may/june 2010
INVESTMENT OPPORTUNITIES FOR WHOLESALE, SOPHISTICATED AND HIGH NET WORTH INVESTORS
Advanced Wealth Management software solutions for financial institutions (17)
High growth online product servicing the hospitality and entertainment industry (25)
State-of-the-art Solar Panel Manufacturer (20)
Anti-cancer drug about to enter Human Trials (14)
Pre-IPO Gold Explorer with tenements in world-class mineral province (22)
Pre-IPO Aquaculture company with world first hatchery technologies (16)
Plus: Highly scalable online business with 90% gross margin (26) Q&A with a Venture Capitalist: Lend Lease Ventures (9) Unique insight mining system for CEO’s (24) ASX Listed top ten gold producer (19) PWC Private Business Barometer (11) Blue-chip equities fund (18)
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resources
INVESTMENT EXPO
Brisbane • Melbourne • Sydney
Hear it straight from the coalface Learn how to prosper in the resources boom
Symposium, in collaboration with The Trading & Investing Seminars & Expo, offers investors a unique opportunity to hear from leading resources and energy companies at Australia’s largest and most influential investment expo. Why attend • High quality, free seminars and workshops – learn about investing in resources and with who • Wide range of presenting resources and energy companies – from exploration to production • Guess the weight of the gold bar and win! Since its inception in 2001, the Trading & Investing Seminars & Expo has been recognised as Australia’s leading event dedicated to investors of all levels, providing access to a wide range of companies, products and services – all under one roof.
Where and when Brisbane Convention Centre Fri 18th – Sat 19th June Melbourne Exhibition Centre Fri 23rd – Sat 24th July Sydney Convention Centre Fri 29th – Sat 30th October
Proudly brought
Proudly brought to you by to you by
To register visit https://secure.tradevent.com.au/tradingandinvesting2010/ 2 For further information Ph: 02 9299 4350 E: info@symposium.net.au
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w may/june 2010
Contents Wholesale Investor Magazine is published by Wholesale Investor Pty Ltd ACN 131 512 715 Managing Director - Steve Torso Publisher - Reuben Buchanan Senior Account Managers: - Milton Papadopoulos - Kevin Brown - Matt Hayne - Anthony Panoyan Editor - Michelle Smith Directors Steve Torso – Managing Director 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 Melbourne: Address - Suite 2, 150 Chestnut St, Richmond 3121 Phone - 1300 899 171 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/Layout - Dan Segal The Creative www.dansegal.com.au Printer - GEON Group www.geongroup.com Distribution - D&D Mailing www.ddmail.com.au
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 other 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 5
Company Updates
9
Q&A with a Venture Capitalist: Lend Lease Ventures
10
Leverage Social Media to Increase Business Performance
11
Private Business Barometer: Listening to Australia’s Private Businesses
12
The New Frontiers in Mining : Pre-IPO Investment
13
Sound Corporate Governance for Small Cap Companies
With Anthony Pascoe, CEO, Lend Lease Ventures
By Dominic Dirupo, Founder and Principal, Alphastation
By Gregory Will and Adrian Bunter, PricewaterhouseCoopers
By Matthew Hayne, Small Cap ASX and Mining Specialist, Wholesale Investors By Michael Derin, Managing Director, Azure Group
Opportunities 14
QBiotics Limited
16
Lobster Harvest Limited
17
AG Delta Pte Ltd
18
NavraInvest Limited
19
Crescent Gold Limited (ASX:CRE)
20
Spark Solar Australia
22
Commissioners Gold Limited
24
Hunome Pty Ltd
25
MyGuestlist
26
Mailing Lists Online Pty Ltd
27
KFSU
28
Gratuk Technologies Pty Ltd
29
Wireless Nation Pty Ltd
30
Brightgreen Pty Ltd
31
Cloncurry Metals Limited (ASX:CLU)
32
Green Resources Group Limited
33
Tailored Franchise Holdings Limited
34
Phase Changer Pty Ltd
35
Australian Bauxite Limited (ASX:ABX)
36
NavraInvest Limited
37
Phylogica Limited (ASX: PYC)
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Listing Index
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Letter from the Editor May has been a very busy month here at Wholesale Investor, from the launch of Wholesale Investor TV and the Distressed Assets Platform, to Investor Roadshows and speaking engagements across Australia. In the past month alone Wholesale Investor is proud to have presented at the Hunter Innovation Festival, Lesanz Perth, University of Technology, Sydney, AIMIA Innovation Conference, Invest Mackay Whitsunday Isaac Conference, Green Tech 2010 and the AusBiotech Victorian Branch event. This pace is set to continue for the next few months as I am excited to announce that in July the ASX in association with Wholesale Investor will once again be hosting the ASX IPO WORKSHOP: KEYS TO A SUCCESSFUL IPO. This series of events will be held in Sydney and Melbourne, with experts covering the fundamentals of IPO planning from a financial, legal, fundraising and broking perspective. Keep a close eye on the Wholesale Investor website for further details of these events. The success of the WHOLESALE INVESTOR OPPORTUNITY AND NETWORKING EVENING continues to grow, with the next event to be held on JUNE 30th in SYDNEY. This exclusive event will feature 6 high-growth Pre-IPO, Private and ASX Listed Opportunities, and provide you with the opportunity to network with other private and professional investors and fund managers who are active in the market place. We look forward to meeting you at this event! As well as 20 dynamic Pre-IPO, Private and ASX Listed opportunities, this issue of Wholesale Investor Magazine sees the return of Q&A with a Venture Capitalist with Lend Lease Ventures CEO Anthony Pascoe in the hot seat. Turn to page 9 to read his insights, observations and strategies for investment in the Private space.
With Australia’s abundant natural resources desired by the world’s growth economies, Australia’s miners have come into the global spotlight. This issue Wholesale Investor’s Small Cap ASX and Mining Specialist Matthew Hayne sheds some light on the opportunities for investment and success stories in this sector, turn to page 12 for his article. SPOTLIGHT ON: MBO OPPORTUNITIES With more and more Corporate investors seeking to back MBO’s in place of outright acquisitions, Wholesale Investor is now opening our platform to discreetly promote these unique opportunities. Over the coming months we will be looking to supply more education, information and opportunities in this area. On behalf of the team at Wholesale Investor, I hope you enjoy the MAY/JUNE Edition of Wholesale Investor and find some interesting opportunities on the following pages. Best regards, Michelle Smith – Editor, Wholesale Investor Magazine
Reuben Buchanan Executive Director
Steve Torso Managing Director
Michelle Smith Editor
Upcoming Events/Media Partnerships GREENTECH 2010 June 8-10 Sydney
GreenTech 2010 offers a unique opportunity to evaluate the most promising high-growth cleantech sectors; gauge industry experts, innovators and investors’ views; gain clarity on the direction of our CPRS legislation; and better understand carbon markets and greentech opportunities. www.acevents.com.au/greentech2010 INVESTOR OPPORTUNITY AND NETWORKING EVENING June 30 Sydney
The “Wholesale Investor Opportunity and Networking Evening” provides you with a rare opportunity to meet with the CEO’s of companies featured in Wholesale Investor, along with the opportunity to network with the other high net worth investors and fund managers who are active in the market place. www.wholesaleinvestor.com.au/events REIW AUSTRALIA 2010 August 10-12 Sydney
As institutional investors and top developers look to profit from recovering market conditions and stable property values, the 5th annual REIW Australia presents a unique global platform for leading Australian property companies to meet their targeted institutional clientele. http://www.terrapinn.com/2010/reiwau/
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Company Updates For more information regarding the companies below, please go to wholesaleinvestor.com.au, click on View Investment Opportunities and search by their name.
EcoBiotics lead drug EBC-46 to enter Human Trials through subsidiary company QBiotics
CAMCO GROUP
Camco Group Awarded 2 New Tenders To The Value Of Over $2Mil, Shortlisted For Further $44Mil
First listed in Wholesale Investor about 12 months ago, EcoBiotics successfully raised $2.8m in November 2009 to further develop their key drug EBC-46. Since its discovery in 2004, EBC-46 has been housed within a wholly owned subsidiary called QBiotics Limited. Since November 2009, EBC-46 has been successful in treating a further 100 dogs and cats for a range of tumours. Currently Qbiotics is applying through the APVMA to have EBC-46 registered under a Minor Use Permit for the Australian Veterinary markets. This will see the company produce revenue this calendar year. Preparations are also underway for Human Trials, which should commence in early 2011. In order to fund the Human Trials, QBiotics is launching a capital raising to raise $5m through an Offer Information Statement. Further information about QBiotics and this offer can be found on page 14.
Camco Group would like to announce that they have signed with corporate advisory firm Ozland Capital Group to facilitate the company’s capital raising project. This decision was based on the overwhelming support by investors and requests for further information. The Camco Group has since been awarded 2 tenders within 2 weeks of the Sydney Wholesale Investor Opportunity and Networking evening to the value of over $2M and is shortlisted for a further $44M in tenders. This round of capital raising is to strengthen the company’s bottom line so that it can successfully have the working capital to tender and complete the projects won. The company’s projected budget of $12M revenue looks like it will be beaten with current expected EOY revenue of $15M.
Sustainable Energy Australasia
ACQUISITION OF SUSTAINABLE ENERGY AUSTRALASIA BY ASX LISTED COMPANY
Shell Villages and Resorts Limited, an ASX listed Public Company (ASX code SVC), is to acquire Sustainable Energy Australasia Limited (SEA) together with SEA’s wholly owned subsidiary Sustainable Australasia USA LLC which houses SEA’s oil and gas assets in the USA. SEA’s Chairman and founder Richard Pritchard was quoted as saying “This is a great outcome for SEA’s shareholders, it will enable the development of our key assets in the USA and enable the furthering of our ambitions in Asia in relation to sustainable energy projects; all within the environs of a Public Listed Company.” 67% Cyan 0% Magenta 84% Yellow 0%Black
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100% Cyan 68% Magenta 0% Yellow 12%Black
KEY TERMS The key terms of the transaction are based on the issue of SVC shares and options to SEA shareholders and will be subject to due diligence and the approval of both companies’ shareholders. As part of the agreement Mr Pritchard became a board member of SVC immediately after execution of the Heads of Agreement.
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Company Updates GOVERNMENT, INVESTMENT AND COMMERCE GROUPS SUPPORT INTERNATIONAL INVESTMENT LAUNCH
Eco Sanctuaries, the innovative Australian sustainable technology, ecotourism and conservation company, is launching an international investment program to support the company’s Australian equity raising. Following interest from the Department of Trade and Economic Development (South Australia) and the Australian Trade Commission, information about Eco Sanctuaries will be available through an investment network in 21 international locations and will feature as part of a Trade Delegation to China later this month. “Work on our Queensland expansion program is progressing and there is interest in Eco Sanctuaries establishing an international presence, so we need to ramp up our capital raising to meet these challenges”, said Managing Director, Mark Herrmann. Eco Sanctuaries is seeking capital to: •
Expand Flour Cask Bay Sanctuary on world-renowned Kangaroo Island
•
Develop new destinations in conjunction with icon Queensland National Parks
•
Undertake strategic mergers with boutique tourism and sustainability operators
•
Progress development of conservation based ecotourism and sustainability hubs
NEW PRODUCTS TO BE LAUNCHED OVER NEXT 12 MONTHS
TO BENEFIT FROM NEW ‘NO COMMISSION’ RULES DIY Financial is set to become a pioneer of financial services websites that are specifically established to operate profitably within the Government’s proposed new ‘commission-free’ financial planning environment. DIY’s business model is to make available to individuals and ‘doit-yourself’ superannuation funds all the resources necessary for investment so that a user can either work with a financial planner or on their own. DIY Financial is also working with a new group, DNA Partners who are an aggregator of financial services products and Manager of a comprehensive operational and financial management platform.
DIY FINANCIAL ENTERS NEW CONTRACTS New arrangements have been put in place for DIY Financial to contract with property investment consultants Compass Capital, an Australiawide real estate company with a large, research based portfolio of investment properties for sale. Real estate revenue is a major component of DIY Financial’s business model.
PARTY HOPPERS LAUNCH 2 NEW FRANCHISES, 5 MORE WAITING TO LAUNCH Party Hoppers is excited to announce that two new franchises have been established, with five more franchise territories to be launched shortly. The first two franchises in Vic Park and Bassendean have already experienced a growth in revenue, successfully catering several large events within their regions. The new franchises will be launched in Bunbury, Fremantle, Mandurah/ Coburn, Joondalup & South West WA, with Party Hoppers units hitting the streets within the next month.
Gratuk’s first two products to market are based on products that have been successfully launched in human medicine and have veterinary markets well established globally, with low regulatory restrictions.
Response to the franchises and the Party Hoppers unit continues to be one of excitement and awe. We are all looking forward to a very big year and we welcome investors that seek to be a part of a dynamic team and a truly unique and exciting new concept.
In addition to these products, Gratuk has added several other products for veterinary use with dogs, cats and horses that have high market demand and use the same technology as the base products. These products will be launched over 12 months later but will add significant revenue. The product range includes treatments for anaemia in cats, dogs and horses, arthritis in dogs and horses, bone and ligament treatments for horses and dogs and flesh wound treatments for horses. Other products are also being developed that rely on the same technology and that have well established markets. In each case all competing products and treatments use conventional approaches that address the symptoms but do not address the root cause of the ailments.
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Company Updates $130,000 OF OFFERING
ALREADY SUBSCRIBED BRIGHTGREEN WINS “BEST NEW PRODUCT” DESIGNEX AWARD Brightgreen outshone a field of international competition at this year’s DesignEx show in Sydney to win an award for Best New Product.
Wireless Nation is a roll-up consolidation of independent businesses in the distribution channel of the two-way radio industry in Australia. Each business to be assimilated in the roll-up is long established, successful and profitable. After consolidation Wireless Nation will have a countrywide presence serving government and corporate customers with leading edge wireless communication products and services. There are very strong growth strategies to more than double the revenues and EBIT in 3 years. Since opening this capital raising round, $130,000 of the offering has already been subscribed. In addition, more businesses have signed heads of agreements in preparation for the acquisition phase.
SIGNS MOU WITH INDONESIAN ETHANOL COMPANY
The DesignEx show was the forum for the launch of the new D900, a revolutionary new LED based downlight. The D900 caused a stir at the show as the world’s first LED based 50W halogen equivalent. The D900 is equal on light output, light quality and dimmability and features only 16W power consumption and a lamp life of 15-30 years. Sales from the show alone have outstripped Brightgreen’s Q4 sales forecasts as outlined in their recently released Information Memorandum. Brightgreen is open for applications from May 14.
INTERNATIONAL COMMERCIAL RELEASE OF MICROFIBRE INFUSED RESINS (MIR) PRODUCT SUITE MIRteq has been awarded the coveted American Composites Manufacturers 2010 ACE Innovation Award, which recognises technological achievement, excellence in composite manufacturing, and advancements in product development. MIRteq has since started working with multi-billion dollar resin companies in the US and their largest clients to roll-out its new microfiber technology on a range of commercial applications that will deliver early returns to investors. Initial industry interest is focused on the tooling, closed moulding and fire retardant systems because of the improved product performance and environmental savings this new platform technology delivers. MIRteq technology delivers substantial commercial advantages in product performance, production efficiencies, materials cost and labour savings and expands the range of complex parts that can now be produced by thermoset manufacturers.
KFSU has recently signed a MoU with an Indonesian Ethanol company to have an ethanol plant built nearby to the KFSU Fibre Plant in Home Hill, Australia.
It also offers an ideal alternative for short-run components where tooling costs are prohibitive. Its structural properties compete very favorably with other materials such as plastics, timber and metals.
The Ethanol plant will buy all of KFSU juice outputs from its fibre plant giving another income stream from the Home Hill plant. In addition, the owners of the Ethanol business have offered a sales agency agreement for sale of finished product and KFSU has sourced a market of 250,000/litres/month for medical ethanol for the use in hand cleaner/anti-bacterial product into Japan. The ethanol plant has proven groundbreaking technology that fits well with the nil pollution policies of KFSU. Medical grade ethanol commands a 100% premium compared to industrial grade and is in continual short supply worldwide.
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Company Updates PRODUCTION COMMENCING FOR THE USE OF ALICAFORSEN IN NAMED PATIENTS
$1MIL+ REVENUE IN APRIL FOR GRG SUBSIDIARY COMPANY: INSPIRE SOLAR
Atlantic Healthcare’s first drug – alicaforsen – a breakthrough treatment for Inflammatory Bowel Diseases, is about to go into production.
Green Resources Group’s core focus is on supplying the most advanced solar PV systems & products to the Australian retail, residential, commercial and wholesale market. GRG and its 4 subsidiary companies aim to become the most recognised and respected solar company in Australia.
Atlantic Healthcare acquired the global rights to alicaforsen, targeting gastro-intestinal inflammation, from Isis Pharmaceuticals Inc. Poised for international expansion, Isis is participating in Atlantic’s Share Offer, to launch alicaforsen under the named patient supply regulations and take the company into profitability. With clear and strong product differentiation and peak sales potential of $320m, alicaforsen is being supplied in response to market demand and patient need. Breaking news from Europe: Professor Derek Jewell, Professor of Gastroenterology at The University of Oxford and one of Europe’s leading specialists in Inflammatory Bowel Disease has agreed to Chair the European Medical Advisory Board for Atlantic Healthcare. With a very strong management team of “asset hunters”, a sound strategy for acquisitions and rapid commercialisation, expect further similar exciting products to be acquired which can bring early returns to investors.
In April, one of GRG’s subsidiary companies Inspire Solar has overachieved its $1 Million monthly revenue and is on target to achieve $1.7 Million in May. Its wholesale arm has begun operations in May, thanks to its strong manufactory relationships, diverse product range and the $1 Million USD Line of Credit, they will resolve the problem the industry is facing – shortage of supply. Business prospects for the wholesale division are extremely promising. In early June the group’s first retail shop is to have a grand opening by the Honorary John Ajaka. GRG is raising capital to fund its rapid national growth and full business functions prior to conducting an IPO in October 2010. This unique investment opportunity to get in at the grass roots level is currently open for a limited time.
OPPORTUNITY AND NETWORKING EVENT A RARE OPPORTUNITY TO HEAR FROM CEO’S OF PRIVATE, PRE-IPO AND ASX LISTED COMPANIES The evening will consist of:
Who is this event for?
• Investor presentations from dynamic, high growth companies
• High net worth investors • PE, VC and Investment Banking representatives • CEO’s of private and public companies • Accounting legal and insolvency practitioners • Corporate Advisors • Financial media representatives • Representatives from Broking and Planning firms
• Networking with HNW investors, fund managers, CEO’s and Entrepreneurs over drinks and canapés
FREE ATTENDANCE 8
COMPLIMENTARY DRINKS & CANAPÉS
WEDNESDAY 30th JUNE Commencing 6.30Pm Till 9:00Pm NSW Trade & Investment Centre 47Th Floor MLC Centre Cnr King And Castlereagh St, Sydney Places are limited. Register immediately:
wholesaleinvestor.com.au/events Or contact our office on 1300 597 595
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Q&A with a Venture Capitalist
LEND LEASE VENTURES With Anthony Pascoe, CEO, Lend Lease Ventures
Q1. As a Venture Capital firm, what kind of companies do you look for?
Q6. What are the top 5 things you look for when seeking to invest in a company?
Lend Lease’s venture capital arm invests in commercially viable growth companies operating in energy, water and building sectors. As one of Australia’s most active cleantech investors, with a current portfolio of six investments and a fund size of A$100 million, we typically seek to invest at the expansion capital stage where entities are seeking funds to commercialise proven products and services.
The top five things Lend Lease’s venture capital business looks for when seeking to invest in a company are:
In any investment we make, we look to identify meaningful joint commercialisation opportunities which can be exploited post investment between the investee company and one or more of Lend Lease’s main lines of business. (Lend Lease is one of the world’s leading property companies – refer www.lendlease.com). In adopting this approach we are able to bring expertise, client and customer relationships and an international network capable of accelerating value creation for our investees Our preferred level of equity commitment (per investment) is between A$10 - A$15 million, which tends to mean that we are most interested in companies with an enterprise value of between A$30 million to A$80 million.
Q2. Do you have a specific niche or industry which interests you? We have three key investment themes Energy, Water and Building Technologies. Our existing portfolio consists of six companies and includes Daintree Networks (wireless lighting controls), Better Place Australia (electric vehicle infrastructure), Windlab (wind energy developer) and WJP Solutions (water treatment solutions). Our A$100 million fund is just over half committed at present. For the balance of our portfolio we are particularly interested in companies which can provide compelling value propositions in energy efficiency.
Q3. What impact did the turbulent public markets of the past 2 years have on your ability to raise money for your VC fund? We are a corporate venture capital fund and as such are not reliant on third party capital (although may consider accessing third party capital in the future).
Q4. What level of percentage returns have you been able to achieve through investing in private companies? We target an IRR of 30%.
1. Can the business generate venture capital style returns? (Minimum 30% IRR – higher depending on risk) 2. Quality of management team. (Need high degree of confidence in CEO) 3. Sustainable business model. (May be defendable IP, position in market place, high entry barriers etc) 4. Can we take a meaningful ownership stake? (Targeting 20% - 50% equity and board representation) 5. Is the technology proven? (Targeting expansion capital, so some level of commercial revenue)
Q7. What do you look at as an indicator for an ideal time to divest your share holding? We expect to hold most of our investments for at least 3 – 5 years before exiting. If things have gone well, significant value will have been created in that time. It’s then a question of whether the then prevailing markets (public or private) are conducive to realising appropriate value.
Q8. What are you optimistic about? I think there is unstoppable momentum around clean technology at the moment. Whilst there have been some regulatory setbacks in Australia (which I believe will ultimately just reflect a timing issue), the international push towards putting a price on carbon and stimulating investment in cleaner forms of energy and energy efficiency mandates is almost universal. Consumer and business community mindsets are generally incredibly supportive of the cleantech revolution and there is much more focus on commercially viable solutions in this space than ever before. From an investment perspective, I believe that the private sector risk reward scenario attributable to investing in high quality companies innovating in this space is very positive. I also believe that we, Lend Lease Ventures, are in a strong position to deliver impressive investment returns and help keep the wider Lend Lease group at the leading edge of sustainability.
Q9. Where do you see the opportunities over the next few years?
Q5. What tips do you have for investors seeking to invest into private companies? As with most investments, quality of management and alignment of interests are key success factors. It is especially so with a private company because management quite often are also significant shareholders. You must treat the investment like a partnership with management and the quality of the management team will be perhaps the single most important determinant of success. For these reasons, quality of management is a critical investment filter for us. Investors should be careful not to get overly swayed by trends. Private companies are by definition illiquid, so only invest in companies with favourable long term prospects that you’re prepared to hold onto for a long time. Be prepared for the worst case scenario. Private companies can’t be dumped in a bad market - you may need to invest more capital when other sources of capital run dry. Determine the company’s intrinsic valuation ignoring parameters like previous rounds, the seller’s asking price or current share market valuations. Once you know what its worth to you, compare that to the price that the seller is willing to sell at.
At the moment, the most interesting opportunities for us are in the energy space. Clean and green forms of energy generation, energy efficiency and businesses that have a particular product, capability or offering that’s relevant to delivering low carbon outcomes and ‘green retro-fit’ solutions are of particular interest and offer great opportunity.
Anthony Pascoe (B. Com, ACA , F Fin, GAICD) CEO of Lend Lease Ventures As CEO of Lend Lease’s venture capital business, Anthony leads Australia’s largest dedicated cleantech investor. Anthony is responsible for the business’ $100 million cleantech fund which invests in commercially viable growth companies operating in energy, water and building sectors.
Less is more - make fewer investments of higher quality.
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Leverage Social Media to
Increase Business Performance By Dominic Dirupo, Alphastation
Completing a successful capital raising is only the beginning. After assembling an accomplished team to bring your concept to market, collating your Information Memorandum and raising the funds necessary to fulfil the target milestones of your Business Plan, now comes the hard part. Some of the questions at the top of your agenda will be: • How do you reach the audience you need to generate the revenue you have outlined? • How do you build brand advocates for your business that repeatedly engage with you? • How do you manage taking the company forward while managing shareholder expectations? These questions, and others like them, become persistent talking points for management teams looking to deliver above expectation. On closer inspection you realise that these aren’t sales, marketing, branding, operations and compliance issues that need attention but fall under the umbrella of Communication Management. Taking A 360 Approach To Communications Communication management is probably low on your long list of business priorities. It should be promoted to one of your key drivers. The way your business projects itself through its messages, images, language, attitude are all branding elements that if presented consistently creates a strong voice for your company. This voice creates an authenticity that is difficult to create through any other form of marketing. Authenticity, or projecting authenticity, is critical to converting prospects to applicants and users to advocates. By taking this 360 approach you can amplify the strength of your brand and its voice will resonate. By creating this voice you create an identity. The purpose of this is to give the audience a point of connection. With a clear, compelling voice, you need a platform where will it be heard.
Using Social Media As Your Business Communication Hub The evolution of society and technology together has radically altered the way people obtain and engage with information. The internet has levelled the playing field for media. As an individual (or a business) you can generate content, self-publish, self-promote and connect with your audience. Microblogging platforms like Twitter, allow you to create a press box for your business that can act as your communications hub. Use this platform to actively promote your wins, stimulate interest, publish news, promote offers and publish your Annual Report. This is like having a full PR service without the full PR expense. Facebook is ideal for crowdsourcing, locating groups of people who fit your ideal profile of a client. You can market to them, send invitations, seek responses, engage them directly and have the benefit of having private and public feedback channels that enable you to refine your offering. YouTube is perfect for publishing recorded video conferences, sales presentations, demonstrations, corporate videos or any other compelling media you have at your disposal. Integrating the 3 platforms together enables you to effectively manage your sales, marketing and PR needs together with your shareholder communication obligations. It also allows your business to protect its brand from any negative publicity. We have effectively used Social Media as part of Crisis Management campaigns to address concerns of the audience and demonstrate the company’s path forward to resolving issues. No other medium allows businesses the flexibility to respond in this way, quickly. Transparency and Efficiency For Results Tactical transparency is often used as a proactive communication management methodology. Allow clients, investors, prospects to peek in and understand your business strategy, values and culture. This is vital to building trust and generating positive responses. Remember though that tactical transparency doesn’t mean airing your dirty linen in public. Have a detailed, tactical approach of how you communicate with key groups to get the most out of this strategy. We have found that businesses that use Social Media backed by a strategic and tactical plan have over 60% better response rates compared to those who just set-up an online presence and hope for the best. With investor funds at your disposal, use them efficiently and keep them in the loop. Utilising Social Media will help you manage the entire process.
Engaging The Hidden Audience
Dominic Dirupo
Your next customer is online right now. The problem is you don’t know who they are, where they are or how to reach them.
Dominic Dirupo is the principal and founder of Alphastation, a Corporate Communications Consultancy helping start-up and expansion businesses break through to the next level. Alphastation has helped clients in 7 countries manage the business communication cycle from Business Planning to Raising Capital to Annual Reporting.
Awareness and recognition are critical goals for any business serious on exceeding expectation. When you are in start-up mode, the vision is to reach 1% of the market. The reality is how do you connect with just 1 customer? Friends, fans, supporters vote with their clicking fingers. Facebook, Twitter, YouTube have all emerged as avenues for entertainment but they have helped SMEs reach audiences that have previously remained in the shadows.
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www.alphastation.org
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By Gregory Will and Adrian Bunter, PricewaterhouseCoopers
Simplification and fewer taxes are what private businesses wanted to see as the result of the Henry Tax Review.
term growth targets for more than half of the businesses surveyed. However, some businesses are starting to look at alternatives including expanding into new products, expanding into new geographic markets and acquisitions.
According to the Private Business Barometer private businesses have a strong desire for tax reform. Of the 750 private businesses asked what changes to taxation policy would benefit them, the overwhelming response (78%) was a reduction in the number of business taxes.
As confidence returns to the market, funding has been bumped by people as the number one challenge facing private businesses. Half of the private businesses surveyed said attracting the ‘right’ people is the greatest test they now face.
Other changes private businesses hoped the Henry Tax Review would affect included an improved write-off for capital expenditure (61%), harmonisation of state taxes (57%) and simplification of income tax rules for small businesses (54%).
Private businesses are optimistic about the future but face a brand new set of challenges dominated by people: attracting, retaining and skilling. Having the ‘right’ people will be critical to achieving growth.
The government has heard a small part of what SMEs wanted, although overall the response was a missed opportunity.
People: Number one challenge
With more than half of the businesses surveyed planning to hire full time equivalents in the next six months they will find themselves in a war for talent competing against each other and big business. Remuneration will play a key role particularly with nearly nine out of 10 businesses anticipating wage increases of up to 7 per cent in the next 12 months.
“Private businesses put in a strong performance over the last 12 months.” Funding: Less critical
Surviving the GFC & the Government’s stimulus package On reflection of the past 12 months, around a third of businesses (36%) said surviving the GFC had been their proudest achievement. For another 39 per cent, their greatest achievement was not just survival but growth during the tougher economic times. Did the Government’s stimulus package play a role? In the retail sector more than two thirds (69%) of businesses believed the Government’s stimulus package had a positive impact on sales. As proof, close to half said Christmas sales were up on 2008. Growth: Businesses optimistic Private businesses put in a strong performance over the last 12 months. Six out of 10 said they had met or exceeded set revenue targets. Across the states, sales and profits have been a mixed bag. Profits in New South Wales (NSW) and Victoria jumped from single digits in October 2009 to a healthier 22 per cent and 16 per cent, respectively. The boom states, Western Australia and Queensland, are still seeing double digit growth but it has eased off since late last year. Looking ahead, private businesses are optimistic about short and medium term sales and profit growth forecasts. The short term sales forecast is 13 per cent and profits are 17 per cent. The longer three year growth forecasts are the strongest we have seen since the first Barometer in May 2007 with sales growth of 18 per cent and profits growth of 25 per cent. Business owners are confident about growing their businesses and are in it for the long haul with nine out of 10 having no plans to exit in the next 2 years.
Funding has taken a backseat to people with close to two thirds of businesses (61%) having no major plans to invest. Five out of 10 businesses said they have had no recent difficulties in raising capital, a drastic change from six months ago. However, businesses considering investments say they will seek funds from investment banks. In the previous Barometer in October 2009, generating capital internally was the most popular source of funding. Business operations: GFC prompts better planning The Barometer shows that businesses have learnt some valuable lessons from the GFC. At the top of the list is the importance of a business plan that is reviewed regularly. Nearly every business (94%) surveyed had a business plan. This compares favourably with the results of the first Barometer in 2007, where 60 per cent of businesses said they had no formal plan. The rise in the number of plans has been driven by the need to keep a close watch on organisational goals and finances not just a way to get funding. As the economy continues to improve, it will be imperative that businesses don’t fall into old habits and lose the discipline of planning and regular reviews. For more information on how you can maximise the financial performance of your business or for further information in relation to this article please contact: Gregory Will
Adrian Bunter
PricewaterhouseCoopers (02) 8266 3344 gregory.will@au.pwc.com
PricewaterhouseCoopers (02) 8266 5099 adrian.bunter@au.pwc.com
Organic growth is the number one means of achieving short and medium
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The New Frontiers in
Mining: Pre-IPO Investment By Matthew Hayne, Small Cap ASX and Mining Specialist, Wholesale Investor
With Australia being such a resource rich country this makes for some serious mining investment opportunities for both established and up and coming companies. In this current resources boom Investing in Australian resources companies has been very fruitful for many investors who have become quite skilled in this sector. Australia’s Superannuation Fund Managers during this boom, have created back to back to back years of 25% plus returns, with the only dint being the GFC which we were not immune from. BHP, Rio, Woodside, Fortescue – In the Australian Resources landscape these companies are household names, national powerhouses and are held directly and indirectly through funds by many Australians. The Bloke at the pub, Mums and Dads, Uni Students call these companies Blue chips. Blue chips tend to steadily grow at a rate that is just above the All Ords index. So if you have a healthy appetite for risk, and some cash to invest, what are the alternatives for those seeking higher returns who want to stick within the sector? One investment option currently returning to favour post GFC is the Pre-IPO capital market. Many early stage resource companies are coming out of the woodwork to float companies that had been shelved during the GFC as finance channels had completely dried up during this time. When the IPO market recovers so follows the Pre-IPO market. Investors can now see an exit (through IPO) and thus with the reduced liquidity risk investors who have an appetite for risk can get in at the ground floor with these types of investment opportunities (Pre-IPO) that have the ability to produce exceptional triple digit returns within a relatively short time period. Pre-IPO capital is still at the Wholesale end of funding and the valuations at the Retail level (IPO) often track a lot higher. This reflects the risk/reward relationship that exists. Pre-IPO offerings are generally priced at a discount to the eventual IPO offering price.
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To give an example Pre-IPO capital in Australia is typically raised at around 8-13 cents, whilst IPO capital is raised around the 20-25 cent mark. The increase in valuation at IPO from Pre-IPO is often referred to as the “uplift”. This alone has the ability to give triple digit returns – The time taken to get from Pre-IPO to IPO can be as short as a 3 month period or can stretch out to 18 months to 2 years. As mentioned above, the main risk here is liquidity risk during this transitional period. Further to this, once the company is listed many resources companies string together back to back announcements regarding exploration results which can continue the drive north for the share price. For those trivia nuts out there, if you’re also interested to know how the term “Blue Chip” came about, the term was derived from Casinos where Blue Chips represent the greatest value among the many colours of chips. Who knows, by taking a risk and investing in a Pre-IPO opportunity you may end up with a Blue Chip of the future.
A SUCCESS STORY: Apollo Gas Ltd (ASX:AZO) is a petroleum explorer with an interest in seven exploration licenses covering 23,600 square kilometres in the SydneyGunnedah Basin in NSW who raised $8 million through a Pre-IPO private placement of 60 million shares at 13.3 cents from investors in August 2009. Four quick months later Apollo listed on the ASX on 15th December 2009 via an IPO raising a further $8 million at a 20 cent offer price. Shares in the company opened at 36cents on debut and rose as high as 41.5 cents on opening day. Apollo has since gone on to reach a 52 week high of 87cents. Investors were not only rewarded in the uplift to IPO from Pre-IPO they also saw significant upside post listing. The company also has strategic relationships with Arrow Energy and Santos so the company is well positioned to continue its run to date. Note: The investment opinions contained in this article are general in nature. Seek investment advice before making financial decisions. It should be remembered that pre-IPO capital is considered high risk. Past performance is not necessarily a guide to the future and an investor may not get back the whole amount they originally invested.
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Sound corporate governance for small cap companies By Michael Derin, Managing Director, Azure Group
The concept of corporate governance is simple, well run companies produce better results. Although managing corporate governance can at times be like walking a tightrope, falling off the tightrope can have serious repercussions. This is especially true for small cap companies. In essence good corporate governance is based on the relationship between managing risk, lessening risk as well as the objectives and success of an organisation. Effective corporate governance policies will ensure the business is employing the best market practices and that the business is adhering to the applicable laws, rules and regulations. Regardless of size, all companies listed on a stock exchange need to: • Put in place a board of directors independent from the company’s management with the expertise to oversee the company and ensure the board makes decisions in the best interests of the shareholders • Adhere to numerous laws, rules and regulations • Employ good communications with shareholders regarding company information. However, these obligations can be harder for smaller companies to carry out because even though their corporate governance policies may not be as complex as a larger corporate, they don’t always have the resources to adequately handle the necessities involved and don’t often know where to find the right people or advice.
The audit management function can also be outsourced to reduce the costs of corporate governance. Outsourcing the audit function also helps to ensure its independence from the board and also the accuracy of the company’s financials. To reduce the amount of time and money that is spent on corporate governance obligations, small cap companies should implement streamlined procedures to eliminate inefficiencies and reduce costs. This also includes the manner in which information is communicated to shareholders. There are a number of compliance organisations that exist offering online tools concerning policies and procedures that can help small caps remain compliant. Directors should surround themselves with experts that they trust and understand that corporate governance is the key. To ensure you achieve best practice, the performance of the board and key executives should be reviewed regularly against measurable and qualitative indicators. There should also be a clear link between performance and remuneration, with the company’s remuneration policies reported to the investors.
There is no simple universal formula for good corporate governance. Companies vary greatly in size, complexity, industry, ownership structure and other characteristics. Proven structures and processes help to improve governance, particularly for small cap companies, they can play an important part in building shareholder confidence in the soundness of their investment and thus a company’s ability to attract capital moving forward.
Limited resources and time constraints make the idea of cutting a few corners more attractive for small caps. However, good corporate governance involves extensive financial reporting and also implementing mechanisms to ensure the company is compliant with the relevant regulations, such as the ASX Listing Rule requirements and should not be avoided. This ensures that truthful and factual information is provided to investors in a timely manner, including its financials, performance, ownership and governance.
The key issue for directors is to grow the company while maintaining good corporate governance and minimising the personal risk of running a public company. If a director mismanages a company there are potential civil and criminal charges that can be brought against a director under the Corporations Act.
Corporate governance for small caps can be difficult to manage. Although by implementing sound controls, outsourcing company secretarial duties, managing risk within the business and partnering with sound advisors and an intelligent board, it may make the difference between the business surviving or getting swallowed up by a labyrinth of governance.
The cost of corporate governance is material for a small cap. They would rather allocate the expense to fund the business’ growth and expansion, so they need to consider ways to manage the costs while still maintaining corporate governance responsibilities. A common way of doing this is to outsource the role of corporate secretary. Most large companies employ an internal company secretary to look after their corporate governance. Smaller companies although having similar corporate governance requirements, may not be able to afford to employ someone full time to carry out this role. By outsourcing to a professional firm they can ensure their corporate governance matters are addressed without having to outlay the full time salary of an in-house corporate secretary.
Michael Derin Managing Director of Azure Group, Michael Derin has over 18 years experience as a professional accountant within the chartered and commercial sectors and he has directly steered many companies to achieve both their financial and business objectives. At a young age, Derin is redefining the role that an accountant has with their clients and has developed sophisticated ways in which SMEs can compete with larger organisations.
A small cap may also consider engaging an outsourced CFO to assist the directors with the company’s financial management. As an outsourced CFO would be on a part-time basis, a small company would save approximately $200,000 p.a. by not having to hire a CFO full time.
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Company Name Sector Yr established Business stage Location Seeking
Executive Summary QBiotics Limited, a wholly owned subsidiary of EcoBiotics Limited, is focused on developing anticancer drug EBC-46 through to commercialisation in the human and veterinary markets globally. EBC-46, discovered in the tropical rainforests of Nth QLD, has proven to be strongly effective during Veterinary Trials, successfully treating a range of spontaneous tumours in over 100 dogs, cats and horses. Treatment results in disintegration of the tumour along with rapid healing and no significant adverse side effects. Preparation for Clinical Phase I trials in humans have commenced and these trials are expected to begin early 2011. The success of EBC-46 has attracted significant media attention and has featured on Sunrise, A Current Affair, BRW, Financial Review, The Australian, Sky Business and more.
Competitive Advantages • The IP rights are unencumbered and the patent is pending for use in Australia, New Zealand, USA, Canada, India, China, Japan and Europe • Currently there is no drug on the market that results in such a rapid destruction of solid tumours in either animals or humans with no significant side effects • Source plant for the drug is easily grown and drug manufactured for relatively low cost, meaning strong profit margins once commercialised • Application of the drug is simple (injection into the tumour site or applied as a gel) and tumour is destroyed with healing of the site within weeks. This means patients don’t need expensive and complicated surgery, or ongoing treatment as with other current cancer treatments on the market
Key Investment Highlights
QBiotics Limited Life Sciences 2004 Expansion Cairns, QLD Capital Raising
Board Of Directors Mr Ross Patane – Non-Executive Chairman Partner & Principal Corporate Finance - WHK Horwath Brisbane; Director of WHK Horwath Securities Ltd and Opus Capital Group. Dr Victoria Gordon – Executive Director Co-Founder & CEO Previously of CSIRO and Boral Timber Division. Dr Paul Reddell – Executive Director Co-Founder & Chief Scientific Officer Previously of CSIRO and Rio Tinto. Dr John Ayerbe – Non-Executive Director Veterinary practitioner, committee member of the CSIRO AEC. John is also part of the research and development team. Graham Caldwell – Non-Executive Director Company Secretary & Past Chief Executive at WHK, Cairns. Expert in taxation, financial services and business development.
Corporate Structure QBiotics Limited is a public unlisted company with 175 million shares on issue. New shareholders will be issued shares as they invest.
Exit Strategy QBiotics plans to sell to a global pharmaceutical company once Human Clinical Phase II Trials are undertaken. This is expected to take between 2 to 3 years.
• Board and management have significant scientific, management and commercialisation skills • Revenue positive in 2010 through initial approval for use in the Australian veterinary markets • Over $7m invested to date • Strong proof of concept - over 100 animals treated for a range of advanced solid tumours • Global Vet market potential is over $900m p.a. • Global Human market for cancer is a multi-billion dollar opportunity • Large pharmaceutical groups are desperate for cancer treatments and have significant cash available to purchase drugs that can effectively treat or destroy solid tumours • EBC-46 is about to enter Human Phase I Trials. If successful, the value uplift will be significant for investors
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Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for QBiotics.
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CASE STUDY FOUR Case Study OSCAR THE DOG TREATMENT OF A FACIAL CANCER IN A DOG Patient: Oscar, 9 year old beagle Date of treatment: November 2009 Cancer type: Spindle cell sarcoma Description of condition: Rapidly growing tumour on the right side of the face close to the eyelid margins. Surgical excision was considered difficult due to possible compromise of facial nerves and vessels. Treatment: A single treatment of 1.0 mg EBC-46 injected at multiple locations directly around the edge and into the core of the tumour mass.
Patient: Os car, a 9 yea r old Beagle.
Result: Tumour destroyed with very good cosmetic healing and no evidence of recurrence at 5 months after treatment. Feedback from veterinarian: “I just saw Oscar the beagle with the spindle cell tumour on the face. SPECTACULAR RESULT. There is no wound thickening or scarring at all.�
Immediately prior to treatment: Tumour on the right hand side of the face.
Five hours after treatment: The tumour and its immediate surrounds have become inflamed and mass has begun to soften.
One day after treatment: Localised inflammation surrounds the tumour which has started to become necrotic (dark area in centre).
Seven days after treatment: Tumour mass has sloughed leaving a wound. Surrounding inflammation has largely resolved but there is still localised erythema (reddening).
Fifteen days after treatment: The wound created when the tumour was destroyed and sloughed has largely healed.
Six weeks after treatment: Healing is complete. The area is normal and indistinguishable from that on the other side of the face.
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Lobster Harvest Limited Aquaculture/Clean Technology 2007 Late Development Western Australia Pre-IPO Capital Raising
Company Name Sector Yr established Business stage Location Seeking
Board & Management: Peter Rogers – Chairman (Hon. Doctor of Science, MBA, B.Sc (Agriculture) with Honours, FAICD Former CEO Western Australian Department of Fisheries (15 years). Current Chairman Western Australian Marine Science Institution and on Advisory Board of IMOS. Current Professor of Fisheries Resource Management Murdoch University.
Executive Summary Lobster Harvest is a WA headquartered aquaculture company that has developed world first hatchery technologies to propagate high value lobster species, specifically Slipper Lobster (“Slipper”) and Tropical Rock Lobster or (“TRL”). Lobster Harvest was incorporated in 2007 by MG Kailis Group (“MGK”) who is the largest shareholder and a recognised leader in the Australian seafood industry. The targeted lobsters were originally identified by MGK showing significant commercial promise and research on both species has been going for the past 10 years. Lobster Harvest has a handpicked Board and Management team and operates facilities in Exmouth, Hillary’s and Cairns. The Company is on the cusp of commercial reality and will soon be in a position to convert early mover positioning into a long term competitive advantage.
Competitive Advantages • World Leading hatchery IP (10 years R&D undertaken and repeated egg to adult production) • 2 species for commercialisation spreads risk • Premium species with strong demand, high margins, rapid growth, amenability to aquaculture • Experienced Board and access to MGK experience • Collaboration support – Oceanus Group Limited out of Singapore to cornerstone the Seed Raising and enter into a JV to produce Slipper in China and Queensland Government JV on TRL research • Developed markets and distribution channels (MGK presently servicing) • Near term commercialisation and revenue • Diminishing supply in the wild
Alex Kailis - Deputy Chairman (BComm (Marketing)) Managing Director of the MG Kailis Group. Experience in international marketing, operations management and implementing business growth strategies in the seafood industry (18 years). Dimitri Bacopanos - Executive Director (BEcon, BComm, CA, ASIA) Currently Project Development Manager MG Kailis Group.
Corporate Structure
Top 3 shareholders (MG Kailis 50%, Aquaculture Investments Pty Ltd 40%, Reabold Ltd 10%). MG Kailis intend to exercise their options on or before the proposed IPO. Up to 5,840,662 performance rights are intended to be issued to employees of Lobster Harvest and are subject to company performance hurdles and employment milestones.
Exit Strategy
The Company intends to seek quotation to a suitable exchange at an appropriate time in the next 6-12 months. Lobster Harvest will be looking to ensure that there is an appropriate uplift in valuation at that point to recognize commercialisation progress made.
• Strong Government support – Queensland Government TRL collaboration, Commercial Ready grant receipt, support from Asian governments
Key Investment Highlights • Premium products with high values and margins against backdrop of dwindling supply • Unique IP – egg to adult propagation achieved for both species repeatedly • Diversified risk • Strong Board and Management team and ability to leverage off MGK experience • JV Support – endorsement from Singapore listed Oceanus Group • Near term commercialisation – first revenues for Slipper in 2013 • Developed markets and distribution channels – MGK already exporting both products • Growth Opportunities – mass production opportunities • Sustainable operations – bridging the gap between wild supply shortcomings and demand • Government Support • Attractive pricing - Pre Seed Raising valuation of $22.6 million compares well with other aquaculture players given c.$14 million spent to date and technical hurdles surpassed
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Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for Lobster Harvest Limited.
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Company Name Sector Yr established Business stage Location Seeking
AG Delta Pte Ltd Financial Services Software Solutions 2004 Expansion Singapore Capital Raising
Executive Summary AG Delta Pte Ltd provides business solutions to financial institutions that improve the quality, efficiency and compliance control in the delivery of wealth management services to a global marketplace across all customer segments. Our flagship software solution called AG|Capital, automates many of the business services needed to manage the customer’s investment portfolio and complete the transaction for a broad range of investment products at the point of sale. Launched in early 2010, we have commenced deploying AG|Capital in two banks, each with extensive wealth management business operations across Asia. With the rapid growth in consumer demand for Investment Products and lack of automation in most wealth management business operations, the demand for solutions that automate wealth and transaction management will continue to grow significantly for the foreseeable future.
Competitive Advantages In recent evaluations conducted by two regional banks, AG|Capital was selected from a field of several competitors as their strategic solution due to its supremacy in the following: • Supports a large scale user base over the web • Configurable to the unique operational requirements of each financial institution
Board & Management: Andrew F.Y. Au (B Bus) Executive Office and Head of Business Development Andrew has over 16 years of Financial Markets and Technology experience working for top-tier banks including Bankers Trust, Macquarie and Deutsche Bank and senior regional roles within Sungard’s Trading & Risk Management Solutions business in Asia. Lawrence J. Grinceri (B Comp Soft Eng.) Executive Office and Head of Technology & Projects Lawrence has over 20 years in wholesale banking and capital markets solutions, working for renowned leaders in financial technology such as Accenture, TIBCO/Reuters and SunGard. Tan Lee Nah (B Sc. (Fin)) Head of Wealth Management Consulting Practice Lee Nah has 20 years of direct Financial Markets, Banking and Wealth Management Industry experience in an international career holding senior roles in UOB Privilege Banking, Standard Chartered Bank and UBS AG.
Corporate Structure
This is the final issue of shares for the 1st round capital raising. Details on the issue will be provided to qualified investors.
Exit Strategy
First round Investors have first right of refusal to sell to incoming Mezzanine round Investors. The Mezzanine round is planned for launch to VC and Private Equity funds by June 2012. We plan to exit the business through a trade sale to a major software solution vendor.
• Delivers portfolio and transactional services for a wide range of Investment Products • Maintains rigorous and auditable compliance controls • Provides real-time business intelligence to all users • Offers a fast and measurable return on investment
Key Investment Highlights Business automation for wealth management is a greenfields market that will see the leading solution vendors reap significant growth over the next five years. With our current market position, AG Delta offers the potential to deliver high returns to investors over the next five years given the following: • Estimated expenditure in software and implementation services the top 400 financial institutions in Asia Pacific will make in the infrastructure to automate their wealth management operations over the next five years is USD 2 billion. • Our five year revenue forecast is derived from capturing a 6.6% share of the projected expenditure and we have clear visibility on achieving 2010/11 forecast based on projects underway. • Sophisticated business and technology requirements present high barriers to entry for potential competitors to enter the market. • Untapped solution market coupled with high margins from software license sales presents excellent prospects for earnings growth and will attract establish financial software solution vendors to seek acquisition of leading wealth solution vendors to gain strategic position in the market.
Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for AG Delta.
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NavraInvest Ltd Financial Services 2003 Mature Sydney, Australia Sophisticated Investors for Funds investment
Company Name Sector Yr established Business stage Location Seeking
Executive Summary NavraInvest offers a unique approach to the management of share funds. The NavraInvest approach is to actively manage a portfolio of blue chip shares to produce income that is a high proportion of the total return of the Funds. The NavraInvest investment philosophy for managing the share portfolios is based on the company’s belief in the combination of two investment principles: (i) High quality blue chip shares represent good investment potential, and (ii) Active investment management provides the flexibility to take advantage of fluctuations in share prices review at all times and that replacement shares are always available as substitutes if necessary
Board & Management: Steve Navra – Chairman and Executive Director Bleddyn Gambold – Non-Executive Director Louis Yu – Finance Director Bob Penter - Non-Executive Director Bill Tootill - Non-Executive Director
Corporate Structure
NavraInvest Limited has 412 shareholders and is an independent Funds Management Company. The largest shareholder is Steve Navra, Chairman and Managing Director of NavraInvest. Staff can qualify for shares under an employee share option scheme. The Company has 50% interest in Navra Financial Services Pty Ltd and the company has no debt.
Exit Strategy
Redemption facility available every year. 10 year investment term but the investor has the ability to walk away every year.
(iii) NavraInvest has just recently launched a new fund called Navra Asia Pacific Growth Fund
Competitive Advantages • Reactive rather than predictive • Contrarian investor • High proportion of the return is income for investors • Volatility is preferred • Quantitatively not subjectively • Active management – rather than buy and hold long term strategies • Limited recourse Lending available on all investments
Key Investment Highlights • Navra Asia Pacific Growth Fund, was launched in February with the goal of raising $30 million • Navra Asia Pacific Growth Fund Series 1 closed on the 23rd April 2010, raised $70 million in under three months • U nprecedented demand prompted NavraInvest to launch a second tranche ( Navra Asia Pacific Growth Fund Series 2) • S&P has issued the Navra Asia Pacific Growth Fund a ‘SOUND’ rating • 100% finance • Fixed interest rate 8.5%. Market opportunity remains attractively large • Limited recourse loan with a Walk away feature • Tax optimisation • Limited capital required for exposure to Top 150 Asia and Pacific region Companies (10.50% upfront) • Blue Chip focus • Similar funds managed by RBS have achieved 20% p.a. • Closed ended Fund (Application close date 15th June 2010)
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Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for NavraInvest Ltd.
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Crescent Gold Limited (ASX:CRE) Mining (Gold) 2003 Gold Producer Western Australia Investor Relationships
Company Name Sector Yr established Business stage Location Seeking
Executive Summary CRESCENT GOLD LIMITED is a mining, development and exploration company based in Perth, Western Australia. With a primary focus on gold development and mining, the Company is actively mining and advancing its flagship project, the Laverton Gold Project - located 250km northeast of Kalgoorlie in Western Australia. Crescent is on track to achieve its forecast gold ore sales of >100,000 ounces per annum equivalent. Crescent has a collaborative Ore Purchase Agreement with Barrick Gold Corporation (Barrick) to process its ore through their nearby Granny Smith Mill in Laverton. This agreement has improved economics (unit costs) and operating synergies for both companies.
Board & Management: Roland Hill - Managing Director and Chairman Roland has extensive resource industry and investment, finance and funds management experience. He has been directly associated with the mining and exploration sector for over 15 years. Geoff Stanley - Non-Executive Director Geoff has over 15 years experience as an analyst with major financial institutions in New York, most recently with BMO Capital Markets and Platinum Partners, and seven years as an analyst in Australia. David Keough - Non-Executive Director David has held several senior leadership positions with companies such as Goldcorp (Brazil), Wheaton River (Asia Pacific), Minera Alumbrera Ltd (Argentina) and Placer Dome Inc (Asia Pacific). David has been involved in the mining industry for more than 20 years and brings extensive international experience in mining.
Crescent is also actively seeking to expand its gold portfolio in Laverton as well as investigating broader opportunities.
Corporate Structure
Competitive Advantages
Crescent Gold Limited is a listed public company whose shares are listed on the ASX (Australian Stock Exchange), TSX (Toronto Stock Exchange) an the FFT(Frankfurt Stock Exchange).
• Excellent investment merit • Good value in comparison to our peer group on any metric • Demonstrable delivery and track record • Obvious growth and capital appreciation opportunities • Under promoted • In top 10 Australian gold producers
Key Investment Highlights • An established, low risk gold producer in Western Australia
ASX code: CRE TSX Code: CRA FFT Code: CRE5
Exit Strategy Investors can sell shares in the company in liquid secondary markets including the ASX, TSX or FFT.
• Strategic relationship with world’s largest gold mining company provides access to a world class processing facility and experienced workforce • Production of +100,000ozs/year over an initial 7 year mine life from predominantly shallow open pit‐able resources of 2.1Mozs • Experienced management complemented by proven mining and haulage contractors • +A$50m of forecast operating cashflow from Phase 1 operations • Unhedged gold production • Rapid growth forecast through increased production, exploration, consolidation and acquisitions • S ubstantial exploration upside through significant landholding in a proven world class underexplored gold province • C onsolidation strategy is anticipated to continue to identify near term development and further cashflow opportunities • Broader acquisition strategy to utilise cash balances and operating cashflow • Potential upside through uranium exposure and Crescent position in a potential world class terrain
Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for Crescent Gold Limited.
• Continue working towards growing the asset base – leveraging off LGP cashflows
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Company Name Sector Yr established Business stage Location Seeking
Our mission is to profitably manufacture premium quality solar modules in a dynamic and inspiring environment and make a significant contribution to the Australian energy market. About Spark Spark will manufacture solar panels (or modules) using high-quality silicon solar cells and state-of-the-art, automated assembly equipment. Spark’s R&D program will capitalise on existing IP to develop home-grown, more efficient and cost-effective solar panels tailored specifically for use in Australian conditions. Spark personnel have deep internal knowledge of the global PV industry, its people, institutions, dynamics and trends. Spark is a manufacturing company in an attractive and growing industry sector that is taking a proactive approach to addressing and managing risk. Investment in Spark represents a prudent opportunity for investors to have exposure to a differentiated, but established, low-risk technology providing attractive cashflows in a rapidly growing and very promising market.
Executive Summary Photovoltaic (PV) modules contain many solar cells - devices that convert sunlight into electricity. Spark Solar Australia is an Australian company that will manufacture worldclass photovoltaic modules in Australia using state-of-the-art automated module assembly techniques and initially imported screen-printed silicon solar cells. Spark’s modules will be different to other modules available on the Australian market because they will: • Be designed specifically for Australian conditions (particularly high UV light and high temperature); • Be produced in Australia and; • Warranty a higher power output than industry standard. park has signed documents from customers for off-take of more than S the planned production volume (but not capacity) in the early years. The documents stipulate both volumes and prices.
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Spark Solar Australia Cleantech 2007 Early Stage Canberra Capital Raising
Competitive Advantages • Spark offers a differentiated product, which is designed to perform better in the harsh Australian climatic conditions • One of the only Australian-made products available • Ability for customers to custom-design their product – something that will be difficult for Australian customers to achieve at reasonable cost with a large, international supplier • The differentiated product that Spark offers to customers has been received extremely well. Customers have signed to take volumes larger than the planned output (but not larger than capacity) in the early years at agreed prices
Key Investment Highlights • Spark’s product is clearly differentiated from the rest of the market • Strong IP and excellent technologists will ensure Spark remains at the leading edge of PV module development • The PV market in Australia is growing and there is a place for high quality, Australian made product • Customers have been identified and approached. Volumes and prices have been agreed in LOIs. Volume in signed LOIs already exceeds planned output • The technology is leading edge, but well established. Spark will be purchasing a turn-key production line that has successfully been installed in many similar plants around the world • Spark management team has a deep knowledge and understanding of solar cells and PV in general • The financial model is robust, with an attractive rate of return (5 year IRR ~40%) • Spark has support from various Governments. We were the first project to be awarded Major Project Status from the Rudd Government, and we have two research projects funded by the Federal Government and together with the Australian National University and one international partner • There is a strong potential for future value increase by up-scaling of the module manufacturing line to bring down costs or by the build-up of an in-house cell manufacturing plant
Corporate Structure Spark Solar is a Proprietary Limited company.
Exit Strategy The exit will depend on the final investor mix and will be determined by the investors in conjunction with the Founder group at the time of investment. Likely routes are either a trade sale or a listing on a suitable exchange, aiming towards a 4-5 year timeframe.
Board & Management: Dr Peter Fath - Chairman Dr Fath is one of the world’s leading solar industry experts. Dr Fath is currently the CTO at centrotherm photovoltaics AG in Germany, the world’s leading solar production technology company. Centrotherm has more than 1,100 employees, revenue of more than EUR 500 million and a market capitalization of EUR 700 million. Dr Michelle McCann- Interim CEO and Technology Director Dr McCann will lead the technology team at Spark. She comes to this position having done a PhD in photovoltaics at the ANU and spent several years leading the Novel Devices group at the University of Konstanz in Germany. She has held a world record for solar cell efficiency. Spark has identified an excellent CEO who will start full time as soon as funds are raised. His background is in long term, senior management in the energy industry. Dr Alex Hauser - Production Manager Dr Hauser joins Spark from centrotherm photovoltaics. He brings extensive knowledge about how to plan and ramp up a cell production line. In his position at centrotherm, he did precisely this for several customers in Asia, Europe and the US. Nick Fejer - Project Manager Mr Fejer is an expert in new product introduction and manufacturing. His previous position was manager of project management and business development at Siemens VDO Australia. Prior to Siemens, Mr Fejer worked in project management for Bosch. Geoff Coffey - Advisor Mr Coffey is an accountant and experienced chief financial officer with specific experience in project finance, corporate structuring and investment. His background includes renewable energy, infrastructure investment, project development and construction.
Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for Spark Solar Australia.
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Company Name Sector Yr established Business stage Location Seeking
Commissioners Gold Limited Mining 2005 Junior explorer Central West NSW Capital Raising
Executive Summary The offer from Commissioner’s Gold seeks to exploit the current price strength of gold. The Company has a portfolio of good gold exploration tenements in the Eastern Lachlan Fold Belt, a world-class mineral province for metalliferous deposits. Regional benefits specific to our exploration area include; historic gold producing area close to mains power, sealed roads and skilled labour. The area has no Native Title issues. The region is well-endowed for future rewards. Million ounce+ successes in the Eastern Lachlan include Cadia (Newcrest), Cowal (Barrick) and Northparkes (Rio Tinto). Emerging successes include Hill End (HEG), Majors Creek (Cortona), Tomingley/Wyoming (Alkane), Marsden (Newcrest), McPhillamys/Blayney (Newcrest/Alkane), Monza/Temora (Goldminco). The Company strategy is to explore and extract as soon as full development is justified. There has been significant historic production within our tenements.
Competitive Advantages • Debt free. No directors fees. Lean administration. • NSW has traditional low cost of gold production and good discovery rate. • New Commonwealth Government tax regime should lower start up capital costs: a) refundable credit of state royalties b) rebate of $300K for every $1m spent on exploration after July 1, 2011. • Funds spent drilling for maximum resource estimation in specific geological province on two mineralization models (Intrusive Related & Orogenic gold styles). • Current aggressive 2010 drilling program on time and on budget. • Early leverage opportunities through farm out, joint ventures or vend in of advanced project.
Key Investment Highlights • Clear exit strategy with scheduled IPO through sponsoring broker Novus Capital Limited • Highly experienced project management team and contractors • Current drilling at “Black Bullock” Oberon • Well considered drill targets to lay off risk • Tenements are proximate to roads, power and labour ensuring lower exploration and extraction costs • Leverages the ongoing strength of Gold • Low entry price (10cps) with considerable potential upside on progressive drilling results and proposed ASX listing • Lower discovery risk – other gold deposits already identified • Only $500,000 Placement on Offer at 10c a share to maintain tight capital structure • Only 16 million ordinary shares issued to date
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Board & Management:
Alan Shepherd Director
Christopher Battye (BLegS)
Chairman Before admission as a solicitor Chris had careers in media and mining, having been a machine sapphire miner on the Anakie Field, Qld.
Alan is the Company’s ‘man on the ground’. He has over 30 years mining project start-up experience (plant and machinery).
Wesley Martin Harder
Keith Taylor
Sue Border
(BSc, Dip SIA, MAus IMM)
(MCom, MBA, CPA, FCIS, F Fin)
(BSc(Hons), Gr Dip, FAIG, FAusIMM,
Director
Company Secretary
MMICA)
Wes is a former gold analyst with Jackson Ltd Stockbrokers and has worked as a gold, mining and resource analyst for Ord Minnett and Renoufs.
Keith is an experienced listed company secretary with strong credentials in resource company financial requirements and management. Keith is a licensed dealer in securities. He has worked at the Australian Securities Commission.
He is also a field exploration geologist, having worked for major companies like Placer Prospecting, Newmont Mining and Pancontinental Mining Ltd.
Project Manager Sue is a senior geologist with over 30 years experience in project management and reserve estimation. She has been mine geologist, consultant, academic and exploration manager before founding Geos Mining and building it into a team of more than 20 varied professionals.
Use of Funds • Costs of the IPO including report updates and finalization of draft Prospectus • Possibly secure Option over an advanced gold project with a near term production profile to ensure success of the float • Soil geochemical surveys at Dalton to identify next drill targets, after Oberon
Corporate Structure
Commissioners Gold Limited is an unlisted Public company.
Exit Strategy
Scheduled IPO through sponsoring broker Novus Capital Limited.
Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for Commissioners Gold Limited.
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Company Name Sector Yr established Business stage Location Seeking
Hunome Pty Ltd Consumer Internet 2008 Expansion Sydney, Australia Capital raising and company sponsorship
Executive Summary Hunome revolutionises access to views and insights on humans: who, what, why we are and where we want to go next. This allows our community to gain a pulse on human interests. The web-based proprietary solution enables Hunome to deliver structured and dynamic knowledge. Unique IP. The solution is currently in private mode. Hunome solves issues of cost, untimeliness and even irrelevance of current market offers. With our solution we calculate, assess and connect the community insights and credibility and deliver value added outputs. Individual members gain access for free. They need Hunome for their professional results. They are in creative and people oriented professions. Companies profile in front of an influencer audience and purchase dynamic and packaged outputs. 1000 CEO Research shows that companies seek this knowledge for their critical processes. Nokia and Adobe endorse it.
Competitive Advantages • Hunome offers a unique solution for insight mining and dynamic output creation • Our business model is highly scalable for rapid growth and includes multiple revenue streams • Companies spend millions of dollars yearly in alternatives yet struggle to extract relevant insights • Individuals cannot afford the current market costly or time consuming means to inform their decision-making
Board & Management: Dominique Jaurola - CEO Start-up founder of a B2B Internet business. Nokia product executive for global mobile phones. Nokia strategist and initiated consumer foresight. Author. Martin Ollman - Director Design and Creative Designer and developer of 100+ complex tailored sites for companies like Reuters and News Interactive. Award winning photographer. Tim Purcell - Director Commercialisation Achieved sales of $200k to $2m for start-ups and early stage companies. Internet marketing expert. Knighted by Finnish Government.
Advisory Panel: Andreas Raffel Executive VP Rothschild - UK Paul Sutherland Founder & CEO Financial management and investment group - US Roman Kikta Managing Director at Genesiscampus – mobile technology VC firm - US
Corporate Structure Hunome is a Proprietary incorporated in NSW.
Limited
company
Exit Strategy Hunome aims to list on a suitable exchange or a trade sale exit, targeting fiscal year five.
• We provide a platform and audience for the current market to improve their visibility
Key Investment Highlights • The team has extensive global expertise in the relevant domains • The member behaviours, revenue models and core technologies used are proven • Hunome has an innovative model poised for growth with high barriers to entry • The model allows us to commercialise beyond the initial revenue streams • We leverage the developed foundations and low cost to market for high profitability • The market is vast; developed world 10% are in relevant professions and 25% in ‘cultural creatives’ group • Member and company interest have been established • The funds are for further development as well as monetisation in line with member growth
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Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for Hunome Pty Ltd.
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MyGuestlist Social Media/Marketing Services 2009 Early Stage Melbourne Capital Raising
Company Name Sector Yr established Business stage Location Seeking
Executive Summary MyGuestlist amalgamates social media and traditional e-marketing tools to grow the mailing list databases of hospitality & nightlife venues, increasing the frequency of functions and overall number of patrons. The MyGuestlist software allows a venue to completely manage their bookings (also guestlists for bars and nightclubs) and marketing (including sending of SMS and Email promotions).
Competitive Advantages • Incorporates social media (Facebook, Twitter, Foursquare) within the core week-to-week processes of a hospitality venue and their marketing efforts • Integrate and share data from various sources (web, offline, iPhone/iPad) for a seamless experience • Competitive pricing structure • Accelerated adaptation and innovation of new and emerging social trends • Around the clock service, support and assistance • Algorithms which detect disconnected mobile phone numbers, hard bounce email addresses, non working email addresses, incomplete and duplicate database entries are utilised by MyGuestlist keeping them accurate, up to date and free of errors
Board & Management: Damian Janeski – Director B. Computer Science (minor in Entrepreneurship) Bachelor of Computer Science at RMIT. Worked for Thales ATM on Air Traffic Management Software systems. Shareholder in Lakehill Construction building development company. Andy Marcus – Director (Software Engineer) Bachelor of Software Engineering at RMIT. Andy has previous experience at Agilent Technologies in E-Business. Previous Shareholder of Playground Concepts Business owner of previous hospitality venues. Alex Ilievski – Director (Communications Engineering & Computer Science) Alex has previous experience at DWS and Telstra within both Development and Project Management roles.
Corporate Structure MyGuestlist is a Proprietary Limited company. Company name is under Syntac Ventures Pty Ltd which owns MyGuestlist.
Exit Strategy The ultimate exit for MyGuestlist would be a strategic trade sale.
• First to market with an iPad application that allows venues to manage their bookings digitally and in real time rather than on a diary. Nightclubs can mark off attendees using the iPad application and track statistics and other metrics in real time • Completely self managed booking system that allows bookings to be created in real time using the web, desktop or mobile phones • Team is comprised of ex-hospitality managers/owners and Computer Science/Software Engineers
Key Investment Highlights • Easily deployable to all states within Australia at very minimal costs • Easily adaptable to other countries (some clients already exist in other continents) • Product is one of a kind and only has one competitor which is fulfilling about 60% of the MyGuestlist capabilities • Enormous potential to overlay an advertising platform over the data in our belonging, similar (albeit on a different magnitude) to that of Google Adwords and the Facebook advertising platform • Rapid innovation, constant integration of new technology (iPhone, iPad, Social networks etc), creating new revenue streams • E xperienced management with in-depth understanding of industry, product development and project management
Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
• Application is easily adaptable to other industries, can be re-branded to suit niche markets
www.wholesaleinvestor.com.au
• Clients include some of the biggest bars, clubs and event organisers in Melbourne
click on View Investment opportunities and search for My Guestlist.
• Growing at a rapid rate. Seeing a large increase in revenue month-to-month. MyGuestlist has handled over 16,000 bookings in the last 6 months
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Mailing Lists Online Pty Ltd IT 2009 Early Stage Melbourne Capital Raising
Company Name Sector Yr established Business stage Location Seeking
Executive Summary MailingLists.com.au acts as a conduit for business growth enabling SMEs and Corporates instant access to affordable business mailing lists. A new market, a new concept and new product has been created, taking a traditional service-based list broker model through digital adaptation for a market driven product-based business model which produces a 90% gross margin. MailingLists.com.au is a radical innovation, first – and only - to market in Australia as well the first with global reach spanning four continents with intellectual property strengthening its position in the form of generic domains, data contracts and an internationally scalable platform for data and complementary products.
Competitive Advantages • A sustainable competitive advantage has been created through a radical innovation • Further supported by key intellectual property (potential opportunity to Patent) creating barriers to entry • First and only to market sees no existing direct online competitors • List supply competitors do not service the labour intensive SME market • The business model saves customers time, money and increases ROI • Switching costs are high due to suppression of previous data orders
Board & Management: Neville Christie - Chairman (a/c) Neville is a serial entrepreneur with over 50 years experience in building and running companies. He has also worked as a venture manager, management mentor and was recently destra Corporation (ASX: DES) Non Executive Director which saw its revenues grow to more than $100m and included Lachlan Murdoch and Paul Ramsay as investors. Lauren Rielly (MEI) - Founder & Director Corporate Development Lauren started and grew her own global list supply company for six years which sold in 2007, earning her twice finalist for Young Direct Marketer of the Year (VIC). She also lectures in Entrepreneurship and Innovation at Swinburne University. Domenic Carosa – Investor, Deputy Chairman Domenic co-founded and listed destra Corporation on the ASX in 2000 and achieved numerous rankings in the BRW Fast 100. He built destra into Australia’s largest independent digital media and entertainment company with over $100m in annualized revenues and included Lachlan Murdoch as a shareholder. He now runs a boutique internet investment company Dominet Digital Corporation.
Corporate Structure Mailing Lists Online Pty Ltd is the trustee of the Mailing Lists Online unit trust which holds the business and all IP. The share capital will be expanded to accommodate external investors.
• Platform rather than product focus reduces supplier power with multiple offerings • High-profile results orientated team
Key Investment Highlights • MailingList.com.au seeks capital investment to pursue its aggressive growth strategy • A considerable cash and sweat equity investment has created the technology platform with existing revenue generated in Australia and offshore • The main application of funds is for international expansion into North America, India, UK and China including customer acquisition, sales and marketing and business process patent protection • Potential acquisitions have already been identified that would further increase barriers to entry and contribute profits to the business
Exit Strategy It is expected that the business will be exited via a trade sale within 12-24 months. Potential buyers would include those looking to expand their product offerings targeted towards their SME clients like MYOB and Melb IT or existing list companies like Acxiom and Incnet.
Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for Mailing Lists Online.
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KFSU Pty Ltd Food Ingredients 2006 Commercialisation Cairns, Australia Capital Raising
Company Name Sector Yr established Business stage Location Seeking
Executive Summary KFSU is a food ingredient company creating new products from agriculture. The core competency is processing and extracting dietary fibre, juice concentrates and bio-actives from sugarcane. Current customers include a global small-goods manufacturer, a major UK sugar company, chocolate manufacturers, poultry product manufacturers, pet food and snack-food companies. Commercial scale supply will commence in 2010 and is the reason funding is required. The first product to market will be dietary fibre (KfibreTM) manufactured from sugarcane bagasse for human and pet foods. Later products will be sugarcane juice concentrate, fibre from other agricultural products and non food industrial uses.
Competitive Advantages • Cost competitive in all major markets, with low bio-mass cost (use of a by-product for raw material) • Stable pricing, does not compete with food products (oats, wheat, corn) as raw material • Novel new product able to compete with established brands while having the ability to create new products and claims • Completely non allergenic • Does not alter mouth-feel or taste, even in chocolate • Chemical free processing with strong “Natural” branding opportunities • High water absorption and retention compared to other natural fibres offers the following for small goods manufacturers • Reduced meat inputs (production costs savings) • Functional health claims in a wide range of foods and snacks treatments, particularly for horses
Board & Management: Gordon Edwards - Managing Director Gordon has developed and managed several successful businesses. He possesses extensive engineering experience. Rod Lewis - Commercial Director Rod has experience as a senior executive for several global businesses with start up and SME business experience. Major project management and significant commercialistion experience. Gen Masaki - Sales Director Extensive sales and personnel network in Japan developed while working for Japanese government in overseas development. Janine Carney - Company Secretary Janine is skilled in all aspects of office management, she provides management and administration support to the group.
Corporate Structure
KFSU Pty Ltd is a registered company with 4 directors and 25 small shareholders. All IP is, and will continue to be, owned and held by the company. Investors will be offered ordinary shares in KFSU Pty Ltd.
Exit Strategy
KFSU will be producing and selling product in 2010 and strongly cash positive in 2011. The exit plan is to offer a trade sale to targeted industry fibre marketers. It is intended to drive the profit above $20M p.a. before focusing on a trade sale. However if KFSU directors receive an offer before that, it will be seriously considered.
Key Investment Highlights • Global market: $3 Billion p.a. growing at 13% • Competitive pricing • Registered IP • Investment to date $2,000,000 • Completed all R&D, Pilots and Proof of Concept • Established sales agents in Australia and Japan • Independent review of market demand and pricing • Established raw material supply lines • Established forward sales orders • Transferable technology • Manufacturing JV being established in Costa Rica • Processing plant being finalised • R&D has shown further products are available through Kfibre™ • Enables low GI claims on manufactured products by minimal inclusion of Kfibre™
Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for KFSU Pty Ltd.
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Company Name Sector Yr established Business stage Location Seeking
Gratuk Technologies Pty Ltd Bio-pharmaceutical sector 2009 Early Stage Sydney, Australia Capital Raising
Executive Summary Gratuk is developing products for the equine, canine and feline veterinary markets based on leading technology used successfully for human treatments. The Australian market for veterinary products is $700 Million p.a. and the global market is $35 Billion p.a. Gratuk products target between $2 and $3 Billion of this global market. Gratuk products use the animal’s own biological signals (cytokines) to assist the animal repair itself in the areas of: 1. tendon healing 2. bone repair 3. arthritis 4. anaemia 5. suppressed immune response 6. recovery after injury The products are a step ahead of existing treatments.
Competitive Advantages • Gratuk will be first to market with this type of treatment worldwide • Gratuk treatments reduce the total time an animal is in care • Gratuk products mimic nature, using the animal’s own biological signals to assist healing • Gratuk products are not ‘small molecule drugs’ like current treatments • Gratuk treatments will reduce the complexity and cost of many treatments, particularly for horses • The cost of the treatments will be competitive with existing treatments • The treatments have previously been produced by the Gratuk team for human medical use
Board & Management: Rod Lewis (BSc, Grad Dip Man) Commercial Director Rod has experience at senior executive levels of many global companies and commercialisation of small businesses, including the management and patenting of over 25 pieces of IP. Malcolm Ball (B. Technology (Biology / Chemistry) PhD Biochemistry) Technical Director Dr Malcolm Ball has significant experience in the creation of species specific protein based pharmaceuticals. He has overseen the production of 36 successfully marketed products from concept stage to release to the public. Nicki Packer (Prof. of Functional Proteomics) Head of Technical Advisory Board Nicki has had an extensive career in biochemical research. She co-founded Proteome Systems Limited, a biotechnology company specialising in the development and application of proteomic technology for diagnostics and drug discovery.
Corporate Structure
Gratuk Technologies Pty Ltd is a registered company with 2 directors and 12 shareholders. All IP is held by Gratuk. Investors will be offered ordinary shares in Gratuk Technologies Pty Ltd and their shareholding will be provided by equal dilution from all existing shareholders.
Exit Strategy
The ultimate exit for both founders and shareholders is a trade sale. Specific targets have been identified. Gratuk directors will also commit to a public listing at valuations agreed with investors to provide an exit if the trade sale does not produce a sufficient return.
• The key treatments are in daily use for humans on a global basis
Key Investment Highlights • Customers have demonstrated high demand for the treatments globally • Gratuk’s target market is up to $3 Billion p.a. • Income forecast within five years is $20 M p.a. with excellent upside and growth opportunities • Gratuk is profitable from sales of only 1 of the 12 treatments • Gratuk can register IP for these treatments for animals • Members of the Gratuk team have international recognition in this field • The treatments are established and proven for human medication • Gratuk has external advisors in technical, IP, legal and commercial areas • Supported by Macquarie University incubator for commercialisation and administration • Does not involve original research. It involves adaptation of proven technology • Gratuk’s business plan is to have Proof of Concept products available within 18 to 24 months
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Further Information: To learn more about this opportunity, including downloading Investor Documentation, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for Gratuk Technologies.
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Company Name Sector Yr established Business stage Location Seeking
Wireless Nation Pty Ltd Telecommunications 2010 Early Stage (roll-up consolidation) Brisbane, Australia Capital Raising
Executive Summary
Board & Management: Brian Finn AO FAICD FAIM - Chairman Brian is a leading figure in Australian business and public company circles. He has previously been a director of Telstra, and chairman of Southcorp, IBM, Fone Zone, and Sydney Ports Corporation, among others. Peter Baines PhD GAICD AInstIB - CEO and Managing Director Peter has twelve years experience in this industry, including six years as MD of the Australasian operations of Tait Electronics Ltd, one of the leading equipment manufacturers.
Wireless Nation is a roll-up consolidation of independent businesses in the distribution channel of the two-way radio industry in Australia. Each business to be assimilated in the roll-up is long established, successful and profitable. After consolidation Wireless Nation will have a countrywide presence serving government and corporate customers with leading edge wireless communication products and services. There are very strong growth strategies to more than double the revenues and EBIT in 3 years.
Corporate Structure
Competitive Advantages
Three years after commencement, Wireless Nation will be ready for exit. The target is a trade sale to either a public company or a larger private company in pre-IPO stage. Wireless Nation will be groomed as a very attractive acquisition for such purchasers where strategic leverage enhances the arbitrage gains.
• More sales and service centres than other retailers (unique national presence) • The critical mass to deliver medium sized system projects much more easily than others • Strategy to expand from base of two way radio solutions into leading edge wireless technologies • Strategic relationship with a leading equipment manufacturer
Wireless Nation Pty Ltd is a private Australian company. Ordinary shares are on offer to investors.
Exit Strategy
Some early potential purchaser leads have already been approached with a view to cultivating the exit options.
Key Investment Highlights • Projected dividends circa 100% within two years • Capital growth at least 500% in three to five years • Low risk because these businesses are proven • CEO has track record of growing a business in this industry from $17M p.a. to $46M p.a. in 5 years • Defined exit strategy of trade sale to public company or pre-IPO private company with strategic synergy • There is a gap in the market for a national operator to emerge • Heads of Agreement signed with participating businesses
Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for Wireless Nation Pty Ltd.
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Company Name Sector Yr established Business stage Location Seeking
Brightgreen Pty Ltd. Green Technology 2008 Expansion Melbourne & Perth, Australia Scaling Capital
Executive Summary Brightgreen is a leader in the design and development of innovative LED based lighting to service a market worth $2.6 billion dollars in Australia alone over the next five years (IBIS/ABS). Brightgreen has an established brand and existing sales with its first generation of products and a protected first to market advantage available from April 22nd 2010. Brightgreen’s new generation of LED lights will be the first with halogen equivalent lighting based on protected LED technologies that offer the fastest payback of any eco-technology on the market. Brightgreen has begun export to the UK and orders have already been placed and successful trials conducted with major stakeholders such as Mirvac, Henley & Colgan. The release of the D900 on April 22nd at the Sydney Convention Centre will result in a need to scale to meet and service sales growth.
Competitive Advantages • Brightgreen’s lighting products will offer the lowest return on investment (ROI) of any ecotechnology on the market. • Brightgreen has developed the world’s first 50W Halogen down-light equivalent: the D900. • Brightgreen will be first to market with this and 22 other products that are currently in development. • Brightgreen has secured Intellectual Property in the form of Patents and Design registrations and trademarks for its range of second-generation products that allow for reduced production costs, and a better feature set than any international competition. • Brightgreen’s innovative product development team are highly trained and experienced with many awards for disruptive developments.
Board & Management: Andrew Kuruc - Chairman (non exec) Andrew Kuruc has 20 years experience in retail financial services in middle & senior management positions, including major tenures with Colonial Mutual & Scottish Amicable Life, and for MLC Limited. Andrew has brought a series of startups to success and coached senior executives at large corporates including Unisys, Talent2 and Westpac. David O’Driscoll - CEO BCom, BDes (1st hons) Dip FA, MDIA David has extensive new product development, Intellectual property, commercialization and product licensing experience with a high rate of success in turning new technologies into profitable businesses. Barry O’Driscoll - Director Bcom, Dip Fin. Barry has10 years experience in strategic management of large business portfolios, projects and tenders. Former head of Business Intelligence within QBE Insurance Australia (Direct). He has expertise in Business Planning, Analysis, Segmentation & system design.
Corporate Structure Brightgreen is an unlisted public company with only one type of share on issue.
Exit Strategy • Dividends are expected within 12 months • Trade sale based on product IP to an international brand • IPO to bring Brightgreen international
• Brightgreen uses a proprietary specification system that significantly reduces labour costs in the sales and support process.
Key Investment Highlights • Capacity: Brightgreen is led by an innovative, well trained and proven team. • Growth: All fiscal, political and consumer trends favour growth in this market sector along with a product suite that is highly regarded by specifiers in this sale cycle. • Market Readiness: Brightgreen has completed all design development and testing of its second generation of product, including successful trial fitouts with Mirvac, Henley and Colgan. • Demand: The lighting specification market has been in high demand for this yet to be delivered product for years.
Further Information:
• Sales: Brightgreen has secured pre orders of over 1000 D1200 units from 3 trial sales targets out of 7800 possible targets.
To learn more about this opportunity, including downloading an Information Memorandum, go to
• Proven: Brightgreen has proven its ability to design, produce, market, sell and distribute a superior product and service offering.
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• Low risk: A comprehensive IP portfolio and a suite of strategic advantages with layered redundancy yield a low risk rate.
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Cloncurry Metals Limited (ASX:CLU) Mining 2007 Exploration Brisbane (Head Office) Investor Relationships
Company Name Sector Yr established Business stage Location Seeking
Executive Summary Cloncurry Metals Limited has excellent exploration ground in Queensland, Australia and in the state of Michoacan, Mexico. The recently acquired El Rodeo project comprises four primary targets and at least three secondary targets. • Cacanicuas – Cu/Mo Porphyry • La Calera – Gold dominant skarn • La Ferrosa – Gold dominant skarn • Espiritu Santo – Ex producing Silver mine All the mining prospects were carefully chosen to ensure that there is considerable potential for the discovery of viable deposits, across the major metal groups. All likely targets have considerable size potential and, with exposure to Gold, Silver, Copper, Lead and Zinc, the Company is well placed to discover and develop a major mining operation. The experienced Board and Management team have committed to aggressively exploring its assets in Mexico and Queensland while actively seeking other opportunities to enhance shareholder value. With its highly regarded team of mining professionals, Cloncurry Metals is in an excellent position to leverage against its exploration assets and discover major mining deposits.
Competitive Advantages • Outstanding team of people, with experience in finding, financing and developing mineral assets. • Significant geological expertise in finding and assessing IOCG and BHT deposits around the world.
Board & Management: Simon Finnis - MBT - Managing Director Mr Finnis has 25 years experience in mining operations, including underground, open cut and dredge mining operations in gold, copper and mineral sands. He has been involved in various development roles in four projects. Stephen Everett – B. Eng (Chem), MAICD Chairman Mr. Everett is a chemical engineer who has 30 years management experience in the resource industry, including production and project management, marketing, corporate restructuring, debt/equity financing and government relations. Mr. Everett’s senior executive positions have included Managing Director and Chief Executive Officer of private and publicly listed companies. Glenn Beere - B.Sc.(Hons.), Fellow Aus I.M.M Exploration Manager Mr Beere has more than 25 years experience in geological roles in the Australian mining industry, mostly in pure exploration roles. His most recent position was with BHP, specifically leading the Cannington brownfields and Cloncurry region exploration teams.
Corporate Structure Cloncurry Metals Limited is a Public company listed on the Australian Stock Exchange.
Exit Strategy
We believe in developing our assets for our shareholders. We will build long term wealth via profitable mining operations. However, the extremely low share price provides the opportunity for shareholders to sell into rising demand.
• Broad exposure across different mineral types and styles of mineralisation via prospective exploration ground in Mexico and Queensland. • Unqualified support from major shareholders, who are aligned with the business strategy. • Demand for precious and base metals is very strong, with pricing returning to long term highs. • Acquisition of El Rodeo has added Mexico specific expertise to advance El Rodeo, but also assess and acquire other prospects.
Key Investment Highlights • In house team that have the necessary skills, contacts and experience, to locate, fund and develop mineral resources. • Commitment to explore and drive capital growth. • Targeting deposit styles that deliver extremely high rewards. • Broad exposure to different minerals. • Still seeking further opportunities.
Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
• Exposure to a team of people with a proven track record in the industry.
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• Extremely low share price, considerable upside.
click on View Investment opportunities and search for Cloncurry Metals Limited (ASX:CLU).
• Limited exploration of the assets to date presents enormous potential for geological exploration and eventual mining production.
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Company Name Sector Yr established Business stage Location Seeking
Green Resources Group Limited Green Tech 2009 Expansion Sydney, Australia Capital Raising, Strategic Alliances, Additional Member of Board of Directors
Executive Summary Green Resources Group Limited (GRG) is a public company registered in November 2009 that wholly owns and operates 4 subsidiary companies each catering for different solar market sectors. GRG’s core business is in supplying the latest technology in Solar Photovoltaic System to Australia. (1) First Renewable Energy: sourcing, procurement, importing, storage & distribution of a wide range of solar products and wholesale. (2) Inspire Solar: in charge of sales & marketing, supply, design & installation of solar PV systems for residential, industrial and commercial market with expansion plan to QLD, WA & VIC by Dec 2010. (3) Perpetual Solar: franchise system for retail solar shops Australia-wide. (4) Green Partner Australia: the only company in Australia that provides free rental solar PV systems to households.
Competitive Advantages • Vertical integration, turnkey solution. Caters for the entire solar market • Successful procurement and importing of a comprehensive range of parts for solar PV systems
Management Team: Richard Sharp - B. Maths, MBA Managing Director Self-made billionaire by 28. Founding businesses and turned into the largest in industry. Extremely well connected with manufacturers in China. Leo Li - B. Computing Science, MBA CEO Charismatic leader with strong business acumen and all-round management skills. Experienced in Mergers & Acquisitions. Kenneth Norris – Dip. Mktg Group General Manager Over 30 successful years in management, responsible for the creation and growth of the largest Home improvement companies in Australia – Modern Group. Wayne Blanch – B. Acct & CPA Group Financial Controller Responsible for growing one of Australia’s largest environmental business: Fieldforce, w/ turnover of $110 Million - subsidiary of a top ASX 200 company.
Corporate Structure
Investor will be investing into equity of the Holdings Company – Green Resources Group Limited which wholly owns and operate the 4 subsidiary companies.
Exit Strategy
It is anticipated GRG will list on a suitable exchange at an appropriate time. Aiming for October 2010.
• Experienced Industry Leading Management Team • Supplying the most advanced solar panels in NSW with the highest quality (25 year warranty) • Secured Exclusive & Non-Exclusive Distributorships with solar manufacturers • Professional Government Accredited Installation team • Strong Sales, Operations model & team
Key Investment Highlights • Strong cash flow & finance backing, profitable business • High and realistic ROI • Multiple revenue streams - mitigated risk • Tangible assets – $2 Million+ of accounts receivable, land, plant, equipment & stock • Aligned interest between shareholders & senior management team • Low gearing • Acquired its own solar panel manufactory • Created its own Australian solar panel brand – Inspire Solar • Strong sales records - $1.3 M to date, increasing exponentially • Innovative & proven Sales & Marketing model. Pure results driven • The only solar company in NSW to provide interest free financing
Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for Green Resources Group Limited.
• Immense future growth opportunities domestically & internationally
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Company Name Sector Yr established Business stage Location Seeking
Tailored Franchise Holdings Limited Franchise 2010 Start-up Sydney, Australia Capital Raising
Board & Management: Damian Taylor - 20 years franchising experience Founder Damian is the founder of TFH, and has over 20 years franchise experience. He has been a shareholder and board member with Bakers Delight. Experience with some of Australia’s best franchises. Maria Taylor - HR - Co- Founder Maria has 10 years franchising experience with some of Australia’s best franchise organisations. Craig Farrow - B Ec. CA - Advisory Board Craig is a Fellow of the Institute of Chartered Accountants and the Australian Institute of Company Directors.
Executive Summary Tailored Franchise Holdings is to provide funds to the Tailored Franchise group of companies; the company will actively seek to achieve capital growth for the shareholders by providing equity capital into start-up franchise businesses along with acquiring franchise businesses outright.
Former National Chairman of the Institute of Chartered Accountant’s Public Practice Advisory Committee. Current Chairman of ASX listed M2 Telecommunications. Bill Moody - Bachelor of Law - Advisory Board Bill has 34 years experience practising law.
Tailored Franchise Solutions specialises in affordable franchise set-ups for businesses and we continually have the opportunity to take equity in many of the start-up franchise businesses that with an injection of funds will allow them to establish the franchise quicker.
Bill’s expertise is in the preparation of sale and purchase agreements, contracts for employment, incorporation of companies and preparation of trusts.
The Tailored Franchise Holdings advisory board intends to further pursue this strategy of investing in franchise companies that meet the TFH investment philosophy and whose expansion can be expedited by an injection of capital, management advice and strategic direction.
Corporate Structure
Competitive Advantages • Damian and Maria Taylor have over 30 years of franchise experience • National coverage with experienced state based partners with 45 years combined franchise knowledge • Reducing the overhead costs of franchise businesses we own by using our own network of people • Advisory Board experience in acquisitions and purchase of businesses • Each business chosen will is highly scalable with great upside
Tailored Franchise Holdings is the parent company and owns 100% of Tailored Franchise Solutions Pty Ltd. Tailored Franchise Solutions has 4 state based territories with partners owning 49% of the business: 1. VIC/TAS 2. NSW/ACT 3. SA/WA 4. QLD/NT
Exit Strategy
The company will have two exit options moving forward:
• Companies chosen need capital injection to realise full growth potential
1. Sell the shares back to the group using the valuation formula in the company constitution
• Investee companies have the capacity to expand nationally with an eye on international opportunities
2. We will always keep our options open to listing on a suitable exchange at an appropriate time
Key Investment Highlights • Currently we are working with clients that would benefit with an injection of funds • In final negotiations with 6 franchise groups • Experienced team in early franchise system development • Experienced team in franchise systems management requirements • TFS have state based shareholders to provide Australia wide coverage • Our franchise and business experience counts for a lot and minimises the risk
Further Information:
• The Tailored Franchise Holdings advisory board has great all-round franchise and business skill on it
To learn more about this opportunity, including downloading an Information Memorandum, go to
• Current business valuations very low and many stressed franchise opportunities still becoming available
www.wholesaleinvestor.com.au
• We aim to grow the businesses quickly by acquisition of franchises and taking up equity in start-up franchises
click on View Investment opportunities and search for Tailored Franchise Holdings Limited.
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Phase Changer Pty Ltd Electrical converter design / manufacture / distribution 2006 Growth Victoria, Australia Capital raising or trade sale
Company Name Sector Yr established Business stage Location Seeking
Executive Summary Phase Changer designs, manufactures and distributes the world’s most advanced single phase to three phase electrical converters. Many parts of Australia, and the world, have no ready access to three phase power to operate machinery. In many of these cases a Phase Changer is a viable cost effective alternative to utility three phase connection, allowing 415V three phase equipment to run from standard single phase 240V power. Currently we manufacture in Australia, and have licensed manufacturing in China for export markets. The next step in our plan is to cease manufacture in Australia, to increase profitability and dramatically simplify the Australian business.
Competitive Advantages
Board & Management: Mark Bridgman - Electrical Technician Managing Director Mark has significant experience in the Electrical space, combined with a strong background in hi-tech industrial sales. Previous roles include WA Manager for national automation company and Founder of own distribution / automation business, among others. Ian Jackson - Electronics Engineer Director and Technical Manager Originally worked with Telecom, Ian then founded Alian Electronics in 1985, which is still in operation today. Ian specializes in electronic circuit board design, and manufacture. In 2004 Ian and Mark joined forces to develop Phase Changer products, originally under two separate businesses. Jointly formed Phase Changer P/L in 2006.
Corporate Structure Phase Changer is a Pty Ltd Company.
• Unique technology in a niche market • Technically superior to all other rotary converters worldwide • Over 2000 Phase Changers in use in Australia today
Exit Strategy
• Phase Changer controller is microprocessor based – computer code cannot be accessed
Plan to grow the local business over the next few years to demonstrate high profitability and potential, then sell the established Australian distribution business to larger private or public company.
• Uses proven rotary converter technology, with modern microprocessor and electronic based improvements
The approximate anticipated timeframe for exit is 3 years.
• Secure IP is owned and controlled by Phase Changer International, using patents and locked computer code
• Allows standard 3 phase machines to operate from 240V without modification • China factory already established and ready to supply in quantity
Key Investment Highlights • Proven market need in Australia. Pioneered new opportunity • Limited competition. One other manufacturer in WA, using inferior technology • Ongoing growth opportunity • High profit margins on each item • Established market acceptance • Mark Bridgman now based in China – confidence in the supply of quality product made to Australian design and standards • Anticipated return on investment based on Chinese manufacture and real sales history estimated 20%+ annual growth
Further Information:
• Everything already proven, technical and commercial
To learn more about this opportunity, including downloading an Information Memorandum, go to
• Many market segments unexplored due to time and resources – 20% growth pa not unrealistic expectation • Option to ‘add in’ other associated product lines in power and energy sourced through China
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www.wholesaleinvestor.com.au click on View Investment opportunities and search for Phase Changer Pty Ltd.
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Company Name Sector Yr established Business stage Location Seeking
Australian Bauxite Limited (ASX:ABZ) Mining 2009 Exploration Eastern Australia Investor Relationships
Executive Summary Australian Bauxite Limited (ASX: ABZ) is an exploration company holding the core of the Eastern Australian Bauxite Province. Bauxite is the ore of aluminium. The company’s 17 initial tenements covering 5,000km2 in Queensland and NSW were selected to meet 3 principles: • Good quality bauxite • Proximity to infrastructure • No socio-environmental constraints. The company’s bauxite is high quality – able to be processed at low temperature – which is in short supply globally. The company’s first drilling prospect revealed a maiden resource of 22 million tonnes from drilling less than 10% of the identified deposit. The company aspires to identify bauxite resources in excess of 200 million tonnes in one of the world’s best bauxite provinces. From its listing on ASX on 24 December 2009, the company is already creating shareholder value - and the best is yet to come.
Competitive Advantages • Highest quality bauxite - high alumina – low silica • Alumina mineral is the best – Gibbsite (alumin-trihydrate “THA” only) • Strong demand for bauxite able to be processed into alumina at low temperature • 22 million tonnes identified from drilling <10% of one tenement suggest large tonnage potential • Close to existing infrastructure – transport, coal mines, industrial centres and ports on the east coast • 100%-owned tenements with no restrictions on bauxite exports • Aspires to identify resource in excess of 200 million tonnes • Controls the core of the eastern Australian bauxite province
Management Team: Mr Peter J. Meers BA (Economics) FAIB Chairman Significant experience in consumer, commercial and investment banking, securities trading and origination, mining and exploration. 25 years experience at ANZ bank in Australia and Asia, holding senior executive positions and portfolio management roles. Ian Levy BSc (Hons) MSc DIC FAusIMM FAIG CEO 30 years senior management experience with small to large mining companies. Chairman of Dynasty Metals Australia and a former Director of Gloucester Coal. Member of the Joint Ore Reserves Committee (JORC) for 11 years including 4 years as Vice Chairman and Federal President, Australian Institute of Geoscientists. Jacob Rebek – Director & Chief Geologist Geologist with 40 years experience in exploration, including 30 years at CRA and Rio Tinto, both across Australia and internationally.
Corporate Structure
Fast growing, dynamic publicly-listed company managed by an experienced team of mining professionals and managers with significant resource development experience in Australia and internationally. Chief Geologist Jacob Rebek drives the technical programs.
Exit Strategy
Sell into rising demand for this stock. Approx timeframe - current and continuing for at least two years. Ultimate exit is possibly a merger with or takeover by a major aluminium company.
Key Investment Highlights • Low discovery risk – deposits have been identified – more to come • Low entry point into a growing market with a growing company • Deposit asset is of greater value than market capitalisation (favourable peer comparison) • 22 million tonnes JORC resource identified in <10% of one tenement – more to come • Aggressive drilling program scheduled throughout 2010 to prove assets in excess of 200 million tonnes • Highly experienced management team • 17 tenements control the core of the eastern Australia bauxite province • Listed on 24 December 2009 at 0.20c per share, closed at 0.35c end February 2010 • Bauxite is easily mined (no overburden) and easily processed • Global demand is rising, especially from China, which has no bauxite
Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for Australian Bauxite Limited.
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NavraInvest Navra Asia Pacific Growth Fund Series 2 Offer closes 15th June 2010
100% Finance/ Limited Recourse No Lending Approval Process 10 Year Investment Term 50% Minimum Return At Maturity No Hurdles
For more information please call us on +612 9087 1811 or visit www.navrainvest.com.au NavraInvest Limited ABN 46 101 355 239 Australian Financial Services Licence No: 226358 Disclaimer NavraInvest Limited ABN 46 101 355 239 (NavraInvest) is the responsible entity of the Fund and will be the issuer of units in the Fund. This document has been prepared by NavraInvest and does not constitute personal advice or contain a recommendation to invest. It does not take into account your investment objectives, financial position or particular needs. Before making an investment decision to invest you should consider the PDS when it is available and you need to consider or obtain independent financial and taxation advice about whether an investment in the units of the Fund is suitable in light of your personal circumstances.
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Company Name Sector Yr established Business stage Location Seeking
Phylogica (ASX:PYC) Biotechnology and Pharmaceuticals 2003 Commercialisation stage Perth, Australia Investor Relationships
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.
Board & Management: Dr Doug Wilson, MB, ChB, PhD, FRACP, FRCPA Executive Chairman Formally Global Head of Medicine Boehringer Ingelheim. Oversaw regulatory approval and launch of 10 drugs Professor Paul Watt, BSc. D. Phil (Oxon) Executive Director/CEO Doctorate from Oxford, Postdoctoral Fellowships at Harvard and Oxford; 40 publications, 19 patents Harry Karelis, BSc. MBA CFA FAICD Non-Executive Director Founder and MD of Titan Bioventures, Managing Biotech Capital Limited Bruce McHarrie, 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
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 (eg. Roche).
Anthony Barton 30 years experience encompassing capital markets, corporate finance, funds management
Competitive Advantages
Corporate Structure
• Advantages over biologics discovery platforms (antibodies, protein scaffolds or random peptides)
Public, traded on ASX Shares on issue: 235.7 million
• Phylomer libraries are the most structurally diverse biologics libraries available
Capital Structure 235.7 million Ordinary shares 22.69 million Options 1,340,000 notes (which can convert to 26.8 million shares) Market Capitalization: Approximately US$30M Top 5 Shareholders hold 45% of Phylogica stock
• 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 Investment Highlights • Phylogica is highly regarded globally in the peptide discovery space
Exit Strategy
Trade sale to a large Pharmaceutical company, estimated 2 year timeframe.
• Phylogica’s technology is based on sound and competitive science • The company is now focused on the core asset – its Phylomer libraries • 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 • Phylomers offer clear advantages over competing biologics drugs • Phylogica has validated its technology and streamlined its processes to allow scalability • Phylogica is commercially validated, having been chosen by large Pharmaceutical companies for discovery partnerships • 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 business model provides access to early revenue with very good margins • More than 30% of new drugs in development are biologics, which are expected to constitute approximately half of all drugs by 2015, with the peptide market alone enjoying double digit growth.
Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment opportunities and search for Phylogica.
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Listing Index Below are the opportunities currently listed with Wholesale Investor. For more information or to enquire, go to www.wholesaleinvestor.com.au and search via their name or code.
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Company Name
Code
Business Stage
Sector
ACC Ecominerals Limited Activeplus Pty Ltd AG Delta AgriFuels Limited AiRush International Limited Atlantic Healthcare Australian Bauxite Limited (ASX:ABZ) Australian Leadership Centre Pty Ltd Benson (WA) Distributors Pty Ltd Biofuel Partnership Ltd Blue Fusion Asset Management Pty Ltd Bone Medical Limited (ASX:BNE) Brightgreen Pty Ltd Camco Group CassTech Limited Ceebron Pty Ltd Cloncurry Metals Limited (ASX:CLU) Coffee Shop Real Estate Commissioners Gold Ltd Crescent Gold Ltd (ASX:CRE) Datym.com Pty Ltd Direct Business Solutions Universal DIY Financial Limited Eastern Regions Resources Pty Ltd Ecobiotics eMove Pty Ltd Finerday.com Flip Screen Australia Pty Ltd Future Capital Development Fund Limited GlassesOnline Global Digital Networks Pty Ltd Global Emissions Management Solutions Ltd Globo Hydro Power Limited Gooramadda Olives and Oil Gratuk Technologies Pty Ltd Green Resources Group Limited Hunome Pty Ltd ICN Health KFSU Pty Ltd Kordz Pty Ltd Lakes Property Group Pty Ltd Lobster Harvest Ltd Mailing Lists Online Pty Ltd Management Resource Solutions Limited Microequities Deep Value Microcap Fund Mindset Media Pty Ltd Minemakers Limited (ASX:MAK) MyGuestlist My Home is For Sale NavraInvest Pacific Island Aquaculture Pty Ltd Pacific Retail Management Pty Ltd Party Hoppers Franchising Australia Pty Ltd Phase Changer Pty Ltd Phylogica Limited (ASX:PYC) Prasad Information Enterprises Ltd Primewest Funds Ltd QBiotics Ltd Quantum Precision Rentmaster Pty Ltd Shearwater Entertainment SONY Centre SA Spark Solar Australia Sustainable Energy Australasia SwapAce.com Tailored Franchise Holdings Ltd Tstix Pty Ltd Windation Energy Systems Australia Pty Ltd Wireless Nation Pty Ltd Zeep Pty Ltd - Zero Emission Energy Plants
ACC ACP AGD AFL AIR AHC ABZ ALC BNN TBP BFM BNE BGN CGP CTH CBN CLU CFS CMG CRE DTM DBSU DIY ERR ECB EMV FND FSA FCD GLO GDN GEMS GHP GOO GTK GRG HNM ICN KFS KRZ LPG LHL MLO MRS MCQ MMP MAK MGT MHF NIV PIA PRM PHF PCR PYC PIE PWF QBL QMP RMR SWE SPR SSA SBE SWA TFH TSX WEA WNN ZEEP
Pre-IPO Early Stage Expansion Stage Early Stage Early Stage Commercialisation Exploration Expansion Stage Expansion Stage Expansion Stage Early Stage Late Development Expansion Stage Expansion Stage Pre-IPO Expansion Stage Exploration Early Stage Junior Explorer Gold Producer Early Stage Early Stage Early Stage Early Stage Expansion Stage Expansion Stage Early Stage Expansion Stage Expansion Stage Early Stage Early Stage Early Stage Pre-IPO Expansion Stage Early Stage Expansion Stage Expansion Stage Expansion Stage Commercialisation Expansion Stage Mature Stage Late Development Early Stage Expansion Stage Established Early Stage Mature Stage Early Stage Expansion Stage Mature Stage Early Stage Expansion Stage Seed Expansion Stage Mature Stage Expansion Stage Mature Stage Expansion Stage Early Stage Early Stage Early Stage Expansion Stage Early Stage Early Stage Expansion Stage Early Stage Early Stage Seed Early Stage Early Stage
Mining Healthcare Financial Services Software Renewable Energy Entertainment Specialist Pharmaceuticals Mining Professional Services Air Conditioning Biodiesel - Clean Energy Financial Services Biotech Green Tech Civil Construction and Mining Agriculture/Greentech ICT Food Technology Mining Real Estate/IT Mining Mining (Gold) IT Software/ERP/B2B Financial Services Exploration Mining and Resources Lifesciences Internet/Removalists Family Communications Portal Mining Services Funds Management/Internet Internet Digital Media Software Software/Emissions Management Green and Clean Industry Agriculture Veterinary Treatments Green Tech Consumer Internet Healthcare/IT Food Ingredients Electronics Property and Real Estate Aquaculture/Clean Technology IT Resources Financial Services Digital Media Mining IT & Technology Online Real Estate Financial Services Fish Farming Retail Food Franchising Hospitality/Franchising Manufacturing (Electrical Goods) Biotechnology Software Development/Ecommerce/Media Property Life Sciences Sensors Property Management Media/Entertainment Specialist Retail Cleantech Renewable Energy IT Franchise FMCG/Packaging Innovation Wind Renewal Energy Telecommunications Renewable Energy
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