Wholesale Investor Edition 6
Wholesale Investor Edition 6
Wholesale Investor Edition 6
Organization
Agriculture Venture Capable of New Technology Allows Petrol Cars to Renewable Energy & Food Venture
Producing 50% EBITDA Returns (20) Run on Hydrogen (26) using Sustainable Agriculture (22)
CassTech Limited
acn 133 093 660
Integrated
Established Farm
Accessories Factory
Brand Seeks Feedlot Integrated Property & Finance Retail Food Franchise Delivers Strong
International Expansion (19) Company Seeks Expansion (21) Profit Growth (32)
Plus:
Green Air Conditioning Wholesaler (23)
Fast Growing Carpooling Website (24)
Proven On-line Cold Chain Monitoring Technology (25)
Latest Wholesale Investor National Survey Results (8)
Extracting the Strategic Value of a Business (15)
Investing into Distressed Assets (14)
Financials
Corporate Structures
Company Profiles
Contents
Wholesale Investor
Wholesale Investor
published byby
published
magazine
magazine
Wholesale
Wholesale
is is
InvestorInvestor Editorial
Pty Ltd
Ltd
ACN 131 512 715 56 Company Updates
Managing Director
Managing Director - Steve
Steve Torso
Torso
78 Wholesale
Angel Investor
Investing HitsNational
A TippingSurvey
Point August
Publisher Reuben Buchanan
Publisher - Reuben Buchanan 2009
By Results
Dr. Tom McKaskill - World Renowned Business Author
Senior Account
Senior AccountManager
Manager - Milton
- Milton
Papadopoulos
Papadopoulos 810 AVCAL Deal Metrics
The Inevtiable Survey of Power
Redistribution
By
By AVCAL
Michael Power - Investec
Directors
Directors
Steve Torso
Torso –– Managing
ManagingDirector
Director 911 Q&A
Q&A With CSIRO Investment
with Venture Manager
Capitalist - CVC Limited
Reuben Buchanan
Buchanan –– Executive
ExecutiveDirector
Director By
By Steve
Steve Torso
Torso -- Wholesale
Wholesale Investor
Investor
Domenic Carosa
Domenic Carosa –– Non
NonExecutive
ExecutiveDirector
Director 10
12 Buying
Recent Distressed Assets
Developments MayLife
in The SaveSciences
TroubledMarket
Businesses
board--Tim
Advisory board
Advisory TimTrumper
Trumper By
By David Kenney - Hall
Pricewaterhouse Chadwick
Coopers
Address -- Suite
Address Suite204,
204,66
66King
KingSt.
St.Sydney
Sydney 13
11 Nice Set of Numbers
Controlling Structuring Risk for Business Angels
Phone -- 1300
Phone 1300 597
597 595
595 By Andrew
Adrian Herbert - Private
Ireland and JamesEquity
MilleaMedia
- Argyle Lawyers
Web - www.wholesaleinvestor.com.au
www.wholesaleinvestor.com.au 14
11 Opportunies
Attracting thefor Investing
Brains Trustinto Distressed
to Your Assets
Business
Editorial Enquiries
Editorial Enquiries John Quinlan
By Karen Jenkins --Australian
Six FiguresBusiness Lawyers
editorial@wholesaleinvestor.com.au
editorial@wholesaleinvestor.com.au
Enquiries
Advertising Enquiries
Advertising
15
12 Assessing
Risks the Strategic
and Rewards Value of Business
of a Management Buyout
advertising@wholesaleinvestor.com.au
advertising@wholesaleinvestor.com.au
By Tom McKaskill
Manda Trawtwein & Jonathan Hickey - William Buck
Listing Enquiries
Listing Enquiries 16
37 Confidence in
Considering Your Confidentiality
Private Investments Agreement?
m i l t o n @ w h o l e s a l e i n v e s t o r. c o m . a u
milton@wholesaleinvestor.com.au James Millea
By Jordan Greenand Andrew Ireland - Argyle Lawyers
- AAAI
1300 597 595
Subscription Enquiries
Subscription Enquiries 38 Community Entrepreneurship Combines
subscribe@wholesaleinvestor.com.au
subscribe@wholesaleinvestor.com.au With Venture Capital
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Design/Layout - Dan
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18
13 Hadley Green
Broome Hovercraft EcoBiotics
30 24 Washpod
Investment Group Jadato Holdings
Disclaimer 14 Speciality Entertainment31 25 Biotech Australia
19 Kordz ActivePlus
This Publication contains prominent statements
15 Viva Properties 32 26 Retail Food Manufacturing
appropriate for the particular medium by which the 20
16 Cass Tech
Retail Food Manufacturing 27 opportunity
Focus Oil & Gas
Publication is made to the effect that:
opportunity (promoted by DC Strategy)
(A)the information contained in the Publication about 21 Property Planet 28 ZEEP Australia
the proposed business opportunity and the securities (promoted by DC Strategy) 33 29 Pharmacy & Healthcare
or scheme interests is not intended to be the only 22 Agrifuels Kialla Primary
information on which the investment decision is made 17 Pharmacy & Healthcare opportunity
and is not a substitute for a disclosure document, 23 opportunity
Benson Distributors McLaren
30 (promoted by DCMedia
Strategy)
Product Disclosure Statement or any other notice (promoted by DC Strategy)
that may be required under the Act, as that Act may Winteray
34 31 Pacific Island Aquaculture
apply to the investment. Detailed information may be
24 The Daily Commute
18 Pacific Island Aquaculture 32 E-Move
needed to make an investment decision, for example:
25 Ceebron 35 Viva Properties
financial statements; a business plan; information about
ownership of intellectual or industrial property; or expert 19 Biotech Australia 33 Sustainable Energy
opinions including valuations or auditors’ reports; and 26 Globo Hydro Power 36 Specialty Entertainment
Australasia
20 Washpod
(B)a prospective investor is strongly advised to take
27 Jadato 37 34 Broome
TStixHovercraft
professional
appropriate professional advice
advice beforebefore accepting
accepting an offer 21 Floaties
an issue
for offer for
interests;
issueof or
or sale anysale of any orsecurities
securities or scheme
scheme interests;
28 Activeplus 35 UKonekt Live
For more information, please visit our website 22 MicroEquities
For more information, please orvisit email
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info@ 36 Mailing Lists Online
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wholesaleinvestor.com.au
3
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Wholesale Investor launches
Australia’s first distressed assets platform
Welcome to the latest edition of Wholesale Investor. Switzer - Sky Business Channel
The most recent survey of our investor database (see page 8 for full results) I was interviewed by Peter Switzer on Sky Business Channel. We
revealed that 55% of our investors, or more than 2,000, are interested in discuss the results of the latest Wholesale Investor Nation Survey,
viewing Distressed Asset opportunities. and what entrepreneurs need to do in order to enhance their
chances of raising capital.
So we have set up a platform to promote distressed assets directly to our
investor base. www.switzer.com.au
Right now we have published a list of some companies that have recently
fallen into the hands of Administrators. We are now in the process of
contacting the various insolvency and accounting firms in order for them
to list the distressed asset deals that they are working on.
Over time, investors will be able to log in and see what is on offer. This
may provide companies, who are facing financial difficulties, with an
alternative option to liquidation, DOCA, or expensive emergency finance
arrangements.
Media Partner and Event
Our investors have indicated to us that they may be willing to back a
company that is facing sort term liquidity problems, in return for equity or Sponsorship
an uplift on their invested capital. Wholesale Investor is proud to be a media partner, or sponsor for the
If you would like to: following events:
• Register to view distressed assets Building Wealth Through Business – by MBE Education
www.mbeeducation.com.au
• List a company, or its assets in our distressed assets section
To receive a free ticket to attend, please email
Go to www.wholesaleinvestor.com.au and click on the link for Distressed admin@mbeeducation.com.au
Assets.
Capital Raising Summit – by Tonkin Corporation. See ad on page 17.
www.tonkincorporation.com.au
Wholesale Investor in the media: Trading & Investment Expo – by Event Management International
www.tradingandinvestingexpo.com.au
Financial Review
Resources Investment Expo – Apollo Global
Wholesale Investor featured in an article by
www.apolloglobal.com.au
Enterprise editor Mark Fenton-Jones on the
18th August 09. The article is titled “Attracting Real Estate Investment World - Terrapinn
investment needs more than a good idea” Alternative investment Summit 2009 – Terrapinn
www.afr.com.au Corporate Finance World 2009 – Terrapinn
www.terrapinn.com
Sydney Morning Herald / The Age
Steve was interviewed Kristen Le Mesurier in
an article titled “Business Angels”. Steve
commented on the key elements for a If you would like to:
successful capital raising.
• Promote your investment opportunity to over 4,600 wholesale
www.smh.com.au investors
• Sponsor Wholesale Investor
Daily Telegraph • Establish a strategic alliance or media partnership
I was interviewed by Jenny Dillon from The Daily Telegraph. The article Please email us at editorial@wholesaleinvestor.com.au or phone our
was titled “Mastering the art of raising more capital” appeared on the office on 1300 597 595
31st August 09.
Regards,
4
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The earlier
you book
the more $
you save
Hear from:
David Morgan
Former CEO
Westpac Banking
Corporation
Director
BHP Billiton
www.terrapinn.com/2009/corp
VIP CODE: WI2
Peter McGregor
CFO
Asciano
Gi112030 8/09
5
BOOK NOW! w w w . w h o l e| semail:
online: www.terrapinn.com/2009/corp a l ecs.au@terrapinn.com
i n v e s t o| rphone:
. c o+61m2 9021
. a8808
u | fax: +61 2 9281 5517
Company Updates
First home buyer demand drives
Viva Properties growth
Despite the recent economic slowdown, 2009-2010 looks to be a bumper
year for Viva Properties. All Victorian properties have been sold on the
back of the onslaught of First Home Buyers. Construction works have
commenced for two Tasmanian projects and 2 additional planning permits
for 50 dwellings have been secured. Sales for Viva’s government-backed
investment properties continue to exceed expectations - a recently
released project was completely sold within 2 weeks and approximately
$4.5m of properties in Tasmania were sold in this quarter so far.
www.vivaproperties.com.au
eMove
Financial News Network
launches Private
Investment Channel
moving made easy with Wholesale Investor
Australia’s leading online finance channel, Finance News Network
(FNN) and Wholesale Investor have joined forces to launch
eMove reaches major agreements Australia’s first Private Company Interview channel. Select CEO’s
and Managing Directors of private companies are interviewed by
eMove is proud to announce that it has reached agreements with:
respected financial journalist Clive Tomkins.
The channel is
• Major national real estate online group
promoted to FNN’s
• Major removalist groups distribution network to
over 20 partners and
Other announcements:
is accessible to more
• Operational alliance agreed with mortgage brokers for impending than 10,000 investors.
expansion It is also promoted via
• eMove Advisory Board to be appointed in September Wholesale Investor to
our database of over
• Imminent launch of two new services: 4,600 investors. This
• International removal quotes new channel offers
private companies the ability to ‘speak’ directly to investors using
• Australia’s first retention service for utility connections
the latest online video and internet technology.
• Further major strategic arrangements to be announced soon.
An interview with Zeep President Grant Scott has been posted and
eMove has appointed Steve Hobbs from Achieve Capital for additional is ready to view. Go to www.finnewsnetwork.com.au and click on
strategic/marketing alliances and capital raising. Private Company Interviews to view.
www.emove.com.au This channel is exclusive to Wholesale Investor. If you
would like to enquire about featuring on the FNN Private
Company Interviews channel, please contact us at
info@wholesaleinvestor.com.au or phone 1300 597 595.
6
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Company Updates
DBSU launch of
next stage, and into Deep Value
global markets Microcap Fund
Direct Business Solutions Universal has
continues to
released stage 1 of 3 of the new CRM Web- raise capital
Site to accommodate existing customers
and to allow access to view movement of Following a strong month of net investment inflows from new
equipment and personal through GPS. investors a number of new positions were taken by our Deep Value
Microcap Fund. Of notable mention, we can reveal that the Deep
Stages 2 and 3 will create complete functionality which will include Live
Value Fund took an initial position in recruitment firm Peoplebank Ltd
Dashboard Control on equipment, and replace VBA Interfaces through
(ASX:PBA) at an average price of 42c. The selection of this company
complete web interaction only. CAD and a Machine Guidance Interface in
followed careful analysis of the company’s financial performance,
Stage 3 will also attract huge interest in the product.
management strength, its market positioning and improved operating
DBSU has also introduced a visionary concept of reporting through the use outlook for FY10.
of the latest iButton technology.
Following a decision by Microequities Asset management to invest
The release of the fully secure and supported CRM Web-Site now allows in the company, Peoplebank received an initial off-market takeover
DBSU to capture a very diverse market globally, with less input required offer of 60c from PB Recruitment (Peoplebank’s main shareholder).
from DBSU. This means a much improved cheaper product with better The initial offer in our view was opportunistic and grossly undervalued
margin. Peoplebank. Microequities Asset Management took the decision
An affiliation with an Indian based GPS Reporting Company is happening of increasing the Deep Value Fund position in Peoplebank. A
as we speak, allowing DBSU to be promoted and supported in India, China second revised offer of 75c plus final year dividend of 3.5c by
and the Middle East, and giving more diversity to the DBSU product at the PB Recruitment was then launched, though this offer represents
same time through additional functionality at a lower cost. considerably improved terms, it is still short of our expectations. We
will be reviewing our position within the month ahead.
www.dbsu.com
www.microequities.com.au/info/31
ZEEP Australia
receives
unprecedented latest news
level of interest
Since listing in Wholesale Investor, ZEEP Australia has seen an Finerday.com is the world’s first family-specific, secure communications
unprecedented level of interest in its next generation gasification platform, designed to enable the entire family to keep in touch,
technology. The Technology was originally developed by Boeing Energy wherever they are, whatever their age or comfort with technology.
but now under development by a United Technology Corporation
subsidiary, Pratt and Whitney Rocketdyne (PWR). ExxonMobil is a Latest news:
development partner with PWR which further adds to the pedigree of
this ground breaking technology. • Intel supporting significant care home trial in the UK to be filmed by
BBC/ITV
ZEEP has identified potential strategic partners in Queensland, New
South Wales, Victoria and Western Australia and is working with them • Home Access Campaign- initially 300,000 computers, government
to evaluate and bring target is 1million
forward poly-generation • Education Authorities planning key study using Finerday in Primary
possibilities, value adding Schools
to partners coal resources
• Discussions underway with major internet providers and mobile phone
and satisfying commodities
networks
needs. Distinct interest
has been shown by major
organizations in high value
product markets (i.e.
chemical, clean fuel, power)
to take excess off takes
that would be developed
in conjunction with these
strategic entities, making
these projects bankable
and providing excellent
returns to investors.
7
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
Wholesale Investor
WholesaleNAtional Sur
Investor National Survey: vey
August 2009
Anonymous survey conducted August 2009 to (1) Active investor (become actively involved in investee company).
Wholesale Investor registered database of 4,628 (2) Strategic Investor (leverage IP/distribution).
(Note: respondents could select more than one option)
investors.
Type Of Investments Sought Number Of Opportunities Reviewed Each Week
KEY POINT:
29% review
more than one
deal per
business day.
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August 2009
Type Of Investments That Are Of Most Interest (Note: respondents could select more than one option)
KEY POINT: 60.1% have half or less of their funds deployed at the moment.
Most Important Deal Attributes When Making Investment Decisions ) (Note: respondents could select more than one option)
KEY POINT: Management strength is by far the most critical factor when raising capital. Contrary to popular belief, “Historical Earnings”
th th
ranks 7 and “Quality of Pitch” ranks 8 .
Sectors Of Most Interest Right Now (August 2009) (Note: respondents could select more than one option)
To receive a PDF of the full survey results, please email info@wholesaleinvestor.com.au or phone 1300 597 595
To receive a PDF of the full survey results, please email info@wholesaleinvestor.com.au or phone 1300 597 595 9
w w w. w h o l e s a l e i n v e s t o r. c o m . a u
The Inevitable
Redistribution of Power
By Michael Power, Investec
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Q&A with a Venture Capitalist
cvc ventures
By Steve Torso
Q. As a Venture Capital firm, what kind of deals do you look for? Q. What are the first 5 things you look for when looking to invest
A. CVC Limited (CVC) began in 1984 as an MIC ( Managed Investment Company)
into a deal?
but it has long since broadened its operations to become a Listed Investment A. I can offer four things that are on our list.
Company dealing in listed and unlisted equity as well as property and funds
Top of the list comes the management of the company being considered for
management.
investment. It usually starts with a compelling individual who knows what he or
We tend to look for compelling management within our investee companies. she is doing and has the ability to assemble a strong team. The type of person
These are companies which are serving a market need with a genuine ability to we are talking about is an entrepeneurial individual. It seems to us that this
maintain, defend and grow their market position. We look for something solid ingredient, the compelling individual, is present as the key factor in about 100%
about the offering that gives them the ability to grow that business. of the deals we would become involved in.
Venture Capital and Private Equity deals are but one of our areas of focus. Venture The next thing is that the offer has to be fairly priced.
Capital deals characterised the very early stage of our development. Today
Thirdly, the business model needs to be robust and scalable without requiring
these kinds of deals are only done through our CVC REEF and CVC Sustainable
too much additional capital. We look for good margins, defendable positions
Investments funds. These funds have picked up excellent opportunities in the
and rapport. On this latter point let me say that it is a bit like a marriage …
Energy, Food and Waste Management sectors.
you have to feel like you are working with friends because you are going to be
In terms of CVC Sustainable Investments, we look for a market opportunity working together for a long time.
that ensures there is a place for the product or service offered. Especially when
Lastly and very importantly we look for a natural group of people who are going
Government support exists to support an absolute need to roll out the product or
to be in the market for the asset when the time comes to sell it. It’s no good
service. This type of situation gives real strength and viability to the opportunity
going into a deal without having your eye on the end game. The better type of
leading to the potential for solid gross margins and returns on investment.
buyer [and it’s best if there are a group of buyers – not just one so we can have
a bit of an auction] is the buyer that sees that we have done the hard work and
Q. Do you have a specific niche or industry which interests you? that they are getting a strong deal served up to them. It’s like they are being
handed it on a plate. There’s value all round in a situation like this and that’s
A. CVC does not limit itself to a specific niche. We look for investments in
what we aim to achieve for CVC’s investors as well as the eventual buyer.
companies that offer strong margins. We tend to be a generalist but we have
developed areas of expertise. Over our 20 plus years of operation we have
developed a ‘nose’ for what is good – what is worth spending time on and
Q. What do you look at as indicator for an ideal time to sell your
what is not worth spending more time on. One of these areas of expertise has
share holding?
been that we have been able to go into well researched opportunities in the
sustainability sector. A. I’d have to say that there is no ideal time although we are good at ‘scrambling’
to meet an emerging opportunity and have been in the right spot to catch the
We try to work with companies which we can help grow, expand and consolidate.
ball by reading the game well
We like to buy well, add value well and sell well. Our key focus is to generate
above average returns to our shareholders. Typically we aim to buy in at a private We never seek to extract every last cent from the deal. There have to be
company multiple and sell at public company multiples. As we add value that can good growth opportunities for others who are to own the investment
lead to a sale price that could be ten times the original purchase price or even more. in the future. Most of our uplift comes from transition from the private
multiple to the public multiple. That’s what gives us a good return.
Q. How has the turbulent public markets impacted the private
sector and your ability to raise money for your VC fund? (please Q. What are you optimistic about?
provide a positive angle) A. We are optimistic about companies that can hunker down in the current
A. For the most part we are not looking to raise money at present. We note environment and get fit. These are companies that have become leaner on costs
that managed funds in general have been spurned while investors put their and given the human capital opportunities out there are putting on the best
houses in order. But in the sustainable funds area we are actively marketing staff. This type of company comes out very, very strong in the future.
with CVC Sustainable Investments (CVCSI) which has been sheltered In this eventuality we see ourselves spending a lot of time adding
from the turbulence. Investors in CVCSI are investing for the long term. value. Certainly it’s allowed vendors to be more realistic and this
along with the increase in opportunities we see a good future ahead.
Q. How has the turbulent market impacted valuations, and how
have you been able to benefit from that? Q. Where do you see the opportunities over the next few years?
A. The current market conditions have made many vendors see things in a far We are seeing opportunities everywhere. Approaches are coming in daily from
more realistic light. A lot of people under stress have been more willing to talk to would-be vendors. The key areas that we will be scrutinising are better pricing
us compared with a year or so ago and this means that the opportunities we are offered by vendors and the opportunity for CVC to be actively involved.
able to look at have very much increased in both quantity and quality
Q. What sort of percentage returns have you been able to
achieve through investing in private companies?
A. We have been able to generate returns for our investors of better than 15%
for almost twenty years and this includes some investments that have stellar
performance where in some cases the returns have been around 25%.
CVC Limited
Q. What tips do you have for investors seeking to invest into
For more information about CVC Ventures, go to cvc.com.au
companies?
A. You have to start with a top individual who can engineer success in the
company. [see remarks below]
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Recent developments in
The Life Sciences Market
By Price Waterhouse Coopers
The healthcare industry is seen as a significant investment and business into available institutional capital for new listings. In terms of pipeline, VCs
opportunity due to the ageing population and the need for expenditure on have been investing quite consistently in follow-on funding rounds for their
healthcare in both good and bad economic times. Life science companies Life Science portfolio companies. Pragmatically, they’re prepared to delay
are expected to play an important role in the delivery of world leading and exits until the IPO and trade sale windows begin to look more attractive and
cost effective health solutions in Australia and globally. valuations improve.
A spate of “megamergers” of major pharmaceutical companies further
underscores the opportunity for life science companies.
As the so-called blockbuster drug “patent cliff” chips away at Big Pharma
revenue, and in-house R&D continues with diminished returns on productivity,
smaller life sciences firms will increasingly be positioned to fill product pipeline
gaps by sourcing new innovations and drug prospects – especially with
increased interest in diagnostic and therapeutic biologics.
With the stockmarket at its current levels, the life sciences sector may
1. National Venture Capital Association (NVCA) based on data MoneyTree ™ Report
continue to see limited action around IPOs as the sector is perceived by same is produced by PricewaterhouseCoopers and the provided by Thomson Reuters.
investors as a higher risk/higher return proposition. Whilst institutions have 2. PwC Life Science ex-majors index excludes CSL, ResMed and Cochlear.
been supporting placements, these have been limited to companies with
solid results. However this placement support will not necessarily translate
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Nice Set of Numbers By Adrian Herbert - Private Equity Media
Six point four times investment over about six years and an annual average
internal rate of return (IRR) of 39.2 per cent … that is a nice set of numbers for a
business investment exit in this challenging year.
That is what early stage venture manager Start-up Australia Ventures achieved
as a result of the takeover of Arana Therapeutics (ASX: AAH) by US company
Cephalon in June.
That was a return of $36.53 million on an investment of $5.6 million – provided
in a several tranches starting in 2002. Further cash of $1.45 million was received
from another investment that was sold separately to Arana Therapeutics and is
therefore not included in these investment statistics.
This deal illustrates that venture investing, and particularly early stage venture
investing, can provide good returns.
There are lessons from this and similar successes for individual investors.
• Invest in research likely to develop new technologies with a world market.
• Consider human and animal health projects; there is a strong market for such
technologies among trans-national businesses prepared to pay high returns.
Start-up Australia’s initial $1 million investment funded “proof of concept”
• Look for areas in which local researchers have demonstrated expertise. studies and intellectual property protection to enable the company to negotiate
Remember the adage about success being achieved by standing on the partnerships with pharmaceutical companies.
shoulder of others.
An experienced life science company executive Merilyn Sleigh was recruited
• Be guided by public sector and government recognition. Universities and to take on the role of EvoGenix chief executive at an early stage. Following a
research institutes and government commercialisation funding gets spread strategic review under Ms Sleigh’s leadership, the company made a decision to
widely across lots of excellent projects. Private investment is however inevitably focus on the antibody market rather than on proteins in general. As a result,
needed to develop profitable businesses around these ideas. EvoGenix moved to acquire Absalus, a private Californian company with
• Don’t expect to be the very first investor to recognise potential. There is safety an antibody humanisation technology. This enabled EvoGenix to create an
in numbers and early investors tend to reap similar rewards in technology integrated suite of technologies to humanise and optimise antibodies. As a
successes simply because a number of investment rounds are usually required result, EvoGenix became significant player in the antibodies sector.
allowing investments to be equalised. A critical component in the development of these technologies was the long
• Do be prepared to wait for returns, possibly retaining an investment after it is term backing of investors prepared to see the plan through.
converted into a stake in a listed company. Over a number of tranches, Start-up Australia invested $5.6 million and Gordon
A brief outline of the Start-up Australia Ventures investment which eventually Black of Biofusion Capital $1.2 million. Through an IPO in August 2005 EvoGenix
became its investment in Arana follows. High net worth individuals, incidentally, raised a further $9 million. This was followed by $6 million in a secondary capital
were co-investors alongside the funds manager. raising.
Start-up Australia Venture Pty Ltd invested $5.67 in EvoGenix over a number of EvoGenix entered into a number of collaborative arrangements including multi-
investment rounds from August 2001 to July 2005. product deals with major pharmaceutical companies GlaxoSmithKline and
Australia-based CSL Limited (ASX: CSL). This provided external validation that
The potential for a strong return was clear from the start, if not the route. The the technologies were robust and had good intellectual property protection.
$40 billion human antibody market is a fast growing and extremely successful
sector for drug development but is closely protected by numerous patents. In August 2007 another ASX-listed pharmaceutical developer, Peptech, which
had a strong cash position, took over EvoGenix and changed its corporate focus
Start-up Australia Ventures investment in EvoGenix followed by its acquisition to concentrate on the EvoGenix technologies. The merged entity was then re-
of US company Absalus, then in turn the merger with Arana Therapeutics named Arana.
produced a company with a complete technology package with clear
competitive advantages over other available tecnologies and with a clear After that it was essentially a case of continuing to develop Arana’s technologies
freedom to operate (that is, no conflicting patents). until a trans-national life sciences company made a move.
Arana Therapeutics was one of only a handful of companies world-wide which Cephalon is by no means one of the giants of the sector but was big enough to
had its own in-house technology which avoided the many patents in the make an attractive offer.
area. The technologies also had a number of competitive advantages. This
was demonstrated by the number of global partnerships Arana Therapeutics
had achieved. Immediately prior to the acquisition by Cephalon, Arana had
partnerships with eight companies worldwide covering 12 therapeutic drug
products in development. In the six months to 31 March 2009, it had revenues
of more than $24 million from commercialisation of its technology capabilities.
But let us go back to the beginning in 2002. EvoGenix was created by Start-up *Adrian Herbert is Managing Editor of Private Equity Media, publisher of
Australia Ventures to commercialise technology out of the CRC for Diagnostics subscription journal Australian Private Equity & Venture Capital Journal.
and the CSIRO. The technology, which was later named EvoGene, was a powerful This article is based on material from the Journal.
method of improving the properties of proteins. The investment proposition For access to a free copy of Australian Private Equity & Venture Capital
was that a revolution in genomics and proteomics would produce an explosion Journal and subscription information visit: privateequitymedia.com.au
of protein-based therapeutics, particularly antibodies.
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Opportunities for Investing
Into Distressed Assets
By John Quinlan - Australian Business Lawyers
An attractive wholesale investment alternative in the current financial Further, as the market is deeply divided on company valuations,
climate is investment in distressed debt and assets. This alternative distressed investing creates opportunities to increase value in existing
investment opportunity has been brought on by the advent of the global portfolio companies through the synergies offered by a bolt-on
financial crisis and in effect, created a secondary or distressed investing acquisition, thereby extending the range of those portfolio companies.
market in Australia which may offer attractive acquisition opportunities Distressed companies also present opportunities for current
for investors. management to conduct a management buy-out. An increasing
With a substantial increase in the number of Australian companies number of companies are under severe pressure from their creditors,
entering into voluntary administration or other forms of corporate shareholders, suppliers and customers seeking to protect their
insolvency, their disposal of poorly performing, non-core assets or conflicting interests. This pressure has created opportunities for
companies presents a unique opportunity for investors to inject critical current management to preserve value by facilitating a quick sale of
capital into underperforming assets or companies at a discount to net the company where this course has been determined to be the best
tangible assets. method to maximise value for all stakeholders.
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Assessing the Strategic
Value of a Business
By Tom McKaskill
To be investor attractive, an emerging company has to have an asset or found in very ordinary products and services which can be sold rapidly into
capability which can drive high growth, either organically or in the hands a large customer base. It is the ability of the acquirer to exploit the asset or
of an acquiring corporation. If you look at the investment outcomes of the capability which is the main determinant of strategic value.
typical private investor you will see about half of the investments have lost
Significant strategic value can exist inside a small business even if that
money, thus the balance must make up the losses. This means that, going
business does not have the capacity to exploit it themselves. It may not
into the investment, the target rate of return needs to be in excess of 30%.
matter how many employees or customers it has or even if it is making
Without high growth potential, this is almost impossible.
a profit. The value is determined by projecting how the buyer will exploit
High growth eludes the vast majority of firms. The ABS statistics for 2007 the acquisition not how the business itself does. Finding the right buyer is
show that only 10% of firms had more than 20 employees and only 6% therefore critical to leveraging a strategic value investment.
achieved revenue in excess of $2 million. What we don’t know from this
This view of enterprise value flies in the face of conventional valuation
data is how long these larger firms took to get to the size they are. We
techniques. Instead of the firm valuation being based on their inherent
do know from research into high growth firms that very few businesses
profitability and growth rate, it is determined by how a large corporation will
exceed 10% growth for even a few years. Thus few firms offer an investor
exploit their underlying asset or capability. A large corporation with 20,000
high growth potential from organic growth. But high growth potential in
target customers does not need your small customer base of 20. If they
the hands of a large corporation is a different matter entirely. This is where
have 200 salespersons, they really don’t need your two. In fact, what you
strategic value investments really pay off.
have achieved in terms of revenue and profit may be quite irrelevant.
We all know that high growth is inherently risky and often elusive. But what if
you don’t have to go down that path to generate a high ROI. As an investor,
you could target those emerging firms which have assets or capabilities
which have strategic value. Instead of building the business through the
long hard slog of acquiring customers, you could focus instead on the
tasks to bring the underlying asset or capability to a point where a large
corporation can exploit it. You need to create an asset or capability which
will have significant competitive advantage in the hands of the buyer, make
it scalable and ensure it is ready to be exploited. Choose your prospective
buyers carefully, those which can fully exploit the strategic value. At that
point, put it into a competitive bid so that its value can be captured in the
sale price.
As a crude estimate, strategic value is the discounted cost savings or gross
margin on new revenue or retained revenue achieved by the buyer in the
first two years after the acquisition. Thus rapid early deployment in the
hands of the buyer is critical. A trade sale which returns 50 to 100 times the
investment is not unusual in these types of deals.
Copyright © 2009 Tom McKaskill
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do you have confidence in
your confidentiality agreement?
By James Millea and Andrew Ireland - Argyle Lawyers
Trade secrets, whether an “idea”, “invention”, “know how” or • Whether the employees and consultants of a company to which
trade advantage such as customer lists can gain protection by a trade secret is disclosed should also sign a NDA? After all,
a binding legal agreement (let’s call it an NDA), in certain cases simply because you have a NDA with ABC (Holdings) Limited,
by registration with some public authority (such as patents that does not necessarily bind each individual employee and
or designs with IP Australia) and in some other limited cases consultant engaged by that company, most of whom may not
automatic protection is provided by the relationship of the parties, even be aware of the NDA;
for example an employer/employee relationship. • Is the obligation of confidentiality between the parties mutual
But if there is no protection, what happens? or simply one way?
Let’s make it simple. • If the parties are in different countries, the law of which country
You cannot own trade secrets unless they are protected. should apply to the NDA, eg should it be the law of the UK,
Denmark, Singapore etc? Different countries have different rules
To protect information it has to be a secret disclosed in that apply to confidentiality and the protection of trade secrets;
circumstances where the person to whom the trade secret is
confided understands or ought to be aware that the information • Should the NDA also include a provision that the party to
is confidential. whom the information or idea is disclosed may not “use” that
information, ie a non compete provision;
How many enthusiastic entrepreneurs have there been, anxious
to not only show off their “idea” or “invention” but to also raise • Has the NDA been properly signed and date
the funds to commercialise the “idea” or “invention”, found the
potential investor liked the idea or invention so much that they
pay the entrepreneur the ultimate compliment and decided to use
the “idea” or copy the “invention” - but without the entrepreneur?
The most obvious way to gain protection for a trade secret is by an
agreement such as a properly drafted Confidentiality Agreement.
Many inventors forget that if they disclose the secrets to their
invention they traditionally lost the right to patent the invention.
Disclosure could be to just one person or an obscure journal
available to the public, even in another language and in another
country.
One of our clients went so far to protect from prying eyes the
testing of their invention prior to filing their patent application that
they tested the invention at 3am in the morning.
While there is some limited protection in Australia and the United
States where an invention is disclosed or used within 12 months
before an application is filed to patent an invention, this protection
does not exist in other countries in Europe and Asia and certainly
not one a prudent businessman should rely on.
A common problem arises where “confidential information” is
circulated within an organisation and shared out among staff and
consultants. At some point the information risks becoming “public
knowledge” and no longer protected.
But before you rush off and use any old NDA, you need to think
about such issues as:
• W
hat are you seeking to protect? A trap for young players is to
claim that all information is “confidential” or is protected for an
“unreasonable period”;
• Who owns the trade secret? Was it jointly created, created
by an employee or independent contractor? Different rules
apply depending on who and in what circumstances the trade
secret was created;
• W
ho are you dealing with? There is a lot of difference between
a business name and an incorporated company;
• A
re you dealing with one company that is part of a Group of James Millea jmillea@argylelawyers.com.au and Andrew
Companies? Are all members of the Group bound by the NDA?; Ireland aireland@argylelawyers.com.au are at Argyle Lawyers
• W
ho has authority to sign documents - you would not usually specialising in commercial and corporate law with a particular
expect a junior employee to have authority to bind a large public focus on private equity, renewable energy and commercialisation
company; of intellectual property. www.argylelawyers.com.au
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Company Name Hadley Green Securities Board & Management:
Sector Property Hugh Zochling - Executive Director
Yr established 2001 Hugh has an extensive background in property
investment, management and research spanning
Business stage Expansion more than 20 years in Australia and North America.
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Company Name Kordz Pty Ltd Board & Management:
Sector Electronics David Meyer - Managing Director
Yr established 2003 Ass. Dip. Business (Acc), Retail & e-commerce
business management.
Business stage Expansion Background in Accounting and natural business
accumen. Also on the Board of CEDIA AP.
Location Seaford, Australia
James Chen - Director - Sale & Operations
Opportunity Capital Raising 20 year AV industry veteran, retail, installation and
wholesale experience.
Richard Woods - Non-salaried Executive
Director
Fellow of Chartered Accounts & and Tax Agent
Executive Summary Vast experience in financial management and
ustralian based specialist brand of AV interconnects & accessories, offshore
A accounting services.
manufacturing with matured Australia/New Zealand wholesale distribution network,
currently expanding into the USA. Corporate Structure
Australian Pty Ltd company governed by a formal
Competitive Advantages Shareholder Deed. Top tier Ordinary Shares with full
voting rights.
• Established and respected brand with registered trademark protection
• Multi-award winning, recognized and respected in the ANZ marketplace Exit Strategy
• In-house R&D for high integrity products; we don’t just source & import
Kordz Pty Ltd is proposed to effect a float on an
• Market focus on lucrative niche of specialist retailers & installers - CEDIA base
appropriate exchange within the next 2-3 years.
• Genuine licensed Adopter of HDMI technology
• Australian MD sits on Board of Directors for CEDIA Asia Pacific, enhances brand integrity
• US office already established in the heart of Silicon Valley, California USA, 1.9 miles from
HDMI headquarters
• Michael Schaller, Director of Kordz USA, Inc is the former HDMI Licensing Global
Compliance Director
• Company and brand focus on compliance & education of industry personnel, media and
consumers
• 6 year matured business history
• Kordz “IMMORTAL” lifetime warranty on key product lines
Corporate Structure
Executive Summary Propriety Limited Company.
Property Planet provide quality and affordable house and land packages First Home Owners
and Investors in Melbourne, Australia. We currently specialise in the sale of single storey Exit Strategy
dwellings on the fringes of Melbourne. We have two operational sales centres in display
villages with four more locations in growth areas soon to open. We outsource all building to This unique investment offers returns in full within
registered builders and have zero risk associated with our core product. We have developed 6 months or the option to roll funds over into
a very successful finance product that offers substantial scope to be intergrated across the additional cash advance deals. Alternativley there
property market. There is simply no kind of investement opportunity that offers as much is the option to invest in the company and the
security and scope in the property sector as our Cash Advance model. Cash Advance system. The exit for the business is
to list on a suitable exchange post Stage 2 of the
business plan
Competitive Advantages
• Cash Advance: This facilty is an exclusive product in Australia. No builder or land developer
offers anything similar.
• Product Offering: Our Cash Advance offer combined with out affordable homes, finance
approval rates and special promotions makes us not only the only option but in many cases
the best option.
• Tested & Measured: We have tested and measured lead generation, sales and adminstrative
process over an extended period and have a unique, simple and effective system.
• Low Risk: We have no substantial risk in the operation of the business. Land is provided by
developers, houses are provided by builders and staff are sub-contractors.
• Scalaility: Our business model can be replicated anyhwere in Australia and vertically
integrated to the land development industry.
• Performance: We have built this current model in 6 months and acheived 100 house
sales. We expect to tripple this in the next financial year.
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Company Name Agri Fuels Limited Board & Management:
Sector Renewable energy/agri-business Gregory Lee - Non Executive Chairman
Yr established 2006 CPEng
30 years experience in oil and gas industry and
Business stage Early Stage project management
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Company Name Benson (WA) Distributors Pty Ltd Benson
BoardAirconditio
& Management: ning has been working
Sector Air Conditioning
Benson AC Hot Water Sytem for Australian
andMatthew
exported
Involved
Posselt - Director
world
with all aspects wide.
of running the Air
Yr established 2009
Business stage Seed The Conditioning company.
Benson Enviro 3 AC Hot Water System ca
Charles Posselt - Director
system within Air
Has been high efficiencies
Conditioning Industry forofover
1kW
15 input to n
Location Perth, Australia
It can also be used as a normal Airconditionin
years. Has installation company
Opportunity Capital Raising
What makesStructure
Corporate this system so special?
While system
Benson the unit
(WA) Distributors is heating
Pty Ltd or cooling, it c
is a private company.
We have added a special process to the air co
Executive Summary Exit Strategy
systems.
Possible for investor to exit in approximately 6-12
Benson (WA) Distributors Pty Ltd is a Green Air Conditioning Wholesaler, which will supply Unitmonths.
sizes
both Domestic and Commercial Air Conditioning to WA’s Builders, Mine Sites and general Ultimate
• Cooling Eco will beSystem
3.4kW,
Other options Heating Solar
considered. 3.5kW (Model Num
population. It is a Global Leader through the use of non ozone depleting refrigerants used • Cooling
on all systems.
Benson
4.9kW, HeatingEnviro 4.9kW 3 (Model Num
Coming soon • Cooling 6.3kW, Heating 6.4kW (Model Num
Competitive Advantages Want to reduce your
Related products
• All Benson Enviro3 Air Conditioners use R290 Refrigerant A Ducted System is also available, this system h
carbon footprint
• Global and Market Leader with Hydro Carbons
Distributor
while heating/cooling
• Only Manufacturer with AC Hot Water Technology
your house and also
Benson Airconditioning
• Tested for Higher operating temperatures
• 100% Australian Owned
heating your hot Phone: 1300 4 BENSON (1300 4 236766)
• Some of the highest Energy Ratings water...for free*?Email: bensonac@
Solar Panel 1,800 watt
bigpond.net.au
• Ability to obtain RECs for AC Hot Water Web: www.bensonairconditioning.com.au
Benson's Earth Saver
• Carbon Neutral, 2 trees plant for every system sold
• Plasma Air Stream standard in all ducted systems
Package combinesDisclaimer The information
Indoor fan coil in this brochure was deemed correct at time of printin
or vary productsHeating/Cooling
and offer without notice.
your house
• Global Warming Potential reduced from 1,890 to only 3!! Solar Panels and the
Benson
• Benson has support and the backing from Green Peace International, AC Hot Water
the United
Nations Environmental Department and the United Nations Environmental
Development Organisation System to give you:
• Green Peace are supporting R290 as the refrigerant of the future.
• Free Heating
• Free Cooling
Key Investment Highlights
• Free Hot Water Outdoor unit available as:
• Margins set for a large return *While the sun is powering the Solar • 3.4kW Cooling and 3.5kW Heating +
Tank sizes available"
Free Hot Water
• Knowing the Investor is helping the Environment panels • Standalone Hot Water System 50 to 300 Litres
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The Daily Commute
The Daily Commute (TDC) is a dynamic and robust ridesharing website, enabling Corporate Structure
organisations the opportunity to implement an environmentally responsible, smart, secure
transport solution, through a pioneering web-based application.
TDC is an Australian private company, looking
The solution utilises an innovative SMS feature and makes ridesharing viable by offering to raise capital preferably through strategic
live matching anywhere where Google Maps has street directories available, through TDC’s partnership.
ridesharing algorithm.
TDC offers analytics and reports, as well as the ability to connect to a specially designed
reporting database.
Exit Strategy
TDC’s unique marketing vision can assist in advocating the uptake and use of ridesharing Trade sale or listing on a suitable exchange at the
among organisations and users. appropriate time.
Competitive Advantages
• SMS, with iPhone technology in development.
• Allows for the reduction of carbon footprint and heightens Corporate Social Profile.
• Relieves pressure on roads and public transport systems and reduces road congestion.
• Security - available to organisations and their employees (users).
• Other security functions (i.e user identification/profile).
• Works with Google Maps through a GIS enabled application, utilising
TDC’s ridematching algorithm.
• Ease of use and navigation, including Online Help functionality.
• Strategic vision for engaging users and encouraging ridesharing
(eg Events-based ridesharing).
• Innovative development framework to allow for technology/service add-ons.
• Available through a licensing agreement.
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Company Name Ceebron Pty Limited Board & Management:
Sector ICT Food Technology Don Richardson - CEO
Yr established 2003 M.Eng Sc. BSc
Don has managed businesses and corporate
Business stage Expansion development of major corporations in international
food markets over 27+ years including some 9
Location Sydney Australia years based in USA
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Company Name Globo Hydro Power Limited Board & Management:
Sector Green and Clean Industry Elaine Johns - Joint Managing Director
Yr established 2009 Industrial Psychology, HRD, Business Management.
Founding Director, whom is moving “Globo Hydro
Business stage Pre-IPO Power” from concept to commercialisation.
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Company Name Jadato Holdings Pty Ltd Board & Management:
Sector Agriculture Peter – CEO
Yr established 2008 12 years banking industry and founder of a major
PLC in the UK. Born and raised in the industries
Business stage Early stage, expansion Jadato are targeting. Full details in IM.
Brian – Director
Location NSW and QLD Engineer by trade and a successful rural developer.
Opportunity Capital Raising Full details in IM.
Neil – Director
Retired from the building industry bringing valuable
construction knowledge
Stuart – Director
Executive Summary Effective August 2009,17 years property developing
and currently in banking
• Jadatos goal is to invest in sustainable properties, in the agriculture sector, in order to
supply fresh, organic products to consumers Deloittes - as auditors and advisors
• Jadato offers a diverse, integrated supply chain incorporating; Allen Arthur Robinson - as legal team
• Grain farms in geographically disparate regions to ensure a reliable supply of grain to
livestock farms and grain mills; Corporate Structure
• Grain mills for the production of grain-based feeds and supplements;
• Jadato Holdings is a Proprietary Limited
• Livestock enterprises to take supply of grain-based feeds and supplements; Company
• Organic fertiliser production to maximise income from the grain milling and livestock • Jadato manages majority owned subsidiaries
operations by taking waste by-products and converting them to a saleable commodity with key staff that have vested interests in their
businesses
Exit Strategy
Competitive Advantages
• Potential Trade Buyers have been identified
• Drought proof products (in fact we like the drought!)
• Jadatos structure allows for an appropriate
• Several uses for product if traditional markets downturn exchange listing
• Control of the supply line • Jadatos founders believe a MBO will exist in
time
• Manageable upsizing returning greater profits than independent operations and minimizing
risks • Exit and Risk strategies are constantly under
review
• Our waste by-products from milling and egg operations are our most valuable asset used
for producing organic fertilizers
• Capacity for considerable market share increase only limited by available capital
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Company Name Activeplus Pty Ltd Board & Management:
Sector Health care Geoff Crittenden - Executive Chairman
Yr established 2008 Geoff is an entrepreneur who has spent the last nine
years running his own company. Prior to that Geoff
Business stage Early stage was CEO of a Transfield-Worley JV.
Rakesh Raj - Managing Director
Location Sydney, Australia Rakesh is a highly experienced senior manager
Opportunity Capital
Activeplus sells safe, reliableRaising / strategic
and affordable partnerAustralian-made
pharmacy-only who, until recently, was director responsible for
the pharmacy division of global pharmaceutical
healthcare products which promote well-being and an active lifestyle.
company Sanofi-aventis. Prior to joining Sanofi,
Our purpose is to build equity in our brand portfolio through sales Rakesh was General Manager of the generic
and marketing operations in the pharmacy channel. pharmaceutical company Sandoz, part of the
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Company Name Klaus Maertin (Aus) Pty Ltd t/a Floaties Board & Management:
Sector Consumer goods
Philip Maertin – Managing Director
Yr established 2008 Philip is the reason why Floaties ® was invented. He
has a life long involvement with the brand and more
Business stage Early stage than 20 years experience in market and product
development and innovation. He has worked with a
Location Sydney, Australia number of blue-chip companies across a range of
Opportunity Strategic Investment consumer products internationally.
Phil Evans – Director
Phil is the director of corporate relationships.
Don Champagne – Chief Executive Officer
Every year more than 126 million children are born. The objective of KMA and Floaties ® is Professor Joan Ozanne-Smith
to reach a significant percentage of these children with a product relevant to their needs and Head of Prevention Research Services – Victorian
to promote worldwide swimming tuition. Institute of Forensic Medicine
KMA has agreements in place with Funtastic, Australia’s leading toy distribution company. David Bonython
In partnership with Funtastic, KMA will develop world wide marketing, distribution and Strategic Sourcing Australia
manufacturing solutions to ensure Floaties ® is represented in all significant markets. Edward Smith
Director – Beijing Consulting Group
Corporate Structure
Competitive Advantages Klaus Martin (Aus) is a proprietary limited company.
• Discussions on-going with major blue chip companies for licensing of product, as well
as with smaller companies
• Expanded range of products ready for development
• Economies of scale achievable through a worldwide business focus
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Company Name Wasabi Holdings Pty Ltd t/a WASHPOD Board & Management:
Sector Automotive & Industrial Paul Piercy (Chairman)
Yr established 2004 Mr Piercy was Managing Director of WesTrac
Equipment from 1997 to 2000 before playing an
Business stage Expansion, pre-IPO integral role in the successful establishment of
WesTrac China, as its Chairman/CEO based in
Location Perth, Western Australia China. His broad mining, industrial and equipment
management/ servicing experience also includes
Opportunity Capital Raising International roles in Africa, China, UK and Papua
New Guinea.
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Company Name Biotech Australia Pty Ltd Board & Management:
Sector Clean technologies Dominic Calabro - Project / Finance Manager
Yr established 2009 Project management commercial construction
finishing trades, HR
Business stage Early Stage Les Mccall - Scientific Director
Experience in construction, new technologies
Location Western Australia, Worldwide and innovation, has produced technology for the
Opportunity Capital Raising / strategic partner/ Debt Equity / Loan advancement of prior refineries.
Martin Rice - Co Director
Currently a Co-Director in Refinery in Liverpool (UK).
Will Mccall - IT Manager
Currently the IT designer for the Refinery in Liverpool (UK).
Executive Summary
Chemists have reported the development of what they termed the first economical, eco-
friendly process to convert algae oil into biodiesel fuel — a discovery they predict could one Corporate Structure
day lead to the Planet independence from petroleum as a fuel. Proprietary Limited Company
Biotech Australia Pty Ltd is a company which currently has the technology to deliver biodiesel
fuel to the market. It has a plant at Liverpool in England which is ready to commence
production. Exit Strategy
Biotech Australia Pty Ltd will be at the forefront of biofuel production globally due to its • Either interest paid or sale within company
technology and plants which are in readiness for production. • 1 year to 5 years
• Company aims to achieve a listing on a suitable
exchange within two years
Competitive Advantages
• First to market technology
• Proprietary extraction and growth methods
• Efficient to build and run compared to standard refineries
• Requires less land area than current researched technologies in same sector
• Abundant feed source
• Scalable production and expansion capabilities
• Many base products – Waste management, water purification, power and electricity
generation and food sources
• Billions of dollars mandated from Governments to this area
• Large scale demand for core and bi-products
• Waste management
• No waste or emissions
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Wholesale_Investor_Issue2_11_08.indd 24 13/7/09 2:59:07 PM
Executive Summary
• This is an exciting opportunity to invest in an established market leader in the food Corporate Structure
manufacturing and retail sectors in Australia. The business model is vertically integrated The business operates under a series of private
with ‘branded retail locations’ and food manufacturing to supply the retail locations. Australian companies.
• The business has recently built a new manufacturing infrastructure that can support a
500% increase in group revenue across Australia by supplying retail and wholesale locations
from one manufacturing plant.
Exit Strategy
• The growth capital will be applied to scale the wholesale and retail distribution across The business has the options of IPO, private sale
Australia over the next 2-3 years as a precursor to broader international expansion.
and international expansion as potential exit strategy
within the next 3-4 years.
Competitive Advantages
• Largest retail network in its sector in Australia with an end game of 150+ stores and
significant wholesale distribution planned
• The only business in the sector to have a centralised manufacturing model capable of
supplying fresh to all Australian retail locations
• A retail store model that generates above industry average returns
• Significant gross margin advantages due to less capital intensive vertically integrated
business model
• DC Strategy input as the region’s leading specialist consulting and legal firm that have
developed the networks and brands of many of the region’s most successful businesses
such as Boost Juice, Pandora, Flight Centre, OPSM, and Gizmo.
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Company Name Withheld Board & Management:
Sector Pharmacy Retail & Healthcare Professional board structure has evolved in the
Yr established 2006 company over the past two years to provide
the necessary governance and direction for the
Business stage Early stage business.
Expertise
Location Australia
• Pharmacy
Opportunity Capital Raising • Retail
• Strategic
Competitive Advantages
• A fresh, exciting and award winning approach to an old established sector with the
opportunity for a national footprint of 200+ locations
• Existing sales results prove the early impact and sustainability of the business model and
innovative approach
• The change in demographic over the next 5-10 years will result in significant growth in the
sector against any historical benchmarks
• Proven business model that has been replicated on multiple occasions successfully
• Significant interest from landlords and pharmacists
• DC Strategy input as the region’s leading specialist consulting and legal firm that have
developed the networks and brands of many of the region’s most successful
businesses such as Boost Juice, Pandora, Flight Centre, OPSM, and Gizmo.
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Company Name Pacific Island Aquaculture Board & Management:
Sector Fish Farming Malcolm Garbutt - CEO
Yr established 2009 20 Years experience in successful startups from IT
to Boating and Marine.
Business stage Seed/Early Stage Rick Hewson - Executive Director
Over 20 years experience in Fish farming and
Location QLD Australia / Fiji aquaculture. Was on an advisory committee to
Seeking Capital Raising Great Barrier Reef Marina Park Authorities and QLD
fisheries aquaculture projects. Master 2 shipping
Captain
Jovesa Korovulavula
Executive Director of Fiji Fisheries, 20 Years
Executive Summary experience with Aquaculture.
PIA Fiji Aquaculture is a company that will be breeding the Mahi Mahi fish in the tropical
waters of the Fiji waters utilizing the proven sea cage methods of the tuna industry, with Corporate Structure
modifications to suit the Mahi Mahi Fish.
Public Unlisted Company
We have been in negotiations with the Fiji government, councils and Island Chiefs for the last
4 years and have secured water rights for the sea cages, full access to the processing plants
and land for the development of the hatchery, and the south pacific bait license.
Exit Strategy
• Planned exit strategy will be trade sale, company
Competitive Advantages buyback of shares or IPO
• Estimate exit time will be 3-5 years
• Full support of the Fiji Government and related fisheries.
• Mahi Mahi Fish produce up to 80,000 eggs every full moon.
• Massive demand for high omega 3 fish products.
• Mahi Mahi grows to plate size in 3 months.
• Fiji Fisheries executive is a shareholder.
• Fiji will not allow the Japanese or Taiwanese to start an aquaculture business in Fiji, but
will allow them to buy the fish.
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Company Name Viva Properties Board & Management:
Sector Real Estate Michael Ta – Executive Director
Yr established 2001 BCom , Barts, MasBusSys, Dip. Financial Services
(PS146 Compliant), licensed Real Estate Agent (VIC,
Business stage Expansion NSW, TAS).
10 years of Project Management and I.T.
Location Melbourne, Australia experience.
Seeking Capital Raising and JV Projects 8 years experience in Real Estate - specialist in
affordable residential housing development.
Greg Rips – Executive Director
Dip. Building Technologies
17 years in business, and over 8 years experience
Executive Summary in real estate - specialist in affordable residential
housing development.
Viva Properties Pty Ltd (“Viva”) is a niche property development company specialising in
the development and construction of affordable housing in Australia. It has developed IP
and methodologies specifically to procure and manage the entire supply chain to operate
profitably in the affordable property market segment. Corporate Structure
Viva recently secured tenders and partnering arrangements with the public sector and is • Viva Properties Pty Ltd is a private company. It
owns a portfolio of residential property projects
currently a major supplier of affordable housing for the Tasmanian State Government and
a large portion of which have pre-leasing
is a recognized expert in this property market segment. Viva is seeking to expand via joint arrangements with the public sector.
venture arrangements or equity funding initiatives. As part of its expansion plans, Viva has
launched a special purpose vehicle (National Affordable Properties Ltd) to raise funds for a • National Affordable Properties Ltd is an unlisted
public company.
75 residential unit development.
Exit Strategy
Competitive Advantages • Investors in National Affordable Properties Ltd
• Viva has existing key relationships with government bodies in the affordable housing will receive their initial investment back (via a buy
back of pre-shares) and profit distributions from
space
the project at completion.
• Established player in the market - Viva has been developing affordable properties for over • Viva Properties Pty Ltd is open to discussion with
8 years and has a successful track history interested parties relating to wrapping projects in
• Increasing body of intellectual property in this market niche its portfolio into fund raising structures, which can
• Extensive due diligence carried out on Viva’s methodologies and systems as part of
public tenders and prospectus reviews
• Proven history of profitable project delivery
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Company Name Speciality Entertainment Pty Ltd Board & Management:
Sector Leisure & Entertainment Craig Caruana - Managing Director
Yr established 2004 Craig has been involved with the management of
franchise companies for over 10 Years. Craig is the
Business stage Early Stage/Expansion President of the Australian Amusement Association.
Grant McFadden - Director Of Operations
Location Sydney Australia Over 15 years experience in site management and
Seeking Capital Raising training and is the leading consultant to installations
For Freestyle Slides Inc (USA).
Corporate Structure:
Executive Summary Speciality Entertainment Pty Ltd is a Privately
Speciality Entertainment™ is Australia’s largest supplier of Licensed inflatable’s with over owned Company.
thirty franchise locations across Australia and New Zealand. The company has secured
exclusive licenses to the worlds largest brands including The Wiggles, Marvel Comics, Hi-5
Bratz, Barbie, Thomas the Tank Engine and the National Rugby League (NRL). Speciality
Entertainment™ leverages off the millions of dollars invested in these well known brands.
Exit Strategy
Speciality Entertainment is ideally suited to being
The success of the companies franchising model has provided a number of unique
purchased by a larger Entertainment and Leisure
opportunities with the company planning to expand its operations in Western Sydney to
operation looking to expand their operations into
include the development of a 50 Acre site into a Family Fun Park with substantial returns
new lucrative markets within the next three years.
forecasted for investors.
Competitive Advantages
• Well established company with growing profile with 40 Franchised locations, 300 Corporate
clients and 5000 birthday parties every year.
• Experienced management team within the Amusement and Leisure Industry.
• Proven business model with low risks and provides for multiple revenue streams
• Exclusive rights to world leading brands, including Spiderman, The Wiggles, Marvel Comics
and the National Rugby League
• Demand for Products and Services within Region with no competitors
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Company Name Broome Hovercraft Board & Management:
Sector State, national & international tourists Roger Colless - Sole Director
Yr established 1999 Roger is a qualified aircraft engineer with 20 years in
the RAN Fleet Air Arm; ten years in offshore oil and
Business stage Expansion gas management; ten years in design engineering
and project management before starting in the
Location Broome, Western Australia tourism industry.
Seeking Strategic partner or outright buyer He is now a qualified hovercraft master who can
train and endorse all hovercraft pilots.
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Eco Investor
Forum 2009
21 October, Hilton Hotel, Sydney
Be part of Australia’s largest gathering of leading environmental,
cleantechand clean energy companies. Every company and
fund presenting is an Australian or world leader in their field.
Presentations by:
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Geodynamics - Australia’s largest geothermal Impax Environmental Markets Trust - a leading
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CleanTeQ Holdings - a leader in air and water August Investments - Established in 1981,
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Willmott Forests - a leading plantation land and equities fund
forestry business with a focus on renewable
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Ceramic Fuel Cells - Australia’s leading fuel cell PLUS!
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Carnegie Corporation - Australia’s leading wave
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Jackgreen - Australia’s largest pure play green Pitches by five ‘Investment Ready’
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BluGlass - Australia’s leading high-tech LED
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CVC Sustainable Investments - Australia’s
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SPONSORS:
Eco Investor Forum is presented by Eco Investor Magazine, Australia’s specialist environmental investment magazine.