October 2011
Investment Opportunities for Wholesale, Sophisticated & High Net Worth Investors
Medical device company targeting the reconstructive surgery market (10)
Medical device and software company (14)
Wholesaler of premium infant milk to the growing Chinese market (26)
ASX-listed payments provider focused on emerging markets (30)
Emerging biotech with unique vaccine technology (15)
Technology provider to international hotels with a software solution for bandwidth efficiency (33)
www.wholesaleinvestor.com.au
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Proudly supported by
Australasian
Life Science Investment Summit
2011
Wednesday 19 October 2011 Adelaide Convention Centre, South Australia 9.00am – 5.30pm
Don’t miss your opportunity to attend the Australasian Life Science Investment Summit 2011. • Attendance is free for bonafide investors. Limited to 200 places. • Presentations from 40 high-growth public and private life science companies. • Excellent networking opportunities available with catering provided throughout the day. The Investment Summit is part of Australia’s premier biotechnology industry conference, AusBiotech 2011, and will be held at the Adelaide Convention Centre on Wednesday 19 October from 9.00am until 5.30pm.
To register for this event or for more information contact Hayley Laing w. www.ausbiotech2011.com.au/alsis e. hlaing@ausbiotech.org p: +61 3 9828 1400
Brought to you by
Who should attend: • HNW and private investors • Professional investors
• Brokers
• Fund Managers
• VC representatives
• Analysts
• Private Equity firms
Investment
AUSTRALIA’S BIOTECHNOLOGY ORGANISATION
REGISTER NOW / www.ausbiotech2011.com.au/alsis Proudly supported by
Media Partners
OCTOBER 2011
Wholesale Investor Magazine is published by: Wholesale Investor Pty Ltd ACN 131 512 715 Managing Director - Steve Torso
Contents
Publisher - Reuben Buchanan Editor - Lachlan Colquhoun/Claudia Holt General Manager - Kimber Rothwell Senior Account Managers: - Daniel Coombes - Jason Ballo Directors Reuben Buchanan – Executive Director Domenic Carosa – Non Executive Director Advisory board Tim Trumper Sydney: Address - Suite 204, 66 King St. Sydney Phone - 1300 597 595 Web - www.wholesaleinvestor.com.au Editorial Enquiries editorial@wholesaleinvestor.com.au Advertising Enquiries advertising@wholesaleinvestor.com.au Listing Enquiries capital@wholesaleinvestor.com.au 1300 597 595 Subscription Enquiries subscribe@wholesaleinvestor.com.au Design - Bubblefish Design www.bubblefish.com.au Printer - GEON Group www.geongroup.com Distribution - GEON Group www.geongroup.com Disclaimer This Publication contains prominent statements appropriate for the particular medium by which the Publication is made to the effect that: (A) the information contained in the Publication about the proposed business opportunity and the securities or scheme interests is not intended to be the only information on which the investment decision is made and is not a substitute for a disclosure document, Product Disclosure Statement or any oth er notice that may be required under the Act, as that Act may apply to the investment. Detailed information may be needed to make an investment decision, for example: financial statements; a business plan; information about ownership of intellectual or industrial property; or expert opinions including valuations or auditors’ reports; and (B) a prospective investor is strongly advised to take appropriate professional advice before accepting an offer for issue or sale of any securities or scheme interests; For more information, please visit our website www.wholesaleinvestor.com.au or email info@wholesaleinvestor.com.au
Editorial 4 5 6 8 9
Letter from the Managing Director Upcoming Events Company Updates ZORK Seals Deal with US Investor Investing in Early Growth Companies
Opportunities 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 43
Mesynthes Ltd Benitec Ltd (ASX:BLT) Eastland Medical Systems Ltd (ASX:EMS) Jubilent Health Australia Ltd Global Kinetics Corporation BioDiem Ltd (ASX:BDM) WH Medical Phylogica Limited (ASX:PYC) Photonz Corporation Ltd Xenexus Pharmaceuticals Pty Ltd Cynergy Diamond Energy Pty Ltd EcoQuest (ASX:ECQ) KFSU Ltd Sun Connect Pty Ltd Eastern Harmony New Zealand Ltd Bluechiip Ltd (ASX:BCT) Equiome Pty Ltd Collective Intelligence Group Pty Ltd Mint Wireless Ltd (ASX:MNW) Because Group International Ltd Exa Web Solutions Qanda Technology Ltd (ASX:QNA) Intellect Projects Pty Ltd BlackWall SPORTSMED Property Trust TRAC Financial Ltd Folkestone Ltd (ASX:FLK) Bizpanel Limited Bullion Capital Flinders Resources Ltd Listing Page
Letter from the Managing Director
These are challenging times in the public markets, but that is not stopping astute investors from seeking out high quality private companies. With all the turmoil, investors and corporates are making a return to cash, but the upside of that is that they are ready to invest when they see the right opportunities. Wholesale Investor’s recent survey highlighted the key areas of interest. Mining and mining services, healthcare and life sciences, cleantech and greentech, the online digital space and agriculture were the Top 5 sectors for investor focus over the next six months. For the first time, we also asked investors what stage in the business cycle they were interested in. At what point did they want to see the opportunities? The number one answer: early growth, followed by commercialization and start-up, then seed and for expansion. In previous surveys we have seen a healthy level of interest in offshore markets. This time, we asked investors which international stock exchanges were on their radar for small cap opportunities. We learned from you that Singapore was number one, followed by Hong Kong, London (both LSE and AIM), then Toronto, New Zealand and NASDAQ. Of particular interest was the resources sector, focusing on both London markets and Toronto. Closer to home, Wholesale Investor has continued to actively present opportunities to investors. In August, we partnered with AusBiotech to produce the Life Sciences Showcase 2011. The event brought high growth private and ASX-listed opportunities to 183 attendees. It was a great turnout which highlighted the ongoing investor interest in this sector. (If you missed the event, or want to refer to any of the companies who were present go to our website to find a number of the presentations. Follow the link to http://www.wholesaleinvestor.com.au/tv.php ) Also online are the presentations from the Emerging Company and Commercialisation Showcase, held in conjunction with the Principal Support Partner Commercialisation Australia. The companies featured at this event represent a significant opportunity for investors as they start to realise the commercial potential of their technologies. Wholesale Investor is continuing to link investors with opportunities in new ways. We have recently launched a channel partner program giving corporate advisory and finance, private equity and venture capital firms the opportunity to use our unique distribution platform for the benefit of their clients. Anyone interested in learning more about this should contact our General Manager, Kimber Rothwell. We are also listening to what investors want to see more of in WI. From the survey, respondents told us they wanted to see more private opportunities, access to investor events, small cap ASX opportunities, editorial on private companies and CEO interviews online. As we continue to expand, we’ll give your more of what you are looking for.
Regards,
Steve Torso - Managing Director, Wholesale Investor Magazine
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Upcoming Events Wholesale Investor Opportunity and Networking Evening
2nd Annual Australian Microcap Investment Conference
Melbourne, Australia
Melbourne, Australia
11 October, 2011
18 – 19 October, 2011
Wholesale Investor is proud to host the Melbourne Investor Opportunity and Networking Evening. The Investor Opportunity Evening will provide investors, brokers, fund managers, and business media with the opportunity to directly connect with the CEO’s of innovative private, pre-IPO and ASX Listed companies.
The Australian Microcap Investment Conference is the largest investment conference in Australia focused on emerging companies.
For more information or to register for this event visit www.wholesaleinvestor.com.au
For more information or to register for this event www.microcapconferences.com
Hear firsthand from over 20 of Australia’s leading microcap CEOs their strategies and the market they operate in. The conference will also include keynote presentations on the economic conditions and market factors impacting the microcap sector.
Mongolia Investment Summit
The Mining 2011 Resources Convention
Hong Kong
Brisbane, Australia
25 - 27 October, 2011
26 - 28 October, 2011
Building on the success of Hong Kong’s first annual Mongolia Investment Summit in 2010 and brought to you by the team behind Mines and Money Hong Kong, the Mongolia Investment Summit returns in 2011, doubling in size and bringing together even more foreign investors and Mongolian-based project and companies.
The Mining 2011 Resources Convention is one of Australia’s most widely regarded events within the resources industry. The conference will run over three days, on the 26, 27 & 28 October 2011, at the Brisbane Convention & Exhibition Centre. The convention will include two auditoriums covering topics such as Metals Outlook, Funds Management, International Outlook, Exploration in Australia and Junior Company Presentations. The hub of the conference will be the exhibition area, hosting 120 companies, showcasing the latest information they have to offer.
For more information or to register for this event visit www.mongoliainvestmentsummit.com
For more information or to register for this event visit www.verticalevents.com.au
Clean Technology Showcase
Private Banking & Wealth Management Australia Sydney, Australia
15 - 16 November, 2011
Melbourne, Australia
28 November, 2011
Banking & Wealth Management Australia 2011 is Australia’s leading conference for Private Banking and Wealth Management professionals. It is the best conference in the region for Private Banks, Family Offices, Financial Advisers and other Wealth Managers to hear from the cream of the industry and gain invaluable opportunities to grow their businesses.
Wholesale Investor will bring together 12 Private, Pre-IPO and ASX Listed companies, over 200 investors, brokers, media and industry participants, for the Clean Technology showcase.
For more information or to register for this event visit www.terrapinn.com/pbw
For more information or to register for this event visit www.wholesaleinvestor.com.au
The Showcase is your opportunity to hear live presentations from 12 leadingPrivate, Pre-IPO and ASX Listed Companies in the Cleantech sectors.
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Company Updates
Two potential blockbuster drugs in clinical trials Excellent Phase Ib clinical trial results for BNC210 anxiety drug candidate. Offers dramatic competitive advantages over existing treatments, no evidence of sedation, memory impairment or addiction. BNC105 cancer drug trials prove effective against tumours. Highly selective and potent vascular disrupting agent. Renal cancer trial BNC105 in combination with Afinitor safe and well tolerated with individual patients >12 cycles treatment. Mesothelioma clinical benefit >25%, one patient showing 57% reduction in tumour measurements. Ovarian cancer Phase I/II trial to start in 2012. Merck Serono deal extended. BNO benefits from fully funded R&D, US$47m milestones per compound, plus royalties
Third Link Growth Fund reweight investments Anticipating increased volatility in markets, a reweighting exercise was undertaken in the lead up to July. From a portfolio dominated by long only growth positions, the investments were reweighted to decrease exposure to long-only equities and increase exposure to more defensive asset classes. Increased exposure to fixed interest, property securities and alternate investments in the form of long/short equity positions has been the result. Adopting a more market neutral strategy when markets are choppy can serve the portfolio well. “One of the strengths of the Fund is the considerable flexibility in the type of investments and exposure to each that we may hold,” commented Portfolio Manager, Chris Cuffe. All management fees, net of expenses, are donated to the non-profit sector.
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FDA approve Phase II clinical trial Viralytics has received allowance from the FDA to conduct a Phase II clinical trial - the CALM study - of its lead investigational drug CAVATAK™. The trial is to be undertaken in the USA and will commence later this year. The CALM study will investigate the effectiveness of CAVATAK™ in the treatment of Late Stage Melanoma. Viralytics’ Phase I trials of CAVATAK™ have to date successfully demonstrated that the product is well tolerated in humans, with minimal adverse sideeffects recorded. In preclinical studies Viralytics has displayed significant activity of CAVATAK™ in targeting and destroying a wide range of human cancer cells including: Melanoma, Breast, Prostate, Head & Neck, Glioma (Brain), Lung, Ovarian, Pancreatic and Multiple Myeloma
Drilling Commences in the Georgina Basin Baraka Energy and Resources Ltd is pleased to announce that the long awaited drilling program has begun. Baraka’s joint venture partner has been drilling at their “Baldwin-2” since the morning of Wednesday August 3, 2011. Although drilling has commenced on our JV partners ground at Baldwin-2, it is only expected to take three weeks to complete, at which time the rig will mobilize to Baraka’s EP127 to commence drilling “MacIntyre-2”. Once drilling has been finalised at these two well sites, MacIntyre-2 will be the first to be frac’d and completed using multi-stage open hole techniques. Management believes that the Arthur Creek “hot” shale is potentially analogous to the Bakken play found in Saskatchewan, Canada and North Dakota.
Company Updates
Photonz signs with Novasep. $5.4 million raised towards industrial-scale production
Forza Capital Working to secure commercial building in Melbourne
Photonz Corporation has entered into a development agreement with Novasep, a world-class provider of purification technology. The agreement puts the company on track to manufacture the high-value omega-3 fatty acid, eicosapentaenoic acid (EPA), as an industrial-scale end-product next year. Novasep was chosen because its production facilities can deliver pharmaceutical quality and its purification technology will deliver EPA, at more than 96 percent purity, a key driver to accelerating Photonz’s market launch. In April this year Photonz signed an agreement with the French company, under which Separex is developing an industrial process to concentrate extracts from Photonz’s EPA-rich microalgal biomass. “With Separex we focus on economic concentration of the omega-3 extract. We’re now working with Novasep to develop the final process to purify the concentrate produced with Separex technology,” says Photonz Chief Executive, Greg Moss-Smith.
Forza Capital is currently working to secure a large Melbourne CBD commercial building which will comprise the sole asset of its next investment offer. The identified property is very well located within the CBD and has substantial value adding/repositioning potential which should provide scope for significant improvement in investment yields and capital values. This is a great opportunity to participate in the strengthening Melbourne CBD market and obtain exposure to a significant asset. Minimum investment will be $200k and the investment timeframe is 5 years.
Diamond Energy’s renewable “gen-tailer” model is expanding
Carbon Conscious welcomes carbon farming initiative
Diamond Energy’s positioning as renewable/low carbon electricity integrated “gen-tailer” has been further reinforced through recent milestones. i. A power purchase agreement has been signed with a new renewable generator to underpin accelerated growth into Queensland. ii. Multiple project partners have been notified of successful Government Grant Applications, to deliver up to 8MW of additional long term contracted renewable energy. iii. Above business plan retail customer base growth
Carbon Conscious Limited (ASX Code: CCF), welcomes the passage of the Commonwealth Government’s Carbon Farming Initiative (CFI) legislation through the upper house of Federal Parliament. Mr. Steve Lowe, Executive Chairman of Carbon Conscious, said the passage of the CFI legislation provides additional certainty for investors in carbon bio-sequestration projects, and creates a mechanism for Australia to become a leading player in the global carbon economy. “The CFI provides certainty for the carbon bio-sequestration industry and confidence for major carbon emitters and investors, who are looking for proven, reliable ways to offset their carbon emissions. Growing trees to create carbon credits not only helps reduce carbon emissions, it converts poor quality land into productive land and generates long-term environmental, social and economic benefits for local communities.”
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ZORK seals Scholle deal In Australia, Zork has been manufactured at Scholle’s Elizabeth plant for ``the past several years’’, said Mr Brooks, who remains with Scholle, along with Zork’s staff post-acquisition. ``The relationship between Scholle Packaging and Zork has developed positively over the past several years, with a natural alignment in industry vision, technology and customer focus,’’ he said. Scholle’s global wine and spirits director Richard Barrett said the purchase expanded its closures to bottles as well as its ``key flexible packaging customers’’. ``The acquisition of Zork is key to Scholle’s customer integrated packaging business unit,’’ he said. ``We are now able to expand our closure product by offering to service new and existing customers who pack in rigid formats, while maintaining the focus on our key flexible packaging customers.’’ Scholle set up its Elizabeth plant in the late 1970s to be close to Barossa Valley winemakers, expanding to supply food and other beverage industry customers which now makes up 50 per cent of its business. It employs 250 people in manufacturing, marketing and corporate roles at Scholle’s Asia Pacific headquarters, Mr De Bono said.
ZORK, the South Australian wine closure company, has been acquired by the US owner multinational manufacturer, Scholle Packaging, for an undisclosed sum. The deal, finalised in May 2011, will allow Scholle to manufacture and market the ZORK “peel and reseal” stoppers for still and sparkling wine bottles through its international network of more than 60 countries. Scholle’s Business Development Manager, Andrew De Bono, said the product was a good fit for Scholle’s other products for the food and beverage industries, including its cask wine Bag-in-Box packaging. Scholle founder William Scholle is acknowledged to be the inventor of the bag-in-box packaging concept in 1947. ZORK was invented by well-known Adelaide entrepreneur, Conor McKenna in 1999. McKenna conceived the sealing technology, developed the brand name and identified the market opportunity for ZORK while working in a marketing and sales role for a major wine bottle manufacturer. He soon after resigned and set up Twoeyes Venture & Advisory in 2000 to commercialise the technology. McKenna formed a four-man commercialisation team in 2001 and wrote an award-winning Business Plan and Business Presentation. Soon after the ZORK team entered and won the national finals in a Venture Capital competition. Following their success, McKenna co-founded the ZORK company in 2002 with team member and industrial designer, John Brooks. $250,000 seed funding for the fledgling company was put up by McKenna’s mother in Ireland. From there the ZORK team raised $500,000 from an Angel Investor. This was soon followed by a $3.3 million investment by a private equity group in Sydney. Multiple rounds of venture funding and government grants followed over the next 8 years which allowed them to establish manufacturing and marketing throughout Australia, Europe and the United States.
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The ZORK company’s first product, conceived by Mr McKenna, was for still wines and had been successful in export markets. However, domestic sales for still wine closures have been hampered by the popularity of the screw cap, now widely used by winemakers in Australia. “The timing of my new idea appeared to be perfect as the wine industry was getting really fed up with cork taint and other quality issues and needed a way of sealing the bottle without spoiling the wine. What I didn’t expect or plan early enough for was the sudden and massive uptake of the screw cap – a 30 year old sealing technology that was revived by a combination of clever marketing by the manufacturers of the screw cap and the support of the ‘technical’ power brokers in the wine industry – in particular the winemakers and the wine writers. We soon realised we had lost the war and took a strategic decision to focus our marketing on Europe and the United States. That decision has proved fruitful and with the ZORK SPK, we have a “peal and reseal’ solution for sparkling wines that is unmatched by any other closure globally”. McKenna said. Zork’s SPK closure for sparkling wines, developed by co-founder and Technical Director, John Brooks, was given a gold innovation award by the Packaging Council of Australia in 2009. It is a fully recyclable alternative to the traditional cork and muselet - the wire cage which holds the cork in place. It is the world’s first and only commercially proven resealable closure for sparkling wines. “ZORK SPK’s carbon footprint is 40 per cent lower than cork and muselet, and featured a foil and gas barrier which prevented flatness and oxidation when the bottle was resealed” said Mr. Brooks. Written by Conor McKenna, Managing Director, Twoeyes Adelaide
Investing in early growth companies 3.
4.
5.
6. Investing in unlisted early growth companies at any time is an activity pursued by investors who have an appetite for excitement, high rewards surrounded by equally high risks and a strong level of judgment self belief. Being early growth magnifies the assessment issues for the investor as the enterprise is typically pre-revenue and balance sheet constricted. If the economic environment is uncertain, as it is at present, the investment landscape for this market segment is affected as investor demand cools. The change is not so great, however, as to make investment into the early growth company space a ‘no go’ investment zone, but it does make investors more cautious and more selective about the opportunities they pursue. So what are the investor criteria in the current market? Well nothing has changed with the basic criteria, rather the criteria has been refined. The goal of all investors is to invest in an enterprise with innovative technology, a strong potential for rapid commercialisation and market penetration, an ability to protect the market it enters or creates, to have a well considered business model and an impressive management team.
verifying the claims of a company. To some investors, being able to trust the representations made by the company’s spokespersons is a critical threshold issue to investing in a company. Due Diligence: for any significant investment due diligence will be required. The quality of the due diligence is a ‘moment of truth’ for the company’s representatives. It is through this process that the investor will judge how well the company is being managed, how well negotiated are its contracts, how strong and valuable is its IP, how robust is its business model, business plan and financial models and generally where its strengths and weaknesses lie. Personnel: to encounter a strong board and strong management team. Credentialed persons of high calibre who have the right experience and appropriate expertise are more likely to provide the investor with a higher level of confidence. Investment Terms: the investment offering terms need to be appropriate. If the investor is interested in making an investment, then agreement as to the investment offer terms is usually the most significant discussion and negotiation point of the process. The valuing of the investment becomes the most challenging issue. The resolution of the value aspect of the investment terms is a reflection of how the parties will relate to each other in the future and therefore needs to be approached with due consideration. Timing: time is required for an investor to process through the above items, which can take between 1 and 3 months. The company needs to respect that time is required for the investor to satisfy their criteria. It also must be understood that it is not without cost to the investor.
In uncertain times, such as now, investors still look to early growth companies and focus on the same criteria. Although they are more cautious and selective with their investment resources, they are still active in assessing opportunities. For the unlisted early growth company seeking significant funding this is good news, but there is a need for early growth companies to ensure their business case is robust and strong and that they present and perform at the top of their game. It is a challenge that a good team relishes! And investors are attracted too! Written by Andrew Ireland and Sarah Thomas Should you have any questions or queries or suggestions, please do not hesitate to contact any of our commercial and corporate team including Andrew Ireland, Principal - aireland@argylelawyers.com.au; and Sarah Thomas, Lawyer sthomas@argylelawyers.com.au
For an investment to be attractive to an investor it should meet the investor’s thresholds to the above criteria. But in assessing competing opportunities what can maximise an investor’s interest in pursuing a particular investment? The following core elements can only assist: 1. 2.
Presentation: to receive a polished, ‘to the point’ elevator pitch or presentation, ideally made by an engaging spokesperson. Information: all information provided to the investor must be accurate and correct and reflect both a strong business case and management team. There is no point presenting documents which present a ‘biased view of the company. No investor is going to commit significant funds without
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BIO TECH
Company Name Sector Year Established Business Stage Location Seeking
Mesynthes Ltd Medical Device 2007 Early stage Wellington, New Zealand Capital Raising
Executive Summary Mesynthes is a soft-tissue reconstruction company using its proprietary Endoform technology to develop regenerative tissue substitutes for reconstructive surgery and wound care. These markets represent an opportunity in excess of US$1B. Mesynthes gained marketing clearance from the United States FDA in January 2010 for Endoform™ Dermal Template for acute and chronic wounds. In March 2011, the company secured a North American marketing and distribution agreement with a major healthcare multinational for their first Endoform based product and they have also entered into a development agreement with another major wound care multinational. A specialised manufacturing facility operating under a quality management system was commissioned in early 2011.
Board & Management: Brian Ward - CEO BVSc MRCVS MBA(dist) Brian Ward has held senior roles in life science companies over the last 20 years. Nancy Yopp - Director Operations BS, MBA Nancy Yopp has over 25 years of technical, manufacturing and operations experience in the US medical device industry. Barnaby May - Director Research PhD Barnaby May has an extensive research and development experience in academia and industry. Phil McCaw - Chair BBS Phil McCaw is a qualified chartered accountant and has served on the Boards of numerous early stage companies and is an active angel investor.
Competitive Advantages
Corporate Structure
• Compared to established market offerings Endoform™ is a shelf-stable tissue substitute with: • Authentic structure, signals and substrates of the native extracellular matrix • Quantifiably superior blood vessel in-growth • Complete remodelling and replacement by the patients’ own tissue over time • Clinical outcomes in diabetic and venous ulcers studies which are very encouraging (n>50) • Excellent strength and handling characteristics • Three year shelf life at ambient temperatures • Pipeline developments for implantable products and potential for delivery of cells, antimicrobials and bio-actives
Mesynthes is a New Zealand registered private company.
Key Investment Highlights • Sustainable competitive advantage, in large growing markets • Platform technology supports development of multiple high-value products. The first product will launch in 2011 and one further product is expected to launch in 2012 • Technology and regulatory risks addressed • World leading team with experienced Board, Advisory Board and Investors - Management team have in excess of 60 years of combined experience in the life sciences sector. The Board of Directors has extensive international commercial experience and the Clinical Advisory Board is comprised of leading United States based clinicians and academics. Mesynthes has been backed by New Zealand’s premier early-stage investors • Secured partnerships with multinational companies • Demonstrated capability to achieve significant results with limited resources. To date, the company has raised $4M from private investors
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Exit Strategy A number of exit options exist for investors over the next 2-5 years including: Acquisition by a major medical device company, a merger with an established company with complimentary technology or marketing channels, or an IPO on a suitable public exchange.
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Mesynthes Ltd.
BIO TECH
Company Name Sector Year Established Business Stage Location
Benitec Limited (ASX:BLT) Biotechnology-therapeutics 1997 Early Stage Sydney
Executive Summary Benitec Limited is a publicly listed (ASX:BLT) biotechnology company developing novel human therapies based on a transformational gene silencing technology, DNA-directed RNA interference (ddRNAi). Benitec holds the predominant patent position in the use of ddRNAi for human therapeutics, with an exclusive, irrevocable, world-wide license to CSIRO’s patent estate by generating double stranded RNA inside a cell from a DNA construct. Benitec collaborates with groups globally to develop novel therapeutics for chronic life threatening diseases and disorders, particularly in cancer and infectious disease. Benitec’s current projects are directed to using gene silencing in lung cancer, intractable cancer-associated pain, and hepatitis B infection.
Competitive Advantages • Cancer-associated neuropathic pain. The program is aimed at developing a ddRNAi-based therapeutic to silence genes in the spinal cord involved in mediating intractable pain. • The non-small cell lung cancer program, in collaboration with the University of New South Wales. Researchers at UNSW have shown that using ddRNAi to silence the beta III tubulin gene can significantly overcome the resistance of lung cancer cells to chemotherapy drugs. These programs are fully Benitec funded programs. It is anticipated that these programs will enter Phase I clinical trials in 2012. • The hepatitis B program is developing a ddRNAi-based therapeutic targeting a key HBV gene. Partnered with Biomics Biotechnologies Co, Ltd in China.
Key Milestones & Investment Highlights • Exclusive irrevocable worldwide rights to a platform technology with huge market potential in human therapy: ability to permanently silence any gene associated with a disease or condition • Dominant global position with robust intellectual property, including successful re-examination in all major jurisdictions worldwide. Over 30 patents granted internationally. • Broad portfolio of targeted therapeutics – neuropathic pain, lung cancer and hepatitis B • Building value through licensing of therapeutics and technology • Financially strengthened by recent successful $8M funding via a renounceable rights issue
Board & Management: Peter French - CEO BSc, MSC, MBA, PhD Cell and molecular biologist. Principal Scientist - Centre for Immunology, St Vincent’s Hospital; Founder of Cryosite (CTE); Ex-President ANZSCDBI. Peter Francis - Non-Executive Chairman LLB Grad Dip (Intellectual Property) Partner at Francis Abourizk Lightowlers (FAL), a firm of commercial and technology. He is a legal specialist in the areas of intellectual property and licensing. Mel Bridges - Non-Executive Director BAppSc FAICD More than 30 years experience in the global biotechnology and healthcare industry. Chairman of Alchemia Limited, Impedimed Limited and Leaf Energy Limited. He also co-founded the listed company Panbio Ltd. Tissue Therapies Limited. The Queensland Entrepreneur of the Year in 2004. John Chiplin – Non-Executive Director Ph.D Former CEO of Arana Therapeutics (acquired by Cephalon). Former head of the $300M ITI Life Sciences investment fund in the UK. Owns Newstar Ventures Ltd.
Share Information
As at 6 September 2011
Code
ASX :BLT
Market Capitalisation
21,305,772
Current Share Price
$0.0230
52 Week High
0.0520
52 Week Low
0.0210
ASX:BLT 6 month price chart 0.04
0.03
0.02
Apr 2011
May 2011
Jun 2011
Jul 2011
Aug 2011
Sep 2011 80 60 40 20
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Benitec.
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BIO TECH
Company Name Sector Year Established Business Stage Location
Eastland Medical Systems Ltd (ASX:EMS) Biotechnology 2001 ASX Listed Western Australia
Board & Management: Peter Jooste QC - Non-Executive Chairman Peter Jooste was appointed Queens Counsel in 1997 and practises principally in corporations law, particularly schemes of arrangement and reconstruction. He was an inaugural member of the Takeovers Panel and a former President of the International Business Council in WA and has acted in numerous takeovers, mergers and acquisitions.
Executive Summary
Michael Stewart - Non-Executive Director Mr Stewart has a broad corporate and management background with a strong understanding of the financial markets. Mr Stewart has been extensively involved in bilateral donor funded and World Bank co-financed Aid Projects in under-developed countries.
Eastland Medical Systems Ltd (EMS) is an Australian based Biotechnology licensing company. Our focus is the identification, in-licensing and value adding to new or novel applications of existing medicines. This strategy results in a greatly de-risked project portfolio. EMS adds value by managing the development program. Our revenue model is based on out-licensing or trade sale of the asset. Our current lead project is ArTiMist™ a sublingual (under the tongue) anti-malarial for the treatment of childhood malaria.
Stephen Carter - Chief Executive Officer/ Executive Director Mr Carter has extensive pharmaceutical industry experience and has held a variety of senior positions with listed and unlisted public companies, including roles as Chairman and Managing Director. He has extensive contacts and experience in the financial markets and the pharmaceutical industry.
Current Projects • Current lead project is ArTiMist™, a sublingual (under the tongue) anti-malarial for the treatment of childhood malaria that contains the anti-malarial compound Artemether, a well-established drug for the treatment of malaria • EMS has the licence for Africa, Asia, India and the Pacific regions, an area that contains about 97% of the world’s malaria cases • The preliminary raw data and observations from the current Phase III ART004 clinical trial continues to confirm earlier results from the Phase II ART003 trial and provide a convincing argument for sub-lingual delivery of Artemether for the treatment of childhood malaria • Anecdotal reports from the medical staff and observers coupled with the clinical data show greater than 90% parasite reduction within 24 hours and comatose children soon sitting up in their beds
Key Investment Highlights • Completion of current 150 patient Phase III Randomised, Open Labelled, Active Controlled, Multi Centre, Superiority Trial of ArTiMist™ Versus Intravenous Quinine in Children with Severe or Complicated Falciparum Malaria, or Uncomplicated Falciparum Malaria with Gastrointestinal Complications. Due for completion 3rd quarter 2011 • Out Licensing/Trade sale of ArTiMist™ project. EMS have had preliminary interest from a number of groups • Eastland’s wholly owned subsidiary, Westcoast Surgical and Medical Supplies are continuing to aggressively target new business, EMS believes that there will be a number of highlights from this area during the next 12 months • Identification and in-licensing of a follow on project. We are actively sourcing new opportunities to follow on from ArTiMist™
Share Information
As at 6 September 2011
Code
ASX:EMS
Market Capitalisation
11,293,488
Current Share Price
$0.0190
52 Week High
0.0740
52 Week Low
0.0160
ASX:EMS 6 month price chart 0.04
0.03
0.03
0.02
Apr 2011
May 2011
Jun 2011
Jul 2011
Aug 2011
80 60 40 20
Further Information 12
Sep 2011
To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Eastland Medical Systems Ltd (ASX:EMS).
BIO TECH
Company Name Sector Year Established Business Stage Location Seeking
Jubilent Health Aust Limited OTC medicines 4 Market ready Australia 5 mil equity to scale
Executive Summary Jubilent Health Aust. Limited is poises for rapid growth and is inviting investors onboard in order to fund the scaling up of proven existing business and expansion of the unique product range to sell into existing and new pharmacy customers and begin the global expansion of it’s brands. Jubilent Health Aust. Limited, an Australian Pharmaceutical company, has unique patented technologies resulting in formulae’s and API’s (Active Pharmaceutical Ingredients) which will change the way many medical conditions and diseases are treated. Conditions like Obesity, Diabetes, High Cholesterol, and even male infertility will be treated by medicines produced by Jubilent, by targeting fundamental cellular mechanisms to reverse symptoms at their origins and so reverse diagnosis. Jubilent Health Aust. Limited will continue to manufacture products with lots of market “Sizzle” like ToneUP® the world’s first ‘Body Composition Change Product’, already proven in the Australian market place to be capable of generating Gross profits in excess of $10million if marketed nationally and clinically proven in university trials to reduce fat and increase muscle mass without change in diet or exercise.
Competitive Advantages • API’s (Active Pharmaceutical Ingredients) • Unique diagnosis reversing medicines. • Strong Pipeline of products • Paradigm shifting treatment options • Multiple distribution channels established • Real market experience, back robust projections • Strong management team with proven record
Board & Management: Norman Ohl - Director/ Company Secretary Norman is the founder of Jubilent Health Aust. Limited and brings a wealth of management and entrepreneurial acumen to the Company. Long track record of high growth high value business Peter Degnian - Director B.Pharm Peter has been a registered pharmacist since 1983 and still active in retail and patient interaction Cathrine Dahlgren - Director M.AppSc (App Chem), Dip. Bus (F’line M’ment) This vast experience, including work with Sigma Nutraceuticals/Herron Nutraceuticals, Progen , Mediherb, provides solid regulatory expertise to the Compan. Mario Gattino - Director App Sc( Med Admin), MBA ( Exec), Dip Bus (M’ment) Mario Gattino is a former global VP level senior executive with Pfizer Inc., the world’s leading biopharmaceutical company, with extensive international experience.
Corporate Structure Australian Public Company
Exit Strategy Jubilent Health hopes to list on a suitable exchange at an appropriate time.
Key Investment Highlights • Rapid growth with good market uptake achieve already • High margin products in a high growth sector • Revenues achieved in the first year
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Jubilent Health.
13
MEDICAL DEVICE
Company Name Sector Year Established Business Stage Location Seeking
Global Kinetics Corporation Medical Devices 2007 Commercialisation Melbourne Capital Raising
Executive Summary Global Kinetics Corporation (GKC) provides point of care measurement and reporting of Parkinson’s disease (PD) motor symptoms for neurologists and professional carers to manage: • Surgical and pharmacological interventions to treat dyskinesia; • Routine pharmacological treatment of bradykinesia and dyskinesia; and • A means for patients to manage their therapeutic compliance. Adoption of the PKG System will result in better patient clinical outcomes, lower patient management costs and a better quality of life for PD patients. The addressable market in Europe, US and Australia is $345M+ which represents only 20% of the 12M+ people forecast to have PD by 2015. The company forecasts annual revenue of $20M+ and NPAT of $8M within the five years.
Board & Management: Dr David Fisher - Director 1st Class Honours Rural Science; PhD Chemical Engineering; Masters in Applied Finance and Investments David is a founding Venture Partner with Brandon Capital Partners. David was CEO of Peptech Limited. Prior to Peptech, David spent ten years with Pharmacia AB (now part of Pfizer, Inc). David is a past president of the Australian Biotechnology Association and past chairman of the CSIRO’s Division of Animal Production Industry Advisory Committee. Andrew Maxwell - Managing Director MBA, MAcc, ACPA, MAICD Andrew has a proven track record of entrepreneurial business success in Australia and Asia spanning over 25 years. Andrew is the former CEO of ESCOR Private Equity (a Smorgon Family Company). Prior to joining ESCOR, Andrew was a serial start-up company entrepreneur with a history of successful company launch, business growth and exit.
Competitive Advantages
Corporate Structure
GKC’s core intellectual property is founded on sophisticated software that differentiates clinically important movement from normal movement and reports this as a bradykinesia and dyskinesia score. This intellectual property is protected by: • Patent; • Unique domain expertise of the GKC team; • Retaining data management services in-house limiting access to GKC’s proprietary algorithms and data library; and • Investing in ongoing research and development alone and in partnership with the Howard Florey Institute.
Proprietary Limited Company.
Exit Strategy The exit plan for investors is via a listing on an appropriate exchange or a trade sale.
Key Investment Highlights • Solving a significant unmet need in the management of PD; • A large and growing global market; • Unique and defendable intellectual property; • Regulatory approval in Australia, United Kingdom and Europe; • Engagement with key industry stakeholders; • A team that has a proven record of delivering value for shareholders.
Further Information 14
To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Global Kinetics.
BIO TECH
Company Name Sector Year Established Business Stage Location
BioDiem Ltd (ASX:BDO) Biotechnology 2004 (IPO) Commercialisation Melbourne
Executive Summary BioDiem is a vaccine company developing vaccines for both treatment and prevention of disease. The leading technology is the LAIV (Live Attenuated Influenza Virus) which was launched in India in July 2010 as an intranasal vaccine for prevention of swine ‘flu. The LAIV is also in development for seasonal and other pandemic influenzas. Sales from these products would generate royalties for BioDiem. The first royalties flowed in 2010. BioDiem is also developing the LAIV for use in non-influenza vaccine design to produce vaccines for cancer and infectious diseases. BioDiem intends to generate income from sale of licences to other vaccine manufacturers for use of the LAIV vaccine design system.
Current Projects • Successful commercialisation of the LAIV technology (launch of Nasovac™ in July 2010) • In-house vaccine development skills to expand LAIV uses • GMP materials available for LAIV development (virus and cell bank) • LAIV induces a broad immune response - mucosal, systemic and cell-mediated responses • High yield manufacture in egg & cell-based production - to meet pandemic need • Extensive clinical trial and on-market experience (100m doses) in Russia (egg-based) vaccine has established efficacy and safety • Intranasal delivery eliminates need for needles and trained personnel • Cell-based production provides advantages in bird (avian) flu outbreak when egg supply for standard flu vaccine production could be compromised.
Key Milestones & Investment Highlights • Global market size in 2009: US$22.7b (US$36.5b in 2013) • High growth market: CAGR 2008-2013: 13% • There remains a high level of unmet medical need - >40 human disease pathogens without effective vaccines • High barriers to entry with little generic competition • LAIV pandemic influenza applications already marketed and generating revenue • First launch of LAIV based vaccine (Nasovac) for pandemic H1N1 (swine flu) in Indian market in 2010. Royalty payments from sales into private sector commenced. • LAIV vector project commenced to maximize value of asset. • LAIV vector applications aim produce early revenue via research and commercialisation licences.
Board & Management: Hugh Morgan AC - Chairman LLB, BCom Hugh Morgan is Principal of First Charnock. He is a member of the Lafarge International Advisory Board; an Emeritus Trustee of The Asia society New York; Chairman Emeritus of the Asia Society AustralAsia Centre; and President of the National Gallery of Victoria Foundation. Julie Phillips – Executive Director & Chief Executive Officer BPharm, MSc, MBA Ms Phillips was appointed to the position of Chief Executive Office on July 1, 2009 and was appointed a director on May 7, 2010. She has worked as the CEO and director of start-up Australian biotechnology companies in the life sciences sector. Larisa Rudenko - Director MD, PhD, DSc Professor Rudenko is Head of the Virology Department in the Institute of Experimental Medicine, St. Petersburg, Russia. She is recognised as one of the world’s leading experts in live attenuated influenza vaccines.
Share Information
As at 6 September 2011
Code
ASX:BDM
Market Capitalisation
9,133,080
Current Share Price
$0.0900
52 Week High
0.2000
52 Week Low
0.0790
ASX:BDM 6 month price chart
0.20
0.15
0.10
0.05
Apr 2011
May 2011
Jun 2011
Jul 2011
Aug 2011
Sep 2011 0.8 0.6 0.4 0.2
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for BioDiem .
15
MEDICAL DEVICE
Company Name Sector Year Established Business Stage Location Seeking
WH Medical Pty Ltd Health Care 2009 Expansion Gold Coast, Queensland $2 million
Executive Summary Gold Coast Accident & Medical Clinic (A&MC) is a private emergency clinic designed to take direct pressure of the public system. The model is designed to allow walk in and ambulance access to services providing comprehensive treatment solutions with an attractive pricing strategy compared to private hospitals. There is also a general practice imbedded in the model to ensure coverage of a wider range of patients to capture diverse revenue streams. This delivers a model with an end to end treatment solution for clients.
Competitive Advantages • Significantly shorter waiting time for patients compared the public system • Price point attractive alternative to private hospital emergency departments • Focus on emergency treatment provides a niche & high degrees leverage with the community & state governments • Model can be replicated in every jurisdiction in Australia • No direct competition. Many general practices will do some emergency treatment, however not a focus like the A&MC model • Model can utilise diverse healthcare workforce: Doctors, Nurse Practitioners, General Practitioners & nursing assistants • Opportunity to provide specialist services, such as Nurse Practitioner procedural clinics to add value to the business & client experience • High profile through strategic sponsorships with sporting clubs
Board & Management: Rod Wyber-Hughes - Director Rod has worked all over Australia as a Remote Area Nurse in isolated Aboriginal communities; he managed workforces across large geographical areas. Headed up the second phase Commonwealth health intervention in the NT. Tracey Wyber-Hughes - Operations Manager, Risk Manager Tracey has over 23 years of international nursing experience, working in diverse settings ranging from cutting edge HIV clinics to Remote Area Nursing.
Corporate Structure WH Medical Pty Ltd is wholly owned by the director Rod Wyber-Hughes. WH Medical Pty Ltd owns 100% of the shares in Updown Nominees trading as Gold Coast Accident & Medical Clinic.
Exit Strategy Expand the model to other locations and seek a trade sale.
Key Investment Highlights • Opportunity is strong for public/private partnerships • Strong revenue forecast • Branding has commenced & is able to be rolled out nationally • Develop specialist clinics using Nurse Practitioners, for example pain management & endoscopy clinics • Specialist clinics will attract strong rebates from Medicare & private insurers
Further Information 16
To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for WH Medical.
BIO TECH
Company Name Sector Year Established Business Stage Location
Phylogica Limited (ASX:PYC) Biotechnology and Pharmaceuticals 2003 Commercialisation Perth, Australia
Board & Management: Dr Doug Wilson - Executive Chairman MB, ChB, PhD, FRACP, FRCPA Formally Global Head of Medicine Boehringer Ingelheim. Oversaw regulatory approval and launch of 10 drugs. Professor Paul Watt - Executive Director/CEO BSc. D. Phil (Oxon) Doctorate from Oxford, Postdoctoral Fellowships at Harvard and Oxford; 40 publications, 19 patents.
Executive Summary Phylogica is engaged in the discovery and development of novel peptide-based biopharmaceuticals. Phylogica enters into discovery alliances with large Pharmaceutical companies for which it identifies potent bioactive peptides. These deals provide access to short term revenue as well as future milestone payments and royalties. Phylogica has discovered and validated a proprietary class of targeted peptide therapeutics (Phylomers®) which constitute the most structurally diverse source of peptides available. Phylogica has made libraries of billions of Phylomers from which drug candidates can be selected using the company’s advanced screening methods. Phylogica owns this unique class of peptides, with 16 patent families, including multiple granted patents in the US and Europe. Phylogica is in the commercialization phase and is beginning to sign discovery deals with some of the world’s largest pharmaceutical companies, including Roche, MedImmune (biologics unit of AstraZeneca) and Pfizer.
Nick Woolf - Executive Director/CFO MA (Oxon), FCCA 18 years experience in the industry, equity research and investment banking. Formerly Chief Business Officer and Executive Director of Oxford BioMedica. Previously, he was Head of European Biotechnology Research at ABN Amro and he has held similar roles. Bruce McHarrie - Non-Executive Director B.Com FCA Director, Finance/Business Development, Telethon Institute for Child Health Research. Former roles: Assistant Director Biotech Division, Rothschild Asset Management, London, Coopers&Lybrand, Deloitte.
Competitive Advantages • Advantages over biologics discovery platforms (antibodies, protein scaffolds or random peptides) • Phylomer libraries are the most structurally diverse biologics libraries available • The hit-to-target ratios from Phylomer® libraries are high and the proportion of hits which are of high target affinity, and are biologically functional, is also high • Phylomers can be straightforwardly made by chemical synthesis • Phylomers can be delivered by patient friendly means such as intranasally • Phylomer libraries (unlike antibody libraries) are not associated with patent ‘royalty stacks’
Key Milestones & Investment Highlights • Phylomers offer clear advantages over competing biologics drugs • Phylogica has validated its technology and streamlined its processes to allow scalability • Phylogica has signed drug discovery partnerships with three leading Pharma companies since 2009 • Phylogica and Roche extended their collaboration in May 2011 following initial success • Phylogica is in discussions with multiple Pharma companies and expects more deals over next 12 months • Unlike most Australian biotechnology companies, Phylogica bears no risk from failure in clinical trials since its candidates are licensed at the discovery stage to partners • Phylogica’s strategy is driving near-term revenue growth and accelerated cash sustainability • Phylogica’s peers are valued at more than US$100 million • The average acquisition value for a drug discovery company like Phylogica is hundreds of millions of dollars
Share Information
As at 6 September 2011
Code
ASX:PYC
Market Capitalisation
25,932,630
Current Share Price
$0.0640
52 Week High
0.0890
52 Week Low
0.0420
ASX:PYC 6 month price chart
0.08
0.07
0.06
0.05
Apr 2011
May 2011
Jun 2011
Jul 2011
Aug 2011
Sep 2011 30 20 10
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Phylogica Limited (ASX:PYC).
17
BIO TECH
Company Name Sector Year Established Business Stage Location Seeking
Photonz Corporation Limited Pharmaceuticals 2002 Late pre-revenue Auckland, New Zealand Capital Raising
Executive Summary Photonz is a world-leader in the production of the omega-3 compound “EPA” by fermentation for high purity, pharmaceutical applications. Demand for EPA is growing exponentially but the world’s supply is extracted from wild fisheries that are a variable and risky source. Photonz avoids these supply risks and makes EPA “like beer” that is economic to purify to pharmaceutical concentration. Photonz will sell EPA to manufacturers of regulated pharmaceuticals making products for the cardiovascular disease drug market – specifically, treatments for dyslipidemia (high blood cholesterol and triglycerides). The Company is currently completing process development at pilot industrial scale and expects to begin product sales in 2012.
Board & Management: Greg Moss-Smith - CEO MSc, MBA, IP Law Former Global Sales Director Novozymes Biopharma. Former VP Commercial Operations GroPep Ltd (ASX:GRO)Director NZBIO Richard Justice - CFO BCom, MBA, ACA, CMA, ACIS Former CFO Living Cell Technologies (ASX:LCT). Former COO Brocker Technology Group (NASDAQ:BKI) Doug Wilson - Director MB, ChB, PhD, FRACP, FRCPA Exec. Chair Phylogica Ltd Former Head of Worldwide Medical Research, Boehringer Ingleheim David Kyle - Advisor BSc, PhD Co-Founder of Martek Bioscience Former Head of R&D Martek Bioscience
Competitive Advantages
Corporate Structure
• Sustainability – Photonz’ process uses simple industrial commodity inputs and is not dependent on the continuing viability of wild fisheries or affected by natural variability or environmental change. • Security – Pharmaceutical quality management systems can be applied over the entire Photonz process chain (unlike fish extract product) and multiple independent manufacturing sites can be established. • Consistency – Independence from the natural variability of wild fisheries and the application of pharmaceutical quality management systems throughout the manufacturing process ensure a consistent product. • Proprietary process – Patents have been applied for critical elements of Photonz’ process and intermediate products.
Private, New Zealand Company .33 Shareholders. 71% owned by four holdings.
Exit Strategy Photonza Corporation hope for a trade sale but may list on a suitable exchange at an appropriate time prior to acquisition.
Key Investment Highlights • Proprietary manufacturing technology with freedom to operate. • Validated manufacturing technology, December 2011. • Sales late 2012. • Market need for EPA in established cardiovascular disease (high cholesterol) market. • Growth market - exponential growth in demand for EPA. • Exposure to drug markets but lower technical & commercial risk. • Excellent management team with prior relevant success.
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Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Photonz Corporation Limited.
MEDICAL DEVICE
Company Name Sector Year Established Business Stage Location Seeking
Xenexus Pharmaceuticals Pty Ltd Biotech/Pharmaceuticals 2008 Early stage Sydney Development Capital
Executive Summary Xenexus is undertaking R & D on existing drugs in new indications to secure new use patents on these re-profiled drugs. The company focus is on: • Japanese pharmacopeia – drugs only ever registered in Japan • Drugs with good safety profiles • Unmet medical needs in large markets • Low complexity trial requirements • In-vivo studies and Phase IIa trials where relevant • Pharma partnerships and out-licensing at early Phase II trial stage • VC and grant financing where appropriate for each project
Competitive Advantages Xenexus Pharmaceuticals is pursuing a low risk, low cost business model: • Xenexus has access to some of the best labs in the world to do low costs animal studies • Leading scientists in their field who have developed “gold standard” drugs are on the Xenexus Scientific Advisory Board and are shareholders in the company • Xenexus drugs have know safety profiles, which dramatically increases the likelihood of Xenexus re-profiled drugs reaching the market • Low cost and complexity Phase IIa trial requirements • Small experienced team, having previously built Nuon Therapeutics Inc
Key Investment Highlights • A proven management team • An outstanding Scientific Advisory Board • A low risk, low cost Business Model • A successful track record with Nuon Therapeutics • Positive in-vivo data in XEN-101 gout, with patent lodged • Chronic gout is an unmet medical need • Positive in-vivo data XEN-102 multiple sclerosis with patent being lodged • MS an unmet medical need • XEN-102 is anti-inflammatory and likely neuroprotective • Two additional programs currently at in-vivo screening stage
Board & Management: Dr Michael L Selley - Chief Executive Officer Ph.D Previously the Founder and Chief Scientific Officer for Nuon Therapeutics. Academic at the John Curtin School at ANU. Prof Sir Marc Feldmann - Director and Member of the Scientific Advisory Board M.B., B.S., Ph.D., FRCPath, FRCP, FMedSci, FAA, FRS Prof Steinman is head of the Kennedy Institute of Rheumatology, Faculty of Medicine, Imperial College London. Professor Larry Steinman - Member of the Scientific Advisory Board B.A., M.D Professor, Departments of Neurology and Neurological Sciences, Stanford University Jay Hennock - Chief Operating Officer B.Ec Worked in corporate advisory with Citibank and Bank of America. A founding shareholder and CFO of Nuon Therapeutics.
Corporate Structure Xenexus Pharmaceuticals is a NSW Registered private company.
Exit Strategy Xenexus aims to list on a suitable exchange at an appropriate time, or pursue a trade sale.
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Xenexus Pharmaceuticals.
19
BIO TECH
Company Name Sector Year Established Business Stage Location
Cynergy Health Consumer Healthcare 2008 Development Sydney
Executive Summary Our objective is to grow a consumer health company by developing or acquiring high potential brands or products and selling them through retail and online channels. Our brands can be summarised as follows: Herb Valley : Well established range of supplements and personal care products sold exclusively through the health food channel. Activecare : Developing range of pharmacy only complementary medicines Activelife : An open brand of personal care products including a Paw Paw Lip Balm and Aluminium Free Deodorants and Anti-Perspirant. Sports-haler : Innovative medical device for the delivery of Ventolin and Asimol. Stay-Healthy : A wholly owned subsidiary established to develop direct to consumer online and catalogue sales.
Competitive Advantages
Board & Management: Joe Bayer - Chairman BBus (Acctg) CPA MAICD Former Executive General Manager, Mayne (Faulding) Pharma Asia Pacific and Mayne Consumer Products. Geoff Crittenden - Managing Director BSc(Hons)Eng Ceng An experienced entrepreneur who has held senior executive appointments in Australia and overseas. Rakesh Raj - Director MBA BSc Eng Senior pharma executive former Director Pharmacy Division, Sanofi-aventis and GM Sales Sandoz. Craig Stokoe - Director MD of LPN, a leading marketing and design consultancy.
Exit Strategy To grow sales to more than $10 million within the next five years and look for trade sale or buy-out opportunities.
• Core of innovative and unique products • Low cost base • National sales team • Established customer base and distribution network
Key Investment Highlights • Sales growth 444.76% • Customer growth 151.96% • Acquisition of Herb Valley • Acquisition of Sports-haler • Launch of Activelife personal care range • Launch of Chia Seed Oil & Natralgesic Complementary Medicines • Development of brand and Stay Healthy Club web sites • Re-packaging and positioning of Herb Valley
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Cynergy Health.
20
CLEAN TECH
Company Name Sector Year Established Business Stage Location Seeking
Diamond Energy Clean Tech/ Retail 2004 Expansion Victoria Pre IPO funding
Executive Summary Established renewable/low-carbon electricity integrated “gen-tailer” seeking to accelerate expansion. The business has a “portfolio” generation strategy, operating its own and 3rd party generation; these integrate with its licensed electricity retailing through channels that deliver contracted customers. In addition “Diamond CLEAN” delivers a highly attractive powerpurchase alternative for large generators. The business is seeking to accelerate its expansion in response to strengthening drivers including energy/carbon policy reform, technology cost reductions, and changing customer preferences. This provides an opportunity for investors to participate in an established visionary business positioned in the new energy low carbon economy.
Competitive Advantages • Operating renewable generation assets supported by long term contracts • Integrated “gen-tailer” model provides attractive returns through spread & risk management • Power purchasing agreements with third party renewable generators to balance with retail consumption • “Diamond CLEAN” a highly attractive power-purchase alternative • Integrated CRM/Billing System is operational and scalable, linked to customer smart metering & supports in-home technologies. • Strong relationships and credibility with government and renewable project partners • Company Directors & Management are highly skilled & experienced across commercial, engineering, generation, network & energy market & demonstrated track records of delivery.
Board & Management: Anthony Sennitt – Chairman and Managing Director BSc, BEng (Chem), MMT, Dip. Fin. Services Professional experience in the global energy markets for over two decades. Experience built through a variety of major roles at global energy corporations, based in Australia and Singapore. Mark Bertoncello – Chief Investment Officer BEng (Hons) MBA, Melbourne Business School Extensive renewable energy experience plus executive management in Australian listed company and adviser in global professional services firm. John Chiodo – Chief Operations Officer BEng (Hons) Grad Diploma Applied Finance (FINSIA) Over 15 years experience in the development of a range of clean, renewable and distributed generation technologies.
Corporate Structure Diamond Energy is a medium sized Australian owned private company with 100% owned subsidies and a range of shareholdings in generation companies
Exit Strategy The proposed exit strategy for investors is via a listing on a suitable exchange or a trade sale at an appropriate time.
Key Milestones & Investment Highlights • Commissioned Tatura Biogas plant (2007) and Shepparton Biogas plant (2009) • Obtained Victorian retail electricity license (2007) • Secured Lend Lease Ventures investment (2008) • Over 3,500 solar installations throughout Australia delivered (2009-10) • Sold rights to Victorian Wave farm (2009) ( still maintains PPA rights) • Obtained SA, NSW, and QLD retail electricity licenses (2010) • Integral partner in UN World Environment day “Virgin Blue Business - Best Environmental Business Initiative” (2010) • Launched Diamond CLEAN (2010) • Shortlisted Participant in multiple Government Grant Applications (2011) • Trademarks registered to Diamond Energy, Diamond Energy Advantage and Commercial Green • Awarded $1.5 m by Victorian Government and establishes 50/50 JV Colac Power Company (2010)
Further Information To learn more about this opportunity, go to www.wholesaleinvestor.com.au and search for Diamond Energy.
21
CLEAN TECH
Current Projects Project 1: Little Takas nappies and Bamboo baby wipes – Australia EcoQuest launched the Little Takas nappies and Bamboo baby wipes range in Australia in October 2010. The products are now stocked in over 300 retail stores across Australia, including Toys R Us, Baby Kingdom, Franklins, and a growing number of IGA stores, promoted and sold through 4 leading nappy e-tailers and on its own e-commerce website www.littletakas.com.
Company Name Sector Year Established Business Stage Location
Project 2: Little Takas nappies and Bamboo baby wipes – UK and US EcoQuest has launched the Little Takas nappies and Bamboo baby wipes range in the UK, focusing initially on internet sales such as resell through the website of the UK’s largest parenting charity for parents the National Childbirth Trust (NCT) www.nct.org.uk. The company will approach US brokers in Q4 of 2011.
EcoQuest Ltd (ASX:ECQ) Cleantech 2007 Trading Western Australia
Project 3: Little Takas nappies and Bamboo baby wipes - Asia From July 2011, Ecoquest entered the Asian market. The Little Takas range is sold in three different Hong Kong supermarket chains including Three Sixty (Hong Kong’s largest organic and natural food store), Marketplace (a high end supermarket chain) and Wellcome (Hong Kong’s longest established supermarket chain). The company plans to expand into other Asian countries.
Executive Summary EcoQuest Limited, the clean technology company developing biodegradable disposable personal care products from sustainable sources, has started to realise its global market strategy with the Little Takas 90% biodegradable nappies and 100% biodegradable bamboo wipes range on sale in a growing number of retail and e-tail stores in the UK, Asia and Australia as well as through its own website www.littletakas.com. The company is in talks with major Australian retail chains and is conducting a strong marketing and PR campaign across print, broadcast, online and social media to increase awareness and drive sales. The company wants up to 5% market share of the total Australian nappy market and plans to grow the eco market and become the eco-nappy of choice for Australians based on its superior sustainable content, higher total product biodegradability, better performance, better margin to retailers and lower retail price (in its segment). The Australian eco nappy market is expected to grow by more than 25% per annum. The company’s mission is to create a globally recognised brand of biodegradable personal care products based on proven and tested principles of sustainability. The company will also continue developing and protecting its intellectual property, while refining and growing its product range.
Competitive Advantages • EcoQuest addresses a major growth market - as major contributors to landfill, disposable nappies represent one of the world’s biggest environmental problems, taking over 100 years to break down. The Little Takas nappies and Bamboo baby wipes ease consumer consciences but fit into modern lifestyles. • EcoQuest has a highly experienced team, including global eco-nappy and consumer sales experts • EcoQuest has technology that is proven by both rigorous consumer testing and meets stringent industry standards • Ecoquest is already engaged in developing a second generation nappy which will increase its use of sustainable materials whilst retaining its biodegradeable credentials • EcoQuest is listed on the ASX, and therefore provides both the potential for excellent capital gain, and the flexibility of sale of shares through the ASX
Share Information
As at 6 September 2011
ASX:ECQ 6 month price chart
Code
ASX:ECQ
Market Capitalisation
3,641,287
Current Share Price
$0.0290
52 Week High
0.1050
52 Week Low
0.0240
0.06
0.04
0.02
Apr 2011
May 2011
Jun 2011
Jul 2011
Aug 2011
Sep 2011 0.6 0.4 0.2
22
CLEAN TECH
Key Milestones & Investment Highlights • September 2010 - 1st order (1m units) Little Takas nappies distributed to independent supermarkets • October 2010 – Official product launch of Little Takas nappies and Bamboo Baby wipes • December 2010 – product stocked in 249 stores across Australia • January 2011 – 2nd order (2m units) arrives in Australia • January 2011 – new Little Takas website with global e-commerce functionality live • February 2011 – first revenue deposited • May 2011 – UK market launch • July 2011 – New Managing Director appointed • July 2011 – Asian market launch • August 2011 – in discussions with major Australian retail chain • September 2011 – Major wholesale chain Metcash agrees to carry the full EcoQuest range • September 2011 – The National Childbirth Trust in the UK has agreed to stock and sell the Little Takas products on its website.
Latest News & Announcements • 18.5.11 EcoQuest enters UK market with Little Takas • 23.5.11 Australian e-tailer to sell Little Takas • 27.6.11 Little Takas to be showcased in maternity packs • 20.7.11 EcoQuest appoints global chief executive • 29.7.11 EcoQuest launches Asian market entry in Hong Kong • 29.8.11 Metcash & The National Childbirth Trust to offer Little Takas
Board & Management: Sylvia Tulloch - Chairman Msc Respected scientist and entrepreneur with over 25 years experience in the establishment and management of high tech businesses. Keith Herbert - Global Managing Director Highly respected FMCG executive previously in charge of PZ Cussons commercial operations across Europe, the Americas, Asia and Australasia. Matthew Hicox - General Manager & Sales Marketing Manager, Australasia Over 18 years in sales and marketing, particularly in the FMCG & Pharmaceutical sectors. Michael Greenup - Director of Operations & Procurement 35 years experience of owning and operating successful businesses, including 12 years consulting and sourcing in China and Malaysia.
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for EcoQuest (ASX: ECQ).
23
NATURAL FOOD INGREDIENTS
Company Name Sector Year Established Business Stage Location Seeking
KFSU Ltd Natural Food Ingredients 2006 Growth Queensland, Australia Growth Funding
Executive Summary KFSU Limited is a food ingredient company creating natural products from agriculture. KFSU’s core competency is extracting fibre and concentrates from sugarcane, fruit and vegetables for sale as ingredients to the global food industry. All products are natural, allergen free and avoid the requirement for “E” numbers. KFSU is now actively supplying Japanese and Australian customers and has entered it’s growth phase. The reason equity funding is required is for increased capacity and growth, and to satisfy existing customer demand for our products in Japan and Australia. Further production capacity will be funded out of retained earnings or debt.
Competitive Advantages KFSU’s range includes individual products like Kfibre® which have very significant advantages over competitors: • Low Production costs • Stable input costs • Natural labelling - all jurisdictions • Allergen free, chemical free processing • No requirement for customers to use ‘E’ numbers on the ingredient panel • Can be used with a wide range of food products without altering mouth feel or flavour • Provides yield increases for baking and smallgoods customers (Kfibre® absorbs and retains more moisture than any other natural product in this price range enabling customers to reduce other input usage and costs ) • KFSU can track and trace products from farm to grocery shelf • Simple to use by food manufacturers
Board & Management: Gordon Edwards – Managing Director Engineering Built, run and exited several SME’s. Rod Lewis – Commercial Director BSc, Dip Man Corporate exec with high SME experience. Hajime Masaki – Asian Sales Director Sales qual/Japan UN Experience Japan / Tibet / Asia. Janine Edwards – Company Secretary Managed teams and 2IC Positions in SME’s.
Corporate Structure KFSU is a public unlisted company, with four directors and an extensive international Advisory Board. All shareholders are issued with ordinary shares.
Exit Strategy KFSU is shaped for exit to competitors in three years. Key benefits to a buyer are the sugarcane fibre itself that others have tried but failed to emulate and the long term relationship base in Japan
Key Investment Highlights • High customer demand and recently confirmed 2011/12 sales forecasts • Commercial sales have commenced in Japan and Australia • Distributors have been appointed in Australia, New Zealand and Japan • Customers in Japan, Australia, New Zealand and the UK have successfully used the product • KFSU has pre-sold product into snack foods, small goods, chocolate and meat products • KFSU will be trading profitably in 2011 • The IP has been registered and verified • KFSU has a long term cane supply agreement with the Burdekin cane growers • KFSU management are experienced at managing and growing small businesses • R&D has shown further products are available for future launches and growth
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Further Information To learn more about this opportunity, go to www.wholesaleinvestor.com.au and search for KFSU.
RENEWABLE ENERGY
Company Name Sector Year Established Business Stage Location
Sun Connect Pty Ltd Renewable Energy 2008 Growth Perth, Sydney & Melbourne, Australia
Executive Summary Sun Connect Pty Ltd is a privately owned Australian importer and installer of solar power components. Started in 2008 the company has over 70 employees and turnover north of $20 million for the current FY, double digit growth expected in 2012. Sun Connect has no debt and strong operating financials. Offices in Perth, Sydney and Melbourne, a national installation footprint, full Clean Energy Council membership and in the final stage of applying for ISO9001 Quality Accreditation. In June 2011 Sun Connect was a winner of the 2011 WA Business News ‘Rising Star’ Award - out of 400 entrants. Sun Connect is raising capital for the first time to fund capital purchases and to expand ‘above the line’ advertising / marketing for further growth.
Competitive Advantages • Leading Australian solar provider in the niche premium space • Able to boast the ‘5 Hallmarks of premium solar: ‘Highest Warranties, Output, Upgrade Capacity, Quality, Levels of Service’ • Sales model contrary to the majority of ‘cheap’ market –– relationship-based selling/ support rather than single-transaction based • Average solar power system sale is 3.1kW and over $20,000 value – industry average is 1.7kW – reflecting premium space / nature of customer spread • Completely unique direct sales and marketing models, including established marketing assets • First solar company in Australia to pioneer the ‘5 Year Customer Service’ SLA • New trademark applications for protected marketing strategies
Board & Management: Mark Tuke - CEO BCom Former CEO of public software company, exit to Thomson Reuters. 16 years in business development IT/tech enterprises in Australia & UK. Gordon Impey - GM BCom, Hons BCom, MBA Telkom (South Africa) / Eskom (national power provider, SA) as well as Australian management postings at Amcom, PerthIX, Elders. Alistair Gibson - Strategic Manager Bachelor of Laws, Master of Technology Management Formerly Country Manager for Gurango Software, MD of Absalom Australia, corporate strategy consultant at PricewaterhouseCoopers.
Corporate Structure Sole director, flat management structure, ownership structure is 3 shareholders, CEO (60%), Ops Manager (20%), Technical Manager (20%).
Exit Strategy Expand national footprint and growth in UK market - acquisition by integrated offshore cleantech manufacturer / distributor, or IPO.
Key Investment Highlights • Past ‘start-up’ phase and in a sustainable and accelerating rapid-growth stage • Contracted debtor sheet valued between $9M - $10M, with even spread to securitize capital raising against • No debt, strong financials and has operated at a healthy profit since its first year of trading • Capital requirements will also be underwritten by large-scale state legislated solar subsidies • 2 new business units are in the development stage - Energy Audits and Commercial Solar - both expected to be government subsidized and booming new veticals • Strong, well established brand and experienced management team to expand this brand • Assets including patent pending IP starting to provide real returns, expanding into domestic and international territories in a risk-averse, staged fashion
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Sun Connect.
25
CONSUMER GOODS
Company Name Sector Year Established Business Stage Location Seeking
Eastern Harmony New Zealand Limited Food and beverage 2011 Commercial – Phase 1 Australia, New Zealand, Hong Kong, China Capital Raising
Executive Summary • EHNZ is a wholesaler/distributor of NZ milk powder products in the North Asia region • Premium NZ milk powder products are in high demand in mainland China (in particular) and other developed Asian nations • EHNZ has signed a long term distribution agreement for Mi-NZ, a new NZ made premium infant milk formula • Strategic distribution alliance being finalised (letter of intent received) with a highly reputable Chinese government owned trading company (SOE) • Expressions of interest have been received from other mainland Chinese customers • Lease terms agreed for a retail property and sales office located in a duty-free trading zone on the border between HK and China to support own sales of Mi-NZ
Competitive Advantages • Low cost importer and distributor in key Asian markets • Exclusive distribution rights for Mi-NZ IMF product range in Hong Kong, Macau, and 19 Chinese provinces; plus first right of refusal over Japan, South Korea, Taiwan and Singapore • Strategic distribution alliance with a Chinese SOE • IMF entry barrier overcome due to access to dairy product import license through Chinese SOE • Retail shop and sales office in a duty-free trading zone on the border between Hong Kong and China to support own sales of Mi-NZ • Other strategic alliances with distribution and retail partners in mainland China • Import duty removal from 2012 under FTA between NZ and China
Board & Management: Edward Stauber - CEO Previously Vice President of Asia Pacific, Novartis Vaccines & Diagnostics Randolph van der Burgh - CFO Previously Partner, Ernst & Young Michael Lees - COO Previously Director Structured Asset Finance, HSBC Hong Kong Linda Cheung - COO, HK & PRC Self-employed marketing consultant for the past 15 years
Corporate Structure EHNZ is a New Zealand registered private company (CN 1550480)
Exit Strategy • The short to medium-term strategy is to grow the business naturally and/or by acquisition • Should the right opportunity arise, EHNZ would consider a sale to a strategic investor or IPO
Key Investment Highlights • Infant milk formula (IMF) is projected to be the fastest growing food and beverage segment in China over the next five years • NZ sourced premium IMF is viewed by customers as a proxy for quality • EHNZ has secured exclusive distribution rights for Mi-NZ IMF product range in key markets • Strategic alliance being finalised with a Chinese SOE to facilitate China Import and Quarantine licensing, importation and sub-distribution in Southern China • Negotiating further alliances in respect of other wholesale/retail distribution channels in China to ensure that customers receive genuine quality premium NZ milk powder products • Retail shop and sales office presence in Shenzhen, China, duty-free zone • Immediate market opportunities in Hong Kong and China due to recent local IMF scandals and contamination concerns over Japanese imported products • Access to additional premium IMF brands to support alternative distribution channels
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Further Information To learn more about this opportunity, go to www.wholesaleinvestor.com.au and search for Eastern Harmony.
TECHNOLOGY
Company Name Sector Year Established Business Stage Location Seeking
Bluechiip Ltd (ASX:BCT) Technology 2003 Early Commercialisation Phase Victoria IPO Offering
Executive Summary Bluechiip has developed a groundbreaking asset tracking solution based around a chip which offers unique features over traditional tracking methods of labels (hand-written and pre-printed), barcodes (linear and 2D) and Radio Frequency Identification (RFID). Bluechiip is a totally integrated tracking and management solution from identification, tracking, retrieving, bio storage and monitoring, offering process assurance and operational certainty in low temperature environments. The inherent MEMS or microtechnology platform of the bluechiip technology allows the unique identification of tagged items and tracking of critical factors, such as temperature, to provide quality, assurance and custodianship. Initial applications for the bluechiip technology are in the high-growth biobanking sector.
Board & Management: Brett Schwarz - Managing Director and CEO Co-founder and instrumental in building the company since inception. 20 years experience in accounting and consulting. Iain Kirkwood - Non-Executive Chairman Over 35 years experience with listed and healthcare companies. Dr Jason Chaffey - Chief Technical Officer Actively involved in MEMS technology for over 10 years. Extensive experience in government research and university research laboratories. Joe Baini - Non-Executive Director Over 20 years experience in the pharmaceutical industry, focused on commercialisation, marketing and sales.
Current Projects • Secure adequate funding to ensure product and business development programs are fully funded over the next 2 years • Complete product development to point of having commercially saleable products • Tooling up for high volume commercial production with manufacturing partners and OEM’s • Perform industry pilot trials to continue to validate technology, from which white papers/ business cases as well as scientific papers can be prepared and endorsements provided • Perform global business development activities to secure the initial target market of biobanking, including securing distributors and channel partners • Secure endorsement from end-users and Key-Opinion-Leaders (KOL’s) • Ongoing protection and expansion of current IP
Key Investment Highlights • Validated large markets with immediate application in biobanking (one of fastest growing areas in healthcare), with future applications in other healthcare areas, security/defence, cold-chain logistics/supply chain, industrial and manufacturing • Validated technology under extreme conditions and conducted successful pilot trials at eminent Australian medical institutions including Peter Mac • Ready for commercialisation - poised for volume production with global manufacturing partners including STMicroelectronics • Secured Ziath as first distributor and in active discussion with other major potential partners • Secured valuable IP portfolio including granted patents, all wholly owned by company • Management and Board of Directors have relevant experience to take company into commercialisation
Share Information
As at 6 September 2011
Code
ASX:BCT
Market Capitalisation
7,987,713
Current Share Price
$0.1500
52 Week High
0.2500
52 Week Low
0.1400
ASX:BCT 6 month price chart
0.22
0.20
0.18
0.16
0.14
Apr 2011
May 2011
Jun 2011
Jul 2011
Aug 2011
Sep 2011 0.12 0.08 0.04
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Bluechiip Ltd (ASX:BCT).
27
TECHNOLOGY/FINANCIAL SERVICES
Company Name Sector Year Established Business Stage Location Seeking
Equiome Technology / Ecommerce / Finance 2007 Early Commercialisation Stage New South Wales Capital Raising
Executive Summary Equiome is a specialist financier of all aspects of large corporate software projects, which allows companies to realise immediate commercial benefits from the usage of the solution, without the risk of project failure or the requirement for any capital investments. This, aligned with Equiome’s rapid deployment methodology and partnering approach, creates a totally unique customer value proposition that addresses the three biggest challenges facing customers commencing large software projects; initial funding, alignment of costs to benefits as well as project execution capabilities. This solution has major benefits for a wide range of large corporations, both in Australia and Internationally.
Board & Management: Steve Hanna - Managing Director A background of 25 years in IT, working for large technology vendors, holding key roles in software sales and vendor finance
Corporate Structure Equiome Pty Ltd is a privately held Australian company.
Exit Strategy: Equiome is aiming for revenue and asset growth, followed by a strategic trade sale in 3 – 5 years.
Competitive Advantages • Equiome’s model is a totally unique and new way of resolving a business problem common to large software project in most major corporations • The solution is designed to easily scale, providing multiple streams of business benefits for each customer • Equiome is technology and vendor independent, giving customers more control • Equiome funds all aspects of the software project • Equiome charges a single monthly fee for all aspects of the solution • It is one of the few approaches that look at the problem from a business benefit/output, rather than a series on inputs • Have developed a rapid deployment methodology, with a heavy focus on the realisation of quantifiable business benefits
Key Investment Highlights • Highly experienced leadership team who clearly understand the market and the intrinsic value of software projects • Equiome is creating a new investment asset class, by transforming the current intangible software assets, into tradeable commodities • The model is based around initial and annuity revenue streams • Equiome is in active discussions with a number of major Australian organisations for this solution • The model is based around the re-usability of solutions; small, incremental changes can create significant value • Equiome has invested significant time to create and develop relationships with major companies to deliver this solution • This model is absolutely unique, and has a substantial domestic and International market
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Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Equiome.
INTERNET/IT
Company Name Sector Year Established Business Stage Location Seeking
Collective Intelligence Group P/L Technology 2001 Expansion Sydney, NSW Commercial Partnerships
Executive Summary Collective Intelligence Group (CIG) specialises in wireless monitoring and reporting solutions for mobile and remote assets. CIG solutions deliver operational and financial efficiencies to partners and their customers. CIG is ‘the missing link’ in efficient asset management. CIG has over 10 years proven capability with over 50% market share in its key market. CIG technology is transformative enhancing the offerings of key partners such as Toyota, Nissan and Linde Materials Handling, and of end-users including BHP Billiton, DHL and Fuji Xerox. CIG is seeking new partnerships in sectors that it operates in - Industrial, Fleet, Utilities and Inventory. Partners are industry participants seeking to improve performance, productivity & compliance.
Board & Management: James Hayes – Managing Director 25 years in leading IT businesses. Built a world-class reputation with companies inc. Toyota, Linde, NSW Rail Authority and NSW Water Board. Gary Squire – Director 15 years in sales and senior management primarily in materials handling, dealing with top 100 companies. In UK for CIG targeting US & Europe. Robert Hazell – Board Advisor 40 years as Director of a Tier 2 construction company. An award winning leader within the Family Business Association of Australia. Brad Klaffer – Director Financial management expert with 10 years in IT & 15 years in CFO positions. Most notably with Hazell Bros when they made the BRW Fast50.
Competitive Advantages
Corporate Structure
• Market Presence: Over 50% market share achieved in Australian forklift sector and ability to leverage presence into new opportunities. CIG has established deep OEM, distributor and end-user relationships • World Class Technology: CIG is a transformative technology with its monitoring and reporting capabilities. In tender scenarios, CIG products are often the only fully compliant option • Compelling Benefits: Intelligent solutions save 90% of time-to-invoice, improve business efficiency by 20%, reduce asset costs by 25% and reduce compliance costs by 50% benefiting entire supply chain including the leasing company, the distributor, operators and end-users • Brand Recognition: Market visibility and name recognition for CIG
Collective Intelligence Group P/L is the parent company with R&D and IP licensing responsibilities. There are 7 operational subsidiaries.
Exit Strategy: The priority is to capitalise on its current market leadership by expanding into new markets by product and by territory. Leadership in multiple markets makes CIG an attractive trade sale target.
Investment Highlights • High Market Penetration: Existing key partners include Toyota, Nissan and Linde Materials Handling • Millions Invested: Product and business systems as well as fulfilment infrastructure in place. Operations established in UK to serve Europe & US • Strategic Value Creates Unique Market Footprint: Cost and operational efficiencies gained for end users demonstrates strategic value for manufacturers, owners, and operators • Expansive Market Potential: With multiple features meeting multiple needs across multiple markets, CIG has successfully proven itself in the Industrial, Fleet, Utilities and Inventory markets • Partner Focused: Groups utilising CIG have a partner that is creative, responsive, forward thinking, flexible and reliable in creating integrated, unique, intelligent solutions
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Collective Intelligence Group.
29
INTERNET/IT
Company Name Sector Business Stage Location
Mint Wireless Limited (ASX:MNW) Telecommunications/ IT Early Sydney, Singapore, Kuala Lumpur, London
Board & Management: Terry Cuthbertson - Non-Executive Chairman B.Business, ACA Chairman of seven ASX listed companies. Wide corporate finance experience (including merger and public offerings) as well as with the IT industry. Alex Teoh - CEO & Managing Director B. Science (Information Systems / Finance) Extensive experience in Australasia with global management consulting practices specialising in the IT & Telco sector.
Executive Summary Mint Wireless Limited (Mint) is a global payments and mobile transactions company listed on the Australian Securities Exchange (ASX: MNW). Mint’s core business specifically focuses on the developed and emerging markets. Our vision is “To become the largest, global micro-transactions processing company for the poorly banked and cash economy” Mint’s subsidiary, Intermoni is unique from other mobile money solutions that are evolving globally: • ‘Bricks and mortar’ deployment and front end, bridging market gaps between the developed online world and the poorly banked, cash economy • Scalable: self-service ‘plug-and-play’ cash acceptance kiosks – simple to operate with ability for rapid deployment • Focus on micro valued transactions below USD$20
Dr. Seng Chuan Tan - Non-Executive Director Mechanical engineering, Masters and Ph.D in Engineering and Science Executive Director of Malaysian KLSE listed Insas Berhad. Wide experience in the IT and payments industry. Andrew Teoh - Executive Director Bachelor of Commerce (Accounting/ Finance) Extensive experience with emerging consumer and telecommunication technologies with prior experience in the pre-paid Telco industry.
Current Projects • Malaysia – First developing country deployment and roll out of micro-transaction terminals. Malaysia is the 2nd largest remittance-sender country amongst developing countries with ~2.4 million migrants remitting $6.8 billion annually. Binding order received from distributors in July 2011 for 3,000 terminals in Malaysia over the next 6 months (valued at ~ USD$5M). • Opening new markets in Asia (discussions underway in Indonesia, Singapore, Hong Kong and Vietnam markets) with further opportunity to scale globally. • Advanced discussions with leading microfinance cooperatives in one of the most vibrant microfinance countries in the world for the use of Intermoni’s micro-transaction terminals for the repayment of micro-loans.
Key Milestones & Investment Highlights • Successful launch of Intermoni (fully owned subsidiary of MNW) in Singapore, focused on deploying micro-transaction services to the poorly banked population of emerging markets globally • Acquisition of 51% of J&C Pacific in Malaysia, immediately providing the Company with operations and revenues in Malaysia and mobile technology and infrastructure that the Company will use as a base to develop its suite of micro-transactions services • Excellent progress with terminal rollout: Orders received for 3,000 terminal in Malaysia over the next 6 months and advanced discussions with key partners in other South East Asian markets • Capital raising: Balance sheet strengthened with over $2 million raised via institutional placement and share purchase plan
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Share Information
As at 6 September 2011
Code
ASX:MNW
Market Capitalisation
20,673,181
Current Share Price
$0.0830
52 Week High
0.1500
52 Week Low
0.0200
ASX:MNW 6 month price chart 0.10
0.05
0.00
-0.05
Apr 2011
May 2011
Jun 2011
Jul 2011
Aug 2011
Sep 2011 3 2 1
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Wireless Limited (ASX: MNW).
TECHNOLOGY
Company Name Sector Year Established Business Stage Location Seeking
Because Group International Ltd Global Media 2005 Expansion, Pre-IPO Sydney, Australia Pre-IPO Funding
Executive Summary Because Group International Ltd (Because Group) is a global digital media distribution company with operations in the US, the UK and Australia. Because Group has developed a unique global distribution infrastructure for media content online. Because Group is the parent company of the Skyhub Digital group of companies, Echospin™ (NY) and has contracted to purchase Push Entertainment™ (UK). The combination of online business technologies controlled by Because Group is branded as the digital future solution (dfs™).
Competitive Advantages • Internationally recognized Management Team with strong links in the Media + Entertainment Industry • Global Technical Team with experience in online business API’s and payment technologies • Mature proven platform and payment gateway that is versatile to the needs of M&E owners and provides a fast-track solution for any M&E owner, aggregator and retailer to participate in paid digital distribution • Enables movie rental brands (Movie Retailers) to sell direct to consumers • Enables content streaming brands (Internet Service Providers, Telco’s) to sell direct to consumers • Offers better cash flow & faster payments to content owners – 5 months down to 72 hours • Currently doing business in the US, Canada, UK and Australia with Universal, EMI, Warner
Key Investment Highlights • $5.5 million raised to date. • Because Group USA established September 2010 • Sony Music Approved Global License & acquisition Bandit.FM digital platform • Skyhub Digital stage 1 complete • Global Payment Gateway - Stage 1 complete • Global Bank Network - Stage 1 complete • Trading enabled to 54 countries • International Board assembled • Acquisition of Echospin October 2010 • Push UK Acquisition - Term sheet signed Nov 2010 - (www.pushentertainment.com) • EMI Global distribution agreement signed • Universal USA distribution agreement signed • EPIC records (Sony Music USA) utilising platform • Granted patents for digital media distribution
Board & Management: International Board Steve Millard (Founder) AU Former Head EPIC Records Australia Rupert Perry (Chairman) US Former Head EMI Music US|Euro|UK Bob Jamieson US Former Chairman RCA Richard Rowe Former Global President Sony/ATV Publishing Jim Caparro US Founder Def Jam Music/CEO Polygram/ Island Def Jam Ryan Dudley US Global Tax Lawyer NY David Simpson AU Fmr Snr Managing Partner, Freshfields Singapore Chris Moss AU Former MD Warner Music Australia
Advisory Board Dr Tom McKaskill AU Author | Entrepreneur | Strategist Chris Adams US Media Pioneer | Film Industry Executive Tim Eldridge US Ad Agency | Brand + Communication Strategist
Corporate Structure Because Group International is an Unlisted Public Company.
Exit Strategy It is the intention of the Board to list on a suitable exchange at an appropriate time. A number of vertical markets have been identified where Skyhub could provide a high value capability.
Further Information: To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Because Group International.
31
TECHNOLOGY/FINANCIAL SERVICES
Your Online Success Web Solutions
Company Name Sector Year Established Business Stage Location Seeking
Exa Web Solutions Internet, Technology 2000 Expanding Melbourne, Australia $2 million
Executive Summary Exa is Australia’s largest Online / Apps / Web / Mobile company, with over 1000 clients. Exa generates significant recurring revenue from its client base and is ranked at the top of Google for online marketing, tools and technologies. Exa operates 24x7, 365 days per year, is the most efficient player in its space and has unique ecommerce solutions for a range of social media and smart phone technologies. The business maintains high margins due to over $10M+ invested in back end & support systems. Exa is well positioned to capitalise on the rapid growth in the digital economy and is seeking to raise up to $2M for product and geographic expansion.
Competitive Advantages • Senior Management are equity holders • Leading edge technology (Online / Apps / Mobile) • Cost Efficient • National Footprint • Brand • Broad client base • Explosive growth in mobile apps • Genuine 24x7x365 operations
Board & Management: Peter Ball - Managing Director M.D. 25 years of building successful technology companies. Mitch How - CFO Lawyer and CPA 4 years at EXA. Similar previous roles in Media, Music & Tourism in Australia, UK & Europe. Jim Vincent - Special Operations Manager B.Sc, Maths, Physics & Comp 30 Years @ IBM. Programs in 22 languages, 6 patents and extensive patent work.
Corporate Structure Private Company Limited by shares.
Exit Strategy: Exa aims to list on a suitable exchange at an appropriate time.
Key Investment Highlights • Experience Board & Management Team • International Market Potential • Blue Chip Client Base (top tier banks) • Multiple revenue streams
Further Information 32
To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Exa Web Solutions.
TECHNOLOGY
Company Name Sector Year Established Location
Qanda Technology Ltd (ASX:QNA) Technology 2000 Sydney
Executive Summary Qanda Technology owns 2 operating businesses. Marketboomer provided online procurement services and technology to hotels in 11 countries. Customers such as Intercontinental, Starwood, Mirvac and Hyatt hotels save money through better pricing and process improvement. They also maintain robust workflow and auditability. It generates revenues through annual recurring license fees charged to buying hotels as well as turnover-based fees charged to suppliers. Webspy sells it’s Vantage software globally that allows companies to report on network Internet usage across all staff and networks. This enables them to better optimise network bandwidth, speed and costs. It also allows forensic analysis of network traffic. Compliance, Duty of Care and Security are all improved with its reporting suite.
Board & Management: Nathan Gyaneshwar - CEO & Executive Director Nathan founded Marketboomer in 1997 and has extensive mgt, cost control and procurement experience. Ben Donovan - Non-Executive Director Ben holds a B.Commerce in Finance and Commercial Law. He is a Chartered Secretary with ASX experience. Kim Redstall - Non-Executive Director Kim has significant operational, sales, marketing, and M&A experience in the technology sector. Declan Monahan - Non-Executive Director Declan has over 20 years experience in senior mgt roles in the hospitality, education and IT sectors.
Current Projects • Launch Marketboomer in the USA via existing customers such as Starwood Hotels and Resorts • About to release multilingual capability in Marketboomer to drive South East Asia sales • Implement excellent mobile reporting dashboards for customers executive level users • Increase Webspy sales in USA via combined direct and channel sales efforts • Launch of new streamlined global pricing and simplified product range for Webspy • Restructuring company entities to eliminate unnecessary costs and administration and tax • Consolidating reporting and internal systems to drive corporate efficiency
Key Miles Stones & Investment Highlights • Recently restructured to reduce annualised costs by over $2.4m • US market potential 20 times Australian run rate. Ready to implement US growth strategy. • Webspy generating 1.4m in sales with only 5 staff and ready to grow • Technology platform update nearing completion to increase web based sales chennel
Share Information
As at 6 September 2011
Code
ASX:QNA
Market Capitalisation
3,093,532
Current Share Price
$0.0050
52 Week High
0.0180
52 Week Low
0.0040
ASX:QNA 6 month price chart 0.04
0.03
0.03
0.02
Apr 2011
May 2011
Jun 2011
Jul 2011
Aug 2011
Sep 2011 0.4 0.3 0.2 0.1
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Qanda Technology.
33
PROPERTY
Company Name Sector Year Established Business Stage Location Seeking
Intellect Projects Pty Ltd Property Development 2004 Ongoing Inner Melbourne Strategic Investors & Fund Managers
Executive Summary Intellect Projects is a property development company specialising in residential apartment and retail developments within the inner suburbs of Melbourne. We have 25 year track record of successful property development and have forged a reputation for quality projects underpinned by an intimate knowledge of our target market and long-standing industry relationships. Intellect is entering an exciting next growth phase and is seeking co-investment to launch our current project, a boutique apartment complex located within 10kms of the city centre. Intellect seeks to strongly align its interests with those of investors and to this end, is offering an attractive profit share return structure on this development.
Competitive Advantages • 25 yrs+ experience in property development within the inner city suburbs of Melbourne. • Off market development opportunity. • Wholesale purchase rates. • Management undertaken by an experienced board and consultants. • Partnering with an experienced developer and other investors increases your ROI and de creases risk.
Board & Management: Peter Motalli - Managing Director Registered Commercial & Residential Builder Has over 25 years experience in the building industry and has been developing inner city projects through the last 16 years. Stan Zaslavsky - Marketing Advisor Licensed Estate Agent Has over 10 years of marketing development property experience.
Corporate Structure The investment fund is structured as a unit trust and is an unregistered managed investment scheme under the provisions of the Corporations Act 2001.
Exit Strategy Once all the apartments in the development are sold and all profits after costs and fees are realised, investors can withdraw their equity and any capital gain. Target project completion is 18-24 months.
Key Investment Highlights • The Fund will be managed on a performance basis meaning that investors will receive a return on their capital before any performance fee can be awarded to the Manager. After the initial hurdle return has been distributed, the Unit Holders will then be given an additional share of the Final Net Proceeds (Net Profit) of the Fund through their holding of Ordinary Units. • Our current project and investment opportunity has progressed to a point where it is signifi cantly derisked and awaits the addition of capital to execute. • Proven market demand for finished product (quality $450K-$850K residential apartments close to CBD) • Majority of the apartments are pre-sold prior to construction, allowing a more accurate return and a settlement of the pre-sold apartments soon after completion of construction. • This project offers the opportunity to form a relationship with a quality developer and to invest in future projects.
Further Information 34
To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Intellect Projects.
PROPERTY
Company Name Sector Year Established Location Seeking
BlackWall SPORTSMED Property Trust Real Estate/Medical 2011 Adelaide , South Australia $10.6 million
Executive Summary BlackWall SPORTSMED Property Trust is a fixed term property investment trust that has contracted to acquire the SPORTSMED Hospital and adjacent SPORTSMED Clinic in South Australia, a leading orthopaedic and sports injury practice with over 130,000 patients per year. The Trust is forecast to generate tax effective distributions starting at 9% per annum paid quarterly. Investments are not diluted by acquisition costs and an initial investment of $1.00 per Unit will be backed by 100 cents of NTA. Rental income is forecast to grow by at least 3% per annum. BlackWall is a real estate investment linked to the fast growing and non-discretionary healthcare industry.
Competitive Advantages • Strong lease covenant to a highly regarded operator on a triple net lease with 20 year term. SPORTSMED was rated as the No.1 private hospital in a recent Medibank survey. • Alignment of interest. SPORTSMED has first rights of refusal to purchase the asset as a co owner and will retain 25% ownership. • BlackWall is a vertically integrated property funds management business. Its directors and senior managers have structured and managed direct property investment since the early 1990’s. Trusts structured by Blackwall of a similar type have paid all distributions through the GFC and shown strong capital growth. • As a special offer to Wholesale Investor subscribers BlackWall will rebate brokerage of 2% to each investor investing through the special Wholesale Investor webpage. With this offer the total cash return in the first year will increase to 11%.
Board & Management: Stuart Brown - Chief Executive Officer and Director More than 15 years experience in property investment. Involved in debt and equity raisings on listed and unlisted property valued at more $500 million. Formerly with leading law firms Mallesons and Gilbert & Tobin. Richard Hill - Independent Chairman and NonExecutive Director Extensive investment banking experience in the US and Hong Kong. Founding partner of corporate advisory firm Hill Young & Associates. Chairman of the Westmead Millenium Institute for Medical Research. Joseph (Seph) Glew - Non-Executive Director Over 20 years experience in the commercial property industry in NZ, Australia and the US. Non Executive director with a number of listed companies in NZ and Australia. Robin Tedder - Non-Executive Director Over 30 years experience in investment and financial markets. Chairman of Vintage Capital and a former member of the ASX.
Corporate Structure Single asset special purpose trust registered as a Managed Investment Scheme under the Corporations Act 2001.
Exit Strategy Asset sale on expiry of the 7 year term.
Key Investment Highlights • Strong cash yield of 9% pa paid quarterly with tax benefits. • The Trust is structured to minimise transaction costs and, as such, investors’ initial NTA is 100 cent per $1 invested thus enhancing capital returns. • The trust has been given a AA- rating by Property Investment Research (PIR) which indicates that PIR believes it is an above-average grade product, exceeds the minimum requirements of its review in a number of key evaluation parameters and has an above-average risk/return trade-off. • The Trust should be able to consistently generate above-average risk adjusted returns.
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for BlackWall.
35
FUND MANAGEMENT
Company Name Sector Year Established Business Stage Location Seeking
TRAC Financial Group Ltd Fund Management 2009 Expansion Brisbane Investment Funds
Executive Summary TRAC Financial Group Ltd (TRAC) is an Australian domiciled specialist portfolio and fund management firm. Utilising exceptional prior performance, the TRAC Absolute Return Fund was launched oversubscribed in November 2009. Since inception until 31 May 2011, this fund returned to investors 102.54%. TRAC is now pleased to announce the launch of the TRAC Absolute Return Fund – Issue 2, providing investment exposure to the manager’s successful trading strategies.
Competitive Advantages
Board & Management: Thomas Coughlin - Chief Investment Officer 10 + years experience in the Investment and Fund Management industry. Sits on the board of four public investment and commodity public companies. Michael Coughlin - Company Secretary 37 years experience in the Accountancy and Financial Services industries. 33 years as principal. William Ralston - Non Executive Director Prominent Queensland businessman and property developer for 35 + years. David A Charles – DirectorLLB (commercial); GD Legal Practice Acted for some of the world’s largest and most prominent entities across four continents. An experienced director and a dynamic business oriented lawyer, with a focus on corporate governance.
Corporate Structure TRAC Absolute Return Fund – Issue 2 is a Unit Trust with TRAC ARF 2 Pty Ltd as Trustee. TRAC Financial Group Ltd is the manager.
Exit Strategy Monthly redemptions are available to all investors.
Key Investment Highlights • Alternative asset exposure, diversifying against traditional investment strategies. • Aims to provide investors with consistently high returns irrespective of global market conditions, with moderate levels of risk. • Targets a return above the global asset class with the strongest performance. • Aims to achieve this target by successfully employing discretionary; systematic; arbitrage; and event driven trading strategies, while continually remaining market neutral. • Trades across asset classes and over a wide but familiar spectrum of markets around the globe. • Will not be limited to the adherence of any specific investment philosophy, but rather focus on the most effective method of generating profits within the parameters of its risk management system.
Further Information 36
To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for TRAC Financial.
PROPERTY
Company Name Sector Year Established Business Stage Location
Folkestone (ASX:FLK) Property 1960 – listed on ASX June 2000 ASX Listed Australia
Board & Management: Garry Sladden - Non-executive Chairman Garry is a business and strategic adviser who has a diversified business background in the areas of real estate, private equity, banking and finance. Greg Paramor - Managing Director Greg has been involved in the real estate and funds management industry for more than 40 years. Greg was the CEO of Mirvac between 2004 and 2008.
Executive Summary Folkestone is a real estate investment, development and funds management company listed on the ASX (Code: FLK). Following an Extraordinary General Meeting of Shareholders in March 2011, the New Board and senior management have recapitalised the Company by successfully raising $31.5m and are now implementing a new strategy to enable Folkestone to take advantage of the attractive opportunities created by the dislocation in real estate and financial markets across: • investment types: direct investment, joint ventures and co-investing in Folkestone managed funds; • capital structures – ordinary equity, preferred equity and mezzanine debt; and • sectors – office, retail, industrial, residential and social infrastructure. Folkestone’s on balance sheet activities will focus on value-add and opportunistic investments while Folkestone’s funds management platform (Equity Real Estate Funds Managament) will offer real estate funds to private clients, high net worth individuals and select institutional investors across core, value-add and opportunistic real estate investments. The focus of Folkestone’s investment strategy will be on delivering capital growth for Shareholders. Folkestone will target an after-tax return on equity of 15% per annum on a rolling three year basis.
Ben Dodwell - Head of Property Ben has been responsible for the development of retail centres, integrated mixed use and apartment projects at Lend Lease and Stockland. Adrian Harrington - Head of Funds Management Adrian is the former CEO of Funds Management, US and UK at Mirvac and has more than 18 year experience in funds management and real estate industries. Jonathan Sweeney - Chief Operating Officer Jonathan has more than 24 years experience in the finance services industry and was the former Managing Director of the Trust Company from 2000 to 2008.
Current Projects • Clifton Hill – Melbourne (residential apartments) • Altona North – Melbourne (bulky goods/industrial) • Mickleham – Melbourne (industrial land) • Karratha - WA (residential accommodation) • Officer – Melbourne (residential land sub-division) • Tivoli Development Fund (residential development fund)
Share Information
As at 6 September 2011
Code
ASX:FLK
Market Capitalisation
33,375,251
Current Share Price
$0.0900
52 Week High
0.1500
52 Week Low
0.0850
ASX:FLK 6 month price chart 0.12
Key Investment Highlights • New experienced board and management team • Alignment of interest – senior management own more than 12% of the Company • Unique offering in the listed real estate sector • Positioned to capitalise on attractive real estate opportunities • Exposure to funds management platform – Equity Real Estate Funds Management • Strong investment sourcing capabilities
0.10
0.08
0.06
Apr 2011
May 2011
Jun 2011
Jul 2011
Aug 2011
Sep 2011 1.2 0.8 0.4
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Folkestone (ASX: FLK).
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FUND MANAGEMENT
Company Name Sector Year Established Business Stage Location Seeking
Bizpanel Limited Finance and Investment 2011 Operational and seeking investors Sydney $5m initial
Executive Summary The Company operates in the franchise industry and offers three (3) key services: • Licensees –– Bizpanel owned Franchises with a Licensee acting as the “Franchise Manager’ under agreed terms; and • Franchisees –– Providing a below 80% Loan to Value ratio, loan for the purchase of an approved Franchise License. The Franchisee under this arrangement holds the Franchise License directly and the Company takes a fixed charge over the Franchise as security; and • Business Support –– Essential services such as bookkeeping and accounting in addition to desired services such as business planning, business coaching and sales training The goal of Bizpanel is return based, therefore each of the 3 key services aims to deliver a minimum return.
Competitive Advantages • Preferential agreements and terms with Franchisors; • Exclusive funding agreements with franchisor; • Highly skilled management team professionals; • High scalability and no direct competition • Business Support services tracks financial performance to the franchise; • Bizpanel always retains the right to take-back the Franchise Business, appoint external management, sell or dispose of the asset.
Key Investment Highlights • Franchise industry specific • Below 80% loan to value ratio • Investor places 100% of investment on term deposit for the term of the debenture • Dual income stream from bank deposit rates and investment • Foreign exchange options available for offshore investors • Investors can nominate their preferred franchise • Franchise sector anticipates double digit growth for 2012 • Investment return expected from 12% pa for funds held on term deposit as security or up to 17,5% pa for direct investment. • Suitable for superannuation including self managed superannuation
Board & Management: Matthew Holland - M. Director Financial Planner, RG 146 Diploma financial Services The largest multi franchise owner for a major franchise. Matthew sold in 2011 yielding the largest multi million dollar trade sale for the franchise group. Chris Kalpage - Director Solicitor Chris Kalpage a Solicitor with the Law Society of New South Wales for the past 27 years. Andrew Garouniatis - Director Accountant Corporate Andrew has worked with Blue Chip organisations for the last 26 years. A member of the Institute of Public Accountants. Anita Olsen - Director Accountant / CPA Anita Olsen started in her accounting practice in 1994 as a registered tax agent and accountant.
Corporate Structure An unlisted Public company and financial services license number 404453. Daily management is undertaken by Directors Matthew Holland and Chris Kalpage.
Exit Strategy Debentures: Fixed Three (3) or five (5) year term; From 12% - 17.5% per annum; Paid Quarterly, bi annually or annually: May be redeemed early upon application to Bizpanel and the bank.
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Bizpanel Limited.
38
FUND MANAGEMENT
Company Name Sector Year Established Business Stage Location Seeking
Bullion Capital Limited Fund Management 2010 Expansion Brisbane Investment Funds
Executive Summary Bullion Capital Limited (BCL) is an Australian domiciled specialist bullion brokerage and fund management firm. Capitalising on its unique position and strategic advantages within the physical precious metals industry, BCL is pleased to offer a range of precious metal Bullion and Ore funds exclusively to Sophisticated and Professional investors. All funds have investment strategies implemented to provide a relative return over their underlying spot bullion price, while providing the highest level of quality assurance and safety in the industry.
Current Funds BCL is offering investment in the following physical precious metal funds: • Gold Bullion • Silver Bullion • Platinum Bullion • Gold Ore • Silver Ore • Platinum Ore
Key Investment Highlights Bullion Funds: • The investment objective is to marginally outperform the underlying inter-bank bullion spot price, while providing the safest, most flexible and cost effective allocated bullion investment vehicle available globally. • The funds have an exclusive market making agreement with Australian Bullion Exchange (ABX). • Real-time trading with 3 day settlement. • Monthly physical delivery and vault inspection available. • Currency hedging available. Ore Funds: • The investment objective is to significantly outperform the underlying inter-bank bullion spot price, while providing a safe allocated bullion investment vehicle. • Sources unrefined metal and sells to refiners at a profit. • Supply agreement in place with Australian Bullion Refinery. • Currency hedging available.
Board & Management: Thomas Coughlin - Chief Investment Officer 10 + years experience in the Investment and Fund Management industry. Sits on the board of four public investment and commodity public companies. Dylan Kelly - Technical Manager BBus Com, GCME, M.Sc Mining financial evaluation specialist. International and cross cultural experience in a variety of commodities and operating environments. Michael Coughlin - Company Secretary 37 years experience in the Accountancy and Financial Services industries. 33 years as principal. William Ralston - Non Executive Director Prominent Queensland businessman and property developer for 35 + years. David A Charles – DirectorLLB (commercial); GD Legal Practice Acted for some of the world’s largest and most prominent entities across four continents. An experienced director and a dynamic business oriented lawyer, with a focus on corporate governance.
Corporate Structure The Bullion Capital Funds are Unit Trusts with corporate Trustees. Bullion Capital Limited is the manager of the Funds.
Exit Strategy Bullion Funds - Real-Time trade execution with 3 day settlement, plus monthly physical delivery available. Ore Funds - Monthly redemptions.
Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Bullion Capital Limited.
39
MINING
Company Name Sector Year Established Business Stage Location Seeking
Flinders Exploration Mining 2009 IPO Adelaide, SA IPO Capital
Executive Summary Since opening the initial public offer (IPO) for Flinders Exploration Limited (FEX) in October 2010 the phosphate and diamond asset base of the Company has been strengthened by continued exploration. This has upgraded our existing Copper Claim prospect in SA to prefeasibility study status. The Company has also gained the right to acquire two new gold projects; the Black Cat gold development project near Coolgardie in WA and the Porters Mount gold exploration project in the central Lachlan area of NSW.
Board & Management: Andrew Andrejewskis – Chairman Andrew brings 43 years of experience in senior roles in the resources industry and government. David Tucker - Managing Director David is a minerals geophysicist and has more than 37 years experience in the minerals exploration industry. Kevin Wills - Executive Director Kevin has 36 years experience and was the former Managing Director of Flinders Mines.
Current Projects • Copper Claim is located in the southern Flinders Ranges, and has potential for an oxide body of 10 to 20 million tonnes at a grade of 0.25% to 0.35% copper and contains an Inferred Mineral Resource of 22 million tonnes at an average grade of 0.25% copper. On listing the Company will commence a prefeasibility study into developing the project. • Black Cat has the potential for near term development of a JORC-compliant gold resource (317,000 tonnes at 2.1 g/t Au). FEX has carried out a scoping study from which gave a positive result. • Porters Mount is located in the major copper-gold province of central New South Wales and has the potential for discovery of a large porphyry copper-gold body. • FMS JV: FEX’s assets lie in the JV Agreement with FMS which is subject to the successful raising of capital and listing. FEX can acquire a 51% interest by spending $3.5 million in two years and a total 75% interest by spending a total $6.0 million on exploration within a total three years. The JV contains a substantial tenement package which is prospective for phosphate, diamonds, copper and gold. • Further Details: FEX is seeking to raise $5,000,000 by the offer of 25,000,000 shares at a price of 20 cents per share and will accept oversubscriptions of a further $2,000,000.
Key Investment Highlights • Objective: to achieve sustainable production ASAP • Copper Claim: Prefeasibility study, including drilling and column leach tests, mining lease application. • Black Cat: Prefeasibility study, pit optimisations, extension drilling, mine design – followed by contract mining, ore haulage and toll treatment and production • Porters Mount: Deep drilling at 200-500 metres depth searching for a world class target • Diamonds and Phosphate: Bulk sampling and drilling leading to follow up work.
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Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Flinders Exploration.
Professional investors are invited to attend the
2nd Annual Australian Microcap Investment Conference OVER 2 DAYS:
Tuesday, 18 October 2011 and Wednesday, 19 October 2011 Sofitel Melbourne On Collins, Melbourne Companies presenting include: • Adelaide Energy Limited (ADE); an oil and gas exploration and production company focused on the Otway and Cooper Basins in South Australia. • Advanced Braking Technology Limited (ABV); is dedicated to the development of innovative braking systems including the Sealed Integrated Braking System (SIBS®). • Australian Power & Gas Company Limited (APK); Australia’s leading electricity and gas provider. Ranked number one on BRW’s 2010 Fast 100 List. • Central Petroleum Limited (CTP); a junior exploration and production company operating the largest holding of prospective onshore acreage in Australia totalling over 70 million acres. • Circadian Technologies Limited (CIR); is a biotechnologies company focused on the treatment of cancer and other serious human illnesses. • Diploma Group Limited (DGX); a leading property development, construction and realty company with a diverse commercial, retail and residential portfolio.
• Gold Road Resources Limited (GOR); a gold exploration company focused on the Yamarna Belt in WA. • Healthzone Limited (HZL); Australia’s leading natural products distributor, franchise retailer and producer of health, beauty and natural products. • Integrated Legal Holdings Limited (IAW); is focused on the steady and selective acquisition of legal firms to develop a national network of law firms. • Ipernica Limited (IPR); extensive global activities focused on generating revenue from intellectual property (IP) rights. • Jumbo Interactive Limited (JIN); a successful online lottery business that has created the hugely popular Oz Lotteries website. • MNET Group Limited (MNZ); Australia’s leading full service mobile solutions company and partner for many of the world’s leading telecommunication carriers and media companies. • NewSat Limited (NWT); Australia’s largest independently operated satellite communications company.
• Neon Energy Limited (NEN); a petroleum exploration and production company with oil and gas interests in Vietnam and California. • Patrys Limited (PAB); a biotechnology company with its core technology to identify and harvest antibodies produced by the human body in response to tumours. • Praemium Limited (PPS); a specialist in the provision of investment administration and portfolio management services to Australia’s leading financial institutions.
EARLY BOOKING RATE: $295* AVAILABLE UNTIL 31 AUGUST 2011 Register immediately as places are limited. * GST inclusive. Conference fee includes attendance at the two day conference, meals, networking function, conference program and research notes.
For further information and to register visit www.microcapconferences.com or call 03 8352 7140 Event Partners
Media Partner
Never heard of the most active broker in new capital raisings?
The smart money likes it that way. The smart money knows that some things are best kept to oneself. Perhaps that’s why you might not know about the broker that’s quietly become one of Australia’s leading financial services firms. Patersons Securities has been Australia’s most active in new capital raisings since 2007 and raised in excess of $6.6 billion in over 760 new issues over the past decade. Patersons has frequently been ranked first by number of new equity issues in Australia and continues to be so in 2010 with 16.4% of the market. Our Research team was recently awarded #1 stock picker in the Real Estate sector, #1 stock picker in the Metals and Mining sector and #2 stock picker in the Energy sector at the 2010 Thomson Reuters StarMine Analyst Awards. To be eligible to participate in Patersons new deal flow you must have net assets of at least $2.5 million or gross income of $250,000 or more for each of the last two years.
To receive a complimentary sample of our research or to talk about Patersons new deal flow, please contact Marco Longo or Michael Brindal on 03 8803 0167 or email corporatedeals@psl.com.au.
www.psl.com.au
T H E AU S T R A L I A N S TO C K B RO K E R
This is intended to provide general advice only, and has been prepared without taking account of your objectives, financial situation or needs and therefore before acting on advice contained in this advertisement you should consider its appropriateness having regard to your objectives, financial situation and needs. You should only seek to participate in offers as a sophisticated investor if you have previous experience in investing in securities, so you can assess the merits of an offer, the value of securities, the risks involved in accepting the offer, the adequacy of the information in respect of the offer and whether it is suitable to your circumstances. Patersons Securities Limited ABN 69 008 896 311 AFSL No. 239 052 Participant of ASX Group; Participant of NSX Group; Stockbrokers Association of Australia Principal Member; Financial Planning Association Principal Member
Listing Index Company Name Code Business Stage Sector Baraka Energy & Resources Ltd (ASX: BKP)
BKP
BKP
Mining
Because Group International
BCI
BCI
Global Media Distribution
Benitec Bipharma
BLT
BLT
Biotech
BioDiem Ltd
BDL
BDL
Biotech
Bionomics Limited (ASX:BNO)
BNO
BNO
Healthcare/Biotech
Bizpanel Limited
BZP
BZP
Financial Services
BlackWall SPORTSMED Property Trust
BWS
BWS
Property
Bluechiip Ltd
BCT
BCT
Technology
Bullion Capital
BUL
BUL
Funds Management
Carbon Conscious Ltd (ASX:CCF)
CCF
CCF
Clean Technology
Collective Intelligence Group
CLG
CLG
Technology
Cynergy Health
CYN
CYN
Biotech
Diamond Energy
DIA
DIA
Cleantech
Eastern Harmony NZ Ltd
EHNZ
EHNZ
Cleantech
Eastland Medical Systems Limited (ASX:EMS)
DIA
DIA
Clean Tech
EcoQuest Limited (ASX:ECQ)
ASY
ASY
Food / Diet Programs
Equiome
ECQ
ECQ
Cleantech
Exa Web Solutions
EWS
EWS
Technology
Flinders Resources (ASX: FEX)
ERJ
ERJ
Cleantech
Folkestone (ASX: FLK)
EQU
EQU
Professional Services
Forza Capital Pty Ltd
FEX
FEX
Resources
Global Kinetics Corporation
GKC
GKC
Biotech
Intellect Projects Pty Ltd
INP
INP
Property / Development
Jubilent Health Australia Ltd
JHA
JHA
Biotech
KFSU Pty Ltd
JIN
JIN
Gaming
Mesthynes Ltd
MSY
MSY
Biotech/Healthcare
Mint Wireless Limited
MNW
MNW
IT
Photonz Corporation Ltd
PTZ
PTZ
Biotech
Phylogica Limited (ASX:PYC)
PAB
PAB
Biotechnology
Qanda Technology Ltd
QNA
QNA
Technology
Sun Connect
RXL
RXL
Mining
Third Link Growth Fund
TLG
TLG
Financial Services
TRAC Financial
TFF
TFF
Agribusiness
WH Medical Pty Ltd
WHM
WHM
Healthcare
Xenexus Pharmaceuticals Ltd
XNP
XNP
Healthcare/Biotech
Further Information For information on these and other opportunities, go to www.wholesaleinvestor.com.au
43
When our Private Clients team spoke with brothers Emanuel and Napoleon Perdis, of Napoleon Perdis Cosmetics, they had outgrown their local advisor and were looking to expand. Emanuel wanted someone who could work with them on expansion plans and refinancing, but more importantly, he needed a trusted business advisor he could come to for future decisionmaking. Their unique take on the cosmetics industry – that they’re not in the fashion business, but the confidence boosting business – has seen them grow and grow. With the continued advice of their Private Clients team, they are now on their way to becoming one of the most recognised cosmetics brands from Australia to Hollywood. And Emanuel, he loves the fact that although he’s not our only client, he certainly feels like he is.
How can growing a business make you feel like an emperor?
What would you like to grow? Share your story at whatwouldyouliketogrow.com.au