Feb 2010
PRIVATE INVESTMENT OPPORTUNITIES FOR WHOLESALE, SOPHISTICATED AND HIGH NET WORTH INVESTORS
Next generation funds management company (17)
One of Australia’s most successful wholesale property syndicators (23)
Mining company aiming to explore mineral resource projects (18)
Established four-star 83-room island resort (21)
Listed biotech focused on peptide based biopharmaceuticals (16)
growing sushi brand seeks to make strategic acquisitions (22)
Plus: Ethical Australian company to expand ecotourism operations (20) Asian corporate education group to set up in Australia (24) Olives & oil business seeks further expansion (19) Emerging ASX 300 phosphate mining company (14) Positive signs ahead for IPO’s in 2010 (10) To float or not to float (8) Industries set to fly in 2010 (11)
whole sale i nve stor.com.au w w w. w h o l e s a l e i n v e s t o r. c o m . a u
1
ASX Spotlight: Mining
In th
igh l t o e inve stment sp
t
Through the ASX Spotlight Series institutional investors and funds will have the opportunity to hear from the Managing Directors of a range of ASX listed companies about their latest business strategies, current performance, future projects and investment potential. In addition institutional investors will be able to book one-on-one meetings to discuss investment opportunities with the presenting companies. Spotlight: Mining, in association with Fortbridge Consulting, is the second in the Spotlight Series and focuses on ASX listed companies in the mining sector across a range of commodities.
Agenda 09.50am
Overview of the commodities sector
Colin Jacoby, Editor of Mining News
10.00am
Riversdale Mining Limited
Steve Mallyon, Managing Director
10.25am
Minemakers Limited
Andrew Drummond, Managing Director
10.50am
BREAK
11.05am
Exco Resources Limited
Michael Anderson, Managing Director
11.30am
Excalibur Mining Corporation Limited
Tim Lagdon, Managing Director
11.55am
Brockman Resources Limited
Wayne Richards, Managing Director
Venue:
ASX, Level 8, Exchange Centre, 20 Bridge Street, Sydney
Date:
Tuesday 23rd February
Time:
Registration from 9:30am. Presentations starting from 9:50am, followed by a light lunch at 12.30pm
To register and book private meetings with the MDs visit www.asx.com.au/spotlight In association with
2
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Feb 2010
Contents Wholesale Investor magazine is published by Wholesale Investor Pty Ltd
Editorial
ACN 131 512 715
5
Company Updates
8
To Float or Not to Float?
9
The good ship Corporate Australia is full of leaks
10
Challenging year for IPOs but positive signs ahead for 2010
11
Industries to fly in 2010
12
SME lending in 2009: What went wrong?
Phone - 1300 597 595
13
Web - www.wholesaleinvestor.com.au
Business confidence grows – employment, profit and investment to increase.
Managing Director - Steve Torso Publisher - Reuben Buchanan Senior Account Managers: - Milton Papadopoulos - Kevin Brown - Matt Hayne Editor - Michelle Smith Directors Steve Torso – Managing Director Reuben Buchanan – Executive Director Domenic Carosa – Non Executive Director Advisory board - Tim Trumper Address - Suite 204, 66 King St. Sydney
By Garry Wayling, IPO leader, Ernst & Young By Martyn Strickland, Managing Director, 333 Consulting
By Geoff Webster, Managing Partner, HLB Mann Judd (VIC) By Robert Bryant, General Manager (Australia), IBISWorld By Colin Whitehead, Equity Analyst, Fat Prophets By Christine Christian, CEO, Dun & Bradstreet
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 - White Collar Creative www.whitecollarcreative.com Printer - Quality Print Group www.thequalitygroup.com.au Distribution - D&D Mailing www.ddmail.com.au
Feature 14
Minemakers Ltd
ASX Small Cap Profile – Company of the Month
Opportunities 16 17
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
18 19 20 21 22 23 24 25 26 27 28 29
Phylogica Blue Fusion Asset Management Eastern Regions Resources Gooramadda Olives & Oil EcoSanctuaries Fijian Island Resort Pacific Retail Management Primewest Funds Australian Leadership Centre Agrifuels MRS Global Digital Networks SONY Centre SA KISSFM
30 31 32 33
34 35 36 37 38
WaterWicket Lakes Property Group Quantum PI Windation Energy Systems Australia Cosmetic Choice My Home Is For Sale Tyremil Kordz Listing Index
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
3
Letter from the Publishers-
IPO’s back in favour It’s no secret that IPO’s are back in favour for 2010. Over the last 10 years, an average of 172 companies have listed on the ASX each year. However in 2008 and 2009 there were only 68 and 39, respectively. We anticipate that IPO’s will return to normal numbers resulting in up to 500 new listings over the next three years. This is reflected in our latest Quarterly Wholesale Investor Survey, where 53.2% of investors surveyed were interested in pre-IPO investment opportunities because of the discounts that are usually offered by companies prior to listing.
Our investor database continues to increase and is now up to over 5,500. Investors receive our magazine for one reason – that is to view potential investment opportunities. We charge a marketing fee for opportunities to access this distribution, but we do not charge success fees on funds raised, as this is largely reliant on the quality of the deal and private negotiations between the companies and investors. If you have an opportunity that you would like to list in Wholesale Investor, please contact our office on 1300 597 595 or email capital@wholesaleinvestor.com.au Regards, Reuben Buchanan - Publisher Wholesale Investor Pty Ltd
As a result of this anticipated interest, on the 16th February Wholesale Investor teamed up with the ASX and ran the IPO Workshop. This event was fully booked out within days, and attended by over 100 companies who were interested in learning more about how to successfully list on the ASX. The event was hosted by Eddie Grieve from the ASX, as well as IPO experts from PricewaterhouseCoopers, Bell Potter, Norton Rose and myself (I spoke about raising pre-IPO capital). The event was a huge success and we are in discussions with the ASX about holding similar events in other major cities in Australia. Photos, downloads and other information about the event can be found in the events section of our website.
Reuben Buchanan
Steve Torso
Publisher
Managing Director
Media Partnerships/ Upcoming Events ASX Spotlight: Mining Through the ASX Spotlight Series institutional investors have the opportunity to hear from senior management from a range of ASX listed companies about their latest business strategies, current performance, future projects and investment potential. www.asx.com.au
Private Banking Asia 2010
AAAI National Conference AAAI will present the views of Angel investors and other investors and professionals from across Australia and around the world. www.aaai.net.au
WHOLESALE INVESTOR IN THE MEDIA
6th AustralAsian Cleantech Forum The 6th AustralAsian Cleantech Forum will bring a global focus to the world class cleantech products, services and innovation in finance and investment that is positioning Australia at the forefront of the cleantech revolution in the region. www.terrapinn.com/2010/ctf/
Private Banking 2010 returns with an agenda that discusses the timeliest of issues and strategies that impact the growth and sustainability of Asia’s private banking and wealth management industry. For more information, please visit www.terrapinn.com/2010/pbasg/
Wholesale Investor was featured in the recent Flagship Edition of the BRW, on sale throughout February. The Investment Review by Anthony Sibillin on pg 55 provides a great synopsis of what Wholesale Investor offers both investors and companies seeking to raise capital. www.brw.com.au
Asset Allocation Summit – Australia 2010 The only event in the region that determines the strategic investment direction of Australia’s AU$1.3 trillion superannuation fund industry www.terrapinn.com/2010/aasau
4
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Company Updates Updates for companies currently listed with Wholesale Investor. For more information regarding the companies below, please go to wholesaleinvestor.com.au, click on View Investment Opportunities and search by their name.
anticancer drug Vet trials exceeding expectations EcoBiotics anticancer drug EBC-46 is going from strength to strength. Following a successful capital raise late 2009 as a result of listing in Wholesale Investor and working with Achieve Capital, the company has moved to the final trialling stage of EBC-46 for the veterinary market. More than 50 dogs, 12 cats and 10 horses suffering from a wide range of solid tumour types have now been successfully treated with the drug and there has been no adverse side effects in all cases. Dr Victoria Gordon CEO of EcoBiotics said the company has been inundated with requests from pet owners and veterinarians wanting to participate in the trials “There is obviously a great need, and a very high demand, for a drug such as EBC-46 and we are very focused on getting EBC-46 registered and into the market” Dr Gordon said. EcoBiotics is developing EBC-46 for the human market in conjunction with veterinary development. “The outstanding success we have seen with EBC-46 in treating animals is highly encouraging of a successful outcome in treating solid tumours in humans as well” Dr Gordon said. Preparation of the drug for submission to commence Phase I Human Clinical trials is now underway. EcoBiotics will shortly be announcing a further funding round to accelerate their Human Clinical trials. EcoBiotics is being advised by Steve Hobbs of Achieve Capital, a corporate advisory firm specialising in health care.
Phylogica signs 2 significant partnership deals in one month PHYLOGICA ENTERS AGREEMENT WITH ROCHE TO EVALUATE ITS PROPRIETARY TECHNOLOGY ON DISEASE TARGETS WITHIN CELLS Perth: December 18th, 2009 Australian drug discovery company Phylogica (ASX:PYC) today announced that it has signed an agreement with Roche (SWX: ROG.VX; RO.S, OTCQX: RHHBY) to evaluate Phylogica’s proprietary Phylomer® technology in transporting large molecules to attack disease targets within cells. Phylogica’s Chief Scientific Officer Adjunct Professor Paul Watt said the challenge of targeting macromolecules to the intracellular matrix was an exciting new frontier in drug development. “Biologics such as peptides and proteins, constitute the fastest growing market for pharmaceuticals. While there has been great success with these drugs in hitting the disease targets outside of cells, we will be working to hit the plethora of potential targets that exist within cells,” Dr Watt said. “This is a very exciting collaboration where we will be working at the cutting edge of drug discovery in a space which could open up an enormous range of new targets and potentially lead to new treatment options for patients. We are delighted to be working with Roche, an innovative company which is already strong in the biologics space with a commitment to exploring this new frontier.”
PHYLOGICA AND ISOGENICA TARGET PEPTIDE DRUGS FOR INFLAMMATORY DISEASE Perth and London: January 18, 2010 Phylogica and Isogenica today announce that they have entered into an agreement to use Isogenica’s CIS display technology to optimize the performance of three of Phylogica’s lead compounds targetingCD40 ligand (CD40L), a key protein involved in many inflammatory diseases. Phylogica has already demonstrated lead peptide compounds that bind with high affinity and are biologically active against CD40L. Isogenica’s CIS display technology allows a comprehensive search process to optimize the exact chemical and three dimensional structure required to further enhance the properties of the Phylomer peptides, improving drug properties such as affinity, stability and potency. “We believe that the use of CIS display will accelerate the rapid entry of Phylogica drug candidates into preclinical development programs and increase their commercial value”, said Professor Paul Watt, Phylogica’s VP, Corporate Development. “Phylomers are sourced from the most structurally diverse peptide libraries in the world which translates into exceptionally high bioactive hit rates, including primary hits with picomolar affinities for their targets”, Prof Watt added. “Isogenica is focused on servicing the protein engineering needs of the pharmaceutical and biotech industries and is delighted to have the opportunity to work with Phylogica, combining technologies that have the potential to discover novel and potent therapeutic peptides”, said Kevin Matthews, CEO of Isogenica.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
5
Company Updates DIY Financial’s Balance Sheet offers “Entity Linking’ Constructing a person’s balance sheet sounds like an easy task, but it requires mountains of software systems, data on over 14,000 managed funds and shares, and massive IT capacity. DIY Financial launched its ‘Personal Balance Sheet’ to clients of a financial planning group on a pilot basis late last year, and is now testing ‘entity linking’ for a March - April 2010 launch on DIY Financial’s web site. According to Managing Director Tony Bennett, ‘no-one else has any similar product, and we are now testing a new product for DIY investors that provides a Balance Sheet for a person together with their superannuation fund, all on one page, real-time’. DIY Financial - Complete Control on the web and an iPhone Derek Condell, Director of DIY Financial, said that the DIY product offering will allow users to have ‘Complete Control’ – real-time - of their financial services, allowing share trading, managed funds, investment portfolios, bank account details, real estate and loan balances to be viewed on a PC or an iPhone. ‘The service is ‘world class’, and allows DIY investors to manage their finances with Complete Control’, he said, ‘and no iPhone ‘app’ would be needed, as the DIY web (PC) offering will be set up for the iPhone, in large, easy to read, print’. He added that the service would be ‘advisor friendly’ and allow continuance of fee earnings to advisors whose clients use DIY Financial.
Tyremil is an Australian owned private company. It is pleased to advise the market, we have secured a sole agency for the manufacture, distribution and supply of the technology to fully recycle tyres in Australia and multiple other countries. This is a proven technology currently operating efficiently and productively in other continents. We have received strong investor nterest. Our Investors will be pioneers with us in the industry. Our intention now is to move to the next phase of development which will involve the importing of our Plant and Equipment. We will build Plants on our two leased properties. Tyremil are also pleased to report it is in the final stages of gaining a supply contract from a leading mining contractor, for over $4.5mill pa, secured over the next five years. It now has a pipeline of contracts in place, to supply Tyres for processing for the next 3 to 5 years. Our commodities from recycling tyre and rubber products: Bunker grade oil, diesel, steel, carbon black and gas are also in demand. We are the Tyre Remediation experts, which is in fact, removing tyres from landfill or dump sites to recycle, and remediating the land and site to its near original condition. There are millions of illegally dumped tyres that will now have an ultimate purpose for recycling.
Quantum-Pi’s patent “Measuring Using Tunneling Current Between Elongate Conductors” (PCT/ AU99/00733; US 09/786,641), has just been granted in 20 major European countries. This effectively extends protection for our main technology platform patent, which is the basis for most of our metrology devices, to a total of 28 countries. The patent for this invention was already granted in the USA, Russia, China, Israel, Singapore, Australia, Canada and South Africa. It is pending in Japan and Brazil. In December, Dr Michalewicz was an invited guest speaker at the Nanotech Business Summit in Cairo, Egypt. where he gave a paper entitled: “Brave new world of (nano)-sensing: The next technological revolution and Quantum-Pi sensors”. This paper outlined a view of the future where pervasive wireless sensor networks will span the globe: we’ve even coined a tag line: “sensors everywhere”. This idea has now been embraced seriously by strong players such as INTEL and Hewlett-Packard. A 10-year project called Cense, or Central Nervous System for the Earth, was initiated by HP. It aims to seed the planet with 1 trillion sensors. [HP] “ … announced in November that they have developed sensors with accelerometers that were up to 1,000 times. more sensitive than the commercial motion detectors used in Nintendo Wii video game controllers…..” However these have so far not been commercialised. In contrast, Quantum-Pi sensors avoid several of known limitations of HP sensors and will bring even greater improvement.
6
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Company Updates Deep Value Microcap Fund Returns 94.48% for investors in 11 Months Strong outperformance by the Deep Value Microcap Fund returning a positive 2.56% versus the All Ordinaries negative 5.85%. The Fund increased its exposure to a new entry into the portfolio which met the Fund’s investment criteria. We are pleased with the quality and composition of our portfolio as we enter the first half of the FY10 earnings season. Trying to make sense of the stock market over a short term period is an exercise in futility. Over the short term the stock market can behave in a paranoid, self delusional, contradictory, irrational and obtuse way. Over the long term however, the market captures the gravitational pull of the economic fundamentals. The Australian economy will experience faster economic growth during 2010, it will deliver lower unemployment and corporate earnings will rise. More importantly for Australia, our Asian partners continue to grow and are underpinning a significant portion of the world economic recovery.
Benson (Wa) Distributors Pty Ltd Benson is pleased to announce the following: • Benson has just taken on a State Sales Manager • Has been given rights to set up distributors and contracts for the whole of Australia. • Just received completed and approved credit application back from a large Distributor in WA with over 11 retail stores. • Have a completed credit application from AE Smith, who are a major commercial player. • Just about to release our AC Hot Water system to the market, only system in the world of its kind. Will produce FREE Air Conditioning or FREE Hot Water. Benson is currently looking for investors to help with marketing, bringing products to market and increasing Australian inventory levels.
We have received strong investor interest and have raised $300,000 in the first month. Discussions are continuing with interested investors and we are confident that the offer will be fully subscribed. The residential housing market is very strong having presold 90% of our Mount Martha project within three months, reinforcing our budgeted profitability forecast of 45% on capital invested. We have also signed a contract to purchase the adjoining land at Carrum Downs (distressed sale) with Permit for 102 Units at a considerable discount to market value. Investment information memorandum and marketing brochures available on request.
Company Update Pacific Island Aquaculture has decided that due to the uncertainty of the political situation in Fiji and the subsequent suspension of Fiji from the Commonwealth that we have decided to investigate alternative locations and methods of aquaculture for the company. We have conducted extensive research since October 2009 with regard to alternative locations/countries and although we have had some great offers from around the world, we have decided to relocate the venture in Australia. During our travels and research, we also came across emerging aquaculture technology, in Norway/Denmark and the USA that allows us to have our grow out cages on land in a recirculation (water) system, rather than transfer the cultured fingerlings to the ocean; we grow out the fish to maturity in land based tanks in large factory style enclosures. This allows us to protect the stock from disease and mother nature, and allows us to maintain bio security of our product. We are currently investigating the new costs involved in setting up land based aquaculture in Australia, but expect them to be slightly higher due to Australian labor and infrastructure costs. However additional costs associated with land and infrastructure should be reduced by the savings of not having commercial boats, crews and divers. A new Information Memorandum will be issued as soon as we have the new financials and negotiated the Australian permits required.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
7
To float or not to float? By Garry Wayling, IPO leader and Partner, Ernst & Young
Going public is not for every company; the pitfalls are numerous and the stakes are high.
The IPO process
Whether your business is suitable for an IPO will depend on a number of factors however, if you do decide to go down the public route, then be prepared for a long-term transformational process that will bring change to every aspect of your business.
Consider your people resources carefully – strong ongoing management is essential to ensure the business continues to grow while you are preparing for the IPO. It is also likely that the board and governance structure of the business will need to change to meet listing requirements. Well-credentialed board members will be important in demonstrating ongoing commitment to shareholders.
Challenging markets may come and go, but it is the companies that are fully prepared that are best able to leverage the window of IPO opportunity. Businesses need to undergo many months of advanced planning, organisation and team work before they are ready to go public. The journey to public company status must prepare an organisation not only for the defining moment of the IPO event, but also for a whole new phase of corporate life. Once you go public, the real work begins. If this is the route you choose to take, it is essential to understand what is involved, to start planning early and to build the right team, both within your business and in the advisors you appoint.
Deciding to float Key drivers behind IPOs include the desire to grow, a desire or need for increased investment capital, a way of reducing debt, and a mechanism to recognise and provide incentives to key employees. How do you know if an IPO is right for your business? In the first instance, assess what stage your business has reached. Consider delaying relinquishing equity until the business has developed to a point where it can command a stronger price. If your funding need is more immediate, you may not have this luxury. Consider your broader growth plans – are you pursuing organic growth or growth by acquisition? Are any shareholders seeking an exit in the near future? It is common for the business owners to be effectively locked-in for a number of years after floating to underpin confidence in the offer price. Thinking about your business from the point-of-view of a third party investor also helps. Can you demonstrate a track record of growth? Is there clear scope for strong future growth? How is your sector viewed by the market and analysts? Is there a market appetite for your style of business, or is the investment in your sector cyclical?
Timing is critical Timing is critical as the past couple of years have shown, and it is impossible to guarantee that market conditions will be right once the preparation is complete. For this reason, many businesses are now considering a “tripletrack” process, which includes private equity, re-financing and IPO. However if you choose to go down the IPO path then prepare now so you are ready to act when the market turns.
Be aware that the IPO process itself is challenging and time-consuming. Ideally commence your planning at least 12-24 months before your proposed listing date.
Look closely at your organisation’s systems and processes in the lead up to IPO – a public business needs to provide robust and timely information to the market. The need to deliver accurate reports and forecasting may require investment and system changes well in advance of the IPO itself. And finally select your advisors for the journey carefully. You will be spending a lot of time with them over the IPO process, and you must trust their ability to provide you with accurate and candid input at all times.
Acting as a public company Post-float, it is important to understand your changed operating environment. Failure to comply with a new host of regulations can impact the share value and raise questions with analysts. In a worse-case scenario, breach of regulations could result in a de-listing. Keeping the business running and answering to investors and their stakeholders will also bring an ongoing change to the business culture. Make sure that that the appropriate expertise and leadership skills remain in place and stay focused on the business. Public listing can also bring closer scrutiny and there needs to be continued communication with shareholders and the wider market. Finally, recognise that as a public business, the information disclosure requirements could give potential competitors a chance to copy or take over. The bottom line is that when considering the option to go public, there are no black and white answers. Every business is unique and will have a myriad of specific factors to consider. Only after clearly thinking through the impact on the business and the personal change it will bring to the owners of the business will a decision of whether or not to start the IPO journey become clearer. Garry Wayling is a Partner (Strategic Growth Markets) at Ernst & Young and an IPO leader. For more information, or to obtain a copy of Ernst & Young’s To float or not to float: A complete guide to the IPO Journey, he is available at 02 8295 6436 or email garry.wayling@au.ey.com
This article provides general information, does not constitute advice and should not be relied on as such. Professional advice should be sought prior to any action being taken in reliance on any of the information. Liability limited by a scheme approved under Professional Standards Legislation.
8
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
The good ship
Corporate Australia is full of leaks By Martyn Strickland, Managing Director, 333 Consulting
As the world navigates and exits the biggest recession since the 1930’s Australia continues to be in a critical period in our economic history. While there is optimism in our resource-based economy, we must not shy away from asking “What is the financial health of corporate Australia?” Unfortunately the inescapable conclusion to be drawn from the third annual 333 Australian Corporate Health Index is that for many Australian companies, the financial crisis is far from over. The impact of the downturn is deeper and longer than generally acknowledged and the risk of widespread failure is very real. Despite a rising stock market and signs of economic recovery, half of Australia’s listed companies are in precarious financial shape. The index, which measures the vital signs of corporate health, shows that 71% of listed companies ended the 08-09 financial year in worse shape than a year earlier. And the overall level of Australian corporate fitness dropped to its lowest point since the data was first analysed six years ago. The 333 Consulting Corporate Health Index has examined 10 years of data from more than 200 companies listed on the ASX. It uses an internationallyrecognised bankruptcy prediction model, the Altman Z Score, to measure the health of Australian companies. The Z Score is the most widely used and most commonly understood predictor of financial failure. The model examines data on five key ratios involving capital assets, retained earnings, earnings before interest and tax, market value of equity, book value of debt and sales. The median Z score of all companies suffered its biggest drop in the history of the survey, down 19% from 2.97 to 2.42. This suggests that many Australian companies are vulnerable to further economic shocks. Health in the consumer sector has declined slower than other sectors, probably because it had been helped by the government stimulus package. But the impact of the stimulus is now diminishing. The common trend among the ailing companies was that they remained stagnant on sales efficiency (sales to total assets ratio), indicating they had not managed to downsize their business in line with a shrinking market.
There are five key strategies Australian companies should adopt to stay healthy and position themselves for the recovery: 1. Be realistic and assess risk Take a hard look at how your company, competitors, suppliers, staff and customers are tracking. Identify potential scenarios and mitigate risks to keep our goodwill intact. 2. Use multiple cash generating strategies Cash buys you time to execute. Manage for cash – if you raise capital, combine it with tight cash and working capital management. Don’t substitute capital raising for improving the operating flow of your business. 3. Fix the core business. Fix core business issues that impact your ability to compete. When the economy recovers and the market grows, market share will be available to those companies who are the best in their industry. 4. Be holistic The most successful responses do not focus on cost alone – they address a targeted number of financial, organisational, operational and strategic issues in parallel. 5. Don’t ignore Strategy Identify your profitable core business, determine your strategic options, develop your plan and don’t be afraid to shrink to profitability. Rebalance your capital structure to meet your strategy not the other way around. Unless core business issues are fixed, companies will not be able to compete effectively during the recovery phase when market share and growth will again be available. A robust core business that delivers what customers value – consistent product quality, on-time delivery, innovation and short order-to-delivery cycle times – is required to win more and grow faster as the economic tide rises. Don’t be a leaky boat when the tide rises.
Companies that improved their health had addressed sales efficiency and gone beyond simply raising capital and cutting costs. What should companies be doing right now? Australian companies must take control and create options. The laggards need to act urgently and the others need to continue to focus on improvement.
Martyn Strickland in Managing Director of 333 Consulting, a specialist advisory business focusing on corporate turnaround and performance improvement. It is part of the KordaMentha group. Full Australian Corporate Health Index report at www.333consulting.com
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
9
Challenging year for IPOs but
positive signs ahead for 2010 By Geoff Webster, Managing Partner, HLB Mann Judd (Vic)
In the Australian IPO market 2009 was a unique year with the number of new listings well down on 2008 at 39 (2008: 68), but funds raised well up at $2.965 billion (2008: $0.788 billion), an increase of 276 percent. For the three quarters to 30 September 2009 there were only 14 listings raising $0.291 billion, but in the final quarter there were 25 listings raising $2.674 billion. Overall, the 2009 results were affected by the listing of retailing giant Myer Holdings Ltd on November 2 which, at $2.2 billion, accounted for 74 percent of the total funds raised during the year. The remaining 38 listings raised just $0.765 billion between them, down three percent on 2008 and 91 percent on 2007 levels. The global financial crisis brought fund-raising to a near standstill for the majority of the last two years. At the start of September 2009, just $119.51 million (of the eventual $2.965 billion) had been raised by fewer than a third of the companies that would eventually float by year end. The chart below depicts the resurgence of the market from around this time, kicked off by the listing of Carsales.com Ltd in September.
20
$4000
18
$3600
16
$3200
14
$2800
12
$2400
10
$2000
8
$1600
6
$1200
4
$800
2 0
$400 Jan 2009
Feb
Mar
Apr
May
Number of Listings (LHS)
Jun
Jul
Aug
Sept
Oct
Nov
Dec
Cumulative Fundraising ($m)
Number of IPOs
IPO Activity by Month
$0
The 2009 group of IPOs returned average year end premiums of 17 percent, which compares to a 31 percent annual increase in the S&P/ASX200 index. The energy sector was the best performer with 24 percent first day and 56 percent year end gains recorded. From an issuing company’s perspective, the success of a float can be measured primarily by the subscription rate achieved (or uptake of the allotment of shares at the issue price), and the appreciation of company value in the secondary market. During the 2009 year one third of new issues were undersubscribed. Of those underwritten 22 percent were undersubscribed (two of nine listings) and for issues that were not underwritten, 37 percent were undersubscribed (11 out of 30 listings). As some consolation, the undersubscribed group of companies recorded stronger day one premiums (7.4 percent and 6.3 percent respectively), than the group of fully subscribed companies (6.7 percent and 3.9 percent respectively). Despite the early rally of the undersubscribed companies, year end premiums were strongest amongst the fully subscribed group at 17.4 percent (undersubscribed gained 16.6 percent on issue by year end). There was an improvement in the subscription rates amongst small cap issues as the year progressed, with the March quarter recording the poorest uptake of targeted funds at 93 percent, and the other quarters all reaching fundraising targets (Jun: 100 percent, Sep: 125 percent, Dec: 112 percent subscription rates). The late recovery of the Australian IPO market in 2009, combined with improved economic conditions and the known and likely pipeline for 2010, suggests that this year could see a substantial increase of primary issues over the last two years. At the time of publishing, six companies had listed on the ASX (two of which were CDIs and one a demerger). According to the ASX, 15 companies have already made an application to list this year and seek to raise $0.326 billion to $0.379 billion between them. Most of this amount ($0.214 billion) is sought by copper producing company Q Copper Ltd. Overall, the past 18 months have seen few companies follow through with an IPO. Those that have, particularly in 2008, did not fare well. The strong returns and uptake of allotment seen during the last quarter of 2009 on the back of positive market sentiment, together with a brighter economic outlook, suggests that 2010 may well reverse the trend of the last two years.
Cumulative Total Fundraising (RHS) Cumulative Small Cap Fundraising (RHS) Cumulative Large Cap Fundraising (RHS)
Small cap companies continued to provide the bulk of activity in 2009 contributing 92 percent of new listings to the market (2008: 93 percent, 2007: 87 percent). The number of new small caps issued and the total amounts they were able to raise were both down 43 percent on the prior year. The average amount of funds raised by small cap companies was relatively constant at $7.47 million (2008: $7.45 million, 2007: $8.75 million). During the last month of 2009, 18 small cap companies listed raising an average of $6.31 million each. This relative explosion of such listings suggests that many small companies struggled to secure affordable financing and had been patiently waiting for the IPO market to show signs of rebounding before listing. Three large cap companies came to market in 2009 (compared to five last year) raising $2.696 billion between them, or 91 percent of total funds
10
raised over the year. The average amount of funds raised by large cap companies during 2009 was $898.7 million (2008: $63.84 million, 2007: $218.28 million), a figure severely distorted by the Myer float. But even without the Myer float the large cap average fund raising was $248 million, which is still a large increase on 2008.
Geoff Webster is the Managing Partner of HLB Mann Judd (VIC) Pty Ltd and a Director of HLB Mann Judd Corporate Finance Pty Ltd. Geoff has extensive experience in assisting clients in their preparation for an IPO and in evaluating the benefits and feasibility of an IPO against alternative strategic options. Telephone: +61 3 9606 3888 Email: gwebster@hlbvic.com.au Website: www.hlb.com.au
Disclaimer: This analysis relates to all IPOs that have resulted in the listing of an entity’s securities on the ASX, with the exception of property trusts, investment companies, compliance and backdoor listings and offers of non-equity securities. The term small cap is used to refer to companies with a market capitalisation of no more than $100 million. All analysis by reference to market capitalisation
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Industries to Fly in 2010 By Dr Robert Bryant, General Manager, IBISWorld While 2009 proved a tough year characterised by rising unemployment and economic doom and gloom, IBISWorld business information analysts are predicting 2010 will bring good tidings for a number of Australian industries, resulting in GDP growth of 2.2%. While many of Australia’s global counterparts continue to feel the grip of the global financial crisis, on the whole, a positive outlook is expected for Australian business in 2010, with IBISWorld’s ‘Top 10’ growth industries for the year being:
Industry
Growth 2010
Revenue 2010 ($billions)
1
Sugar Manufacturing
15.9%
3.11
2
Organic Farming
14.8%
0.43
3
Oil & Gas Production
13.8%
37.35
4
Institutional Building Construction12.0%
9.40
5
Insulation Services
11.8%
1.13
6
Health Insurance
10.3%
14.56
7
Alternative Health Therapies 5.1%
3.36
8
Online Shopping
4.7%
20.00
9
Weight Loss Services
4.6%
0.77
10
Baby Products
3.3%
4.17
Here, IBISWorld General Manager (Australia), Mr Robert Bryant, sheds light on IBISWorld’s ‘Top 5’ growth sectors. Sugar Manufacturing While the past five years have seen the Sugar Manufacturing Industry buffeted by the highs and lows of global demand, supply trends and world prices, IBISWorld is projecting 2010 will see the sector positioned as the biggest grower for the 2010 calendar year - raking in $3.11 billion, an increase of 15.9% from 2009 revenue of $2.68 billion. These good tidings follow the 2009 global sugar shortage – caused by adverse weather in key sugar cane growing regions, particularly Brazil – which led to an increase in sugar prices. However while demand is expected to grow throughout 2010, leading to an increase in industry revenue, employment is expected to fall by 1.5%.
As the ‘green’ message grows in popularity, big business such as McDonalds and Unilever have taken up the banner, sourcing environmentally friendly coffee (McDonald’s café coffee) and tea (Unilever’s Lipton Black label) from plantations accredited by US environmental organisation, Rainforest Alliance. Coles Supermarket has also come on board in developing its private label “Coles Organic”. Corresponding to increasing industry revenue, IBISWorld expects employment in the sector to rise, increasing by 2.6% to 6463 in 2010. Oil & Gas Production Although IBISWorld projects oil production will decline in 2010, this will be more than offset by a rise in natural gas production, seeing the sector post 13.8% growth in 2010 to $37.3 billion – generating a 3.5% increase in employment. In the coming year, Australia’s Oil and Gas industry will benefit from higher international prices, increased production volumes of natural gas from existing fields, and the development of new fields. Major liquid natural gas contracts signed in 2009 - including a $90 billion deal between Chevron and Tokyo Electric Power Company and a $50 billion deal between ExxonMobil and PetroChina – are expected to provide a significant boost to the sector, as will the Barrow Island and Gorgon projects. Institutional Building Construction Centred on the construction of buildings where Australians learn, work, are healed, socialise, exercise, pray and seek justice, IBISWorld expects the Institutional Building Construction industry to grow by 12% in 2010 to $9.4 billion, supported by increased government spending – especially on educational structures. The past two years have seen activity in the educational building market surge by about 40%, and growth will continue to be supported in 2010 by projects arising from the Australian Government’s Economic Stimulus Plan, resulting in a 6.5% boom in employment. Health care facility construction will also remain strong in 2010, with several large-scale inner urban hospital projects already underway, including the Royal North Shore Hospital redevelopment in Sydney; the new Children’s Hospital in Melbourne; the Gold Coast University Hospital in Queensland; and the Fiona Stanley Hospital expansion in Western Australia. Insulation Services The Insulation Services industry will continue to experience growth in the first half of 2010 as households take advantage of government subsidies such as the Energy Efficient Homes program provided as part of economic stimulus package. However, following substantial growth of 11.8% to $1.13 billion in 2010, demand is expected to drop off as subsidies expire, resulting in zero growth in 2011.
Robert Bryant is General Manager (Australia) at IBISWorld, Australia’s leading industry research firm. With 1000’s of industry and company reports, constantly updated, you’ll find all the answers at IBISWorld – Whatever the question www.ibisworld.com.au Organic Farming While on average organic goods remain more expensive than non-organic produce, higher disposable incomes coupled with increasing awareness of environmental sustainability and an increase in the range of organic produce available, is expected to see continued growth in this industry – with IBISWorld projecting the sector will grow by 14.8% to total $425 million in 2010.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
11
SME Lending in 2009
What Went Wrong? By Colin Whitehead, Equity Analyst, Fat Prophets Back in March 2009, Sir Richard Branson stated that he expected to see a lot of entrepreneurs get started during the year. Although it was a very difficult time, his comment was certainly valid. Entrepreneurs behind the world’s SMEs typically build businesses based on their decision to take advantage of opportunities before the rest of the pack. It is at the depth of a crisis that opportunities are most prevalent and the pack is at its most docile. Branson seemed to overlook the issue of funding though. Bank lending to the SME sector in Australia became increasingly difficult following the Lehman collapse. Without access to reasonably priced finance, it is very difficult if not impossible for today’s opportunities to transition to tomorrow’s businesses. Let alone for ordinarily robust businesses to bridge short-term cashflow issues. To backtrack, Aussie banks reliance on offshore funding could have been their Achilles heel, were it not for the hastily instituted Government Guarantee. While the guarantee prevented disaster, the big four were still keen to limit their reliance on wholesale funding. This meant an increased focus on that more traditional source of bank funding – retail deposits. The flight of savings to the perceived safety of the major banks assisted in this. That’s not to say that no effort was required at all. As a casual glance at bank deposit rates will attest, the big four currently offer surprisingly favourable terms to secure savers’ funds. Banks aren’t however in the business of paying more interest than they receive and must therefore recoup these higher costs elsewhere.
Given the latter, it is difficult to envisage a more accommodating lending environment for SMEs in the months ahead. Reducing interest on SME debt would represent a downward repricing of risk on behalf of the banks. This is not something they are likely to do until they are satisfied that it is justified. This could see SME’s cashflow pressures return to the elevated levels that occurred at the height of the GFC. In the eyes of the banks, this would represent an increase in risk and certainly not provide any reason to ease lending conditions. The irony is of course that it is during such periods of heightened stress that businesses require greater assistance from their lenders. It’s a chicken and egg situation for the banks and SMEs. The SMEs need the credit to flow more freely, but the banks remain worried about the safety margin. Until the banks ease up and start lending again, the SMEs will have to be patient. Not all will have capacity for patience and the banks will point to those that do fail as evidence in support of their position.
Unfortunately for Australia’s entrepreneurs, it is they that have picked up the tab through considerably more restrictive and expensive credit facilities. While mortgage holders benefited from the RBA’s initial slashing of the cash rate, SMEs were not so fortunate. In stark contrast to the big end of town, Australia’s SMEs have had to battle through the slowdown with very little support from the banks. Flight Centre CEO Graham Turner neatly summed up the banks’ attitude to business lending in last month’s earnings commentary: “…they laid down the rules and chose their own margins and those margins quadrupled almost overnight.” Going into the crisis, the major “known unknown” was the extent of the bad debt cycle. Fears that Australia was simply lagging the US and UK in terms of collapsing residential property prices and the extent of unemployment forced the banks to dramatically ramp up their loan loss provisions. This is shown in Given their expectation of tougher times ahead, the banks had little choice but to restrict their exposure to SMEs, which could potentially face high rates of failure. In the event though, the Australian economy has fared considerably better than most forecasters had predicted. Indeed, the banks’ respective commentary on this matter during last year’s earnings presentations was to the effect that the bad debt cycle is at or near its peak. The loan loss provisioning that weighed on the banks earnings last year should therefore begin to ease in 2010. One would expect this to coincide with a more flexible lending environment for SMEs. The evidence to date suggests that this is not the case. Although the banks are sitting on particularly healthy balance sheets (Tier 1 capital ratios shown below as at FY09 yearend), they are in no mood to disburse the excess. This is partly due to the potential for regulatory change, which could enforce higher capital requirements. It is also a function of the banks’ reluctance to diminish their capital buffer before they are certain that the worst is over.
12
Founded in 2000, Fat Prophets has grown to become one of the world’s leading Independent Stock Market Research Houses with offices in Sydney and London. In 2005, Fat Prophets Funds Management was launched with the brief to identify a range of Funds Management Products for retail investors. To learn more about Fat Prophets please visit as at www.fatprophets.com.au
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Business confidence grows, employment, profit and Investment to increase By Christine Christian, CEO, Dun & Bradstreet
Each quarter Dun & Bradstreet (D&B) asks a sample of executives in manufacturing, wholesale and retail businesses across Australia if they expect an increase, decrease or no change in their quarter-ahead sales, profits, employees, capital investment, inventories and selling prices compared with the same quarter a year ago. The executives are also asked for actual changes over the twelve months to the latest completed quarter. Since its introduction in Australia in 1988, the D&B National Business Expectations Survey has proven to be a highly reliable measure of economic performance. Findings of the latest Survey, conducted in January 2010 showed that capacity issues and fierce competition for skilled labour looks set to return as a feature of the Australian economy as firms report their strongest expectations in many years for inventory and employment growth. In other key indices profits and capital investment expectations increased. Employment expectations for June quarter 2010 are five percentage points higher than the March quarter of 2010 reaching an index of 5. Eleven percent of firms are planning to increase staff levels and six percent to reduce employee numbers. These figures are now a 31 percent improvement on the June quarter 2009 expected employment index figure of minus twenty six percentage points. This was the lowest record employment in the history of the survey.
Despite reports of recent falls in job advertisement numbers, all sectors now have positive expectations for growth in employment numbers. Durables manufacturers have the highest index of a net seven with 14 percent expecting to increase employment and seven percent expecting to decrease staff numbers.
also still up 73 points on the trough of the June quarter 2009. Thirty nine percent of firms expect an increase in sales and 14 percent a decrease in sales in June quarter 2010. The decline of three points in the overall index was due to a reduction of 18 points from the retail sector’s expectations index of 35 for the March quarter. March was however the highest retail sales expectations index in more than six years. Like sales expectations, capital investment expectations moved only slightly from the previous quarter increasing three percentage points. However expectations for growth in capital investment are equal to their highest level in seven years reaching an index of ten, twenty percentage points higher than the June quarter of 2009. Twelve percent of firms surveyed expect to increase capital investment, while just two percent are planning to decrease spending in this area. Wholesalers have experienced the most significant increase in expectations (up 23 percentage points since the June quarter 2009) as the capital investment index returned to positive territory.
Actual capital investment in December quarter 2009 is the highest in more than six years and has now had three positive quarters after five negative quarters from March 2008 to March 2009. Fifteen percent of firms had more capital investment and four percent less capital investment than in the December quarter of 2008. Expectations for growth in profits and staff numbers have improved and are now equal to the highest levels in five years. Businesses are supporting these expectations with intentions to make relatively strong increases in capital investment and inventories, indicating a stronger business performance in 2010 as compared to 2009. If the profit, capital investment and employment expectations of Australian firms are met this could go a long way to restoring Australia to pre Global Financial Crisis levels of business activity. The next challenge will be how Australian firms go about meeting these expectations between now and the June quarter.
Christine Christian The expectation of increased intention to employ staff is a sign that Australian firms believe that 2010 will be better than a difficult 2009. With unemployment being seen as a major concern throughout 2009 the improved employment expectations across all sectors is welcome news for both those who are in the labour market and for business confidence on the whole. The rise in confidence of 31 percentage points since the lows of the June quarter of 2009 is one of the biggest improvements in the history of the survey. In further good news Australian firms’ outlook for profits expectations has also continued to improve – the index of 15 for June quarter 2010 is the highest level in five years. Twenty seven percent of Australian executives surveyed now anticipate profits will increase in the June quarter and only 12 percent expect a fall. Executives from the retail sector have the highest profits expectations with 30 percent expecting an increase and just 10 percent a decrease. The expected sales index however fell three points to 25 but retained the strong positive level of the two previous quarters. The sales index is
Christine Christian is recognised as a leading authority on credit reporting, risk and debt management and business intelligence. Christine was appointed CEO of Dun & Bradstreet Australia and New Zealand (D&B) in 2001 after leading the management buy-out of these operations from the D&B global company. Dun & Bradstreet D&B is the world’s leading provider of business-to-business credit, marketing and purchasing information and receivables management services. D&B manages the world’s most valuable commercial database with information on more than 150 million companies.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
13
ASX Small Cap Profile COMPANY OF THE MONTH
ABOUT Minemakers Limited (ASX Code: MAK), since its inception in 2004 and listing in October 2006, has aimed to acquire major mineral deposits with the intention of bringing them into production as soon as the development could be justified. BOARD With a respected and talented board, led by the founding MD & CEO, Mr. Andrew Drummond, (ex Catalpa Resources, Westgold Resources and Zephyr Minerals), Mr. Dennis Wilkins, Finance Director and CFO (ex Marengo, Atlas Iron and Bonaparte Diamonds) and Mr. Ted Ellyard (ex Hardman Resources), the Company, in four years, is a constituent of the ASX 300 Index, raised $43M in the most successful Share Purchase Plan by a junior Mining Company listed on the ASX and was the recipient of the “Emerging Company Award” at the 2009 Diggers & Dealers Forum in Kalgoorlie.
Wonarah (MAK 100%) The Company’s Wonarah rock phosphate deposit in the Northern Territory is Australia’s largest. The current JORC resource position is 306Mt@ 21% P2O5 using a 15% P2O5 cut off and Minemakers has tested only 15-20% of the known phosphate extent of the Company’s leases; which underpins an expected long mine life.
PROFILE While it has a number of significant deposits in its portfolio, including Australia’s largest fluorspar deposit, and historic major Tasmanian tin/tungsten produces it is the Company’s major resource position in phosphate that has become the key development focus. Phosphate is an essential component in agriculture for which there is no substitute. Minemakers is in the unique position of having two of the world’s largest undeveloped projects in its portfolio, giving the Company the opportunity to establish itself as a world stature supplier to the global phosphate market and to become involved in downstream processing of higher value phosphate products.
14
Initial production is targeted for 2010, subject to markets, with production to ramp up to 3Mtpa after completion of the expansion of the Port of Darwin, which is being funded by the Federal and Territory Governments. Adjacent to the Barkly Highway and with access to the Adelaide-Darwin rail line, Minemakers’ superior infrastructure position gives it an important advantage over other potential phosphate developments in Australia. This has recently enabled the Company to ship its first bulk samples to prospective customers in India and New Zealand.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
The recent bulk sample programme has provided valuable mining, engineering, density, geological and grade control data that will be used to complete the Definitive Feasibility Study, currently expected to be completed in 1Q 2010. The high quality, low contaminant rock at Wonarah, with initial production from the Arruwurra deposit intended at 35-36% P2O5, is comparable to the highest grades of rock phosphate produced globally. With minimal contaminants such as Uranium and Cadmium, the Company has been receiving favourable responses from potential customers on the quality of its DSO material. These encouraging discussions need to be translated into sales and are the subject of intense Company activity, with outcomes likely to influence the targeted date for commencement of production.
PHOSPHATE PRICING A strong demand increase for fertilizers has also occurred with benchmark DAP (diammonium phosphate) prices having risen sharply since last November. Historically, there has been a response lag between fertilizer price increases and raw material input price increases which would suggest that the rock phosphate price (currently US$110pt) can be expected to increase further beyond its current level.
Upcoming milestones for the Company include: • New Resource Estimate due February 2010 • Receipt and analysis of bulk sample shipments by prospective customers • Mining Lease Approval 1Q2010 • Permitting and approvals on schedule and expected to be completed in the 2Q2010
NAMIBIA (MAK 42.5% Direct and indirect a further 7%) Minemakers’ second significant phosphate deposit is in the Namibian marine environment. Current indicated and inferred JORC compliant resource estimates are 1,580Mt with significant tonnage upside. The Scoping Study is under way, including comparison of dredging options and determination of the preferred export product. It is anticipated it will be followed by a Feasibility study to commence in 2010.
For more information regarding MAK including information for investors, please visit www. minemakers.com.au If you would like to enquire about how your company can be profiled in upcoming issues of Wholesale Investor, please phone 1300 597 595 or email info@wholesaleinvestor.com.au
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
15
Company Name Sector Yr established Business stage Location Seeking
Phylogica Biotechnology and Pharmaceuticals 2003 Commercialisation stage Perth, Australia Capital Raising for growth and Strategic Partner
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.
16
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.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Company Name Sector Yr established Business stage Location Seeking
Management Team: Blue Fusion Asset Management Pty Ltd Financial Services Daniel Norton BA (Comp Sci, Cogs Sci), BSc Director 2008 Experienced private trader and quantitative model developer with a focus on artificial intelligence, Early Stage neural networks, genetic algorithms and fuzzy Brisbane, Australia logic models. Developer of the Automated Market Interface and underlying financials models. Foundation Investment Investment Manager of the Fund.
Executive Summary Blue Fusion Asset Management (BFAM) uses a state-of-the-art high-frequency algorithmic trading interface to automatically trade financial models through brokers globally. With real time portfolio level risk management, the fund can take advantage of sudden market movements at a speed and accuracy that human traders cannot match. With substantial scalability of the business model without comparable increases in running costs, and an experienced management team, BFAM expects exponential short term growth without requiring further capital. The Company is seeking foundation investors for the fund (not the company) which means investors hold redeemable units in the fund and are rewarded with equity in the fund’s management company (BFAM).
Competitive Advantages • No Management, subscription, redemption, withdrawal or administration fees. • Performance bonuses only payable if investors receive a minimum 20% PA • The fund implements strategies that are un-tradable by human traders - interface responds to market movements in milliseconds • Automatic execution of protective trades to neutralize exposure in milliseconds in real time as required.
Malcolm McIntosh BA (Econ) Hon Responsible Manager Experienced Director in financial institutions specialising in financial products for wholesale investors (15 years). Emile Pierides BBus (Accounting) – Responsible Manager Experienced in funds management as well as institutional and non-institutional trading operations (13 years). Experienced Responsible Manager for brokers and other fund management vehicles.
Corporate Structure Blue Fusion Asset Management is a Proprietary Limited Company.
Exit Strategy
Investors may sell their Blue Fusion Alpha Fund units after 12 months and redeem their invested capital, as well as profits made through increases in the unit price. The Company aims to list on a suitable exchange at an appropriate time (aiming for 3 years).
• The fund can manage over $1 Billion without diluting returns. • Unique process managing assets to address client’s portfolio diversification needs.
Key Investment Highlights • Multiple sources of return - strong returns on fund investment and substantial growth of equity value in the management company. • Opportunity to redeem investment without having to sell equity in the funds management company. • Substantially scalable business model without escalation of running costs. • Strong Board and Management with substantial trading, funds management and corporate governance experience – specifically in wholesale investments. • Innovative business model means BFAM exceeds industry standards in generating income of funds under management. • Opportunity for management role and active influence on company decisions.
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 Blue Fusion Asset Management Pty Ltd.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
17
Company Name Sector Yr established Business stage Location Seeking
Eastern Regions Resources Pty Ltd Exploration Mining and Resources 2009 Seed Perth, Australia Seed Capital
Executive Summary Eastern Regions Resources Pty Ltd was incorporated in 2009 and was established to explore and develop mineral resource projects in Australia and internationally. The company aims to develop economic mineral reserves through cost efficient exploration, and joint ventures with reputable partners with the ultimate goal of discovering and developing mineral reserves and becoming a successful established mining company.
Board & Management: Alan Corkill - Managing Director Alan is a director of a successful strategic management company, with clients predominantly in the mining, oil & gas sectors. Alan has a strong network of senior members of mining industry and is well placed to increase the board’s non executive membership. Michael Smith – BBus Director Michael has significant experience in human resources management and has had substantial exposure within the energy delivery and coal sectors. Michael possesses strong operational knowledge in gold processing, tenements and operational development of projects.
To maximise its chances of success the Company has appointed a management team with proven skills and experience in the operational, legal and financial aspects of exploration and development of mineral deposits.
Nicholas Clark - LL.B., BE.c.,GradCertBusLaw., AFAIM.,AIAMA.,JP (NSW) Company Secretary Nicholas has 15 years experience in corporate governance and risk mitigation in the mining, oil & gas sectors.
Competitive Advantages
Corporate Structure
• Eastern Regions Resources offers investors direct exposure to exploration and resource development success.
Currently Eastern Regions Resources is Pty Ltd (non listed) company.
• Eastern Regions Resources boasts an impressive strategic portfolio of proven and highly prospective gold tenements. • An aggressive exploration and resource development strategy coupled with gold deposits positively located alongside significant and established mining operations, afford Eastern Regions immediate, timely and cost effective gold production opportunities.
Exit Strategy
It is anticipated Eastern Regions Resources will float on a suitable exchange platform by 3rd quarter
Key Investment Highlights • Eastern Regions Resources Pty Ltd (Eastern Regions or the Company) is a company established to explore for and develop mineral resource projects in Australia and internationally. • The Company has entered into a number of tenement sale agreements with a number of parties to acquire their various projects. • All Projects are prospective for gold mineralisation. • The objectives of the Company are to define mineralisation on the Project and identify, review and secure other potential mineral resource projects. • The Board’s expertise in mineral exploration, project development and corporate governance will ensure that the funds raised will be utilised appropriately in furthering the objectives and aims of Eastern Regions Resources and its investors.
18
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 Eastern Regions Resources Pty Ltd.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Gooramadda
Olives & Oil
Company Name Company Name Sector Sector Yr established Yr established Business stage Business stage Location Location Seeking
Board & Management: Gooramadda Olives & Oil Board & Management: Gooramadda Olives & Oil Agriculture Professional management with a very strong retail, Agriculture Professionally managed with a very strong wholesale and marketing background. 1998 retail, wholesale Olive pickers and processors areand wellmarketing experiencedbackgroun 1998 Expansion and provide the necessary the are well Olive pickersskills andensuring processors manual process continues to be provide an award the winning Expansion experienced and necessary ski Gooramadda North Eastern Victoria, Australia and profitable operation. ensuring the manual process continues to Gooramadda Capital Raising North Eastern Victoria, Australia an award winning and profitable operation
Capital Raising
Seeking
Executive Summary
Corporate Structure
Corporate Structure
Details to be provided to suitable professional investors.
Details to be provided to suitable professiona investors.
Executive Summary
Multi award winning Olives & Oil business with an established track record of 12 years. Exit Strategy An opportunity exists to be a part of the acquisition of growth and expansion of this well Ultimately it is planned to have a public lisiting on established business to Olives further expand and develop a solid foundation. a suitable exchange at an appropriate time, or Multi award winning & Oil business withupon an established track record of 12 years. An alternatively being acquired by a large agriculture opportunity exists to be a part of the growth and expansion of this well established business corporation. Ultimately it is planned to have a public lisiting o
Exit Strategy
to further expand and develop upon a solid foundation.
a suitable exchange at an appropriate time, or alternatively being acquired by a large agricultur corporation.
Competitive Advantages • Multi Award Winning Olive Business:
Competitive Advantages
• National Golden Olive Awards 2009, Best Extra Virgin Olive Oil in Show, 2 Gold Medals • National Golden Olive Awards 2008, Best Extra Virgin Olive Oil in Show & Best Table Olives in • Multi Award Winning Olive Business: Show , 5 Gold Medals
• National Golden Olive Awards 2009, Best Extra Virgin Olive Oil in Show, 2 Gold Medals
• National Golden Olive Awards 2007, 4 Gold Medals
Awards42008, Extra Virgin Olive Oil inthe Show & Best Table Olives in •• TNational he world Golden needs toOlive plant another million Best hectares of olive trees to meet present demand. Show , 5 Gold Medals
• Today’s total production of Australian olive oil is more than seven times the production of 2003.
Oliveextra Awards Gold Medals •• TNational he value Golden of Australian virgin 2007, olive oil 4 exports, at $12.3million in 2007, is ten times what it was in 2002 • The world needs to plant another 4 million hectares of olive trees to meet the present demand. • 2007, with a positive outlook for the future partly due to the increase in production.
• Today’s total production of Australian olive oil is more than seven times the production of 2003.
• Gooramadda olive grove is divided in three sections: planted in 1998, 1999 and 2001 respectively
• The value of Australian extra virgin olive oil exports, at $12.3million in 2007, is ten times what it was in 2002 • 2007, with a positive outlook for the future partly due to the increase in production.
Key Investment Highlights
• Gooramadda olive grove is divided in three sections: planted in 1998, 1999 and 2001 respectively
• Investment will look at providing a return of 12% per annum plus a share in the distributed profits. • Proven results in a well established business.
• The nature of the business provides a fully integrated operation from growing through to production through to retail sales.
Key Investment Highlights
• Subject to being satisfied of genuine enquiries further details will be made available to suitable
Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to
• professional Investmentinvestors. will look at providing a return of 12% per annum plus a share in the distributed profits.
www.wholesaleinvestor.com.au
• Proven results in a well established business.
click on View Investment opportunities and search for Gooramadda Olives & Oil.
• The nature of the business provides a fully integrated operation from growing through to production through to retail sales.
Further Information:
To learn more about this opportunity, inc 19 downloading an Information Memorandum, go
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
• Subject to being satisfied of genuine enquiries further details will be made available to suitable
Company Name Sector Yr established Business stage Location Seeking
Eco Sanctuaries International Ltd Greentech, Property, Ecotourism 2004 Expansion Melbourne, Australia Capital Raising
Executive Summary Eco Sanctuaries International Ltd is an ethical Australian company developing a network of national park style destinations with ecotourism services that showcase sustainable power, building design and technologies, and natural resource management. The destinations are associated with iconic national parks and landscapes. Ecotourism services include accommodation, hire, food retail and conference/executive services, and tours. Sustainability services include integrated sustainable buildings, appliances and technologies, carbon programs, land rehabilitation and endangered species management. Flour Cask Bay Sanctuary on Kangaroo Island is the Companies’ multi-award winning pilot destination. The business has experienced rapid growth of 128% during the 2009 FY and is currently exceeding 200% for 2010. Focusing on nature-based accommodation and activities in private settings, the Sanctuary attracts environmentally and socially aware travellers, a sector that is currently growing at 15% globally.
Competitive Advantages • Established key online tourism networks for 4 years with growing market credibility and revenue growth at over 200% • High growth ecotourism sector (15%/annum); 3 times the rate of other tourism • Increasing return clientele and referrals • Winner of multiple tourism, sustainability, and sustainable tourism awards • Kangaroo Island 9th area added to the National Landscapes Program, a joint initiative of Tourism Australia and Parks Australia for Australian icons
Board & Management: Peter Valentine– B.Arts (Hon.) Non Executive Director, Chairman Associate Professor Environmental Science. Serving leading environment organisations over 30 years. Worked internationally for the IUCN. Over 100 publications in ecotourism, ecology, conservation economics, wildlife and protected area management. Mark Herrmann – B.Sc. Managing Director 26 years managing and planning for national and marine parks. Lead successful naturebased commercial businesses in a constrained government environment. Appointee to key government Boards. Shirley Herrmann – B.Edu. Dip. Teach Non Executive Director, Company Secretary Extensive career in communication, coordination and teaching roles. A founding Director who worked on establishing the company vision, structure and policy.
Corporate Structure Eco Sanctuaries International Ltd is an unlisted public company offering ordinary shares to raise $5M in return for up to 44% of the company.
Exit Strategy
Exit strategies include acquisition of strategic targets, positioning for strategic acquisition, share buy back, private sale of shares and IPO. Eco Sanctuaries seeks to complete an IPO on a suitable exchange at an appropriate time (aiming for 3 years) as a significant part of building its capacity for major expansion.
• High levels of privacy and solitude in a supportive and comfortable venue
Key Investment Highlights • Experienced management and advisory team with over 30 years experience in sector • Ethical investment that provides security through property and other assets and solid returns from a diversified business model that has been tested during a 4 year commercial pilot program • Scalable business for Australian and international markets. • First to market integrated sustainability, conservation and ecotourism concept that meets growing demand for cost effective environmental solutions. • Multi-award winning pilot business recognised at State, national and international levels • Extensive alignment with government programs in green technology, carbon/climate change, conservation/endangered species and ecotourism with capacity to leverage significant government grants, tax advantage and assistance. • Multiple revenue streams and broad demographic appeal provides buffers for market fluctuations
20
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 Eco Sanctuaries International Ltd.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Fijian Island Resort Company Name Sector Yr established Business stage Location Seeking
Tokoriki Limited Partnership Property 2005 Mature Island Resort, Fiji Capital Raising
Board & Management: Management and consultants have in excess of 27 years experience within the tourism field. An internationally acclaimed brand and operator have been exclusively invited to operate the resort. The operator has a sound, solid and proven track record with hotels and resorts globally and is currently operating within Fiji.
Corporate Structure
Executive Summary Opportunity to participate in the ownership of an 83-room four star island resort, using an international and globally recognised brand and operator. The Resort is located in the Mamanuca group of islands in Fiji, the closest island group to the main island of Fiji, Viti Levu, where the international airport is located at Nadi, offering extensive international services to the USA, Australia, New Zealand and Asia.
Details to be provided to suitable professional investors.
Exit Strategy
Details to be provided to suitable professional investors.
Resort has a total of 83 rooms, including suites and family suites and four Restaurants, two bars, two swimming pools, Theatre, Arrival Lounge, Bamboo Spa, Kids Club, Tennis Court, Fitness Centre.
Competitive Advantages • Visitor arrivals for Fiji have been steadily growing from the 294,000 recorded in 2000 to the current 585,000 visitor arrivals in 2008. • Property is the four-star rated Amunuca Island Resort, Tokoriki Island, Mamanuca Islands, Fiji • Property has a Desalination Plant and Biowastewater management system in place • Leading Hotel management group has been invited to brand and operate the resort. • A non binding memorandum of understanding has been entered into and duly executed.
Key Investment Highlights • Jones Lang LaSalle Hotels draft valuation shows the resort being valued far in excess of the current asking price. Further details available upon enquiry. • Residential estate behind the resort, with individual titles for sale, offering spectacular views and able to avail themselves to all resort facilities • Cash value of this estate provides additional security and excitement to the transaction further enhancing returns. • Investment will look at providing a return of 13% per annum plus a share in the distributed profits. • Subject to being satisfied of genuine enquiries further details will be made available to suitable professional investors.
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 Tokoriki Island Resort Pty Ltd.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
21
Company Name Sector Yr established Business stage Location Seeking
Pacific Retail Management Pty Ltd Retail Food Franchising 2007 Expansion Sydney, Australia Capital Raising and Strategic Partnerships
Executive Summary Pacific Retail Management (PRM) is a growing multi-brand food franchisor, focusing on building profitable franchises through champion brands for the Australian and International Markets. PRM is set to make further strategic acquisitions to build market leading brands, improve group purchasing power, and company profitability with a view to publicly list on a suitable exchange at an appropriate time. The current acquisition underway will see PRM grow from 35 outlets to 135 outlets in three to six months, subject to final due diligence.
Competitive Advantages
Board & Management: Christopher Jordinson – Chairman Mr Jordinson has more than 15 years experience as a Company Secretary and Financial Controller for various Australian public companies and IPO’s in the mining industry, and has advised public companies such as Copper Mines and Metals Limited, Danae Resources Limited and Hargraves Resources NL. Nicola Mills MBA – CEO Nicola has over 15 years experience in management and marketing, including winning a number of national marketing awards and 2 international franchising awards. Nicola is the founder of Pacific Retail Management, growing the business from her first store to a network of over 35 outlets.
Corporate Structure Australian Pty Ltd company. Top tier ordinary shares with full voting rights.
• Company showed 70% profit growth year on year, and Go Sushi (key PRM brand) showed 17% year on year growth.
Exit Strategy
• Voted Australian leading franchisor in the 2009 DC Strategy Awards, (voted by current franchisees and industry benchmarks)
Listing on a suitable exchange at an appropriate time or trade sale, estimated to occur within 3 years.
• Included in BRW Fast Franchises 2010 • Expansion Australia-wide and internationally into India and France. • Our key focus is on franchisee strength and profitability to build company profitability. • Highly experienced team, with a minimum of 10 years experience in food, retail and franchising • Further acquisitions and store growth increase purchasing power, market penetration, and brand impact to increase franchisee and company profitability.
Key Investment Highlights • Established business and business systems showing annual profits, with year on year growth. • Strong corporate governance, with a board experienced in both retail and food, and publicly listed companies • Strong acquisition prospects have been identified, with due diligence underway • Strong management team, with experience in acquisitions, and turning around troubled companies to make solid profits • International expansion in two markets (India and France) is already established • Proven Acquisition Model: Franchisors who break the 30 store mark, show significant increases in profitability. • Growth through strategic acquisition yields high profit returns, as proven by other multibrand public listed franchisors currently 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 Pacific Retail Management Pty Ltd.
22
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Company Name Sector Yr established Business stage Location Seeking
Primewest Funds Ltd Property Investment 1994 Mature Perth, Australia Capital Raising
Executive Summary Primewest is one of Australia’s most active and successful wholesale property syndicators and developers. With more than a decade of experience, Primewest, its directors and associated companies now command a national property portfolio exceeding $1.2 billion in value and growing steadily. The growth has been based on the directors’ vital mix of business experience in various industries, refined skills in selecting property with genuine potential, a cautious investment approach, strong relationships across the property industry and a firm commitment to the long term.
Competitive Advantages • Primewest has an established track record of 15 years • Owners’ equity invested into Fund • A co-investment model is the best way to align interest of the Manager with the Investor • Value buyers with keen focus on return on equity (ROE) • Investment opportunity must satisfy our ROE hurdles to proceed.
Board & Management: John Bond, B.Comm, LLb – Executive Director John has over 20 years experience as a professional property investor, with a background in law, investment banking, property development. David Schwartz – Executive Director David is a professional property investor with 25 years experience in negotiating acquisitions and overseeing the development of properties. Jim Litis – Executive Director Jim is a professional property investor who has been investing in property for over 30 years. Julian Lodge (FINSIA) – Chief Executive Officer Julian has over 15 years experience in the property industry with particular capabilities in the property development and asset management in property investment. Mark Vonic – Chief Investment Officer Mark has 12 years experience in property funds management industry in Australia and internationally particularly in acquisition, due diligence, management, structuring and corporate governance.
Corporate Structure A Special Purpose Unit Trust is established to acquire each Property investment.
Exit Strategy
Investments should be viewed as a medium to longer term investment
• Very successful in employing our counter cyclical strategy. • Over $1.2 billion in real estate assets owned and managed across Australia. • Portfolio includes office, retail and bulky goods, industrial, broad acre residential sub division and development assets.
Key Investment Highlights • In 2009, Primewest raised $78m of equity to complete 4 separate acquisitions to the value of $141.5m, in Melbourne, Brisbane and Perth • Primewest Directors and senior Executives co-invested 8% of the total equity raised
Further Information:
• Forecast year 1 returns range from 7.5% per annum (value add investment) to 11.1% per annum (passive investment)
To learn more about this opportunity, including downloading an Information Memorandum, go to
• Investment is only available to investors who are “wholesale clients” within the requirements of Section 761G of the Corporations Act 2001 (Cth).
www.wholesaleinvestor.com.au click on View Investment opportunities and search for Primewest Funds.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
23
A
ustralian L eadershipC entre
Company Name Company Sector Name Sector Yr established Yr established Business stage Business stage Location Location Seeking Seeking
Australian Leadership Centre Pty. Ltd. Australian Leadership Professional Services Centre Pty. Ltd. Professional Services 2004 2004 Expansion Expansion Sydney, NSW Sydney, Capital NSW Raising Capital Raising
Executive Summary Executive Summary Australian Leadership Centre Pty. Ltd. develops and owns full service, high-tech, hightouch Leadership and Business Development Centres. Based on the success of the model Australian Leadership Centre Pty. Ltd. develops and owns full service, high-tech, highdeveloped in Singapore, the company plans Leadership Centres in 5 Australian capital cities touch Leadership and Business Development Centres. Based on the success of the model over the next 10 years. The company partners with the Goldzone Group to deliver proprietary developed in Singapore, the company plans Leadership Centres in 5 Australian capital cities bespoke consulting, training and coaching with an extraordinary level of service in a 5-star over the next 10 years. The company partners with the Goldzone Group to deliver proprietary environment. Our niche market includes CEO’s, board members, professionals and high bespoke consulting, training and coaching with an extraordinary level of service in a 5-star net worth individuals. Each Centre generates multiple revenue streams including consulting, environment. Our niche market includes CEO’s, board members, professionals and high training coaching, food and beverage, wellness/spa facilities, concierge, transportation, net worth individuals. Each Centre generates multiple revenue streams including consulting, serviced offices, conference facilities and membership fees. training coaching, food and beverage, wellness/spa facilities, concierge, transportation, serviced offices, conference facilities membership fees.Leadership Center. Marketing of each Centre is under and the brand; Goldzone Marketing of each Centre is under the brand; Goldzone Leadership Center.
Competitive Advantages Competitive Advantages • Niche market of CEO’s, board members, professionals and HNW’s
Board & Management: Board & Management:
Dr. Malcolm Linsell BSc, MBBS, MS, FRACS. Chairman/Executive Director. Dr. Malcolm Linsell BSc, MBBS, MS, FRACS. Plastic Surgeon. 4 years in Singapore involved Chairman/Executive Director. with the prototype Goldzone Leadership Center. Plastic Surgeon. 4 years in Singapore involved with the prototype Goldzone Leadership Center. Diana Colley MBA Director 20 years experience in training and development Diana Colley MBA Director of leaders, most recently with Goldzone. 20 years experience in training and development of leaders, most recently with Goldzone. Fiona Linsell RN Director General Manager of successful medical practice. Fiona Linsell RN Director 4 years in Singapore. Intimate knowledge of General Manager of successful medical practice. Centre Operations/Finances. 4 years in Singapore. Intimate knowledge of Centre Operations/Finances.
Corporate Structure Corporate Structure Australian Leadership Centre is a Proprietary Limited company. Australian Leadership Centre is a Proprietary Limited company.
Exit Strategy Exit Strategy Buyout or listing on
a suitable exchange at an appropriate time (estimated for 3-5 years). Buyout or listing on a suitable exchange at an appropriate time (estimated for 3-5 years).
•• Niche CEO’s, members, professionals and HNW’s Salesmarket model of has a highboard degree of client intimacy •• Sales model has a high degree of clienttointimacy Consultative, total solution approach develop leadership and businesses •• Consultative, total solution approach to develop leadership and businesses Few direct competitors •• Few direct competitors Operating model difficult to duplicate •• Operating model difficult tointellectual duplicate property all proprietary Technology, systems and •• Technology, systems and intellectual property all proprietary Multiple revenue streams, exceptional ROI, manageable risk • Multiple revenue streams, exceptional ROI, manageable risk
Key Investment Highlights Key Highlights • StrongInvestment and passionate management team ••Strong and passionate management Successful model already developedteam and proven •• Successful model already developed proven Business fully systematized, so easyand to replicate •• Business fully systematized, so easy replicate Multiple revenue streams from each to centre ••Multiple revenue centre Demand for the streams productsfrom andeach services expected to increase exponentially •• Demand for the products and services expected to increase Exponential increase in profit from each centre after 3 years.exponentially •• Exponential in profitand from each centre after 3 years. Substantialincrease capital growth dividend returns ••Substantial and dividend returns Up to 75%capital equity growth in the company available to Australian investors •• Up 75% equity the company available Australian investors Antoinvestment of in passion/purpose: addingto value to Australian Leaders and Businesses • An investment of passion/purpose: adding value to Australian Leaders and Businesses
24 24
Further Information: Further Information: To learn more about this opportunity,
including downloading an Information Memorandum, go to To learn more about this opportunity, including downloading an Information Memorandum, go to
www.wholesaleinvestor.com.au www.wholesaleinvestor.com.au click on View Investment opportunities and search for Australian Leadership Centre Pty. Ltd. click on View Investment opportunities and search for Australian Leadership Centre Pty. Ltd.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Company Name Sector Yr established Business stage Location Opportunity
Agri Fuels Limited Renewable energy/agri-business 2006 Early Stage Sydney/Childers, Australia Capital Raising
Executive Summary RENEWABLE ENERGY, FOOD AND GREEN POWER USING SUSTAINABLE AGRICULTURE. The project (in Childers, QLD) is based around a proprietary variety of the powerful energy crop Sweet Sorghum. In the AgriFuels business model, the grain head of the Sweet Sorghum is used for food/fodder. The remaining stalk yields sugar juice and fibre (bagasse). The sugar juice is processed into syrup, alcohol, yeast and biofuel; the fibre is used as fertiliser, animal feed, paper pulp or is combusted for green electricity to power the mill and refinery. Excess electricity is sold back to the grid for additional profit.
Competitive Advantages • Low production cost of renewable energy • Sustainable profits with ethanol production cost less than A$0.40 per litre • Carbon-neutral end-to-end process • Total control of input costs -- (unlike biofuel projects) • Generates food rather than using food for fuel production
Board & Management: Gregory Lee - Non Executive Chairman CPEng 30 years experience in oil and gas industry and project management Brendon Elett - Managing Director B.Sc, Dip Mkg, PG Dip Ecc Mgt 10 years corporate marketing and business management and 10 years agricultural farming operations. Guiseppe Graziano - Non Executive Director CA 17 years experience in public practice. Considerable client base in a variety of business structures. Robert Smallwood - Executive Director B.A. Comms. F.C.C. License 1st Class (USA Senior management roles in renewable energy, IT & Telcos.
Corporate Structure AgriFuels is a public unlisted company. Currently there are 58 shareholders and 21,117,850 shares on issue.
Exit Strategy 3 - 5 year exit opportunity via trade sale or listing a suitable exchange. Anticipate substantial positive cash flow upon project being fully commissioned, making AgriFuels an attractive takeover target.
• Produces electricity from waste fibre at a cost equivalent to coal • License for Govt import approved, proprietary, high-yeilding crop variety • All necessary technology to process products is current and proven • Asset backed investment -- project owns agricultural and commercial land • Refinery is cost-effectively adaptable to next generation technology
Key Investment Highlights • Strong agribusiness cashflow projected from 2010 • Substantial cashflow from 2nd year of renewable energy refinery operations • Multiple revenue streams with demand greater than production capacity • Low technology risk with farmland and commerical property asset backing • Crop of choice develops sustainably higher farm income than comparable crops • Significant Intellectual Property from past four years of international R&D • Experienced, multi-disciplinary management team and board • Strong political and community contacts in region • First project located in Childers, QLD with additional projects planned for other regions
22
Further Information: To learn more about this opportunity, including downloading the Information Memorandum, go to
www.wholesaleinvestor.com.au click on View Investment Opportunities and search for Agri Fuels Limited.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
25
Management Resource Solutions Limited Resources 2007 Expansion QLD, Australia Capital Raising
Company Name Sector Yr established Business stage Location Seeking
Executive Summary Management Resource Solutions Ltd (MRS) is a company that has evolved from decades of experience from the founders in the field of Quality Assurance and Document/ Data Management in the Mining, Oil and Gas and Construction industries. MRS is a turnkey resource solutions company. We provide human resource services in Joint Venture arrangements with both Clients and Engineering Procurement Construction Management (EPCM) companies to the mining, chemical, oil and gas construction industry throughout the world. MRS has developed a presence and reputation as a QA/QC specialist. Over the past few years, our area of expertise has broadened and the business currently is spread evenly as a resource provider focusing in Project Management, Quality Assurance, Quality Control, Weld Management and Inspection, Data Management and Control, and Engineering.
Competitive Advantages • Internal Software systems • Complete customized solutions from project Management through to Recruitment • Multiple locations worldwide - New Caledonia, Jordan, Qatar, Melbourne, Brisbane, Gold Coast • Established network relationships with potential customers. • Management Resource Solutions provide constant backup and support to personnel on assignment
Board & Management: Paul Morffew – CEO & Executive Director BApp SC(Chem/Min) MAICD Paul has over 20 years experience in Managing businesses in the public and private sectors, including oil refineries, roads authorities, heavy industry, mining, government and industrial sectors. Daniela Athan – Non-Executive Director AAICD Daniela has 15 years experience on projects in Mining, Petrochem, Oil & Gas & other resource sectors. She has specific expertise in Operations Management, Quality Management Systems and Knowledge Management. Dr Graham Lumley – Chairman BE(Min)Hons, MBA, DBA, FAUSIMM(CP), MMICA, MAICD, RPEQ Dr Graham Lumley is the Chief Executive Officer of Ground Breaking Innovations Pty Ltd. Dr Zain Sharar – Non-Executive Director LLB, LLM Int’l Trade Law, JD, SJD Dr. Zain Sharar has over 10 years experience working in Law, and is particularly focussed on Corporate Governance.
Corporate Structure Management Resource Solutions Limted is a Public unlisted company.
Exit Strategy
MRS is looking to list on a suitable exchange at an appropriate time, be involved in a trade sale to a listed company or would consider a management buyout. The projected timeframe is 12 months to 2 years.
• Quality Accreditation to ISO 9001 Quality Management Systems. • Strong senior management team
Key Investment Highlights • The company had FYE 2009 turnover of $900k • Turnover from 1 July 2009 to 31 Oct 2009 was $630k, highlighting accelerating growth • Turnover projected to be in excess on $2.4M for FYE 2010 • Gross Profit prior to expenses 39% • Negotiating on 3 major projects worth in excess of $15M per annum • MRS previously raised $302,000 through an Ordinary Share issue representing an equity stake of approx 9.71% of the company • Last share price $0.11 • MRS will consider undertaking a further round/s of capital raising in order to implement the full business plan and expand its business operations
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 Management Resource Solutions Limited.
26
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Company Name Sector Yr established Business stage Location Seeking
Global Digital Networks Pty Ltd Digital Media Software 2007 Early Stage Sydney, Australia Capital Raising
Executive Summary Global Digital Networks provides its global partners and retail clients with branded solutions to facilitate merchandising, search, discovery and sale of digital media content to endusers in-store and at home. Via in-store Kiosks and on-line integration, GDN delivers music, ring tones, games, movies, television shows and wallpapers. GDN’s capabilities include, demand CDs, DVDs, transfer to SD and HD cards, mobile phones and digital devices.
Competitive Advantages • Digital content distribution today is limited to on-line web stores (Amazon), mobile downloads and content integrated stores (I-Tunes.) • Current distribution models limit consumers to shop for digital content at home, while there is need for in-store transaction solutions for convenience. • Current digital distribution is hampered by availability of devices, billing issues, network speeds and file types. • GDN’s developing distribution network with its global partner agreement and the largest global kiosk network, achieves this fast up-scaling and wider reach to consumers. • GDN provides compelling economic and commercial justification to retailers at much lower cost than other competitors.
Board & Management: Jeffrey Beaumont. Founder – MD & CEO Dip Fs. 20 years experience in finance and marketing, working on a number of entrepreneurial projects. Gary Jones. Co-Founder Content, Licensing and Merchandising. 35 yrs exp. Music Sales & Marketing. Tony Quinn. – General Manager. Australasia. BComm. MBA. 20 yrs experience in Retail Management and Marketing. Frank Brown BA Econ. Leading Founder MTV Networks International Europe / Asia. Rod Harrison. - Market & Business Development. 30 years experience in Sales Development and Profit and Loss Management Wayne Hall. – Consumer Profiling Manager Wayne has 20 yrs experience in Finance, Management & Music Industries
Corporate Structure GDN is a Privately held Pty Ltd Company.
Exit Strategy
The Company plans to grow EBIT and exit by trade sale or public listing within 3 - 5 yrs on a suitable stock exchange. Alternative exit is via trade sale. Exit is considered for a 3 to 5 year time frame.
Key Investment Highlights • Key to GDN investment is the strength of the board and management team, with extensive global experience in finance, marketing, music sales, licensing, product development and business operations. • GDN signed a global launch partner exclusive agreement allowing deployment of its technology to over 100,000 kiosks globally; the initial ‘soft-launch’ in Australia.
TM TM
TM
• Receptive retailers have embraced the opportunity with first “technical test” units in store in January 2010. • GDN has partnerships in the pipeline and already has a strategic software player to drive on-line traffic to develop the link of in-store to in-home systems enabled through in-store network. • GDN business model is built upon software licensing, shared retail revenue, additional revenues of advertising and monetising kiosk.
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 Global Digital Networks Pty Ltd.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
27
Sony Centre SA
Sony Centre SA Retail 1986 Expansion Australia Capital Raising
Company Name Sector Yr established Business stage Location Seeking
Executive Summary Successful specialist retailer for Premium Multinational Brand considered within top 5 in the world. Number 1 in most product categories. Exclusive State license. Current company has been in business for over 20 years.
Board & Management: Managing Director B.Bus (Mktg) 25 years international and local experience. General Manager B.Bus (Mktg) 25 years international and local experience. Manager 20 years industry experience.
Corporate Structure Private Company
Exit Strategy
On execution of expansion strategy, the business could easily be sold to private buyers, supplier or existing shareholders.
Competitive Advantages • We are perceived to be owned by the brand • Extremely loyal customer base • Focused on the “Premium and Aspirational Shopper” • Highly skilled and loyal staff, with low staff turnover rates • Premium after-sales support • Long term peace of mind from one of the world’s most trusted brands
Key Investment Highlights • Equity capital required to fund expansion • Maximum 49% available for $4 million • Very strong and consistent EBIT • Margins guaranteed by supplier • Extremely low risk business with great returns • Great cash flow and stock turns • Business heavily supported by famous brand • Highly experienced management • Opportunity to triple size • Strong growth economy
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 Sony Centre SA.
28
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Company Name Sector Yr established Business stage Location Seeking
KISS FM [Trycycle P/L] Media 2004 Expansion Melbourne, Australia Capital Raising / Strategic Investor
Executive Summary KISS FM is a radio station with a long and rich pedigree – a Melbourne and Regional wide narrowcast radio service & internet radio provider that incorporates events (Kiss My Grass), an online community and, soon, an ‘on ground’ community. Kiss has established itself as a respected, cult radio station programming a world class dance music format. Kiss FM’s primary business is media delivery. Income is generated by advertising, memberships, events & a new hospitality venue KISS PIZZA. Kiss FM is focused on growing its audience through development of the web site www.kissfm.com.au and partnerships with emerging technologies.
Competitive Advantages • Listeners have high disposable incomes & reside in affluent areas • Are tech and fashion savvy, first movers with new gadgets • Image conscious with high brand loyalty
Board & Management: Kate Wignell – Director Kate has 10 years experience at KISS FM. Specifically in sales, marketing and company strategy, as well as event management and business development Tim Byrne – Station Manager Bachelor of Arts (Media Studies Mjr) Tim has a long and diverse media career, with significant practical experience in electronic and print media. Warren Evans – Administration Manager Warren has been with the company for 4 years, with thorough knowledge of the business and its members.
Corporate Structure KISS FM is a Private Limited company, Director owns 87%, other shareholders own 13%.
Exit Strategy
KISS FM is strategically positioning itself as a takeover target. Opportunity to be a content provider for Australian Commercial Radio in return for cash and content control. Opportunity to publicly list at this point.
• Media savvy/ technically interactive being high users of mobile phones, internet and mp3’s. • KISS FM’s market is wide and varied, covering many submarkets • KISS FM enjoys a unique average Time Spent Listening Rate of more than 1.5-4 hours per day. Comparatively, Commercial Radio has 5-10 minute TSL • In 2009 had 20,000 listeners attend our KISS MY GRASS festival, sponsors at this event included Smirnoff, Edge Clothing, Redbull and GRL Mobile
Key Investment Highlights • Strong Brand and Loyal customer base. • Enormous expansion possibilities in the kiss website/online community. • Innovative new franchising opportunity – KISS PIZZA • Potentially large returns from growing sponsorship levels at 20,000+ person festival KISS MY GRASS • Now in its 5th year projected attendance at festival has grown to 25,000 • Proven history and track record, relatively low debt to the value of the assets, strong brand • Enormous media and sponsor base
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 KISS FM (Trycycle P/L).
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
29
Company Name Sector Yr established Business stage Location Seeking
WaterWicket Pty Ltd Toy manufacturing & distribution May 2009 Early Stage Sydney, Australia Capital for commercialisation
Executive Summary WaterWicket is a game of cricket that can be played in the swimming pool. The stumps float upright and are tethered to the side of the pool. The ball is soft foam rubber covered in stretch fabric. All components are impact absorbing and safe for players. A worldwide patent has been applied for (PCT application AU2009/000766), the trademark registered in Australia & Europe, applied for in USA & China. The Company has been setup and the domain name www.waterwicket.com is registered. WaterWicket game will be sold from the website and via distributors to pool shops and other high profile retailers.
Competitive Advantages • WaterWicket is a new and unique Australian designed game • WaterWicket can be played by all members of the family • All components are made of impact absorbent material • All components are UV resistant, safe & unable to cause injury • Can be played in the pool, on the beach or lawn
Board & Management: Michael Barnett - Director BEd – Adult Education, Cert IV Small Bus. Management Game inventor, grandfather, ex TAFE teacher (Elect Trades) Cristene Barnett - Director Christene has significant expertise with entertainment needs of children John Zhu - Project Manager Synergy Group Pty. Ltd. Manager. John has significant expertise in Sales, Advertising, Marketing, E-Commerce and Business Development and has worked with many small and large multinational corporations Ken Howard - Manufacturing Consultant CEO Ken Howard dot com Pty. Ltd. Inventor, game manufacturer; Chinese, US and European contacts
Corporate Structure
WATERWICKET PTY. LTD. is an unlisted company. Current shareholders are founders Michael Barnett & Cristene Barnett. The share base will be expanded with the issue of shares to interested investors.
Exit Strategy
Shares may be sold back to the company once the company becomes self sufficient. The time frame for this is expected to be approx 12 months. Ultimate exit for the business will be for a major toy manufacturer to be licensed to take over manufacture and pay ongoing royalties to the company.
• Will appeal to consumers in cricket and baseball playing countries (Australia, South Africa, Europe and USA) • Easily adapted (name & rule change) to suite the American market (being applied for) • Sales during two summer seasons (Northern & Southern) plus year-round in equatorial areas
Key Investment Highlights • New company producing a new & unique Australian product • Currently negotiating with Australian and overseas manufacturers • Currently in agreement with Australian distributor with connections to major retailers • Expectation of high profit margins per item • Expected unit cost of approx. $7 - $8, retail approx. $40 - $50 ea • Will appeal to consumers in cricket playing countries (eg India / Pakistan)
Further Information:
• Can be easily marketed in North America with name & game rules change
To learn more about this opportunity, including downloading an Information Memorandum, go to
• Will ride on the promotion of cricket during the summer/cricket season
www.wholesaleinvestor.com.au
• Relatively small amount of initial investment required to begin production
30
click on View Investment opportunities and search for Waterwicket Pty Ltd.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Lakes Property Group Pty Ltd Property Development 1998 Mature Tyabb, Australia Capital Raising/Strategic Investor
Company Name Sector Yr established Business stage Location Seeking
Executive Summary Lakes Property Group Pty Ltd is a privately owned property development organization that invests in and project-manages real estate developments. From sourcing potential development sites through to project completion, our ultimate aim is to realize aboveaverage returns from our projects. Lakes Property Group is seeking investors to develop 6.5 acres of residential zoned land in Carrum Downs into 69 stand alone homes. (Information Memorandum available on request).
Competitive Advantages • Lakes Property Group a unique residential property developer sharing profits with investors • Existing High demand for affordable housing in Carrum Downs
Board & Management: Frank de Groot – Managing Director Frank has 20 years experience in property development and real estate, with specific expertise in land acquisition and marketing. Rosita de Groot – Director Bookkeeper & Compliance Officer. Rosita has extensive experience in record keeping and graphic design. Chris de Groot - Director Partner C-View Home Builders. Chris has 5 years experience as an on site building supervisor and extensive experience in Residential Land Subdivision.
Corporate Structure Lakes Property Group is a Private Company Trustee for the 145 Hall Rd Unit Trust.
Exit Strategy
The estimated timeframe for this project is 2-3 years. Investors will be repaid their equity and profits distributed on completion of project.
• Purchasers able to take advantage of State and Federal Grants and incentives • Project duration 2-3 years • Directors and Shareholders are substantial investors in project displaying confidence in project’s profitability • Investor enquiry for this project very strong.
Key Investment Highlights • Up to 45% Return on Investment • High Growth Area • 2-3 Year Off-Plan Exit Strategy • Stage 1 Pre-selling now • Strong Rental Market • Profits shared with investors on Pro Rata basis
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 Lakes Property Group.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
31
Company Name Sector Yr established Business stage Location Seeking
Quantum Precision Instruments Asia Pty Ltd Nanotechnology 2004 Early Stage Singapore Capital Raising
Executive Summary Quantum-Pi fabricates the world’s most advanced sensors of position, displacement and vibration using quantum tunnelling instead of light/lasers (optics), mechanical systems or MEMS. At nanoscale dimensions, our sensors overcome the physical limitations of today’s sensors, creating new applications and genuine sensor networks at affordable cost to industries as diverse as semiconductors, consumer electronics, oil & gas, precision instrumentation/engineering/manufacturing, automotive and heavy engineering/construction. We will replace technology currently serving a global market exceeding USD 10 billion at a lower total cost whilst offering superior performance.
Competitive Advantages • Nanoscale sensors to replace micro- and larger-scale sensors and optical systems • Sensitivities/resolutions up to 10 times higher than existing best-in-class products • Highly scalable semiconductor manufacturing process (CMOS compatible) • Completing product integration into first saleable systems targeted at metrology industry • Expressions of interest, letters of soft commitment and open orders obtained
Board & Management: Krish Krishnan – CEO M.Sc, MBA Krish has 22 years experience in technology management and marketing with large multinationals. Suzanne Druce – Director of Finance 25 years international experience in finance and business management, with specific expertise in human resources, general management and finance. Marek Michalewicz – Founder, Chief Scientific Adviser PhD (Physics) Marek has been a Principal Research Scientist at CSIRO Australia, and has strategic technical and operational management experience with start-up high-tech companies. Zhang Jun – CTO B.Sc, M.Sc, PhD (Chemical Physics) Zhang has wide experience in academic and industrial research, and is currently an Adjunct Research Professor at Tsinghua University, China.
Corporate Structure Quantum-Pi is a Private Limited Company registered under the laws of Singapore.
Exit Strategy
Preferred exit is a trade sale of investor stake to a larger company, within an estimated timeframe of 5 years.
• Replacement technology, existing global markets; market expansion through affordable solutions • B2B sales; attractive distributor margins
Key Investment Highlights • Two distinct product lines with multiple products and global industrial applications • Early entry into pioneering technology for sensors, rapid market penetration possible • Highly protected IP • Market-driven sales projections; product development is modular and phased • Manufacturing outsourced in Asia (including Taiwan/China) keeping costs low
Further Information:
• Singapore base for low taxes and other benefits
To learn more about this opportunity, including downloading an Information Memorandum, go to
• Launch track already established, 24-month timeframe to meet open customer orders
www.wholesaleinvestor.com.au
• Very low capital investments required; high volumes, excellent margins • Next generation of networked sensors currently in development
32
click on View Investment opportunities and search for Quantum Precision Instruments Asia Pty Ltd.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Windation Energy Systems Australia Pty Ltd Renewable Energy 2009 Seed Sydney, Australia Capital Raising
Company Name Sector Yr established Business stage Location Seeking
Executive Summary WINDATION ENERGY SYSTEMS AUSTRALIA PTY LTD provides the most effective renewable energy wind turbine suitable for installation to urban buildings in the world. The patented TWM 5000 units by Windation produce up to 5Kw of clean electricity. The units are unobtrusive, have no external moving parts and comply to International standards IEC 61400-2. Windation units are the premier choice for urban wind farming as the units can be mounted in multiple areas. Additional power can be produced with solar panel mounting making Windation’s urban wind turbines an unbeatable choice for energy conscious building owners, tenants, investors, or clean power companies. Windation’s TWM mounts like a commercial air conditioning unit with ease.
Competitive Advantages • Unique product with design unmatched in suitability for city buildings – high safety factor; can be discretely positioned • Untapped global market • Renewable energy sector is a high growth industry, many opportunities • Positive consumer and corporate environment
Board & Management: David Jeffery Hare – Executive Director David has vast management experience. Management role assisting Century 21 to be No 1 Telecommunications dealer (Optus) 90’s. Director - ECO REBATES P/L & WINDATION ENERGY AUS P/L 2009. Director - thecomputerschool.net (International website training site) 2005 – 2007. Family background HARE & FORBES (60years) National engineering machine suppliers. Mark Sheikhrezai , P.E. – MS Mechanical Engineering , Executive Director Mark is a system design expert with 25 years of experience. He was previously the Founder and president of Composite Rotor Inc. a manufacturer of ultra speed carbon fiber centrifuge rotors. As well as having experience at Beckman Instruments Inc. and other related manufacturers.
Corporate Structure Windation Energy Systems Australia Pty Ltd is 80% owned by Eco Rebates Pty Ltd a company solely owned and directed by David Hare and 20% owned and directed by Windation Energy Systems INC, California.
Exit Strategy
Windation Energy Systems are looking to list on a suitable exchange at an appropriate time, or be bought in a trade sale.
• Resalable electricity asset • Wind turbine has high output per square metre • Patented first-of-its-kind product
Key Investment Highlights • Pre-launch investment opportunities • Increased electricity costs and feed in tariffs after July 1st • Valuable carbon credits and renewable energy certificates produced • Recent Government support with stimulus program • Availability of renewable energy grants • High market demand in renewable sector • Carbon emissions trading will recommence • Share holding available under ten year license • IP protected first of its kind product • Australia and NZ exclusivity • Wind energy is fastest growing renewable energy source • US and International patents in place
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 Windation Energy Systems Australia Pty Ltd.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
33
Cosmetic Choice Limited Company Name Company Choice Limited & Marketing, IT Sector Name Cosmetic Advertising Sector & Marketing, IT 2005 Yr established Advertising Yr established Early Stage, Expansion Business stage 2005 Business stage Early Stage, Expansion Melbourne , Australia Location Location Melbourne , Australia Capital Raising/trade sale Seeking Opportunity
Capital Raising/trade sale
Executive ExecutiveSummary Summary ® CosmeticChoice Choice®™ is Australia’s health, wellness and beauty offering a Cosmetic ™ is Australia’s first first health, wellness and beauty portal portal offering a completecommunication communication and education solution for consumers, practitioners complete and education solution for consumers, practitioners and and associations. associations.
Board & Management: Board & Management:
Mathew Jafarzadeh (CEO) holds a Bachelor of Dental Surgery and is a registered and qualified laser clinician, Vice holds apresident Bachelor of Surgery and is aof Laser Therapy ofDental Australian Institute registered and qualified laser clinician, Vice (AILT - 2004), Member of Australian Medical president of Australian Institute of Laser Therapy Clinical Laser Association (AMCLA), World (AILT - 2004), Member of Australian Medical Association for Laser Therapy (WALT) and (APAA). Clinical Laser Association (AMCLA), World Mathew Jafarzadeh (CEO)
Association for Laser Therapy (WALT) and (APAA).
Dr Michael (MBBS, FRACS, FAAFPS, Dr Michael ZachariaZacharia (MBBS, FRACS, FAAFPS, FACCS)FACCS) is a specialist and Throat is a specialist Ear, NoseEar, andNose Throat (ENT) and (ENT) and Facial surgeon, Plastic surgeon, for his experience Facial Plastic known forknown his experience facial rejuvenation. Dr was Zacharia was elected in facialinrejuvenation. Dr Zacharia elected as a president of Australian as a president of Australian Cosmetic Cosmetic Surgery in Surgery in 2007 and Anti-aging medicine medicine (A5)in 2008. 2007 and Anti-aging (A5)in 2008.
Mr. Peter De Lorenzo, Non-Executive Director and De Technology at Non-Executive Cosmetic ® CosmeticChoice Choice®™ gaps between consumers, practitioners and associations via of Information Mr. Peter Lorenzo, Director Cosmetic ™ fillsfills thethe gaps between consumers, practitioners and associations via ® ™. He is also Founding Director of sophisticatedweb web portal which delivers tailored information to each meeting aasophisticated portal which delivers tailored information to each groupgroup meeting their their Choiceof Information and Technology at Cosmetic UnityHealth Pty Ltd, www.unityhealth.com.au, and specific specificneeds. needs. Choice®™. owner of the leading medical industry website in TheAustralian Australianalternate alternate health industry alone is valued at AU$3 per annum while the Australia Heand is also The health industry alone is valued at AU$3 billionbillion per annum while the New Founding Zealand. Director of UnityHealth Pty globalcosmetics cosmeticsand and beauty industry is valued at $800 billion per annum. Bothgrown have grown global beauty industry is valued at $800 billion per annum. Both have Ltd, www.unityhealth.com.au, and owner of the steadily years with thethe cosmetics and and beauty industry experiencing 80% per steadilyininthe thepast past1010 years with cosmetics beauty industry experiencing 80% per leading medical industry website in Australia and year yearon onthis thistime. time. New Zealand.
Competitive CompetitiveAdvantages: Advantages • • AAone-stop shoppingpoint pointforfor beauty related requirements one-stop consumer consumer shopping allall beauty related requirements Directclick click thru thru to to Treatment • • Direct TreatmentProvider’s Provider’ssites sites • Direct contact with Treatment Providers via email • On-line Discussion Forum about beauty related issues • • On-line Discussion Forum about beauty related issues Latest News and information for consumers Able toNews contact via email immediately and online booking facility • • Latest andProviders information for consumers • For the first time in online history, there will be an opportunity for service providers to • Able to contact Providers via email and online facility connect, consult and discuss issues immediately with other consumers viabooking live chatting and net meeting via webcam which will be available soon. • For the first time in online history, there will be an opportunity for service providers to • connect, Up-to-date Information on latest procedures , techniques, rating, consult and discuss issues with other consumers via prices live chatting and net
• Direct contact with Treatment Providers via email
meeting via webcam which will be available soon.
Share Capital Structure: Year 2009 Corporate Structure:
Allmine Group Limited is an unlisted public Cosmetics Choice Limitedofisshareholders an unlisted public company with a spread who company. have entered the group at various stages over the past two years. Cosmetic Choice is an unlisted public company
Corporate Structure
Exit Strategy Exit Strategy
As an Unlisted Public Company, shares can be bought and sold through the Company’s share register.As A shareholder transfer by proper shares can be an Unlistedmay Public Company, transfer or in writing (in any form authorised by the bought and sold through the Company’s share Corporations Act 2001) or in any other form that register. shareholder may transfer by proper the Directors mayAapprove.
transfer or in writing (in any form authorised by the Corporations Act 2001) or in any other form that the Directors may approve.
Investment Highlights: • Up-to-date Information on latest procedures , techniques, rating, prices
• Alternate health industry is a $3 Billion per annum industry and growing • Industry growth over the last 10 years has been 80% per year • This market has over 120,000 service providers • • Alternate industryonline is a $3 Billion for perpractitioners annum industry and wellbeing growing and beauty 74% riseshealth in consumer searches in health, categories • Industry growth over the last 10 years has been 80% per year • Cosmetics Choice will seek to license their information platform to developing markets • Tand his market hascreating over 120,000 74% rises the in consumer online searches for countries, multipleservice revenueproviders streams throughout world in health, and associations’ beauty categories • practitioners Cross branding with upwellbeing to 12 industry (via web links) for consumers and • Cpractitioners osmetics Choice will seek to license their information platform to developing markets andTo enquire or download an • countries, 1% of Australians visits monthly, linking of site visits to creating(200,000) multiple unique revenuesite streams throughout the.25% world Information Memorandum, go to practitioners p.mth (500) • • C30 ross branding with up to 12 industry associations’ (via web links) for consumers and leading product advertisers via exclusive banner ads to practitioners OR consumers practitioners • Over $500k has already been invested into development click on View Investment Opportunities and To learn more about this opportunity, including • of18Australians (200,000) unique site reserved visits monthly, .25% of •1% Over countries domain names have been for worldlinking wide licensing andsite visits tosearch for Cosmetic Choice downloading an Information Memorandum, go to practitioners p.mth (500) expansion purposes for an average of $2Mil per license.
Key Investment Highlights
Further Information
www.wholesaleinvestor.com.au Further Information:
• 30 leading product advertisers via exclusive banner ads to practitioners OR consumers
www.wholesaleinvestor.com.au 19
on View Investment opportunities and search for w w w . w h o l e s a l e i n v e s t o r . c click om .au Cosmetic Choice
• Over $500k has already been invested into development
• Over 18 countries domain names have been reserved for world wide licensing and expansion purposes for an average of $2Mil per license.
34
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
my Home is for sale Real Estate / Internet 2009 Early stage Australia Capital Raising
Company Name Sector Yr established Business stage Location Seeking
Executive Summary
Board & Management: Michael Atwell - Managing Director Licensed Estate Agent Developer, MD of a tourism business, development company, traditional real estate agency and online real estate agency. Andrew Drake - General Manager Manages day to day operations of the business including finance, operations, staff and setting the direction of the business moving forward.
my Home is for sale is an online real estate agency that offers vendors the opportunity to save 95% of the typical selling costs if the owner is prepared to hold an open for inspection.
Nic Don – Advisor Mortgagee Broker One of the top 20 brokers in Australia by volume.
my Home is for sale advertises on all the top industry sites (particularly realestate.com.au and domain.com.au), undertakes the negotiation, provides a detailed appraisal and liaises with their preferred solicitor for a cost of $399 & $79 per month until sold.
Corporate Structure my Home is for sale is a Limited Company that operates through a unit trust.
Competitive Advantages • Offering the most comprehensive online real estate marketing package available on the market • The most affordable way to list on Realestate.com.au and Domain.com.au
Exit Strategy my Home is for sale is aiming towards a listing on a suitable exchange within 3 years. A trade sale would also be considered.
• Licensed Real Estate agency holding all the necessary licenses for all states in Australia • Access to industry-only valuation data • Listing 30-35 properties per week • A depth of industry experience not received from self-sell sites • Detailed stock reports provided ensuring the property is never undersold
Key Investment Highlights • High growth since launch • From zero to 1200 listings in 7 months • Significant growth has been achieved without traditional marketing or PR campaigns • Self sell/ private sale industry in Australia is largely underdeveloped • One of Australia’s largest private sale/discount agency businesses • Multiple untapped revenue streams i.e. On-site Finance, Conveyancing, Financial Planning, and advertising on our website • Recently launched service categories: Commercial Sales & Leasing, Business sales & Residential leasing. • Income potential from finance. Already 50 purchaser enquiries per day and 20 sales per week
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 My Home Is For Sale.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
35
Tyremil Group Recycling 2007 Early Stage Sydney, Australia Capital Raising
Company Name Sector Yr established Business stage Location Seeking
Board & Management: Tony Di Carlo - CEO Tony has 20 years experience as a business person and entrepreneur. He has been involved in various successful business during that period.
Corporate Structure Tyremil Group Pty Ltd is an Australian Private Company.
Executive Summary Tyremil Group has created a revolutionary, Australian-first, ‘high value’, sustainable tyre recycling plant. Tyremil Group is first-to-market with a specific process to increase the value of the 18 million waste tyres that are disposed of annually in Australia, the majority of which become landfill or are illegally dumped.
Exit Strategy Tyremil Group is aiming for an listing on a suitable exchange within 5 - 7 years. The company will make the decision based on favourable market conditions at the time.
The recycling process produces 5 commodity grade materials: Diesel, Bunker Oil, Carbon Black, Ingot Grade Steel and Syngas. This changes the end-of-life value of a tyres from $0 to approximately $1,150 per tonne. In addition, the plant generates its own power from the process and meets stringent EPA guidelines for emissions
Competitive Advantages • Ground Breaking Innovation • Solves Global Issue Of End-of-Life Tyre Disposal • Turns a Zero Value Product into a Valuable Resource • Produces 5 Premium Grade Commodities from used tyres - A World First • High Demand Service with 18 million tyres Disposed in Australia per annum • Scalable Solution with Global Potential • Government Supported as there is no effective method of disposing of tyres • Meets EPA’s stringent guidelines for emissions – a World First • No Current Competition
Key Investment Highlights • The Tyremil Process Is A Tested System • The Tyremil Process Produces in Demand Commodity Materials • Tyremil has Supply Chain in place for tyre acquisition • Tyremil has Supply Chain in place for commodity disposal • The Tyremil Process is High Income - $1,150 per tonne of tyres • Sustainable, Local, Global • Defined Exit Strategy with public listing
36
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 Tyremil Group.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Company Name Sector Yr established Business stage Location Opportunity
Kordz Pty Ltd Electronics 2003 Expansion Seaford, Australia Capital Raising
Executive Summary Australian based specialist brand of AV interconnects & accessories, offshore manufacturing with matured Australia/New Zealand wholesale distribution network, currently expanding into the USA.
Competitive Advantages • Established and respected brand with registered trademark protection • Multi-award winning, recognized and respected in the ANZ marketplace • In-house R&D for high integrity products; we don’t just source & import • Market focus on lucrative niche of specialist retailers & installers - CEDIA base • Genuine licensed Adopter of HDMI technology
Board & Management: David Meyer - Managing Director Ass. Dip. Business (Acc), Retail & e-commerce business management. Background in Accounting and natural business accumen. Also on the Board of CEDIA AP. James Chen - Director - Sale & Operations 20 year AV industry veteran, retail, installation and wholesale experience. Richard Woods - Non-salaried Executive Director Fellow of Chartered Accounts & and Tax Agent Vast experience in financial management and accounting services.
Corporate Structure Australian Pty Ltd company governed by a formal Shareholder Deed. Top tier Ordinary Shares with full voting rights.
Exit Strategy Kordz Pty Ltd is proposed to effect a float on an appropriate exchange within the next 2-3 years.
• Australian MD sits on Board of Directors for CEDIA Asia Pacific, enhances brand integrity • US office already established in the heart of Silicon Valley, California USA, 1.9 miles from HDMI headquarters • Michael Schaller, Director of Kordz USA, Inc is the former HDMI Licensing Global Compliance Director • Company and brand focus on compliance & education of industry personnel, media and consumers • 6 year matured business history • Kordz “IMMORTAL” lifetime warranty on key product lines
Key Investment Highlights • Invest into the genuine international growth phase of 6-year matured and proven business model • Comprehensive & unique skillset of the Kordz management & team for the highest investor confidence • Market focus on CEDIA and HDMI, strong links with Kordz into both organisations for undisputed credibility • Strong financial position with equity more than 80% of tangible asset value, preinvestment • A majority of the new investment funds will stay on the balance sheet • All R&D and marketing activities to be funded by existing cash flows, new funds for inventory & infrastructure • Sales projections are conservatively realistic and VERY achievable, with absolute confidence of success • Enhanced Shareholder Deed gives better balance and more rights to shareholders than is common practice • Share holdings to remain in Aussie company, with Kordz USA, Inc being majority subsidiary • R.O.I. projected at 2.5x initial capital investment over four years, effective 25% p.a compounding, plus franked dividends
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 Kordz Pty Ltd.
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
19 37
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.
38
Company Name
Code
Business Stage
Sector
3eep Pty Ltd ACC Ecominerals Limited Activeplus Pty Ltd AgriFuels Limited AiRush International Limited AusFi Networks Pty Ltd Benson (WA) Distributors Pty Ltd Blue Fusion Asset Management Pty Ltd CassTech Limited Ceebron Pty Ltd Coffee Shop Real Estate Cosmetic Choice Limited Datym.com Pty Ltd Direct Business Solutions Universal DIY Financial Limited Eastern Regions Resources Pty Ltd Eco Sanctuaries International Ltd Ecobiotics eMove Pty Ltd Finerday.com Flip Screen Australia Pty Ltd Focus Group Limited Future Capital Development Fund Limited GlassesOnline Global Digital Networks Pty Ltd Global Emissions Management Solutions Ltd Globo Hydro Power Limited Gooramadda Olives and Oil Holdage Pty Ltd t/a Broome Hovercraft ICN Health Jadato Holdings Pty Ltd Kidman Resources Pty Ltd Kiss FM t/a Trycycle Pty Ltd Klaus Maertin (Aus) Pty Ltd t/a Floaties Kordz Pty Ltd Lakes Property Group Pty Ltd Mailing Lists Online Pty Ltd Management Resource Solutions Limited Microequities Deep Value Microcap Fund Mindset Media Pty Ltd My Home is For Sale Name Withheld - Food Manufacturing Name Withheld - Manufacturing Recreational Vehicles Name Withheld - Pharmacy Retail Pacific Island Aquaculture Pty Ltd Peak Performance Group International Pty Ltd Phylogica Limited Primewest Funds Ltd Property Planet Pty Ltd Quantum Precision Questus Limited Rentmaster Pty Ltd Shearwater Entertainment SONY Centre SA Southern Fisher Tackle Pty Ltd Specialty Entertainment Pty Ltd Sustainable Energy Australasia SwapAce.com The Daily Commute The Equisent Group Time & Access Systems Tokoriki Island Resort Pty Ltd Tstix Pty Ltd Tyremil Group Wasabi Holdings Pty Ltd t/a WASHPOD WaterWicket Windation Energy Systems Australia Pty Ltd Zeep Pty Ltd - Zero Emission Energy Plants
3EP ACC ACP AFL AIR ANP BNN BFM CTH CBN CFS CCL DTM DBSU DIY ERR ECO ECB EMV FND FSA FGL FCD GLO GDN GEMS GHP GOO BHV ICN JHP KRS KFM FLT KRZ LPG MLO MRS MCQ MMP MHF DCF DBS
Early Stage Pre-IPO Early Stage Early Stage Early Stage Early Stage Expansion Stage Early Stage Pre-IPO Expansion Stage Early Stage Early Stage Early Stage Early Stage Early Stage Early Stage Early Stage, Expansion Expansion Stage Expansion Stage Early Stage Expansion Stage Early Stage Expansion Stage Early Stage Early Stage Early Stage Pre-IPO Expansion Stage Mature Stage Expansion Stage Early Stage Pre-IPO Expansion Stage Early Stage Expansion Stage Mature Stage Early Stage Expansion Stage Established Early Stage Expansion Stage Expansion Stage Mature Stage
Internet/Social Media Mining Healthcare Renewable Energy Entertainment IT Air Conditioning Financial Services Agriculture/Greentech ICT Food Technology Real Estate/IT IT IT Software/ERP/B2B Financial Services Exploration Mining and Resources Greentech/Property/Tourism Lifesciences Internet/Removalists Family Communications Portal Mining Services Energy Funds Management/Internet Internet Digital Media Software Software/Emissions Management Green and Clean Industry Agriculture State, National and International Tourism Healthcare/IT Agriculture/Greentech Mining Media/Communications/Entertainment Consumer/Sporting Goods Electronics Property and Real Estate IT Resources Financial Services Digital Media Online Real Estate Food Manufacturing and Retail Manufacturing Recreational Vehicles
DCP PIA PPG PYC PWF PPP QMP QTS RMR SWE SPR SFT SEP SBE SWA TDC TEG TAS TIR TSX TYG WPD WWT WEA
Early Stage Early Stage Seed Mature Stage Mature Stage Mature Stage Early Stage Expansion Stage Early Stage Early Stage Expansion Stage Early Stage Early Stage Early Stage Expansion Stage Early Stage, Expansion Expansion Stage Expansion Stage Mature Stage Early Stage Early Stage Expansion Stage Early Stage Seed Early Stage
Pharmacy Retail and Healthcare Fish Farming Education and Training/Business Services Biotechnology Property Property Sensors Property Funds Residential and Commercial Property Management Media/Entertainment Specialist Retail Consumer/Sporting Goods Leisure and Entertainment Renewable Energy IT Green/Transport/IT Aged Care/Development/Finance IT Property FMCG/Packaging Innovation Recycling Automotive/Industrial Retail Wind Renewal Energy Renewable Energy
ZEEP
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
The largest gathering of cleantech investors in the southern hemisphere
6th Annual AustralAsian
cleantechforum 22 – 24 March 2010, Crown Conference Centre, Melbourne, Australia
8 REASONS 8 reasons why you should be at the annual meeting place for AustralAsia’s Cleantech industry Understand the drivers that make Cleantech the ‘perfect storm’
Where cleantech and capital connect
With over 250 attendees annually, participate in the industry’s largest gathering of key decision makers
Event-at-a-glance Pre Conference Workshop
Conference Day Two
Hear from a speaker faculty comprising 50+ industry pioneers and experts
Monday, 22 March 2010
Wednesday, 24 March 2010
Discover the nation’s leading corporations who are introducing sustainable practices
Cleantech Investing for institutional Investors Run by PCG Asset Management & Facilitated by Peter Castellas, MD, Cleantech Australia
Attend 8+ hours of exclusive networking functions
Conference Day One
Meet institutional and VC investors looking for partnerships
Tuesday, 23 March 2010
Hear from over 25 Cleantech companies Have your questions answered via our interactive event format
• Technology transfers and accessing developing markets • Investment trends and expansion strategies • Examining the appetite for Australian Cleantech internationally • The Investment Showcase featuring the nation’s prominent investment opportunities • A sector by sector look at opportunities in the Cleantech market
Cleantech Investment Showcase
• Global trends and drivers impacting industry development • Mobilising institutional investment in the Cleantech market • The role of established corporations in accelerating the Cleantech wave • Private and listed Cleantech companies discuss partnerships and driving growth • Identifying investment opportunities and achieving ROI
Twenty of Australia’s most innovative private and public Cleantech companies, selected by the AustralAsian Cleantech Advisory Panel of investment experts will present their value proposition and market opportunity for growth and investment.
Showcase applications close 19th Feburary!
For full program or to register visit www.terrapinn.com/2010/ctf Platinum sponsors:
Gold sponsors:
Silver sponsors:
Researched and Produced by:
Exhibitors:
cleantech BOOK NOW! online: www.terrapinn.com/2010/ctf
|
email: cs.au@terrapinn.com
|
phone: +61 2 9021 8808
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
|
fax: +61 2 9281 3950 39
Gi12276
AustralAsia
Competitors
Activities
News Commentary
People
Financials
Corporate Structures
Company Profiles
The only 360 degree view of Australia’s top 50,000 companies is now yours
It’s no secret – information is the key to business success. Company360 is powered by the world’s leading brand in commercial information providing you with access to the most comprehensive financials, complete corporate family trees including structure and shareholder information, and in depth company and executive profiles. To learn more visit www.company360.com.au or to register for a free trial call 13 23 33. 40
COMPANY360
TM
Powered by the world’s leading brand in commercial information
w w w. w h o l e s a l e i n v e s t o r. c o m . a u