Wholesale Investor Magazine by Steve Torso

March 2012

Investment Opportunities for Wholesale, Sophisticated & High Net Worth Investors

Life sciences company with diagnostic tests for prostate cancer (18)

Innovative pharmacy retailer with unique hearing aid solution (21)

Rapidly growing IT infrastucture provider to the financial services industry (30)

National logistics provider offering door to door service (31)

Unique combination of real estate and gaming with a new offering for buyers and sellers (29)

Precious metals refining business based in Queensland (34)

www.wholesaleinvestor.com.au

MARCH 2012

Wholesale Investor Magazine is published by: Wholesale Investor Pty Ltd ACN 131 512 715 Managing Director - Steve Torso

Contents

Publisher - Reuben Buchanan Editor - Lachlan Colquhoun General Manager - Kimber Rothwell Senior Account Managers: - Daniel Coombes - Jim Brown Directors Reuben Buchanan – Executive Director Domenic Carosa – Non Executive Director Advisory board Tim Trumper Sydney: Address - Suite 204, 66 King St. Sydney Phone - 1300 597 595 Web - www.wholesaleinvestor.com.au Editorial Enquiries editorial@wholesaleinvestor.com.au Advertising Enquiries advertising@wholesaleinvestor.com.au Listing Enquiries capital@wholesaleinvestor.com.au 1300 597 595 Subscription Enquiries subscribe@wholesaleinvestor.com.au Design - Bubblefish Design www.bubblefish.com.au Printer - GEON Group www.geongroup.com Distribution - GEON Group www.geongroup.com Disclaimer This Publication contains prominent statements appropriate for the particular medium by which the Publication is made to the effect that: (A) the information contained in the Publication about the proposed business opportunity and the securities or scheme interests is not intended to be the only information on which the investment decision is made and is not a substitute for a disclosure document, Product Disclosure Statement or any oth er notice that may be required under the Act, as that Act may apply to the investment. Detailed information may be needed to make an investment decision, for example: financial statements; a business plan; information about ownership of intellectual or industrial property; or expert opinions including valuations or auditors’ reports; and (B) a prospective investor is strongly advised to take appropriate professional advice before accepting an offer for issue or sale of any securities or scheme interests; For more information, please visit our website www.wholesaleinvestor.com.au or email info@wholesaleinvestor.com.au

Editorial 4 5 6 7 9 11 12

Letter from the Managing Director Upcoming Events Company Updates 12 Lessons for CEOs and Investors: Insights from over 200 interviews (by Tony Featherstone) WI Sentiment Index ‘What the smart money thinks’ 3 Reasons Investment Decisions Can Go Wrong (by Neil Slomin) Understand the Worst Case Scenario (by Tom Mckaskill)

Opportunities 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Benitec Biopharma Limited (ASX:BLT) Bioatrix Jubilent Health Australia Ltd Global Kinetics Corporation BioDiem Ltd (ASX:BDM) Caldera Health Phylogica Limited (ASX: PYC) Photonz Corporation Ltd Retail Pharmacy Group Cynergy Health BioPower Systems Eastern Harmony New Zealand Ltd Blew Chip Mint Wireless Ltd (ASX:MNW) Exa Web Solutions Qanda Technology Ltd (ASX:QNA) Australian Real Estate Lottery Easylodge Infrastructure Services Hannan Logistics Pty Ltd Bizpanel Limited Investment Administration Australian Bullion Refinery Folkestone Limited

Feature Articles 36 37 38

ESOPs and Early Growth Companies (by Andrew Ireland) The Art and Mystery of Start-Up Valuations (by Jordan Green) HNW Investors and the Australian Life Science sector 3

Letter from the Managing Director

Cautious, but positive, is the sentiment from investors. So, welcome to 2012, and already the tone of the year is being set. Wholesale Investor subscribers are an optimistic cross-section of the investor community â&#x20AC;&#x201C; always looking for opportunities â&#x20AC;&#x201C; but they also represent the smart money, and the smart money is cautious, cashed up and actively seeking new opportunities. Our Sentiment Index shows as much. In these turbulent times, recourse to cash is a significant indicator of caution, and 70 percent of the respondents had 10 percent or more of their assets in cash. Most had between 10 and 30 percent in cash while some even had 100 percent! This means, of course, that there is money out there for the right opportunities and that is where we at Wholesale Investor come in. Already we are showcasing an amazing diversity of companies across all sectors which proves that the entrepreneurial spirit is alive and well, despite the economic uncertainty. Our Wholesale Investor community are by nature optimists. That is one of the brilliant things about being involved with Wholesale Investor. And we are confident that given the quality of the deals we are showcasing, many of our investors will find the attractive opportunities they are looking for. Changes to Wholesale Investor in 2012 2012 is shaping as an exciting year for Wholesale Investor, and there will be some changes to our offering. First of all, we will be moving to expand our online offering to include expert articles, tips on IPOs, Capital Raising and the whole range of subjects from private equity, banking matters for the HNW community and private wealth. As part of expanding our online offering, it is our objective to make it easier and quicker for you to get the information you desire on the companies and sectors which interest you. We will be looking to provide more articles, video and audio based CEO interviews. We will be aiming to deliver quality content and information to the vastly underserviced audience of HNWs, CEOs and Industry Participants. And as we move to enhance our online product, we will be moving the Wholesale Investor magazine to quarterly publication. Subscribers will also be asked if they wish to subscribe to the magazine, rather than having it mailed to them automatically. Itâ&#x20AC;&#x2122;s all part of updating the Wholesale Investor platform to enhance its functionality and make it even more relevant and useful for our subscribers.

Regards,

Steve Torso - Managing Director, Wholesale Investor Magazine

Upcoming Events INVEST Mackay Isaac Whitsunday Conference 2012

Australian Copper Conference

Mackay Entertainment and Convention Centre

Brisbane Sofitel

28 -29 March, 2012

27 -28 March, 2012

Previous years have seen delegates from all over Australia, China and India travel to attend the conference. REDC and the Mackay, Isaac and Whitsunday Regional Councils will once again be putting their full weight behind the event and early indications suggest the conference will attract a larger audience than ever before. Presenters will provide forthright and informative views, leaving attendees with key takeouts in understanding the current investment climate and how to benefit from opportunities in the Mackay-Isaac-Whitsunday Region.

Copper is one of the oldest metals used by man and the one with arguably the greatest utility in terms of social development. Australia is one of the world’s leading copper suppliers and has distinct advantages over some of its major competitors when it comes to being in a position to meet the world’s growing needs. The 2012 Australian Copper Conference brings together Australia’s leading players in the copper mining sector with an audience of industry experts and bona-fide retail investors eager to discover who the big winners will be in this valuable market sector going forward.

For more information or to register for this event visit www.wholesaleinvestor.com.au

For more information or to register for this event www.verticalevents.com.au

Wholesale Investor Capital Showcase Brisbane 2012

2012 Annual Stockbrokers Conference

PwC Offices Brisbane, Riverside Centre

4 April, 2012

Crown Promenade, Melbourne

31 May - 1 June, 2012

Wholesale Investor and AusBiotech will bring together over 200 investors, brokers and industry participants for the Wholesale Investor Capital Showcase 2012. Hear live presentations from 12 high growth Private, PreIPO and ASX Listed Companies in the Life Sciences, Cleantech, Technology and Agriculture Sectors. The Capital Showcase is the first of its kind where industry leaders, growth companies from a range of sectors, high net worth, private and professional investors, brokers and service providers have the opportunity to meet, network and create strategic long-term relationships.

The Stockbrokers Association of Australia, the peak industry body representing institutional and retail stockbroking firms and investment banks in Australasia, invite you to join them at their 2012 Annual Stockbrokers Conference, the largest and most important event in Australia for the Stockbroking industry group.

For more information or to register for this event visit www.wholesaleinvestor.com.au

For more information or to register for this event visit www.stockbrokers.org.au/conference

The 2012 conference event will feature a fresh and exciting program addressing many topical issues facing the market and market participants today.

Mines and Money Hong Kong

Excellence in Oil and Gas 2012

Hong Kong

Sofitel Sydney Wentworth Hotel

19 - 23 March, 2012

20 - 21 March, 2012

In three years Mines and Money Hong Kong has increased in size by 800% making it the largest mining investment event in the region. In March 250 mining companies will be exhibiting their investment opportunities to over 2500 people making it the must attend event in Asia-Pacific for the mining and investment communities.

Excellence in Oil and Gas conference and exhibition is east coast Australia’s leading oil and gas investment event. With a highly relevant conference agenda for 2012, showcasing lucrative junior and midcap investment opportunities plus local and international industry insight, the event takes place from 20-21 March at the Sofitel Sydney Wentworth Hotel. This luxurious Sydney CBD location provides great accessibility for the financial sector audience. With investment in shale gas reportedly on the rise, there is no better time to attend the Excellence in Oil and Gas conference and exhibition.

For more information or to register for this event visit www.minesandmoney.com/hongkong

To review the complete conference agenda and speaker line-up, please visit Excellence Oil and Gas online.

Company Updates

Mint Wireless in Payments Deal

New acquisition for Cynergy

ASX-listed payments provider Mint Wireless has signed a landmark deal in Australia, providing mobile payments solutions to the country’s largest privately owned pest control company. The three year deal with Amalgamated Pest Control (APC) will see Mint roll out its state of the art payments solution to up to 300 licences, using components from business partners TouchStar and Touchstar.

Consumer Health company Cynergy Health has made a new acquisition which managing director Geoff Crittenden says could become Cynergy’s core business in the next few years. Cynergy has acquired Medi-Stream, which produces an asthma inhaler sold through pharmacies in Australia and around the world under the Sportshaler brand.

The contract is valued at approximately $400,000 and comes after Mint Wireless announced a similar deal in Ireland with footwear company Dubarry, announced last week. “This is quite a significant deal for Mint Wireless because it’s our first full payments contract of its kind in Australia,” said chief executive Alex Teoh. The Mint Wireless solution delivers the ability for APC to accept both credit card payments and EFTPOS solutions from customers, and had been accredited by participating banks.

Mr Crittenden said a key part of the deal was the acquisition of the global intellectual property rights to the products.He said Cynergy was planning a capital raising this year as it looked to develop its global business, and that it was also looking for local and international partners.

Jumbo profit keeps getting bigger

BioDiem in China licensing deal

Online lottery provider Jumbo Interactive has posted its sixth consecutive record half year result, announcing a before tax profit of $5.1 million for the six months to the end of December 2011.The ASX listed company’s result was a 46 percent increase on the corresponding half year in 2010, while EBITDA was up 56 percent to $5.2 million over the period.

ASX-listed vaccine developer BioDiem Ltd (BDM) this week announced that it has licensed its Live Attenuated Influenza Virus (LAIV) vaccine technology to China-based Changchun BCHT Biotechnology Co. This is an exclusive licence for the Chinese private sector market for pandemic and seasonal influenza vaccines made using an egg-based production method. BCHT holds a complementary licence to the LAIV for the public market in China via a sublicence from the World Health Organisation. BCHT is a well-established technology company engaged in medical research and development, marketing and production, based in Jilin Province’s High Tech Zone. Established in 2004, the company now employs more than 600 employees and has developed significant in-house expertise in viral technology development with particular successes in the areas of influenza and preventative HIV vaccines.The Chinese announcement caps a busy holiday season for BioDiem, which in December announced the acquisition of Savine Therapeutics Pty Ltd (Savine), which owns proprietary technology to design antigens which can be incorporated into vaccines for different diseases.

Mike Verveka, Jumbo Interactive founder and CEO, attributed the result to the continued popularity of internet lotteries, technical innovations and the growth of social media. “Social media has helped drive Jumbo to record sales and profit,” he said. With cash at the bank increasing 35 percent to $15.9 million, the company is well placed to execute its expansion plans to enter international lottery markets, particularly in the US. In January, Jumbo announced the appointment of two US-based executives to work on securing contracts with state lottery operators after the US Department of Justice recently gave the green light for internet lottery sales, a market estimated at US$56 billion in that country.

Medi-Stream has two other products: a first response inhaler for paramedics to administer pain relief medication, and a product – still in development phase - which enables emergency crews wearing breathing apparatus to receive pain relief.

12 Lessons for CEOs and Investors: Insights from over 200 interviews (by Tony Featherstone) build relationships with the investment community and media, knowing that smart emerging companies are perpetually in capital-raising mode. A weak sharemarket and tough IPO market means CEOs have to work harder than ever to promote their company after listing. Seven in 10 IPOs in 2011 finished the year below their issue price. The median share price loss (compared to the issue price) from the 104 IPOs was 22 per cent. Only 11 IPOs raised more than $20 million; the median capital raising was a tiny $5 million as small explorers dominated IPO volumes in 2011. Eighteen companies were forced to withdraw their listing application. This analysis shows two key trends: building strong after-market support for IPOs is becoming harder in a volatile sharemarket; and after raising less capital than first sought, many companies will have to bring forward their next capital raising. Those whose share prices have fallen below the issue price, and had poor investor relations strategy, will find the process harder. They may be unable to raise funds, or have to issue many shares at a lower price – and badly dilute shareholders – to survive.

Too many small companies make a crucial, sometimes fatal, mistake when raising capital through an initial public offering (IPO) and listing on the Australian Securities Exchange. After intensely promoting their prospects before and during the float, these companies seemingly “go to ground” when their offer closes. Their stop-start investor relations efforts contribute to poor aftermarket share price support. I see this pattern often, having interviewed more than 200 chief executives of newly listed companies and analysed their IPOs for the Australian Financial Review in the past five years. My work as BRW magazine managing editor early last decade, and before that Shares magazine, also highlighted a pattern of small listed companies with poor investor relations processes. Here is what often happens. Instead of working only on the business, the CEO works almost full-time on developing a prospectus and promoting the IPO for three to six months. They meet extensively with broking firms and fund managers, depending on their company’s size, and do public or background media interviews. Some CEOs actively promote their company’s offer overseas. Once the offer closes, the CEO understandably wants to focus on their main job and put the capital to work. A small exploration company starts drilling, a biotech increases its research, and a manufacturer makes an acquisition, for example.. But an absence of news after listing kills the company’s IPO momentum. Early investors lose interest, new buyers are missing, and the share price falls below the issue price – in turn sending a bad early message about the company’ s prospects, which can be hard to recover from.

It is not just IPOs that have to work hard on investor relationships. Small listed companies generally are receiving less attention in this market. Lower ASX trading volumes have seen more sharebroking firms cut back or axe their smallcompany research. Small-cap fund managers have lower fund inflows to put to work, as retail investors reduce their sharemarket exposure. Offshore investors who may have previously supported small-caps have to contend with the higher Australian dollar. All of this means companies need to communicate clearly – before, during and after the IPO – to maximise their chances of success in a tough market. The best investor relations in the world will not help a newly listed company that misses its exploration targets or has disappointing research. And short term “company spin” may do more harm than good in the long run. But a wellconsidered investor relations and governance strategy can add significant value for newly listed companies. Here are 12 points to consider: 1. Run like a listed company before you list Many companies, especially in mining, are formed to buy an asset through an IPO. Those that have been around longer need to operate like a listed companies from at least two years before an IPO. This might involve forming a board, providing more formal communication to seed investors, lifting company reporting standards, and developing a clear environmental, social and governance strategy. The aim is for a smooth transition when the company goes from private to public. 2. Focus on the right share register Any capital will do for companies that are struggling to raise their minimum subscription. Smart companies think about their share register before and during their IPO. They try to attract long-term investors who can provide stability to the share register and will participate in future capital raisings. Having a prominent small-cap fund on the register, for example, may attract others.

Not every company follows this script. Some CEOs have the foresight to build on their IPO work after the float. They ensure their company has good news soon after they float, and spend up to a third of their time on investor relations. They

CEO Insights 3. Communicate well in seed funding The booming fast-food chain, Pie Face Holdings, is a good example. It produced a well-designed, well-written 36-page information memorandum for its $10-million capital raising last year. The report clearly outlined the company’s strategy and the capital raising attracted new investors, such as Macquarie Group. Early investors could see Pie Face’s long-term growth targets; some may stick with the company well after its intended IPO late this year or next, knowing it could be more valuable. 4. Think about service providers The involvement of other firms in a float can be a strong investor relations tool in itself. Spending more on better-known professional services firms, be it accounting, law or geology, can make a big difference. Working with a betterknown broker or corporate adviser also helps. This is not always possible and some small service providers do an excellent job with IPOs, but think about how other service providers sell the float to investors. Internally, an experienced chief financial officer can give investors more confidence in a company’s accounting, which is critical with unknown IPOs. 5. Get the board right Small IPOs often take one of two approaches with boards. They recruit a “trophy” chairman or director, more for their name than what they contribute. Or the board has three of four directors (none well known as governance specialists), little independence, and does not comply with several ASX Corporate Governance Council Principles and Recommendations. It is such a lost opportunity. Thinking about board composition early, and showing a company has strong governance, can be an important selling point for IPOs. 6. The prospectus The Australian Securities and Investments Commission has lifted its scrutiny of IPO prospectuses in the past few years and provided new guidelines on how to write disclosure documents. ASX also pays great attention to IPOs and their compliance with ASX Listing Rules. Yet many IPO still have prospectuses that regulators consider misleading. They contain forward-looking statements with too few assumptions; aggressive marketing, including unrealistic photos (often of producing mines); and too much generic information on risks. The company then wastes time and money producing supplementary or replacement prospectuses and is off to a terrible start before it lists. Spending more time on a clear, balanced, readable prospectus can make a big difference to IPO prospects and after-market support. 7. Watch the ‘spin’ Good CEOs find the right balance between promoting the company’s prospects while complying with continuous disclosures rules and treating all shareholders equally. Bad CEOs hype their company’s announcements, provide information to some investors before others, and only care about short-term gains. The hype quickly fades and the company damages its investor relationships. 8. Plan the news flow Smart companies think about their announcements after listing, while complying with compliance obligations during the prospectus process, and continuous disclosure rules, and avoiding corporate spin (as per point seven above). An exploration company, for example, might announce assay results

from its drilling program within months of listing. A biotech might announce its research progress. An industrial company might provide a quarterly update or release an investor presentation as a company announcement. But resist announcing meaningless news designed to inflate the share price. Investors soon tire of it. 9. Maintain the communication Know that up to a third of your time as CEO could be spent on market communication and listing compliance issues. Aim to build long-term relationships with several broking firms and the media. Take advantage of services such as ASX’s small and mid-cap investor roadshows that help promote more-established small listed companies to offshore investors. Think about a regular investor communication program and how technology, such as webcasts and webinars, can help. 10. Spread the communication burden In many small listed companies, only the CEO talks to investors, analysts or the media. That makes sense, but consider the role of the chairman and chief financial officer. The CEO might talk on all matters relating to company strategy. The chairman might talk on governance issues and broader industry issues where appropriate. The CFO might talk to professional investors and analysts on the company’s numbers. Of course, the CEO should be the focal point and there is nothing worse than mixed messages from having too many spokespeople. But with careful planning, a small company can maximise its investor relations effort and minimise communication risk. 11. Escrow anniversaries I’m always surprised how little attention newly listed companies give to escrow anniversaries, when shares that the ASX deems as restricted securities are able to be sold a year or two after listing. All too often the company’s share price is hammered as seed investors dump their stock as soon as they can. Smart companies think about how investor relations before and during escrow anniversaries can minimise share register volatility. It doesn’t take much selling to crunch illiquid small stocks. 12. The next capital raising The best emerging companies always have an eye on their next capital raising. They do not lose momentum when capital is raised. They know the name of the game is getting a higher share price that allows more capital to be raised, with less dilution from excessive share issuance. Even better is growing the company from its cash flow and issuing few new shares. But cash flow for most small IPOs is at best several years away. Survival depends on their ability to raise fresh capital, and a having strong, well-planned investor relations program to support the process. About Tony Featherstone Tony Featherstone is a former managing editor of BRW, Shares, Personal Investor, CFO and Asset magazines. Tony has been a business journalist and editor for almost 20 years and has written for publications such as Company Director, The Australian Financial Review, Sydney Morning Herald and SunHerald. He is currently a Director of Featherstone Media & Publishing, a specialist editorial consulting and freelance-writing firm. Tony writes a weekly column for the Australian Financial Review on IPOs, a weekly column for BRW magazine on small and mid-cap investment strategies, and a weekly blog for The Age on entrepreneurship. He is also the consulting editor for the ASX Investor Update e-newsletter. Tony has a Master’s of Entrepreneurship and Innovation (SWIN), an honours degree in economics (UQ), a graduate diploma in applied finance (FINSIA) and has almost completed a master’s degree in marketing (UNSW). Tony lectures in entrepreneurship and innovation at Swinburne University.

Wholesale Investor National Investor Sentiment Index

3 Reasons Investment Decisions Can Go Wrong (by Neil Slomin)

For over 25 years, former senior NAB banker Neil Slonim worked closely with many HNWs and entrepreneurs. Some were hugely successful whilst others were less so. Based on this experience he has identified three types of reasons why investment decisions go wrong - People, Financial and Environmental. PEOPLE Some investors pay large sums for goodwill only to see it dissipate through their own actions that disrupt the company’s capacity to produce the results that justify the goodwill paid. When buying or investing in a business, HNW’s/ entrepreneurs can struggle with the balance between the role they play as shareholders and managers/leaders particularly alongside an incumbent management team which includes co-shareholders. Conflict can easily arise between management who have usually started and grown the business and the investor who brings cash to the table but has other expectations. The classic example of this is the wealthy individual who invests in a business either to buy themselves or more often their children a job. Whilst the capacity to inject new capital into a growing business puts the investor in a strong bargaining position, neither party should proceed with any transaction unless both are totally comfortable with the ongoing role the investor or their family members wish to play, especially if this involves day to day management. When they do become actively involved in the business, investors can come unstuck because they lack the management, leadership or industry experience required to be make a meaningful contribution. They might assume (wrongly) that being an owner entitles them to be a leader but injecting new cash into a business gives the investor ownership but leaders gain traction and respect from personal conduct not personal wealth. A self aware investor knows if he/she has the ability to define and articulate a vision and to inspire people to join them on the journey. Unfortunately not all investors have this level of self awareness with their attitude more akin to “I am an owner and therefore I am entitled to be respected”. These situations usually turn out badly for all concerned. Finally, some investors are just not suited to be in partnership situations so rather than try to work through these challenges, it is perhaps better to accept this upfront and structure any investment accordingly. FINANCIAL There are no new ways why businesses fail and the oldest and most common cause is lack of equity or “hurt money”. HNWs/entrepreneurs are optimistic by nature and accordingly don’t always take into account all the things that could go wrong. Thus the business could lack a strong capital base which is needed to weather the economic storms which play out from time to time. In the event Plan A falters every business needs a Plan B and even a Plan C. This invariably involves access to more funds albeit possibly only for a short period. Businesses need to be appropriately capitalized in the first instance and also be able to access a contingency fund in the event the need arises. Similarly, when preparing forecasts, owners should undertake best case, most likely case and worst case scenarios and ensure that even under the worst case

scenario the business still has access to sufficient funds to ensure its survival. When considering the worst case scenario, investors should assume Murphy’s Law applies ie anything that can go wrong, will go wrong. More often than not businesses fail due to the occurrence of more than one unrelated adverse event. HNWs/entrepreneurs generally prefer to minimise the level of their financial commitment by leveraging their reputation and standing with the banks to access the maximum level of bank debt without the need for a personal guarantee. This reduces the weighted average cost of capital, provides a better return on the capital invested and also minimises and caps the absolute amount of funds at risk. Everybody is happy when things go well but if the business hits turbulent times and breaches banking covenants, the situation can rapidly deteriorate. HNWs who previously assured the bank that “my word is my bond” can be placed under immense pressure by banks which are longer placated by words and instead insist on additional tangible support. And when the pressure is on, banks will always look to protect their balance sheet ahead of any individual client relationship regardless of the borrower’s standing. Along with lack of equity, inadequate due diligence (“DD”) is another common cause of failure. Some investors simply pay “over the odds” for a good business whilst others completely misread the situation and end up investing in a “lemon”. Either way, the root cause is lack of or poor DD. Investors might be put off by the cost of external and/or specialists conducting DD whilst some believe they possess the necessary skills themselves. Often they will rely on their external accountant who whilst relatively inexpensive may lack the technical or industry experience of larger or specialist professional firms. The costs of external DD even if it is to review the work carried out by the investor invariably outweigh the losses incurred from a bad decision. Whether it is ego, time pressure, complacency or any other factor, there is no substitute for proper DD. Having a solid understanding of the business and knowing the owner might encourage an investor to dispense with a formal DD process but in fact DD is even more critical where there is existing knowledge and especially an existing personal relationship. Investors should work on the principle of “Trust but Verify”. ENVIRONMENTAL Looking at the broader environment in which businesses operate, perhaps the biggest error HNWs/entrepreneurs make is failing to properly recognise the impact of technological change. There are countless examples where technological change has substantially reduced the value of an investment for instance the shift from vinyl records to cassettes to CDs, the DVDs and now digital. Companies which don’t quickly adapt to such change eg Kodak will struggle to survive. Secondly any industry which is reliant upon government incentives involves risk which can be difficult to quantify because governments do not make decisions on the same basis as businesses. Classic examples include home insulation, solar energy, gaming and the motor vehicle industry. Many investors have been brought undone by the stroke of a pen of politicians and bureaucrats. Finally, the compliance burden can have a significant impact on investment profitability and returns. HNWs/entrepreneurs can easily overlook the impact, not just in terms of cost, of meeting changing regulatory and compliance standards. Perhaps the best example of this is the financial services sector. Neil Slonim established Slonim Consulting in 2008 to help growing businesses grow profitably and safely by applying the lessons learned in a career in corporate and business banking. He sits on a number of boards and advises several family businesses on issues as broad as investment decisions and succession planning.

Understand the Worst Case Scenario (by Tom Mckaskill) The mistake we made was to rely on the profitability of the acquired firm to partly fund the acquisition and to assume that the change of ownership would require little attention from the UK executive team. Even though we undertook a proper due diligence, we were let down by our advisors. Basically, we had failed to build in enough capacity to deal with possible problems. If you start the evaluation process by looking at what might go wrong and how you could mitigate the costs, delays and risks, you have a much better appreciation for what resources you need to have on call in order to get through the process. The worst situation to be in is to suddenly be confronted with an unanticipated problem for which you have no strategy. You need to plan for the loss of key employees, disruption of both businesses, a heavy drain on executive time, more time to bring the business under new management and a longer time to achieve investment outcomes. If you can still make a positive case for the acquisition under a worst-case scenario, you are probably looking at a very good investment. Written by Tom McKaskill Global serial entrepreneur, consultant, educator and author, Dr Tom McKaskill has established a reputation for providing insights into how entrepreneurs start, develop and harvest their ventures.

When acquiring companies, keep the worst case scenario in mind. Acquisitions tend to stretch most acquirers to the limit. Perhaps they tend to take on more than they should or maybe they are simply unprepared for the process, but what is obvious is that most buyers fail to achieve their investment objectives. Few anticipate the level of executive commitment required, the extent of disruption to their own business or the size of the project they are taking on. The timing of the deal is often outside their control and thus can come when the firm is already working at capacity. What they often fail to do is to work out what could go wrong before they decide to launch their acquisition bid. Perhaps the most valuable tool in the armory of the acquirer is the worst-case scenario. Murphyâ&#x20AC;&#x2122;s Law is great technique for working out whether you have the capacity and capability to take on an acquisition activity. If you project that you can get through the activity when things go wrong, the chances are that you will come out the other end in reasonable shape. When I was the President of a UK based software firm of 34 staff, I undertook an acquisition of one of my software suppliers in San Diego which had 57 employees. We agreed the deal, raised venture capital to finance 75% of it and used surplus cash and anticipated earnings to cover the balance. A US based national firm of accountants undertook the due diligence and gave the firm a clean bill of health. Three months after we took control, the same accounting firm undertook an audit and discovered serious irregularities with revenue recognition and inventory counting. As a result of these findings we took the accountants and prior owners to the federal court in the US. Over the next five years the business was severely disrupted, lost money most years, terminated about one third of the employees and drained the UK of cash. Both businesses were almost brought to their knees by the litigation activity.

BIO TECH

Company Name Sector Year Established Business Stage Location

Benitec Biopharma Limited (ASX:BLT) Biotechnology-therapeutics 1997 Early Stage Sydney

Executive Summary Benitec Biopharma Limited is a publicly listed (ASX:BLT) biotechnology company whose key assets are exclusive irrevocable worldwide rights to a platform technology which has the potential to permanently silence any gene associated with human diseases or conditions. Benitec Biopharma is demonstrating the efficacy and safety of this technology through collaboration with leading organisations globally. With over 100 granted patents and patent applications, BLT holds the dominant position in the field. Benitec’s current projects are directed to using gene silencing to treat or cure intractable pain, viral infections, cancer and genetic disease, demonstrating the extraordinary scope of the technology in human therapy.

Competitive Advantages • Cancer-associated neuropathic pain. Benitec Biopharma is utilizing its platform technology to develop a once-only innovative therapeutic to overcome intractable pain in patients suffering from terminal cancer. • The non-small cell lung cancer program, is using ddRNAi to silence the beta III tubulin gene which has been demonstrated to significantly overcome the resistance of lung cancer cells to chemotherapy drugs. • The hepatitis B program is being done in partnership with Biomics Biotechnologies Co, Ltd in China. The aim is to develop a curative therapy for chronic hepatitis B infection based on long term silencing of a key viral gene. • In oculopharyngeal muscular dystrophy (OPMD), the program aims to develop a cure for this currently untreatable and often fatal genetic disease which affects around 1 in 3000 people worldwide.

Key Milestones & Investment Highlights • Extensive patent portfolio strengthened through five more granted and allowed patents in the US and Europe recently, taking the current tally to 49 granted or allowed patents globally. • Progress in preclinical studies in all programs continues to provide confidence of progress towards clinical trials. • Commencement of the OPMD project in January 2012 signals the first application of BLT’s technology to genetic disease. • Applications of BLT’s technology show promise in enhancing stem cell therapy in recent publications. This opens new opportunities for ddRNAi. • Financially strengthened by recent successful $8M funding via a renounceable rights issue

Board & Management: Peter French - CEO BSc, MSc, MBA, PhD Cell and molecular biologist. Principal Scientist - Centre for Immunology, St Vincent’s Hospital; Founder of Cryosite (CTE); Ex-President ANZSCDBI. Peter Francis - Non-Executive Chairman LLB Grad Dip (Intellectual Property) Partner at Francis Abourizk Lightowlers (FAL), a firm of commercial and technology lawyers. He is a legal specialist in the areas of intellectual property & licensing. Mel Bridges - Non-Executive Director BAppSc FAICD More than 30 years experience in the global biotechnology and healthcare industry. Chairman of Alchemia Limited, Impedimed Limited and Leaf Energy Limited. He also co-founded the listed company Panbio Ltd. Tissue Therapies Limited. The Queensland Entrepreneur of the Year in 2004. John Chiplin – Non-Executive Director Ph.D Former CEO of Arana Therapeutics (acquired by Cephalon). Former head of the $300M ITI Life Sciences investment fund in the UK. Owns Newstar Ventures Ltd.

Share Information

As at 27 February 2012

Code

ASX:BLT

Market Capitalisation

18,441,942

Current Share Price

$0.0190

52 Week High

0.0450

52 Week Low

0.0130 0.03

ASX:BLT 6 month price chart

0.02

Sep 2011

Oct 2011

Nov 2011

Dec 2011

Jan 2012

Feb 2012 160 120 80 40

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Benitec.

BIO TECH

Company Name Sector Year Established Business Stage Seeking

Bioatrix Pty Ltd Biotechnology 2012 Phase II trials, Pre-IPO or Series A Funding $5 million

Executive Summary Bioatrix focuses on two key therapeutic areas: dermatology and diabetes. Our global mission is to become a significant diabetes and dermatology drug company starting with Activated Protein C (APC) therapies. This is being achieved through scientific innovation and new technology. Bioatrix’s lead program is APC to treat diabetic foot ulcers and it is initiating Phase II trials. BTX102 is in studies for the treatment of equine wounds. In addition, the small molecule BTX103 has excellent potential for diabetic nephropathy.

Competitive Advantages • Sydney University’s Kolling Institute has successfully reprofiled APC – that is they have discovered that APC is effective in the treatment of wounds, in particular, chronic wounds such as diabetic ulcers • As APC has a known toxicity profile and was used systemically, Bioatrix is able to go straight into Phase II clinical trials, thereby substantially shortening the time until the drug reaches the market, from 15 years to 5 years • Dosage of topical APC in wound healing is approximately 250 times less than the approved dosage of recombinant APC (Xigris) in Sepsis • Very low risk of Phase II trial failures due to toxicity/side effects • Bioatrix has licensed Sydney University’s technology and will undertake a Phase II clinical trial • Bioatrix is negotiating with three groups on the development of an APC cell line and GMP manufacture of recombinant APC – Bioatrix will own this IP.

Board & Management: Jay Hennock - Managing Director BEc Over 20 years in corporate advisory services including Citibank and Bank of America. Founding shareholder of Xenexus Pharmaceuticals and Nuon Therapeutics. Roger Moore - Executive Director BPharm 40 years experience in the international pharmaceutical industry. Headed Novo Nordisk`s Japan region operations for 30 years. Professor Greg Fulcher - Chief Medical Officer MBBS, MD, FRACP Clinical Professor of Medicine at the University of Sydney, Director of the Department of Diabetes, Endocrinology & Metabolism at RNSH. Principal investigator on 32 clinical trials over the past 5 years. A-Prof Christopher John Jackson - Chief Scientific Officer PhD Director, Sutton Laboratories, Institute of Bone and Joint Research (IBJR), Co-inventor of Activated Protein C as a wound healing agent. Dr Michael L. Selley - VP Research and Development PhD Founder and Chief Scientific Officer of Nuon Therapeutics. Chief of Staff to the Australian Minister for Science

Corporate Structure Bioatrix Pty Ltd was incorporated in February, 2012.

Key Investment Highlights

Exit Strategy

• Excellent APC Phase I clinical data in Chronic Wound Healing – BTX101 • Discovered and documented mechanisms of action – published papers • BTX101 into Phase II trial – with NHMRC grant • BTX101 existing patent portfolio • BTX102 – US provisional patent being lodged • BTX103 – small molecule, cytoprotective drug - in animal studies • Further patents and IP being developed in each drug • Low cost, low risk drug reprofiling model – early partnering with pharma • Strong, management team with expertise in all areas of drug commercialisation • Outstanding Scientific Advisory Board.

Bioatrix will seek to list on the ASX at an appropriate time.

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Bioatrix.

BIO TECH

Company Name Sector Year Established Business Stage Location Seeking

Jubilent Health Aust Limited OTC medicines 4 Market ready Australia $5 mil equity to scale

Executive Summary Jubilent Health Aust. Limited is poises for rapid growth and is inviting investors onboard in order to fund the scaling up of proven existing business and expansion of the unique product range to sell into existing and new pharmacy customers and begin the global expansion of it’s brands. Jubilent Health Aust. Limited, an Australian Pharmaceutical company, has unique patented technologies resulting in formulae’s and API’s (Active Pharmaceutical Ingredients) which will change the way many medical conditions and diseases are treated. Conditions like Obesity, Diabetes, High Cholesterol, and even male infertility will be treated by medicines produced by Jubilent, by targeting fundamental cellular mechanisms to reverse symptoms at their origins and so reverse diagnosis. Jubilent Health Aust. Limited will continue to manufacture products with lots of market “Sizzle” like ToneUP® the world’s first ‘Body Composition Change Product’, already proven in the Australian market place to be capable of generating Gross profits in excess of $10million if marketed nationally and clinically proven in university trials to reduce fat and increase muscle mass without change in diet or exercise.

Competitive Advantages • API’s (Active Pharmaceutical Ingredients) • Unique diagnosis reversing medicines. • Strong Pipeline of products • Paradigm shifting treatment options • Multiple distribution channels established • Real market experience, back robust projections • Strong management team with proven record

Board & Management: Norman Ohl - Director/ Company Secretary Norman is the founder of Jubilent Health Aust. Limited and brings a wealth of management and entrepreneurial acumen to the Company. Long track record of high growth high value business Peter Degnian - Director B.Pharm Peter has been a registered pharmacist since 1983 and still active in retail and patient interaction Cathrine Dahlgren - Director M.AppSc (App Chem), Dip. Bus (F’line M’ment) This vast experience, including work with Sigma Nutraceuticals/Herron Nutraceuticals, Progen , Mediherb, provides solid regulatory expertise to the Compan. Mario Gattino - Director App Sc( Med Admin), MBA ( Exec), Dip Bus (M’ment) Mario Gattino is a former global VP level senior executive with Pfizer Inc., the world’s leading biopharmaceutical company, with extensive international experience.

Corporate Structure Australian Public Company

Exit Strategy Jubilent Health hopes to list on a suitable exchange at an appropriate time.

Key Investment Highlights • Rapid growth with good market uptake achieve already • High margin products in a high growth sector • Revenues achieved in the first year

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Jubilent Health.

BIO TECH

Company Name Sector Year Established Business Stage Location Seeking

Global Kinetics Corporation Medical Devices 2007 Commercialisation Melbourne Capital Raising

Executive Summary Global Kinetics Corporation (GKC) provides point of care measurement and reporting of Parkinson’s disease (PD) motor symptoms for neurologists and professional carers to manage: • Surgical and pharmacological interventions to treat dyskinesia; • Routine pharmacological treatment of bradykinesia and dyskinesia; and • A means for patients to manage their therapeutic compliance. Adoption of the PKG System will result in better patient clinical outcomes, lower patient management costs and a better quality of life for PD patients. The addressable market in Europe, US and Australia is $345M+ which represents only 20% of the 12M+ people forecast to have PD by 2015. The company forecasts annual revenue of $20M+ and NPAT of $8M within the five years.

Board & Management: Dr David Fisher - Director 1st Class Honours Rural Science; PhD Chemical Engineering; Masters in Applied Finance and Investments David is a founding Venture Partner with Brandon Capital Partners. David was CEO of Peptech Limited. Prior to Peptech, David spent ten years with Pharmacia AB (now part of Pfizer, Inc). David is a past president of the Australian Biotechnology Association and past chairman of the CSIRO’s Division of Animal Production Industry Advisory Committee. Andrew Maxwell - Managing Director MBA, MAcc, ACPA, MAICD Andrew has a proven track record of entrepreneurial business success in Australia and Asia spanning over 25 years. Andrew is the former CEO of ESCOR Private Equity (a Smorgon Family Company). Prior to joining ESCOR, Andrew was a serial start-up company entrepreneur with a history of successful company launch, business growth and exit.

Competitive Advantages

Corporate Structure

GKC’s core intellectual property is founded on sophisticated software that differentiates clinically important movement from normal movement and reports this as a bradykinesia and dyskinesia score. This intellectual property is protected by: • Patent; • Unique domain expertise of the GKC team; • Retaining data management services in-house limiting access to GKC’s proprietary algorithms and data library; and • Investing in ongoing research and development alone and in partnership with the Howard Florey Institute.

Proprietary Limited Company.

Exit Strategy The exit plan for investors is via a listing on an appropriate exchange or a trade sale.

Key Investment Highlights • Solving a significant unmet need in the management of PD; • A large and growing global market; • Unique and defendable intellectual property; • Regulatory approval in Australia, United Kingdom and Europe; • Engagement with key industry stakeholders; • A team that has a proven record of delivering value for shareholders.

Further Information 16

To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Global Kinetics.

BIO TECH

Company Name Sector Year Established Business Stage Location

BioDiem Ltd (ASX:BDM) Biotechnology 2004 (IPO) Commercialisation Melbourne

Executive Summary BioDiem is a developer of vaccines for both treatment and prevention of diseases. The lead technology is the LAIV influenza vaccine, licenced to the Serum Institute of India, and recently to Changchun BCHT Biotechnology Co. for commercialization in India and China, respectively. The first royalties flowed to BioDiem from influenza vaccine sales in 2010. BioDiem is also developing vaccines to treat cancer and serious infections based on the LAIV technology. This technology could be sold or licenced to other vaccine developers. The acquisition of Savine Therapeutics Pty Ltd in December 2011 will expand the range of vaccines being targeted e.g. to include tuberculosis (TB).

Current Projects • Research of new vaccines for treatment of cancer and serious infections, including influenza. • Development of BDM-I for treatment of serious infections.

Board & Management: Hugh Morgan AC - Chairman LLB, BCom Hugh Morgan is Principal of First Charnock. He is also a member of the Lafarge International Advisory Board, an Emeritus Trustee of the Asia Society New York; Chairman Emeritus of the Asia Society AustralAsia Centre, and President of the National Gallery of Victoria. Julie Phillips – Executive Director & Chief Executive Officer BPharm, MSc, MBA Ms Phillips has been CEO of BioDiem since July 2009 and was appointed a director in May 2010. She has experience as a CEO and director of start-up Australian biotechnology companies in the life sciences sector. Larisa Rudenko - Director MD, PhD, DSc Professor Rudenko is Head of the Virology Department in the Institute of Experimental Medicine, St Petersburg, Russia. She is recognized as one of the world’s leading experts in live attenuated influenza vaccines.

Competitive Advantages • Proven influenza vaccine technology, already marketed in India and Russia; approved for marketing in Thailand. • Research excellence through relationship with Institute of Experimental Medicine, St Petersburg. • Wide vaccine technology base allowing development of preventative and treatment vaccines for multiple applications e.g. cancers and infections. • Extensive clinical trial and on-market experience of the LAIV vaccine (100m doses) in Russia: the egg-based vaccine has established efficacy and safety. • Intranasal delivery increases patient acceptability by eliminating need for needles. Patients can administer the nasal vaccine themselves.

Share Information

As at 27 February 2012

Code

ASX:BDM

Market Capitalisation

9,143,080

Current Share Price

$0.0900

52 Week High

0.2000

52 Week Low

0.0700

ASX:BDM 6 month price chart

0.10

Key Milestones and Investment Highlights • Large target market for vaccines (US$27b with fast growth at 9.8%) and for BDM-I (anti infectives market estimated at US$50b in 2011). • BioDiem’s technology allows a variety of potential vaccines to be developed e.g. cancer treatment vaccines and vaccines to treat and prevent serious infections. • New influenza licences for India and China in last 12 months are in place – licence fees and royalty payments of $255K in FY2011 and $550K to date in FY2012. • August 2011: BioDiem signed an exclusive licence for the Indian private sector of BioDiem’s LAIV vaccine technology to India-based Serum Institute of India (SII). • February 2012: BioDiem signed an exclusive licence for the Chinese private sector of BioDiem’s LAIV vaccine technology to Changchun BCHT Biotechnology Co. (BCHT).

0.09

0.08

0.07

Sep 2011

Oct 2011

Nov 2011

Dec 2011

Jan 2012

Feb 2012 160 120 80 40

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for BioDiem .

BIO TECH

Company Name Sector Year Established Business Stage Location Seeking

Caldera Health Limited Life Science / Diagnostics 2009 Early Stage Auckland, New Zealand $NZ 3.5 million

Executive Summary Caldera Health is developing a suite of diagnostic tests for prostate cancer designed to be more reliable and informative than the existing PSA test. The current PSA test misses around 15% of prostate cancers and is frequently positive when no cancer is present. In a preliminary test of two of Caldera’s tests, the accuracy was 100% with no incorrect false negatives or positives. Caldera’s suite includes tests that are expected to predict how aggressive cancers are and how successful therapy is. Caldera is preparing for clinical studies in 2012 to validate its diagnostics and anticipates that it will commence commercial sales shortly through licensing agreements and be adopted globally as the diagnostic gold-standard.

Competitive Advantages • A suite of non-invasive diagnostic tests with the prognostic power to predict whether a tumour is a high, intermediate or low risk to the patient’s life. • No current competition in monitoring efficacy of prostate cancer treatment. • Competing products do not appear to have the same breadth of utility as those being developed by Caldera, which offer early detection, cancer characterisation, improved accuracy and monitoring. • Current competition based primarily on the PSA test and biopsies. • Caldera’s diagnostic tests aim to replace prostate biopsies: no competitor product offers this solution. • Six patent applications have been filed in the USA.

Key Milestones & Investment Highlights • Superior differentiated technology • Proprietary claims filed in patent applications • Proprietary technology platform • Clear path to market • Progressive product launches, beginning 2013 • Large market and value potential • Range of exit options • Highly experienced management with international networks into molecular diagnostics

Board & Management: Dr James Douglas Watson - Co-founder and Chief Executive BSc, MSc & PhD Experience in R&D and starting and exiting biotech ventures. Dr Watson was the founder and CEO of Genesis, NZ and ASX listed in 2000. Dr Richard Forster - Co-founder and Chief Scientific Officer BSc, MSc & PhD Significant experience in intellectual property development and commercialisation. Dr Forster is also the co-founder of Lanzatech Limited. Dr Roland Toder - Vice President Business Development BSc, MSc & PhD Proven skills and a track record in technology transfer, business development and management in the life science industry. Prof Alastair MacCormick - Chairman BSc, Mcom, PhD Professional director of a diverse range of public and private companies.

Corporate Structure Caldera is a New Zealand registered private company

Exit Strategy A trade sale to a larger molecular diagnostics player will be the earliest opportunity to realise liquidity at a significant return. An alternative is an IPO on a suitable public exchange.

Further Information 18

To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Caldera.

BIO TECH

Company Name Sector Year Established Business Stage Location

Phylogica Limited (ASX:PYC) Biotechnology and Pharmaceuticals 2003 Commercialisation Perth, Australia

Executive Summary Phylogica is engaged in the discovery and development of novel peptide-based biopharmaceuticals. Phylogica enters into discovery alliances with large Pharmaceutical companies for which it identifies potent bioactive peptides. These deals provide access to short term revenue as well as future milestone payments and royalties. Phylogica has discovered and validated a proprietary class of targeted peptide therapeutics (Phylomers®) which constitute the most structurally diverse source of peptides available. Phylogica has made libraries of billions of Phylomers from which drug candidates can be selected using the company’s advanced screening methods. Phylogica owns this unique class of peptides, with 16 patent families, including multiple granted patents in the US and Europe. Phylogica is in the commercialization phase and is beginning to sign discovery deals with some of the world’s largest pharmaceutical companies, including Roche, MedImmune (biologics unit of AstraZeneca) and Pfizer.

Board & Management: Dr Doug Wilson - Executive Chairman MB, ChB, PhD, FRACP, FRCPA Formally Global Head of Medicine Boehringer Ingelheim. Oversaw regulatory approval and launch of 10 drugs. Professor Paul Watt - Executive Director/CEO BSc. D. Phil (Oxon) Doctorate from Oxford, Postdoctoral Fellowships at Harvard and Oxford; 40 publications, 19 patents. Nick Woolf - Executive Director/CFO MA (Oxon), FCCA 18 years experience in the industry, equity research and investment banking. Formerly Chief Business Officer and Executive Director of Oxford BioMedica. Previously, he was Head of European Biotechnology Research at ABN Amro and he has held similar roles. Bruce McHarrie - Non-Executive Director B.Com FCA Director, Finance/Business Development, Telethon Institute for Child Health Research. Former roles: Assistant Director Biotech Division, Rothschild Asset Management, London, Coopers&Lybrand, Deloitte.

Competitive Advantages • Advantages over biologics discovery platforms (antibodies, protein scaffolds or random peptides) • Phylomer libraries are the most structurally diverse biologics libraries available • The hit-to-target ratios from Phylomer® libraries are high and the proportion of hits which are of high target affinity, and are biologically functional, is also high • Phylomers can be straightforwardly made by chemical synthesis • Phylomers can be delivered by patient friendly means such as intranasally • Phylomer libraries (unlike antibody libraries) are not associated with patent ‘royalty stacks’

Key Milestones & Investment Highlights • Phylomers offer clear advantages over competing biologics drugs • Phylogica has validated its technology and streamlined its processes to allow scalability • Phylogica has signed drug discovery partnerships with three leading Pharma companies since 2009 • Phylogica and Roche extended their collaboration in May 2011 following initial success • Phylogica is in discussions with multiple Pharma companies and expects more deals over next 12 months • Unlike most Australian biotechnology companies, Phylogica bears no risk from failure in clinical trials since its candidates are licensed at the discovery stage to partners • Phylogica’s strategy is driving near-term revenue growth and accelerated cash sustainability • Phylogica’s peers are valued at more than US$100 million • The average acquisition value for a drug discovery company like Phylogica is hundreds of millions of dollars

Share Information

As at 27 February 2012

Code

ASX:PYC

Market Capitalisation

15,606,176

Current Share Price

$0.0350

52 Week High

0.0860

52 Week Low

0.0320

ASX:PYC 6 month price chart

0.07

0.06

0.05 0.04

0.03

Sep 2011

Oct 2011

Nov 2011

Dec 2011

Jan 2012

Feb 2012 10 8 6 4 2

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Phylogica Limited (ASX:PYC).

BIO TECH

Company Name Sector Year Established Business Stage Location Seeking

Photonz Corporation Limited Pharmaceuticals 2002 Late pre-revenue Auckland, New Zealand Capital Raising

Executive Summary Photonz is a world-leader in the production of the omega-3 compound “EPA” by fermentation for high purity, pharmaceutical applications. Demand for EPA is growing exponentially but the world’s supply is extracted from wild fisheries that are a variable and risky source. Photonz avoids these supply risks and makes EPA “like beer” that is economic to purify to pharmaceutical concentration. Photonz will sell EPA to manufacturers of regulated pharmaceuticals making products for the cardiovascular disease drug market – specifically, treatments for dyslipidemia (high blood cholesterol and triglycerides). The Company is currently completing process development at pilot industrial scale and expects to begin product sales in 2012.

Board & Management: Greg Moss-Smith - CEO MSc, MBA, IP Law Former Global Sales Director Novozymes Biopharma. Former VP Commercial Operations GroPep Ltd (ASX:GRO)Director NZBIO Richard Justice - CFO BCom, MBA, ACA, CMA, ACIS Former CFO Living Cell Technologies (ASX:LCT). Former COO Brocker Technology Group (NASDAQ:BKI) Doug Wilson - Director MB, ChB, PhD, FRACP, FRCPA Exec. Chair Phylogica Ltd Former Head of Worldwide Medical Research, Boehringer Ingleheim David Kyle - Advisor BSc, PhD Co-Founder of Martek Bioscience Former Head of R&D Martek Bioscience

Competitive Advantages

Corporate Structure

• Sustainability – Photonz’ process uses simple industrial commodity inputs and is not dependent on the continuing viability of wild fisheries or affected by natural variability or environmental change. • Security – Pharmaceutical quality management systems can be applied over the entire Photonz process chain (unlike fish extract product) and multiple independent manufacturing sites can be established. • Consistency – Independence from the natural variability of wild fisheries and the application of pharmaceutical quality management systems throughout the manufacturing process ensure a consistent product. • Proprietary process – Patents have been applied for critical elements of Photonz’ process and intermediate products.

Private, New Zealand Company .33 Shareholders. 71% owned by four holdings.

Exit Strategy Photonza Corporation hope for a trade sale but may list on a suitable exchange at an appropriate time prior to acquisition.

Key Investment Highlights • Proprietary manufacturing technology with freedom to operate. • Validated manufacturing technology, December 2011. • Sales late 2012. • Market need for EPA in established cardiovascular disease (high cholesterol) market. • Growth market - exponential growth in demand for EPA. • Exposure to drug markets but lower technical & commercial risk. • Excellent management team with prior relevant success.

Further Information 20

To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Photonz Corporation Limited.

BIO TECH

Company Name Sector Year Established Business Stage Location

Retail Pharmacy Group Health 2006 Growth Stage Queensland

Executive Summary Retail Pharmacy Group is the retail expertise behind the Alive Discount Pharmacy and the V Pharmacy brands. Retail Pharmacy Group also is a Joint Venture partner in Pindrop Retail Group (PRG), an innovative retail model for hearing solutions. Retail Pharmacy Group is a major shareholder of PRG, which has developed a unique retail model to sell hearing solutions via retail channels. PRG sells personal applifiers (PA) at prices 80% cheaper than the average hearing aid. PRG’s intellectual property includes our own hearing test via a tablet interface. PRG has had interest from overseas retailers to license the model. Alive Discount Pharmacy is a retail pharmacy franchise building on the retail expertise of the management team. Right for the current economy the Alive Discount Pharmacy brand is expanding with stores opening in Brisbane and regional Queensland.

Competitive Advantages • Retail expertise in pharmacy • First to market on Hearing solution via alternative retailing channels • Unique market position for Alive Discount Pharmacy Franchise • Vibrant store designs and merchandise in a stale market segment

Board & Management: Nick Loukas - Managing Director B Pharm B Bus Founder and Managing Director of Retail Pharmacy Group, Chair of James Cook University Pharmacy Advisory Board, Adjunct Senior Lecturer at James Cook University, Current owner of 3 pharmacies. Robyn Hayes - Merchanise and Marketing Manager 25 years experience in retail pharmacy with 5 years as merchandise and marketing manager with Retail Pharmacy Group. Adrian McFedries - Advisory Board Member B.Com, LLB. Founder and CEO of the departure gate, an investment group.

Corporate Structure Retail Pharmacy Group is a private company.

Exit Strategy Trade sale is the most likely and most attractive exit strategy.

Key Investment Highlights • Developing a retail model to a new market segment in the hearing industry • First to market with Pindrop Hearing • Signing a major national pharmacy chain for Pindrop hearing • Winning 2 American Express National Retail Awards for V Pharmacy in 2006 for innovation in retail and best store design • Expanding in to the Brisbane market with the first southern franchise in March 2012

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Retail Pharmacy Group.

HEALTHCARE

Company Name Sector Year Established Business Stage Location

Cynergy Health Consumer Healthcare 2008 Development Sydney

Executive Summary Our objective is to grow a consumer health company by developing or acquiring high potential brands or products and selling them through retail and online channels. Our brands can be summarised as follows: Herb Valley : Well established range of supplements and personal care products sold exclusively through the health food channel. Activecare : Developing range of pharmacy only complementary medicines Activelife : An open brand of personal care products including a Paw Paw Lip Balm and Aluminium Free Deodorants and Anti-Perspirant. Sports-haler : Innovative medical device for the delivery of Ventolin and Asimol. Stay-Healthy : A wholly owned subsidiary established to develop direct to consumer online and catalogue sales.

Competitive Advantages

Board & Management: Joe Bayer - Chairman BBus (Acctg) CPA MAICD Former Executive General Manager, Mayne (Faulding) Pharma Asia Pacific and Mayne Consumer Products. Geoff Crittenden - Managing Director BSc(Hons)Eng Ceng An experienced entrepreneur who has held senior executive appointments in Australia and overseas. Rakesh Raj - Director MBA BSc Eng Senior pharma executive former Director Pharmacy Division, Sanofi-aventis and GM Sales Sandoz. Craig Stokoe - Director MD of LPN, a leading marketing and design consultancy.

Exit Strategy To grow sales to more than $10 million within the next five years and look for trade sale or buy-out opportunities.

• Core of innovative and unique products • Low cost base • National sales team • Established customer base and distribution network

Key Investment Highlights • Sales growth 444.76% • Customer growth 151.96% • Acquisition of Herb Valley • Acquisition of Sports-haler • Launch of Activelife personal care range • Launch of Chia Seed Oil & Natralgesic Complementary Medicines • Development of brand and Stay Healthy Club web sites • Re-packaging and positioning of Herb Valley

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Cynergy Health.

RENEWABLE ENERGY

Company Name Sector Year Established Business Stage Location Seeking

BioPower Systems Pty Ltd Renewable Energy 2006 Commercialisation Sydney $6 million

Executive Summary BioPower Systems is focused on developing advanced technologies which convert the energy in waves and tides to grid-ready electricity. Developed by a group of professional engineers with a deep understanding of the challenges posed by harnessing ocean energy, the designs address all the problems that have been experienced by other technologies. In achieving this, ocean engineering principles have been augmented with survival and performance concepts drawn from natural marine species such as kelp and sharks. This use of “biomimicry” leads to wave and tidal system designs that are simpler, easier to install, and less expensive on a $/ MWh basis, than other ocean energy technologies.

Competitive Advantages BioPower’s primary technology, a wave energy system called bioWAVE™, is designed to sway back and forth beneath powerful swell waves while capturing the energy and converting it into electricity. The key advantages of the bioWAVE technology are: • High efficiency of energy capture, with in situ (onboard) conversion to high voltage electricity, and direct low-loss transmission power to grid • Ability to streamline by lying flat against the seabed during extreme conditions, enabling extreme weather survival at low cost • Simple low-cost installation, requiring only standard service vessels • Detachable power conversion module, allowing for simple low-cost maintenance procedure • Zero visual impact and minimal affect on the environment.

Board & Management: David Iverach – Chairman BE, PhD Dr Iverach has over 40 years experience at the executive level in the public and private sectors. Timothy Finnigan – Managing Director BASc, MASc, PhD Dr Finnigan has been involved in ocean engineering for 18 years. Bill Highland – Non-executive Director B Eng Mr Highland is an investment manager with CVC Investment Managers Limited and has extensive general management experience. Aaron Spicer – Non-executive Director B. Com, MBA Mr Spicer is a Director of Lend Lease’s venture capital business..

Corporate Structure Private company limited by shares. Significant shareholders include Lend Lease Ventures, CVC REEF, and CVC Sustainable Investments.

Exit Strategy To find a global technology company to become a cornerstone investor.

Key Investment Highlights • BioPower employs 6-10 specialised professionals • Extensive network of partners/alliances • A$5 million funding received from Victorian Government • 100 percent owner of IP, including over 28 individual patents (granted and pending) • Demonstration project in late stages of development: 250kW grid-connected bioWAVE™ $14 million budget 4 year duration in total Validation after 6 months 13 project partners Planning, design, development near complete Installation scheduled for 2012/13 summer

Further Information Timothy Finnigan 0488 587475 tfinnigan@biopowersystems.com

FMCG

Company Name Sector Year Established Business Stage Location Seeking

Eastern Harmony New Zealand Limited FMCG 2011 Commercial – Phase 1 Australia, New Zealand, Hong Kong, China Capital Raising

Executive Summary • EHNZ is a wholesaler/distributor of NZ milk powder products in the North Asia region • Premium NZ milk powder products are in high demand in mainland China (in particular) and other developed Asian nations • EHNZ has signed a long term distribution agreement for Mi-NZ, a new NZ made premium infant milk formula • Strategic distribution alliance being finalised (letter of intent received) with a highly reputable Chinese government owned trading company (SOE) • Expressions of interest have been received from other mainland Chinese customers • Lease terms agreed for a retail property and sales office located in a duty-free trading zone on the border between HK and China to support own sales of Mi-NZ

Competitive Advantages • Low cost importer and distributor in key Asian markets • Exclusive distribution rights for Mi-NZ IMF product range in Hong Kong, Macau, and 19 Chinese provinces; plus first right of refusal over Japan, South Korea, Taiwan and Singapore • Strategic distribution alliance with a Chinese SOE • IMF entry barrier overcome due to access to dairy product import license through Chinese SOE • Retail shop and sales office in a duty-free trading zone on the border between Hong Kong and China to support own sales of Mi-NZ • Other strategic alliances with distribution and retail partners in mainland China • Import duty removal from 2012 under FTA between NZ and China

Corporate Structure Private company limited by shares. Significant shareholders include Lend Lease Ventures, CVC REEF, and CVC Sustainable Investments.

Exit Strategy To find a global technology company to become a cornerstone investor.

Key Investment Highlights • Infant milk formula (IMF) is projected to be the fastest growing food and beverage segment in China over the next five years • NZ sourced premium IMF is viewed by customers as a proxy for quality • EHNZ has secured exclusive distribution rights for Mi-NZ IMF product range in key markets • Strategic alliance being finalised with a Chinese SOE to facilitate China Import and Quarantine licensing, importation and sub-distribution in Southern China • Negotiating further alliances in respect of other wholesale/retail distribution channels in China to ensure that customers receive genuine quality premium NZ milk powder products • Retail shop and sales office presence in Shenzhen, China, duty-free zone • Immediate market opportunities in Hong Kong and China due to recent local IMF scandals and contamination concerns over Japanese imported products • Received $3 million in trade finance

Further Information Timothy Finnigan 0488 587475 tfinnigan@biopowersystems.com

TECHNOLOGY

Company Name Sector Year Established Business Stage Location Seeking

Chip Tyre Pty Ltd Mining Services 2010 Commercialisation Ipswich, Queensland Equity or Investment Partners

Executive Summary Chip Tyre (in conjunction with BioAust Energy) have, under the Blew Chip banner, developed a new system of producing and delivering ANFO style explosives for major mining through to small-scale earth moving. The new system is highly suited to large-scale mining and it delivers environmental benefits that will impress environmentalists and governments around the world. A partner/investor is sought to support commercialisation. The patented technologies consist of a method of granulating rubber to a specific size and shape and blending the granules with AN, polymer and iron. The product used is 22.5 percent less than equivalent ANFO explosive. The result is a powerful explosive mix that has great heave and a complete burn process. In addition a waterproof version is under testing and this version will provide between 24 and 72 hours efficacy in wet drill holes.

Competitive Advantages This product has been through a series of government monitored trials with documented results. The trials were conducted by a renowned expert in explosives, who worked independently of the Blew Chip operation. The results showed both greater heave and higher overall earth movement. The product is a world first and will be offered as a patented explosive process with government registration. Blew Chip is negotiation with a quarry group for distribution to their sites. Advantages of the product include: • Complete burn with no residual effect on soils or water systems • Waterproof application in wet drill holes and in wet condition handling • Totally stable for transportation and on-site mixing (reduces transport cost) • Free-flow effect when filling long drill holes • Mixing process provides even explosive spread throughout the drill holes

Board & Management: David Mohr - Managing Director Chip Tyre owner, experienced business operator and explosives operative. Controls process development and new machinery design. Alan Twomey - Technologies Director B.Ag, M.Chem Wide experience in chemistry, industry and management procedures including CEO and Director roles in technology. Designer of the rubber explosives process. Keith Quigg - Marketing Director AMIA CPM Long-term FMCG and retail sales and marketing experience. Has worked in business development in 9 countries for major organizations Steven Payne - Director Quarry and blast company owner providing trial sites and initial market entry.

Corporate Structure A partnership between Chip Tyre, BioAust Energy and Sequel Drill& Blast.

Exit Strategy Chip Tyre will seek to list on an appropriate exchange at a suitable time.

Key Investment Highlights • Low end investment required as the development to registration is complete and the technology proven • Major government support as the recycled rubber base product reduces landfill issues and mining used EMT used as raw material • Fast track to market once investment is injected • Leading edge development with a free-flow waterproof explosive providing major benefits to big mining companies, reducing lost time for drag-lines held up by water • Fast return on investment with high volume uptake and controlled cost to manufacture • Investment includes development plans for global expansion of patented technology • Scientific confirmation by leading independent explosive expert • Support from Govt agencies for Grant applications on $-$ basis

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Chip Tyre.

TELCO/FINANCIAL SERVICE

Company Name Sector Business Stage Location

Mint Wireless Limited (ASX:MNW) Telco/Financial Services Early Sydney, Singapore, Kuala Lumpur, London

Executive Summary Mint Wireless Limited (Mint) is a global payments and mobile transactions company listed on the Australian Securities Exchange (ASX: MNW). Mint’s core business specifically focuses on the developed and emerging markets. Our vision is “To become the largest, global micro-transactions processing company for the poorly banked and cash economy” Mint’s subsidiary, Intermoni is unique from other mobile money solutions that are evolving globally: • ‘Bricks and mortar’ deployment and front end, bridging market gaps between the developed online world and the poorly banked, cash economy • Scalable: self-service ‘plug-and-play’ cash acceptance kiosks – simple to operate with ability for rapid deployment • Focus on micro valued transactions below USD$20

Board & Management: Terry Cuthbertson - Non-Executive Chairman B.Business, ACA Chairman of seven ASX listed companies. Wide corporate finance experience (including merger and public offerings) as well as with the IT industry. Alex Teoh - CEO & Managing Director B. Science (Information Systems / Finance) Extensive experience in Australasia with global management consulting practices specialising in the IT & Telco sector. Dr. Seng Chuan Tan - Non-Executive Director Mechanical engineering, Masters and Ph.D in Engineering and Science Executive Director of Malaysian KLSE listed Insas Berhad. Wide experience in the IT and payments industry. Andrew Teoh - Executive Director Bachelor of Commerce (Accounting/ Finance) Extensive experience with emerging consumer and telecommunication technologies with prior experience in the pre-paid Telco industry.

Current Projects • Malaysia – First developing country deployment and roll out of micro-transaction terminals. Malaysia is the 2nd largest remittance-sender country amongst developing countries with ~2.4 million migrants remitting $6.8 billion annually. Binding order received from distributors in July 2011 for 3,000 terminals in Malaysia over the next 6 months (valued at ~ USD$5M). • Opening new markets in Asia (discussions underway in Indonesia, Singapore, Hong Kong and Vietnam markets) with further opportunity to scale globally. • Advanced discussions with leading microfinance cooperatives in one of the most vibrant microfinance countries in the world for the use of Intermoni’s micro-transaction terminals for the repayment of micro-loans.

Key Milestones & Investment Highlights • Successful launch of Intermoni (fully owned subsidiary of MNW) in Singapore, focused on deploying micro-transaction services to the poorly banked population of emerging markets globally • Acquisition of 51% of J&C Pacific in Malaysia, immediately providing the Company with operations and revenues in Malaysia and mobile technology and infrastructure that the Company will use as a base to develop its suite of micro-transactions services • Excellent progress with terminal rollout: Orders received for 3,000 terminal in Malaysia over the next 6 months and advanced discussions with key partners in other South East Asian markets • Capital raising: Balance sheet strengthened with over $2 million raised via institutional placement and share purchase plan

Share Information

As at 8 March 2012

Code

ASX:MNW

Market Capitalisation

13,699,096

Current Share Price

$0.0550

52 Week High

0.1500

52 Week Low

0.0230

ASX:MNW 6 month price chart 0.08

0.06

0.04

0.02

0.00

Sep 2011

Oct 2011

Nov 2011

Dec 2011

Jan 2012

Feb 2012 2.5 2 1.5 1 0.5

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Wireless Limited (ASX: MNW).

TECHNOLOGY/INTERNET

Your Online Success Web Solutions

Company Name Sector Year Established Business Stage Location Seeking

Exa Web Solutions Internet, Technology 2000 Expanding Melbourne, Australia $2 million

Executive Summary Exa is Australia’s largest Online / Apps / Web / Mobile company, with over 1000 clients. Exa generates significant recurring revenue from its client base and is ranked at the top of Google for online marketing, tools and technologies. Exa operates 24x7, 365 days per year, is the most efficient player in its space and has unique ecommerce solutions for a range of social media and smart phone technologies. The business maintains high margins due to over $10M+ invested in back end & support systems. Exa is well positioned to capitalise on the rapid growth in the digital economy and is seeking to raise up to $2M for product and geographic expansion.

Competitive Advantages • Senior Management are equity holders • Leading edge technology (Online / Apps / Mobile) • Cost Efficient • National Footprint • Brand • Broad client base • Explosive growth in mobile apps • Genuine 24x7x365 operations

Board & Management: Peter Ball - Managing Director M.D. 25 years of building successful technology companies. Mitch How - CFO Lawyer and CPA 4 years at EXA. Similar previous roles in Media, Music & Tourism in Australia, UK & Europe. Jim Vincent - Special Operations Manager B.Sc, Maths, Physics & Comp 30 Years @ IBM. Programs in 22 languages, 6 patents and extensive patent work.

Corporate Structure Private Company Limited by shares.

Exit Strategy: Exa aims to list on a suitable exchange at an appropriate time.

Key Investment Highlights • Experience Board & Management Team • International Market Potential • Blue Chip Client Base (top tier banks) • Multiple revenue streams

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Exa Web Solutions.

TECHNOLOGY/FINANCIAL SERVICES

Company Name Sector Year Established Location

Qanda Technology Ltd (ASX:QNA) Technology 2000 Sydney

Executive Summary Qanda Technology owns 2 operating businesses. Marketboomer provided online procurement services and technology to hotels in 11 countries. Customers such as Intercontinental, Starwood, Mirvac and Hyatt hotels save money through better pricing and process improvement. They also maintain robust workflow and auditability. It generates revenues through annual recurring license fees charged to buying hotels as well as turnover-based fees charged to suppliers. Webspy sells it’s Vantage software globally that allows companies to report on network Internet usage across all staff and networks. This enables them to better optimise network bandwidth, speed and costs. It also allows forensic analysis of network traffic. Compliance, Duty of Care and Security are all improved with its reporting suite.

Board & Management: Nathan Gyaneshwar - CEO & Executive Director Nathan founded Marketboomer in 1997 and has extensive mgt, cost control and procurement experience. Ben Donovan - Non-Executive Director Ben holds a B.Commerce in Finance and Commercial Law. He is a Chartered Secretary with ASX experience. Kim Redstall - Non-Executive Director Kim has significant operational, sales, marketing, and M&A experience in the technology sector. Declan Monahan - Non-Executive Director Declan has over 20 years experience in senior mgt roles in the hospitality, education and IT sectors.

Current Projects • Launch Marketboomer in the USA via existing customers such as Starwood Hotels and Resorts • About to release multilingual capability in Marketboomer to drive South East Asia sales • Implement excellent mobile reporting dashboards for customers executive level users • Increase Webspy sales in USA via combined direct and channel sales efforts • Launch of new streamlined global pricing and simplified product range for Webspy • Restructuring company entities to eliminate unnecessary costs and administration and tax • Consolidating reporting and internal systems to drive corporate efficiency

Key Miles Stones & Investment Highlights • Recently restructured to reduce annualised costs by over $2.4m • US market potential 20 times Australian run rate. Ready to implement US growth strategy. • Webspy generating 1.4m in sales with only 5 staff and ready to grow • Technology platform update nearing completion to increase web based sales chennel

Share Information

As at 27 February 2012

Code

ASX:QNA

Market Capitalisation

9,280,596

Current Share Price

$0.0150

52 Week High

0.0150

52 Week Low

0.0040

ASX:QNA 6 month price chart

0.01 0.01 0.01 0.01 0.01 0.00

Sep 2011

Oct 2011

Nov 2011

Dec 2011

Jan 2012

Feb 2012 0.4 0.3 0.2 0.1

Further Information 28

To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Qanda Technology.

SUPERANNUATION

Company Name Sector Year Established Business Stage Location Seeking

Australian Real Estate Lottery Gaming 2009 Early Stage Sydney $300,000

Executive Summary The Australian Real Estate Lottery model is a unique mixture of gaming and property to create a financing tool to acquire real estate. Only one thousand tickets are offered for any property. The Australian Real Estate Lottery provides a platform where buyers have a “gaming chance” of owning outright free of encumbrance real estate for several hundred dollars. Equally, it provides an alternative platform from where real estate can be listed. It is a unique buying and listing opportunity against the traditional real estate models in Australia.

Competitive Advantages • Innovative Business Model. An innovative, online real estate business model connecting motivated vendors with players who have a 1 in 1000 chance to acquire real estate through the sale of lottery tickets. • High Cash Flow Business with Global Potential With low market penetration the company can generate over $10m in revenue by Year 3. Plans to license IP to 16 key territories. • Expansive Demand in Target Markets The Australian Real Estate market is a mature industry and the Australian gaming market exceeds $8.9bn per annum. In both industries there are opportunities for new business models to find traction. • Compelling Investment Opportunity Debt bond investment sought with 12.5% yield with rollover and conversion options available. Securitised against future income in pipeline.

Board & Management: David Smaluck - Founder Experienced in 6 previous start-up businesses with successful exits which have included, Aviation, Heavy Industry, Chemicals, Real Estate and Technology. Cullum Francis – Marketing Advisor Experienced CEO both in United Kingdom and Australia, in publishing and IT. Garry Ahearn – Real Estate Advisor Past CEO of REMAX Australasia, one of Australia’s most networked Real Estate professionals.

Corporate Structure Proprietary Limited Company

Exit Strategy IPO on a suitable exchange within 3 years.

Key Investment Highlights • 12.5% bond offering per annum, for a period of two years, paid in either cash or equity. • It is anticipated that sales of $10 million would be achieved after year 3 of operations, which equates to approximately 0.1% of the Australian Real Estate sales market captured. This reflects a return of over 40% gross profit, when full licensing activities have commenced in New Zealand, Canada, USA, Europe and Asia. • A sophisticated, effective and efficient website has already been completed. Approved payment gateways with the Commonwealth Bank subsidiary Bankwest are in place, providing secured leading edge receipting of lottery tickets. • The Australian Real Estate Lottery has an Innovation Patent in Australia with commencement of IP protection in 15 other countries.

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Australian Real Estate Lottery.

PROPERTY

Company Name Sector Year Established Business Stage Location Seeking

Easylodge Infrastructure Services Financial 2006 Expansion New South Wales/Queensland $1.96 million

Executive Summary Easylodge was founded in 2006 to provide software and infrastructure services to the nonmortgage finance industry, and is now Australia’s largest non-mortgage finance trading network with over 2700 brokers and dealers using The Easylodge Community™. Easylodge also markets Australia’s most advanced finance origination platform, EasyLodge®, which provides instant credit decisioning, contract creation and application tracking between lenders and their distribution networks in one cloud-based service. Easylodge also provides the EasyTrack™ loan/asset management platform. Future opportunities lie in utilising Easylodge’s existing network to market insurance products on EasyLodge®, and the opportunity to partner with a foreign bank wanting to enter the Australian market.

Competitive Advantages • The ability to gain a loan approval and a loan contract, completed and emailed, in less than 30 seconds, from any finance broker, dealership, store point of sale, accountant or branch Australia wide. • A network of 2700 brokers, dealers and stores Australia wide – Australia’s largest finance distribution network. • The license, infrastructure and expertise to enable the credit industry to accurately credit decision, originate, fund and manage large scale finance operations – an ideal partner for a foreign Bank to enter the Australian market. • A full suite of software services that also manage the loan (EasyTrack™), manage customer relationships (EasyClient™), offer insurance (EasyInsurance™) & manage arrears (EasyArrears™). • Services are offered to the market via a highly secure cloud-based solution

Board & Management: Kosta Patsan - Managing Director MBA, GradQual Mktg, GAICD 26 years in business management, including Telstra & IBM. Founded Australia’s largest consumer finance originator & 2nd largest non-Bank personal finance company. Dr Adrian Smith – CIO BE, PhD Over 10 years’ management of software developments, including for Lockheed Martin, CSIRO, BBC and Suncorp. Hugh Hofmeister - Software Development Manager BE, MBA Eight years’ experience in managing complex software developments across multiple platforms, including for Boeing, GKN and Ennova.

Corporate Structure Easylodge Infrastructure Services is a public unlisted company.

Exit Strategy The most likely exit strategy is a trade sale – either full or partial – to a foreign or domestic bank in the near term.

Key Investment Highlights • Already established business, built up over five years. Easylodge currently has eight clients and a network of over 2700 members Australia wide • On the cusp of profitability after five years, about to go to a new level with the introducing of the foreign bank offering • Easylodge operates Australia’s largest non-mortgage finance network, as well as providing software and services to the finance industry • Easylodge owns its IP. Over $4 million has already been spent in developing the business, including over $3 million on software – the core of the competitive advantage • Limited Competition. Easylodge focuses on the non-mortgage market, which has very little competition and high barriers to entry • Strong business model. Easylodge services are predominantly cloud based “software as a service (SaaS)”, making for a highly efficient, scalable, and lower risk solution to clients

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Easylodge.

LOGISTICS

Company Name Sector Year Established Business Stage Location Seeking

Hannan Logistics Pty Ltd Logistics 1991 Expansion Queensland (head office) Expansion Capital & Development Partners

Executive Summary Hannan Logistics has branches and fully equipped depots strategically placed in every mainland capital city of Australia with a head office in Mooloolaba, Queensland, The company has access to over 300 ISO shipping containers and uses the national rail system for the shipping of commercial retail furniture and white goods, household furniture and effects and other specialised goods around Australia. Hannan has over 80 permanent and casual employees and four main operating divisions: private removals, government removals, commercial removals and special projects. The sales by each of the divisions are completed by the depot teams around Australia who report to the Executive Chairman and National Operations Manager, Col Hannan. The estimated (annualised) turnover in 2012 will exceed $15.3 million.

Competitive Advantages • Australia wide interstate and territory focus using sealed containers for door-to-door delivery. • The provision of a high quality value for money customer benchmarked service: The Smartest Move You’ll Make. • Strong internal sales and execution efficiencies in a high cost/low margin but reliable business sector. • Experienced and well trained employees for the packing, loading, unloading and unpacking of the customers precious goods and effects. • Industry growth over the next 10 years is likely to more than double. • The Hannan Guarantee, which offers to protect the customers against loss and damage risk • Tailored packages to suit individual families, businesses from timing and schedules to complete packaging solutions with client branded containers.

Board & Management: Colin R Hannan - Executive Chairman Over 40 years industry experience in interstate containerised removals and transport logistics. Col has made the Hannan name recognisable as a leading service provider in the Australian logistics industry. Donna M Hannan – Proposed director Involved with the business since inception, experienced in home renovation, art, design and fashion. Bryan D Weir – Proposed director Former Chairman of Wridgways Australia Limited. A Director of Walker Douglas & Company, a private investment and advisory group. Mr Weir was also formerly a partner of Freehill, Hollingdale & Page and a Director of Macquarie Corporate Finance Limited.

Corporate Structure Proprietary Limited Company with Ordinary Shares held by the founders and the Redeemable Cumulative Converting Preference Shares referred to above held by investors. A Notional Profit and Capital Growth Participation Scheme operates for the benefit of selected employees.

Key Investment Highlights • The use of additional capital to complete the business acquisition and to further electronically streamline the booking, invoicing and tracking processes. • Attractive 10 percent per annum participating Redeemable Cumulative Converting Preference Shares for up to 30 percent ownership in the Company for A$750,000.00 with Board representation available to major investors. • Experienced founder and other employees across Australia, well placed to deliver the growth strategies in selected categories of goods and customers, remote and other route expansions, and acquisitions of other synergistic operations. • Industry competitive edge using proven strategies, flexible responses, innovative ideas and safe work procedures to meet the needs of customers and emerging market demands.

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Hannan Logistics.

FUND MANAGEMENT

Company Name Sector Year Established Business Stage Location Seeking

Bizpanel Limited Franchise and Investment 2011 Seeking Franchise Investments Sydney Ongoing according to opportunities

Executive Summary Bizpanel operates as a franchise investment company by developing it’s own franchise businesses and acquiring other quality franchise operations. Our most recent investment Oswill launches in March 2012. Oswill is a very unique trades and services business as well as an online shopping business. Prior to the official launch we have more than 20 potential franchisees on a 12 month trial basis and a further 60 planned over the next 3 months. Oswill has engaged the services of the prior manager for Australia’s largest home services group with more than 3000 franchisees nationally to assist the franchisee rollout process. The “Win an Oswill Franchise” campaign is set to launch across the DMG radio network in March 2012. Oswill has been approved to list on the Australian Small Scales offering board in March 2012. Bizpanel will retain more than 70% of Oswill shares.

Competitive Advantages • Strong background in Multi Award winning franchises over the past 11 years • Track record of 3 prior start-ups successfully developed, built and sold • Diverse board across finance, law, accounting & management of a multi billion dollar portfolio • The business embraces technology & outsourcing across all investments. By doing so Bizpanel achieves greater flexibility in fixed costs and access to labour and talent both locally and offshore.

Key Investment Highlights • Franchise industry specific, a $100 Billion dollar a year industry • Exit strategies - As an investment business we consider an exit strategy paramount to the success of any planned investment. In planning a new investment we use this same methodology for our investors and always model potential short, medium and long term exit strategies.

Board & Management: Matthew Holland - Managing Director Sold a major franchise in 2011, yielding a multi million dollar trade sale for the franchise group. Chris Kalpage - Director Solicitor 27 years as solicitor with the Law Society of NSW Andrew Garouniatis - Director Accountant Corporate Member of the Institute of Public Accountants. Worked with blue chip organizations for 26 years. Roger Collison - Non Executive Director Accountant / CPA Grad. Dip. in Applied Corporate Governance (2011) Company Directors Course (2009) Investment Management Workshop (2008) NYSE – Supervisory Analyst (1999) Certified Financial Analyst (1998) Master of Business Administration (1990) Graduate Diploma of Applied Finance (1990) Bachelor of Economics (Honours) Roger was formerly head of investment research at Tyndall investments.

Corporate Structure An unlisted Public Company with multiple separate investments.

Exit Strategy Each investment of Bizpanel has a separate exit strategy. Oswill has several potential exits that include a franchisee shareholder offer, share buy back from franchise sales, listing, full or partial trade sale.

Further Information 32

To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Bizpanel Limited.

SUPERANNUATION

Company Name Sector Year Established Business Stage Location Seeking

Investment Administration Pty Ltd Superannuation 2007 Commercialisation Adelaide and Melbourne $2.5 million

Executive Summary Investment Administration (InvestAdmin) provides a complete, robust, scalable, technology based solution for the end-to-end administration of Self Managed Superannuation Funds (SMSFs). This solution is available on a wholesale basis to SMSF fund administrators including accountants, stockbrokers, financial planners and wealth managers. InvestAdmin offers SMSF Administrators a ‘back-office’ service. Branded as SMSF+, the application gathers financial data in real time from the ASX, stockbrokers, banks, & fund managers. This stored data is managed to provide relevant tax, audit & portfolio information for end-users and financial intermediaries. The company is ready to exploit opportunities in the SMSF sector and seeks $2.5m to scale up to full commercial operations and implement its aggressive marketing, merger and acquisition program.

Board & Management: Peter Bartleet - Chairman Experienced executive at both private and public company level. Has had several years experience in the Venture Capital industry Ludwid Bachmayer – Chief Operational Officer Formerly General Manager of Client Services for Statewide Superannuation and IOOF Trustees, with a team of 75 people. Holds a Diploma of Financial Services. Paul Massey – Marketing Director Formerly State Manager of Compliance and Retail/ Financial Services for CBA and NAB. Holds DFP 1-3 and PS-146 qualifications. Damian Taylor – Technical Director The Architect of InvestAdmin’s SMSF administration platform and application. Formerly CEO of AET Super Solutions and is a qualified SMSF specialist with a PS-146 qualification.

Competitive Advantages • Commercialisation of SMSF+; a platform based SMSF administration application • Gaining an AFSL – anticipated in December 2011. • Launch of a unique term-life insurance offer to SMSF clients in January 2012 • Development of a full Administration Centre • Expansion of administration application to include non super assets • Inclusion of an intermediary and trustee compliance training multimedia interface

Key Investment Highlights • Original platform developed for major listed financial services group. Same development team now running Investment Administration/SMSF+ development • Raised additional $1.25m seed capital in 2009/10 for customisation and operational trial • Successfully completed live trial of SMSF+ from December 2010 to October 2011 • Established experienced executive and management teams • Established operational office /base in Adelaide

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Investment Administration.

FUND MANAGEMENT

Company Name Sector Year Established Business Stage Location Seeking

Australian Bullion Refinery Precious Metals 2011 Development Queensland Capital Raising

Executive Summary • Australian Bullion Refinery (ABR) is a precious metals refining business based in South East Queensland. • ABR’s refining facility will treat raw material mined from precious metal operations throughout Australia. • ABR will produce investment grade bullion products using world best manufacturing practices; then distribute products into both the Australian and international bullion market. • A definitive feasibility study was completed in Q2 2011. • There is a pre-committed sales pipeline in place. Current economic uncertainty has heightened the need not only for precious metal bullion but also the need for assurances in supply. Australia is well positioned to benefit from the demand for precious metals as one of the largest producers of gold in the world. Australia currently incurs the burden of an unprecedented lack of competition in precious metals refining. The Australian precious metals industry currently operates under a unique monopoly, with only one major bullion refiner in the country.

Competitive Advantages • Geographic location – ABR is the only large scale precious metals refinery on Australia’s East Coast. Competitive cost advantages to the entire Australian East Coast and South Pacific Region’s production. • Technological partnership with the world’s leading precious metals refining equipment manufacturer - highly autonomous low labour input, cost effective equipment. • An established pre-committed sales pipeline for valued added, high profit margin end products into the international bullion market. • Key relationships with producers and raw material suppliers established.

Board & Management: Dylan Kelly - Commercial Director B.Bus(Com), M.Sc (Mineral Econ) Finance professional in the mining, oil and gas industry. Operational and corporate experience in commercial aspects of mining industry in Australia, Europe, Africa and South America. Postgraduate qualifications in Mineral Economics. David Charles – Director LLB (Commercial); GD Legal Practice A business-orientated lawyer who is experienced in both front-end and contentious modes. David has acted for some of the world’s largest and most prominent entities across four continents. Thomas Couglin – Director 10+ years’ experience in the investment, fund management and bullion trading industries. Thomas has extensive experience and expertise in capital markets and portfolio management. Thomas sits on the board of four public investment and commodity companies. Michael Coughlin – Director B.Bus, CPA, Company Auditor 37 years’ experience in the Accountancy and Financial Services industries. Michael has owned and operated a Brisbane based public accountancy firm and financial services company since 1984.

Exit Strategy IPO and listing on a suitable exchange at an appropriate time.

Key Investment Highlights • High project NPV and IRR. • Strong cash flows and payback period. • Will become a large-scale refiner in one of the world’s largest gold producing countries. • Direct exposure to precious metals market. • Unique business model. • Exposure to lucrative bullion treasury business.

Further Information 34

To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Australian Bullion Refineries.

PROPERTY

Company Name Sector Year Established Business Stage Location

Folkestone (ASX:FLK) Property 1960 – listed on ASX June 2000 ASX Listed Australia

Executive Summary Folkestone is a real estate investment, development and funds management company listed on the ASX (Code: FLK). Following an Extraordinary General Meeting of Shareholders in March 2011, the New Board and senior management have recapitalised the Company by successfully raising $31.5m and are now implementing a new strategy to enable Folkestone to take advantage of the attractive opportunities created by the dislocation in real estate and financial markets across: • investment types: direct investment, joint ventures and co-investing in Folkestone managed funds; • capital structures – ordinary equity, preferred equity and mezzanine debt; and • sectors – office, retail, industrial, residential and social infrastructure. Folkestone’s on balance sheet activities will focus on value-add and opportunistic investments while Folkestone’s funds management platform (Equity Real Estate Funds Managament) will offer real estate funds to private clients, high net worth individuals and select institutional investors across core, value-add and opportunistic real estate investments. The focus of Folkestone’s investment strategy will be on delivering capital growth for Shareholders. Folkestone will target an after-tax return on equity of 15% per annum on a rolling three year basis.

Board & Management: Garry Sladden - Non-executive Chairman Garry is a business and strategic adviser who has a diversified business background in the areas of real estate, private equity, banking and finance. Greg Paramor - Managing Director Greg has been involved in the real estate and funds management industry for more than 40 years. Greg was the CEO of Mirvac between 2004 and 2008. Ben Dodwell - Head of Property Ben has been responsible for the development of retail centres, integrated mixed use and apartment projects at Lend Lease and Stockland. Adrian Harrington - Head of Funds Management Adrian is the former CEO of Funds Management, US and UK at Mirvac and has more than 18 year experience in funds management and real estate industries. Jonathan Sweeney - Chief Operating Officer Jonathan has more than 24 years experience in the finance services industry and was the former Managing Director of the Trust Company from 2000 to 2008.

Current Projects • Clifton Hill – Melbourne (residential apartments) • Altona North – Melbourne (bulky goods/industrial) • Mickleham – Melbourne (industrial land) • Karratha - WA (residential accommodation) • Officer – Melbourne (residential land sub-division) • Tivoli Development Fund (residential development fund)

Key Investment Highlights • New experienced board and management team • Alignment of interest – senior management own more than 12% of the Company • Unique offering in the listed real estate sector • Positioned to capitalise on attractive real estate opportunities • Exposure to funds management platform – Equity Real Estate Funds Management • Strong investment sourcing capabilities

Further Information To learn more about this opportunity go to www.wholesaleinvestor.com.au and search for Folkestone (ASX: FLK).

ESOPs and Early Growth Companies (by Andrew Ireland) however, in most cases that the skilled personnel has magnified value to the early growth company as the personnel compliment is typically very small and is expected to make the right decisions at the right time. The question is usually not whether there is an ESOP for an early growth company, rather the questions become what type of ESOP operates, what the quantum and value of the ESOP is relative to the existing equity contributed, the activation conditions of the ESOP and the balance between short term and long term incentive. The answer to these questions will influence the value considerations for both existing and future equity contributors and reflect on the board’s caliber and business acumen. There are many types of ESOPs, each with sub-category permutations. The more usual forms of ESOPs include: • shares issued at market value and an allied corporate loan (usually interest free). • shares issued at a discount or on a part paid basis. • Issuance of alternate class shares. • share options, with or without vesting conditions and non-exercise periods. • share trusts. • replicator or parallel schemes. • bonus structures. Employee share ownership plans (ESOPs) are regularly used in listed and unlisted going concern entities for their senior executive and strategic personnel. ESOPs are noted as being valuable for going concern entities for a variety of reasons including assisting with: • attracting the right personnel for the right position. • retaining personnel. • aligning the personnel’s objects with those of the key stakeholders. • motivating personnel to achieve organisational performance objectives. • recognising and rewarding personnel. • reducing business cash outflows. • maximising capital investment in personnel. • sharing surplus value with personnel. • succession planning of management and potentially stakeholders. Indeed most studies undertaken on the subject inevitably conclude that ESOPs benefit organisations through both increased productivity and profitability. But what about early growth companies, whose near term objectives, drivers, risk and reward structures are very different to going concern entities? The importance of ESOPs are elevated in early growth companies and almost without exception form a critical component to the senior executive and strategic personnel’s engagement. This is typically due to the common circumstances of early growth companies, namely being pre-revenue and balance sheet constrained but with an attractive business proposition. Like all entities the early growth company must strive to attract the best skilled personnel it can, but is challenged by being unable to match the financial reward and stability that a going concern business can offer. The reality is,

ESOPs for going concern entities typically require careful consideration of international accounting standards and taxation issues, such as CGT and income tax, Division 7A deemed dividend provisions, fringe benefit tax and payroll tax, as well as regard to the ability to access tax exempt and deferred plans. In the main, although still very important, the significance of these considerations is somewhat reduced for early growth companies in their startup phase, as usually they have to pass a significant value increment threshold. ESOPs can fulfill an indispensable role for early growth companies as a means of attracting, motivating, retaining and rewarding key personnel. However, the key personnel, the company, the existing equity contributors and the future equity contributors need to be satisfied and confident that the ESOP has been correctly designed and implemented to deliver real value. All have an interest in the ESOP eventually being exercised into marketable shares or cash equivalent at some time in the future which properly reflects their investment. Otherwise, the ESOP may work against the parties’ objects. Written by Andrew Ireland Should you have any questions or queries or suggestions, please do not hesitate to contact any of our commercial and corporate team including Andrew Ireland, Principal - aireland@ argylelawyers.com.au and Sarah Thomas, Lawyer sthomas@argylelawyers.com.au.

The Art and Mystery of Start-Up Valuations (by Jordan Green) Investment terms can effectively alter the valuation through preferences, options and conversion ratios. Traditionally, Australian Angels use ordinary shares to keep things simple and easy for founders. The emerging trend is for earlystage investors to use preferred shares that better reflect their financial risk by delivering a return of capital before converting preferred into ordinary shares to participate in distributions. Founders should be wary of investors seeking more onerous preferences and be confident of the value those investors will deliver. Future value growth is an external measurement of performance. Most rapid growth companies seek to double their valuation at least every 12-18 months for the first 3 or 4 years. That performance encourages investors and acquirers to pay a premium presuming that growth will continue. Achieving that performance for a pre-revenue company valued at $5m, or $50m is much, much harder than for one valued at $1m.

Most pre-revenue entrepreneurs determine their company valuation through calculations of Discounted Cash Flow, Net Present Value, or comparisons with the early valuation of already successful companies. Most experienced early-stage investors looking at a pre-revenue company start with a valuation of zero. These two starting points are obviously far apart but, neither is the right answer. Valuation of an early-stage venture is a strategy for future success. Valuation should be determined on two primary factors, future value growth and equity position and, ultimately, should be agreed in discussion. Existing cash investment and sacrifices by the founders are important but, their sum does not create a defensible valuation. Investors and founders are both betting on the future not the past. An entrepreneur should prepare a valuation position and supporting rationale prior to engaging with investors. Setting this number in the right range sends a strong signal that the opportunity is worthwhile and that the founders know what they are doing. A credible number is always better than an ambit claim. An high valuation to concede in negotiations with investors may preclude having those negotiations. Too low a valuation may raise concerns about the founders’ business acumen but, is better than too high. What are too high and too low? The honest answer is ‘it depends’ but, a fairly standard range for the first round of external investment in a pre-revenue or early revenue business seeking up to $1m is from $200,000 - $1,200,000 or, to put it another way, 20%-45% of post money equity.Equity position is relative to the amount being invested and is dependent on the philosophies of the founders and investors. Generally, the first external investor (typical role of an Angel) will want a substantial minority position. Founders need to balance concerns about control with a respect for the investors’ money. Together, founders and investors should consider future demands on equity and ensure the valuation underpins that forward strategy.

Founders, particularly first time entrepreneurs, tend to worry a lot about control and fear that ceding a large equity position to investors may threaten the future of the venture. This is not entirely wrong but, it is usually blown out of proportion. Experienced, early-stage investors rarely want a simple majority of equity, especially in Australia with the adverse legal and taxation implications. An investor that intends to fill an executive role, or otherwise become a substantial contributor to execution may seek a majority position. It is up to the entrepreneur to judge the expected value added by the investor to determine if the proposed equity position is reasonable. For investors who intend to be proactive through a non-executive director, or similar role, it is reasonable they achieve that 20%-45% equity stake discussed above. Even those investors, if experienced, are likely to seek ‘negative control rights’ in their terms of investment. These empower the investors to stop the company doing something substantially different from the proposition they agreed to back. These rights usually cover new debt and equity, hire and fire of executives, business strategy and objectives, capital expenditure and changes to the governance and shareholder structures and procedures. Even a shareholder with a small equity position can, through terms of investment, have complete control. So, founders should think holistically about the control and not focus only on equity position. Valuation is a complex topic and interdependent on terms of investment, investor involvement, future rounds of funding, projected revenues and profits, founder capability to execute, capital intensity of the venture and other concerns. Neither founders nor investors should rely on an accountant, lawyer, or corporate adviser to set the valuation. Early-stage investors are taking a risk on the entrepreneur who must articulate the valuation rationale and understand how to reach an agreement with investors. Investors should be able to articulate their valuation rationale and explain how they will add value to the business in a way that supports the valuation strategy. Written by Jordan Green Jordan Green is an internationally sought after thought leader in early-stage investing. Founder of Melbourne Angels [www.melbourneangels.net] and co-founder of the Australian Association of Angel Investors [www.aaai.net.au].

HNW Investors and the Australian Life Science sector Summit (ALSIS), the biggest investment event of its kind in this part of the world, which recently attracted 120 invited investors - almost half from overseas.

Australia has a biotechnology and life sciences sector that is maturing and growing fast. It was recently ranked number five globally by Scientific America’s World View. The Australian biotech sector has outperformed the ASX 300 consistently since 2009 and now Australia can also boast it has the largest listed biotechnology sector as a proportion of GDP in the world. Driven by companies such as Acrux, Australia dominates the list of fastestgrowing companies in the Asia-Pacific Region (BioSpectrum Asia 2011). The top five companies have shown 1,000 per cent growth in the 12-month period. Australia is proud to be a country that can take discoveries through the innovation process to commercialisation, and to value inflection points that is of great interest to investors. After years of AusBiotech campaigning, the Federal Government has recently introduced the R&D Tax Incentive, providing the most significant positive news that the industry has had for a number of years. It will undoubtedly bring new cash flows into the industry and stimulate new investment with its provisions: • 45% refundable tax credit for R&D for companies with a turnover of <$20m; • 40% non-refundable credit for companies with a turnover of >$20m. If a company is in tax loss, these credits can be taken as cash refunds. Small to medium businesses (<20m turnover) will be able to claim tax credits quarterly from 2014. Overseas companies who undertake R&D in Australia and companies that hold their intellectual property offshore now have more access to claim. The program expands on the kinds of entities that were eligible for the R&D Tax Concession to “foreign corporations”. Companies can now seek an advance finding, where they are uncertain of the eligibility of their activity and are able to make claims of up to 50% on an R&D project conducted overseas. At the start of 2012, BioShares released its annual capital raising figures for the industry, which saw a 14% increase in 2011 to $630 million, after $554 million was raised in 2010. The notable investments were made in Pharmaxis, Starpharma and Phosphagenics. The year has already seen Starpharma release positive results from its preclincial study of its dendrimer-docetaxel chemotherapy formulation, and Mesoblast has been given the go-ahead by the FDA to conduct phase II trials of its stem cell treatment for Type 2 diabetes. Bionomics has announced a collaboration, research, and licensing agreement with US-based Ironwood Pharmaceuticals, potentially worth up to US$345 million.

Australasian Life Sciences Investment Summit 2012 on Friday 2 November ALSIS has been held annually since 2009, and research and consulting firm, Insync Surveys, conducted an independent and confidential review of the event, to: help participating companies and supporters to quantify the value of investor meetings; and track the outcomes of specific investment events in commercial terms for investors. Investors were asked to estimate the value of deals they expect from investment discussions they initiated at the 2011 ALSIS, and the actual value of deals that were done as a result of the 2010 and 2009 events. The result shows that at the very least, $33 million has been invested in presenting companies. Data for the value expected to be generated from deals in discussion as a result of the 2011 event, suggests the Summit will generate even greater interest than previous years. AusBiotech Investment Series AusBiotech has now established a regular series of showcase local and international investment events, and work closely with well-positioned organisations like the ASX and Wholesale Investor. This year AusBiotech Investment will feature events: ‘Brokers meet Biotech’ Luncheon: Melbourne 2012 March 2012 (TBC) Melbourne Convention Centre, Melbourne, Victoria ‘Brokers meet Biotech’ Luncheon: Perth 2012 April 2012 (TBC) Perth, Western Australia Small Cap Showcase Brisbane 2011 (with Wholesale Investor) 4 April 2012 PwC office Brisbane, Riverside Centre, Brisbane, Queensland Medtech Investment Summit 14 May 2012 (preceding AusMedtech annual conference) Four Seasons Hotel, Sydney, New South Wales Australian Life Science Showcase: Hong Kong 2012 23 May 2012 (in conjunction with ASX small to mid-caps), Hong Kong Australian Life Science Showcase: New York 2012 15 June 2012 (prior to BIO2012 convention in Boston) New York, United States Australian Life Science Showcase: Edinburgh 2012 3 October 2012 Australian Life Science Showcase: London 2012 5 October 2012 Australasian Life Science Investment Summit 2012 2 November (part of the AusBiotech 2012 conference) Melbourne Convention & Exhibition Centre, Melbourne, Victoria Written by Dr Anna Lavelle and Glenn Cross Dr Anna Lavelle is CEO of AusBiotech and Glenn Cross is COO of AusBiotech

AusBiotech’s investment program Responding to demand and based on the success of previous events, AusBiotech has now established a regular series of showcase investment events. “AusBiotech Investment” provides local and international meetings as a global platform for life sciences companies to showcase their company’s offering for partnership and investment. The major annual investment event is the Australasian Life Sciences Investment

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