although prices achieved at the event were in line with expectations, quantities of goods sold fell short from the target
- This was due to some clients unwilling to travel to attend and others unwilling to commit to the stock until the impact of the coronavirus becomes clear
- Atlas said it will be concentrating less on auctions and more on private sales
- The company also said that Boneyard has agreed the scheduled repayment of $750,000 will be extended to April 6 after two delays
- On market close, Atlas remains steady and trading at 0.7¢ apiece
Pearling business, Atlas Pearls (ATP) has updated the market on the potential impact of the coronavirus and the repayment with Boneyard Investments.
Impact of Coronavirus on Sales
In February, a private sales event was scheduled for Hong Kong but was relocated to Kobe, Japan to reduce impact of travel restrictions in some client companies.
The company said that although prices achieved at the event were in line with expectations, quantities of goods sold fell short from the target.
This was due to some clients unwilling to travel to attend and others unwilling to commit to the stock until the impact of the coronavirus on retail sentiment becomes clear.
Atlas said it is revising its plans for sales over the next few months with less emphasis on auctions and more on private sales. Where necessary, goods will be flown to potential customers for inspection to avoid the need for travel.
“The company will continue to monitor the impact of the coronavirus health issue on sales and will provide progressive updates to the market,” Atlas said.
Funding Update
Boneyard has agreed that the scheduled repayment of $750,000 was extended to April 6. The original due date was February 1 2020.
Interest will continue to accrue on the outstanding amounts at the same rate as per the existing Varied Loan Agreement.
On market close, Atlas remains steady and trading at 0.7¢ apiece.