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Greater access to IPOs through OnMarket BookBuilds

State One has partnered with OnMarket BookBuilds to provide our clients with even more investment opportunities. In addition to the exclusive capital raisings that State One undertakes and offers to our clients, you can now take advantage of offers from OnMarket. Our association with OnMarket will allow you to bid directly on IPOs and have the shares allocated straight to your holdings at State One. Through OnMarket our clients will also be able to access free research, management interviews and get notifications on upcoming IPOs.

OnMarket is Australia’s first online platform that lets all investors buy shares in IPOs free of any fees other than the cost of the shares. Since launching in October 2015 OnMarket has hosted 1 in 3 ASX IPOs, so we are obviously excited to be able to offer our clients access to this cutting-edge platform. For each offer hosted by OnMarket you get easy bidding & payment, free independent research, and a chance to 'meet the management' via exclusive video interviews. Best of all, when you invest in IPOs via OnMarket, any shares you buy can be allocated directly to your State One Stockbroking account so you can manage your portfolio without disruption.

How does it work?

We will display the list of current offers from OnMarket on our website. If you see an offer that you want to invest in then click on the Bid Now button to apply for shares. You will leave State One website and be redirected to our partner's (OnMarket) bidding platform where you will need to sign up with your Holder Identification Number (HIN). If you have already signed up then you will be taken straight to the bidding page for the selected offer.

It is important that you enter your HIN correctly when you set up your login at OnMarket. This will make for a seamless experience if you want your shares to be automatically allocated to your State One account.

Current OnMarket Offers

IPO
Automobiles
$0.20
Size of Offer Up to $5 million
Minimum Bid $2,000.00
Opening Date 21/06/2019
Closing Date 5/07/2019

Introduction

RPM Automotive Group Ltd (ASX: RPM) (formerly Kairiki Energy) is acquiring 100% of the RPM Group. The RPM Group comprises of a number of aligned automotive aftermarket businesses that together provide a platform to address significant opportunities in the Australian market. The RPM Group of companies are customer-facing, integrated specialist retailers, that in most cases have a long history in the Australian market.

The RPM Group is organised around the following 4 core pillars:

  • Motorsport
  • Wheels and Tyres
  • Repairs and Roadside     
  • Performance and Accessories

Within these segments of the market the respective RPM Group Businesses have developed well-known (best in class) brands and significant goodwill. The RPM Group’s overarching strategy is built on a simple philosophy of customer service, owning and representing respected brand names across the various ranges, with the highest quality of product and service offerings.

While many of these businesses have been in existence for many years, in 2013, The RPM Group was officially formed, and continues to grow via the select acquisition of attractive and profitable businesses. The founders of The RPM Group, Clive Finkelstein and Lawrence Jaffe, have a combined 40 years’ experience in the industry having previously acquired, operated and grown automotive businesses both in Australia and South Africa.  Both Clive and Lawrence are joining the board of the Company as part of the acquisition.  In the first half of FY 2018, the RPM Group had revenues of over $17 million and normalised EBITDA of $1.4 million.

Table 1

Investment Highlights

  • Favourable industry fundamentals – the Australian automotive aftermarket across all sectors is valued at over $32 billion per annum.  Demand is relatively stable, as consumers need to maintain their cars due to wear and tear and should continue to grow due to a growing Australian car fleet
  • Positioned for growth- businesses are positioned to grow strongly, both organically and via acquisition. In acquiring The RPM Group, the business is gaining a national footprint with operations in all five states in multiple sectors of the automotive industry including wholesale, retail and manufacturing.
  • Well-known brands - the Company is acquiring some highly regarded Australian automotive brands with a rich history of association in the sector. The Company will also gain exclusive distribution rights for a number of highly respected brands.
  • Clear plan - plan to aggressively grow the business both organically and via acquisition and has identified a number of opportunities in the Australian automotive market.
  • Management team with deep industry experience - Clive Finkelstein and Lawrence Jaffe who are both founders of The RPM Group, have a combined 40 years’ experience in the automotive industry and will join the Company’s Board and continue to lead the business in the future.

Offer overview

The issuer of this Prospectus is RPM Automotive Group Limited (formerly Kairiki Energy Limited) an ASX listed company being re-constructed via the acquisition of a group of businesses known as The RPM Group Limited and will trade under the ticker ASX:RPM. The proposed transaction enables The RPM Group to obtain a listing on the ASX via a Reverse-Take-Over (RTO) of the Company. The vendors of the businesses being acquired are receiving a mixture of shares in the Company and cash as consideration for the acquisitions.

RPM Automotive Group Ltd will be issuing shares at $0.20 each (vendors received shares at $0.25 each) and is seeking to raise between $2 million and $5 million and will have an indicative undiluted market capitalisation of approximately $17.5 million at maximum subscription.

The company is offering one attaching option for every four shares issued and also intends to pay a dividend out of its profits with an expected dividend payout ratio of 30% of NPAT. 

The purpose of the Offer is:

  • to raise additional capital to grow the business;
  • to provide limited cash payouts to vendors (none of which are board members);
  • meet some of the costs associated with the public offer.

Industry Overview

RPM Automotive Group Limited operates in the Australian automotive market in the sectors of motorsport and aftermarket products and services. The total value of the Australian automotive aftermarket industry is estimated at over $32 billion per annum, which includes wheel & tyre sales, servicing & repairs and auto parts & accessories.

A summary of the revenue (2016/17) of the various sectors of the automotive aftermarket is estimated in the Table 2 below:

Table 2

The key driver of the automotive aftermarket is motor vehicle ownership. There were 19.2 million registered motor vehicles in Australia as at 31 January 2018, which continues to grow at a rate of 2.1% per annum. Over 1.155 million new vehicles were sold in Australia in 2015 and new vehicle sales are predicted to increase to 1.209 million in 2023. The composition of Australian new vehicle sales is also changing with an increasing proportion of vehicle sales being SUVs and light trucks. In 2000 cars made up 71.2% of new vehicles sold, whereas in 2015 SUVs made up 34.8% and light trucks 20.3% of sales and the share of car sales was down to 44.9%.

Business overview

The RPM Group is a group of businesses operating in the Australian automotive sector. The RPM Group's businesses manufacture, wholesale and retail parts and accessories for motorsport, passenger and commercial vehicles, as well as, providing services such as mechanical repairs and tyre fitment. The proposed transaction will further increase the size of the group with the completion of the acquisitions of Air Anywhere and Fix My Truck, which have been working in close association with the group. The businesses that will comprise RPM Automotive Group Limited on completion of the proposed acquisition of The RPM Group are:

  • Revolution Racegear (1993): is a manufacturer, importer, wholesaler and retailer of soft accessories and safety equipment for Australian motorsport participants.
  • Carline Automotive Group (1991): is a nationwide licensee of automotive servicing and repairs stores for passenger vehicles, focussing on exhaust and under-car repairs.
  • RW Tyres (2013); Competition Tyres (1965), Tyresome (2002): is the Company’s strategy to create a chain of tyre retail stores via acquiring established businesses in the sector, with two stores currently acquired.
  • Spider GT (2012): is an importer and wholesaler of tyres for commercial vehicles. (Spider GT is a subsidiary of RW Tyres)
  • Air Anywhere (2006): is a roadside assistance and tyre fitment service for commercial vehicles in Victoria.
  • Fix-My-Truck (1998): is a nation-wide information service for the transport industry with customers paying a subscription fee for 24/7 roadside assistance for commercial vehicles.
  • Wildcat (1967): designs, manufactures and distributes automotive performance and emissions products for passenger vehicles.
  • Formula Off-Road (1988): designs, manufactures and distributes automotive accessories, such as, towbars, siderails, bull bars, nudge bars and roof racks.

Revenue

The RPM Group is profitable and comprises of businesses that are a good mix of mature businesses with stable earnings and revenues coupled with some earlier stage businesses that are growing revenues and earnings rapidly. 

The businesses operate independently and generate income in their own right (see Table 3 below).

Growth Strategy

Of RPM Group’s more mature businesses, they have been family run and have reached a plateau due to existing management’s lack of capital, structure, skill set or strategy to grow the business further. The Company in acquiring The RPM Group to address these needs and inject capital, new management and thereby re-energise the growth of the businesses.

The Company believes it is in a unique position in the Australian automotive industry. Outlined below is the Company’s competitive advantages and growth strategy:

  • take advantage of a consolidating automotive industry;
  • ability to raise debt funding on more favourable terms and access to capital via an ASX-Listing;
  • quality management and staff;
  • access to competitively priced product
  • centralised financial analysis and capital allocation decision-making
  • a differentiation strategy

Expansion

The Expansion Program (both organic and acquisitional) can be explained in the following way:

  • Truck and OTR (Off-the-Road) (mining, agriculture, forestry, heavy machinery, construction)
    • To secure a meaningful share of the Truck and OTR Tyre market.
    • Current Truck and OTR Tyre Business Model (including both distribution and fitment) is to be replicated nation-wide. 
  • Carline Automotive Group
    • To grow the Carline Automotive Group (currently 120 licensees) to 200+ licensees, coupled with a diversification program introducing new product ranges and services.
  • Revolution Racegear
    • has secured exclusive Australian distribution rights for many of the best international motorsport brands, including Alpinestar Racewear, Cobra seats and Bell Motorsport Helmets; and
    • Revolution’s strategy is to distinguish itself from the competition by offering the largest selection of products, nationwide distribution, good stock availability and a high level of customer service.

The Transaction

On 19 July 2018, the Company announced that it had executed a binding Terms Sheet with the Founders and shareholders of The RPM Group under which the Company conditionally agreed to acquire 100% of the businesses that comprise The RPM Group (Acquisition).

The Consideration amount payable by the Company to the Vendors involves a mixture of cash and equity (new shares issued by Company) and were negotiated with the respective Vendor on an individual basis – outlined in the table below. 

Neither of the Founders (and Promoters) of the RPM Group will receive any cash as part of the Acquisition

Table 3

To provide downside protection to the Company in the Acquisition, the BSA agreements are structured so that Vendors receive 80% of their equity consideration immediately as Consideration shares. The remaining 20% will be issued as Performance Shares and are contingent on the businesses meeting their target FY 2019 EBITDA targets.

Under the BSAs, if a business being acquired by the Company exceeds its target EBITDA in FY 2019 the Company will issue the Vendors Earnout Shares pro-rata to the proportion by which the business exceeds the target EBITDA. There is a cap on the number of Earnout Shares a Vendor will be issued, which is 20% of the number of their Consideration Shares

Board and Management

The founders and drivers of this business have a successful track record in acquiring, building, swelling and ultimately selling businesses in the automotive space using their entrepreneurial flair, natural desire to grow and intimate understanding of this unique industry.  The clear strategy for RPM Automotive Group Ltd is one of growth, taking advantage of the rapidly consolidating aftermarket automotive space.

  • Clive Finkelstein (CEO and Executive Director) co-founded the RPM Group and has over 20 years’ experience in the automotive sector, having built, managed and sold a number of automotive companies including a parts and accessories manufacturer/wholesaler and a 4WD franchise group.
  • Campbell Welch (Non-Executive Chairman) has over 15 years of experience in accounting and financial markets, both in Australia and the UK. He is currently a senior advisor at Novus Capital Ltd.
  • Lawrence Jaffe (Executive Director) co-founded the RPM Group and has a strong financial background having worked in Private Equity and Mergers and Acquisitions including at a major Australian financial institution. He has over 20 years’ experience in the automotive sector and was the CEO of RPM Australasia until 2015.
  • Scott Brown (Non-Executive Director) has extensive experience in finance and the management of public companies including guiding numerous companies through to an ASX-listing. He has held a variety of roles in public companies including Mosaic Oil NL, Objective Corporation Limited, Turnbull & Partners Limited, Allegiance Mining NL, FTR Holding Limited and Garratt’s Limited.

Risks

You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Offer. Like all investments, an investment in the Company carries risk. RPM Automotive Group Ltd is subject to a range of risks, including risks associated with the reliance on suppliers, business integration risk, reliance on key personnel, reputation, technology and operating in a competitive market. Please refer to Section 5 of the prospectus for further details.  

 

 

Section 734(6) disclosure: The issuer of the securities is RPM Automotive Group Ltd ACN 002 527 906. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

OnMarket has a limited allocation. The offer may close early and the 'Pay By' dates may change. Bids over $10,000 may be scaled back more heavily. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.

IPO
Food & Beverage
$0.03
Size of Offer $5m - $6m
Minimum Bid $2,000.00
Opening Date 30/05/2019
Closing Date 28/06/2019

Update

The Company has advised that they have extended the offer close date to 28th June 2019. Whilst they have received good investor interest, including firm commitments in excess of $3 million, the offer has been extended to:

  • allow for presentations to be made to some Asian funds and high net worth investors
  • meet requests for additional time for international investors to lodge applications
  • allow additional time for the company to meet the necessary regulatory procedures following its upcoming shareholders meeting.

Please note that OnMarket has a limited allocation and the offer may close earlier than 28 June.

Introduction

Commencing operations in 2016, New Zealand Coastal Seafoods Limited (ASX NZS) (NZCS) is a profitable and growing processor, distributor and exporter of premium seafood products including ling maw, sea cucumber and soft and hard bones (such as elephant fish backbone and dogfish backbone). NZCS focuses on Asian markets and its products are sold, directly and through distributors, to customers, restaurants, seafood traders, supermarkets and other retailers in New Zealand, Australia and Asia.

NZCS sources products exclusively from New Zealand primary suppliers of raw seafood and operates a seafood processing and drying facility in Christchurch, New Zealand, with a current annual production capacity of 60 tonnes of raw seafood products input. NZCS’ products are generally targeted at Asian populations who value the perceived health and beauty benefits of collagen-rich ling maw, as well as other seafoods.

A key competitive advantage for NZCS, particularly in Asia, is that New Zealand is renowned for its ‘clean & green’ reputation. Consequently, NZCS’ products attract a price premium relative to the Asian-processed products that are common in its target markets.

NZCS generated EBITDA of NZ$164,673 for the nine months ending 31 December 2018, building on the NZ$56,284 for the full financial year ending 31 March 2018.

Investment Highlights

  • Established, profitable business leveraged to Asia’s growing middle class and growing per capital seafood consumption
  • Positioned to capitalise on New Zealand's global ‘clean and green’ reputation
  • In-house product development and manufacturing, using New Zealand sourced and produced inputs
  • Focus on premium products for export to Asian markets
  • Experienced management team with proven ability to manufacture and sell premium seafood products
  • Clear growth strategy in place with plans to take advantage of many identified potential opportunities in the seafood market
  • Rapid growth in revenues

Offer overview

The issuer of the prospectus is xTV Networks Limited (ACN 124 251 396) (ASX: XTV) (to be renamed New Zealand Coastal Seafoods Limited) which announced that it had entered into a binding share sale deed to acquire 100% of the issued capital in New Zealand Coastal Seafoods Limited.  New Zealand Coastal Seafoods Limited will trade under the ticker ASX: NZS.  For more information, please refer to the Prospectus.

New Zealand Coastal Seafoods Limited is seeking to raise up to $6 million and will have an undiluted market capitalisation of approximately $14.2 million at maximum subscription.  

NZCS intends to apply the funds raised from the public offer over the first two years following readmission of NZCS to the official list as follows:

  • expanding its manufacturing facilities and meet other capital expenditures;
  • expanding its sales staff and marketing;
  • expanding its operational staff;
  • acquiring raw seafood for processing and undertaking product development; and
  • meeting corporate administration costs, including the expenses of the Public Offer.

Industry Overview

NZCS operates in the fast-moving consumer goods (FMCG) industry, focusing on the seafood market. The global seafood market is currently valued at over US$160 billion.  China is now the largest consumer of seafood products in the world, accounting for over a third of all global seafood consumption and projected to total over US$67.3 billion in 2019. Consumers in China and other Asian countries increasingly have diets with high seafood content, and a growing middle class with rising disposable incomes is further stimulating growth. China’s seafood imports grew 44% in 2018, increasing from US$3.6 billion to US$11.9 billion.  Seafood exports from New Zealand continue to be in high demand in Asia, with over half of New Zealand’s exported seafood destined for Asian markets. In 2017, New Zealand exported 128,000 tonnes of seafood worth NZ$1.8 billion.

 

Dried seafood is considered to have many health benefits in Asian markets, and is commonly used in festive banquets, daily cooking, and traditional tonics. Highly desired dried seafood includes intensely-flavoured dried abalone, sea cucumber, shark cartilage and fish maw, which is currently NZCS’ key product. These dried seafoods are considered delicacies in many countries.

Products

NZCS is currently selling the following products in New Zealand and through distributors for export to international markets:

  • dried ling maw;
  • dried sea cucumber;
  • dried elephant fish backbone; and
  • dried dogfish backbone.

NZCS’ primary product line is currently dried maw taken from the ling fish. Dried ling maw is sold by weight, with larger pieces typically sold at premium over smaller pieces. The ling fish is a large, white fleshed fish found in deep cool waters and the maw is the swim bladder of the fish. Ling fish is one of New Zealand’s top ten seafood export earners and is certified by the Marine Stewardship Council (considered to be the global gold standard for sustainability).  Ling maw is cholesterol-free and rich in nutrients and proteins, including collagen.  Accordingly, ling maw is valued for its perceived health and nutritional benefits, particularly by Asian populations who eat ling maw in soups that are considered delicacies.

NZCS also sells dried New Zealand sea cucumber and dried soft and hard bones (including elephant fish backbone and dogfish backbone), which are also used in dishes that are considered delicacies by Asian populations.

Growth Strategy

NZCS is implementing a number of growth strategies to increase sales, with a particular focus on Asian markets, including China. These strategies are centred around the following three pillars:

  • increasing sales of existing products through expanded production capacity and increased ability to access raw seafood supply;
  • improving profit margins by extending the range of products to include ready-to-eat products such as pre-packaged soups; and
  • expanding sales capacity by enlarging NZCS’ sales force and expanding distribution channels, in existing markets, such as New Zealand, Australia and Hong Kong and entering or further penetrating as relevant markets such as China, Malaysia, Singapore, Indonesia and Vietnam.

Revenue Model

NZCS generates revenue by selling its products through a variety of channels, including direct to customers, restaurants, seafood traders and other retailers in New Zealand, as well as to wholesale distributors who distribute the products to restaurants, supermarkets and various other customers in New Zealand and for export to Asia and Australia.

Board and Management

New Zealand Coastal Seafoods Ltd is led by a management team with extensive experience in FMCG and the seafood industry, including:

  • Peter Win (CEO) Peter has a long history in the seafood industry and is a co-founder and CEO at NZCS.  Prior to co-founding NZCS, Mr Win founded and managed Elanz Limited, a niche food and beverage business that exported locally produced premium products to international markets.
  • Winton Willesee (Chairman) Winton has served as a director of the Company since July 2016. His broad expertise includes strategy, company development, corporate governance, corporate finance, company public listings, and merger and acquisition transactions.
  • Cataldo Miccio (Non-Executive Director) Prior to co-founding NZCS, Cataldo was the mayor of Nelson, New Zealand.  In 2010, Cataldo successfully sold Bissi Ltd, an apparel company he started in 1998 and which, at its peak, grew to over $15 million in annual sales.
  • Ms Erlyn Dale (Independent Non-Executive Director) served as a director of the Company since 8 July 2016. She has a broad range of experience in the efficient administration of companies and corporate governance having been involved with several listed and unlisted public and other companies.
  • Jourdan Thompson (Independent Non-Executive Director) has over 15 years’ industry experience in investment banking, finance and restructuring both in Australia and Europe. Jourdan has spent the last 10 years in investment banking, working most recently for Greenhill & Co. in Sydney and ING Investment Bank in London.
  • Alexander Li (Head of Operations) Li is currently head of operations at NZCS and has been heavily involved in the New Zealand and Chinese dried seafood industry since 1989. Based on that experience, he has an expert knowledge of the production of dried fish maw and other dried seafood. Alexander has also been involved with the development of natural dietary supplements and natural health and beauty products since 2009.

Risks

You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Offer. Like all investments, an investment in the Company carries risk. New Zealand Coastal Seafoods Ltd is subject to a range of risks, including risks associated with limited trading history, growth risk, product pricing, consumer demand, supply risk and season and environmental risks. Please refer to Section 7 of the prospectus for further details.  

 

Section 734(6) disclosure: The issuer of the securities is xTV Networks Limited ACN 124 251 396 (to be renamed to New Zealand Coastal Seafoods Limited). The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

OnMarket has a limited allocation. The offer may close early and the 'Pay By' dates may change. Bids over $10,000 may be scaled back more heavily. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.

IPO
Materials
$0.20
Size of Offer $4.5 million
Minimum Bid $2,000.00
Opening Date 16/05/2019
Closing Date 12/07/2019

Update

The Company has advised that they have received a significant commitment from an experienced, resources focused institutional investor. 

Introduction

Trigg Mining Limited (ASX: TMG) is an explorer of the essential potassium fertiliser, sulphate of potash (SOP), which is needed for global food production and human nutrition. Founded on the purpose of building mines communities can be proud of, the company engages in the sustainable extraction and evaporation of hypersaline brines in Western Australia.

Sulphate of potash is a premium potassium fertiliser required for healthy plant growth, plant metabolism, optimisation of crop yields and quality of produce. It is a necessary fertiliser for high value, chloride sensitive crops such as avocados, cocoa, coffee beans, grapes, berries and tree nuts, as well as arid and acidic soils. Potassium is also of vital importance for human health where it is required for normal cell function, maintenance of cardiovascular health and prevention of stroke and coronary heart disease.

Investment Highlights

  • Strong global demand for fertiliser – demand for sulphate of potash fertilisers is strong. The world population continues to expand whilst the area of arable land per capita is falling, placing greater pressure on increasing productivity and crop yields to feed the expanding global population.
  • Opportunity to be Australia’s first domestic supplier – Australian consumption of SOP is currently supplied by imports and Australia has frequent supply constraints from traditional suppliers, resulting in SOP imports coming from secondary producers.
  • Targeting premium markets – primary choice for high-value chloride sensitive crops such as avocados, cashews, almonds, cocoa, berries, stone fruits, citrus, all crops under glass and flowers.
  • Naturally occurring production method – Brine hosted SOP is a naturally occurring primary source of SOP and can potentially be organically certified (essential for organic farming) with other methods of production requiring secondary chemical processing, increasing production costs.
  • Competitive footprint – The Projects cover approximately 2,640 km2 containing more than 400 km2 of playa lakes and 300 km of interpreted palaeochannels.
  • Located close to established infrastructure - The Projects lie near existing transport and energy infrastructure.
  • Established exploration target - Exploration Target of approximately 15% of the total tenure area, based on historical exploration work, shallow pit sampling, geophysical surveys and air core drilling.
  • Share register includes Regal Funds Management – Substantial shareholding by Regal Emerging Comp Fund II.
  • Experienced management team and Board with significant expertise in mineral projects, project development and corporate finance.

Offer Overview

Trigg Mining Limited is seeking to raise A$4.5 million and will have an enterprise value of A$7.1 million at listing. The company is also offering 1 free attaching option on the basis of 1 new option for every 2 shares subscribed.  Each new option will be quoted (ASX: TMGO) and will be exercisable at $0.20 per new option on or before 31 October 2021.

The Company intends to use the funds raised under the Offer as follows:

  • to fund exploration drilling, geophysics and support;
  • to establish bores and pump testing;
  • for laboratory and test work;
  • to pay for the Company’s administration and corporate overheads;
  • for working capital; and

to pay for the costs associated with the Offer.

About SOP

Trigg Mining is engaged in the exploration and evaluation of SOP mineralisation, used predominantly as a mineral SOP fertiliser and is a valuable tool in crop management by positively influencing crop yield and quality. SOP nutrients play an important role in the development of proteins, enzymes and vitamins, as well as improving plant photosynthesis and growth. It improves nutritional value, taste and appearance (size, colour, and scent), fruit’s resistance to deterioration during transport and storage and its suitability for industrial processing. SOP can improve the uptake of phosphorus, iron, and other micronutrients and helps the plant to be more resistant to drought, frost, insects and many diseases. In sandy soils it can also reduce leaching of cations such as calcium and potassium.

The Projects

The Company has built a competitive footprint across two SOP Projects: Laverton Links and Lake Throssell Potash Projects.

  • The Laverton Links Potash Project comprises three prospects (Lake Rason, Lake Hope Campbell and East Laverton) and is the Company’s most advanced Project. The Laverton Links Potash Project consists of eight granted exploration licences covering a total area of approximately 2,315 km2.  The Laverton Links Potash Project is located close to established infrastructure including roads, rail and three airstrips. Two gas pipelines pass through the Project tenements.
  • The Lake Throssell Potash Project comprises one exploration licence covering an area of 322 km2, situated approximately 200 km east of Laverton along the Great Central Road through to Alice Springs and Queensland via the Outback Highway.  This Project lies approximately 60 km northeast of the newly established Gruyere Gold Mine and the terminus of the Yamarna Gas Pipeline

The Projects total 2,640 km2 of granted tenure, containing over 400 km2 of salt lake playa and 300 km of interpreted palaeochannels (ancient underground rivers) – all prospective for brine hosted SOP. Early exploration work has established a JORC Compliant Exploration Target of 2.5–9.0 million tonnes of SOP (at 4.3 – 6.3 kg/m3) for the Lake Rason Prospect, representing approximately 15% of the Company’s total tenure by area.

Access to infrastructure

Both Projects are well endowed in terms of transport and energy infrastructure. Multiple roads and tracks access the Projects and two gas pipelines pass directly through the Laverton Links SOP Project. Nearby airstrips are located at the Tropicana and Gruyere mines, as well as the commercial airport at Laverton. Logistics for access to domestic and international markets is, subject to negotiation of suitable access and infrastructure arrangements, likely to be via 300 km of road to the railhead at Leonora and then onwards via rail or road to domestic markets, or to international markets via the deep-water port of Esperance.

Industry Overview

In 2017, the United Nations estimated the world’s population had reached almost 7.6 billion and would continue to expand at 1.1% per annum to reach 8.6 billion by 2030. In contrast, the world’s arable land has decreased by more than a third in the 40 years to 2015 and fertiliser application rates have increased by approximately 30% in just the last 15 years. More people are going to need more food, and with global arable land decreasing per capita, the need for higher crop yields will become increasingly important for global food security. These higher yields will remove more nutrients from the soils, increasing the need to be replenished with the use of fertilisers.

Natural production

About 35% of the world’s SOP production is produced from natural brines via solar evaporation. It is a relatively low-cost, primary production method.  Natural brines, such as that being explored for by Trigg Mining, are the only source of SOP to be certified as organic. For organic certification, SOP must come from natural sources with little or no processing, such as solar evaporation.

There are two other, non-organic methods for producing SOP, including sulphate salts reaction and the Mannheim Process.

Premium product

Given the inelastic nature of the demand for SOP and its exceptional qualities, produce growers are willing to pay a higher price for SOP and it effectively serves a separate market to muriate of potash (MOP), sustaining a price premium over MOP. Price premiums are further supported by the higher cost of manufacturing SOP in the Mannheim Process. By way of illustration, and noting that historic pricing differentials are not a guarantee of future differentials, on 13 September 2018 the stated landed pricing at the Port of Kwinana was $989/t (for SOP) and $618/t (for MOP).

Business Objectives  

The Company’s main objective is to complete the next exploration and evaluation phase which will involve:

  • carrying out further exploration work to seek to expand the Exploration Target, define a JORC compliant Mineral Resource and determine possible processing flow sheet options for the brine at Laverton Links Potash Project; and
  • conduct a heritage survey and undertake reconnaissance exploration at Lake Throssell Potash Project.

Management and Board

Trigg Mining Limited’s Board has significant expertise in mineral projects, project development and corporate finance:

  • Keren Paterson, CEO and MD - recognised mining industry leader with more than 20 years’ international experience spanning the entire mining value chain.  Prior to founding Trigg Mining, Ms Paterson was the founder and Managing Director of a uranium company that listed on ASX in 2009.  She has also held corporate roles with Fortescue Metals Group, CopperCo, Resource Capital Funds and Mainsheet Capital
  • Michael Ralston, Non-Executive Chairperson - experienced mining executive (previously undertaking roles as chairman, Managing Director and CFO) having worked for four junior ASX-listed resource companies over the last 13 years
  • William Bent, Non-executive Director - has 25 years’ international experience in resources and corporate advisory. He is a Director of Mainsheet Capital and was the Managing Director of Chalice Gold from 2012 to 2014 where he led the acquisition of exploration and development projects for the company
  • Neil Inwood, Technical Manager - over 25 years’ international geology experience in gold, base, and specialty metals. Significant consulting and venture capital experience in the last 15 years. Previously the Managing Director at Berkut Minerals, Executive Geologist with Verona Capital and prior to that, Principal Geologist with the international mining consultancy, Coffey Mining
  • Matthew Wheeler, Consulting Geologist - more than 20 years’ experience in the Australian and international mineral resources sector. Has held exploration, resource evaluation, project development and management roles in a range of commodities including gold, uranium and industrial minerals. Extensive Western Australian experience including exploration and evaluation of surficial and palaeochannel sedimentary hosted mineral systems within the Yilgarn Craton, Officer Basin and Canning Basin.

Risks

You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Offer. Like all investments, an investment in the Company carries risk. As set out in Section 13 of the prospectus, Trigg Mining Limited is subject to a range of risks, including but not limited to the nature of mineral exploration and exploitation, exploration target, the inability to attract brine volume, climate change and commodity price volatility.

 

Section 734(6) disclosure: The issuer of the securities isTrigg Mining Limited ACN 168 269 752. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

OnMarket has a limited allocation. The offer may close early and the 'Pay By' dates may change. Bids over $10,000 may be scaled back more heavily. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.

 

 

IPO
Food & Beverage
$0.20
Size of Offer $6 million
Minimum Bid $2,000.00
Opening Date 12/03/2019
Closing Date 26/06/2019

IPO closed via OnMarket.  Payment for unfunded applications must be made by 5pm Wednesday, 26 June (AEST). 

Duplicate bids under the same investment profile, investor name or residential address may be cancelled.

Update

Australian Nutrition & Sports Ltd (ASX: AN1) lodged a Second Replacement Prospectus with ASIC on 27 May. This was lodged to clarify items raised by ASIC and to extend the offer timetable. Key changes to the Prospectus are listed on Page 3 and 4 of the Second Replacement Prospectus under Important Information. The key changes to the Offer include:

  • The Company is now seeking to raise $6.0m by issuing 30m new shares at $0.20 per share
  • The implied pre money Enterprise Value is now ~$8.4m (vs $11m previously)
  • The Company is seeking the voluntary escrow of all earlier seed investor shareholders for at least 6 months

Introduction

Australian Nutrition & Sports Ltd (ASX: AN1) is an Australian based company, committed to developing, sourcing and marketing high quality Australian made milk formula and nutrition and wellness products for sale in China, Hong Kong and Australia. In the future they plan to expand into other Asian markets.

Currently focused on infant and adult milk formula products, protein based health and wellness nutritional products, ANS’s business model is to develop and brand its own high-quality products, and then to develop distribution channels for the profitable sale of the products. In doing this ANS currently intends to rely on a capital light business model by outsourcing the production of its products to various export accredited Australian third-party producers.

The market segments in which ANS participates are both growing markets, with health and wellness being a growing industry, particularly in Asia. With the removal of the one child policy in the PRC, and the growing population and growing affluence of the population in Asia in general, ANS believes that the demand for premium nutrition and milk formula products from Australia will continue to grow.

All of ANS’s nutrition and milk formula products are made in Australia at export quality and with all required export certifications. These certifications include the coveted China Certification and Accreditation Administration (CNCA) for the milk formula products. A number of the protein supplements are also approved by China Inspection and Quarantine (CIQ) for the import and sale of products in China.

ANS has successfully commercialised a number of products in the Hong Kong and Macau markets with distributions agreements in places through ~350 locations with leading pharmacy groups including Watsons, Mannings and Royal Shalom.

Revenue for 1H2019 was $349k, which represents ~84% of FY2018 full years sales of $419k, and growing at ~170% on the previous year. Revenue is positioned to continue to grow through major retail networks in Hong Kong and continued sales growth in China.

 

Investment Highlights

  • Premium quality, health and nutrition products sourced and produced in Australia
  • Two complementary product categories, with a total of 23 nutrition products and 4 milk formula products
  • Targeting growing Chinese and South East Asian markets with increased focus on health and wellbeing
  • Third party agreements with accredited manufacturers that hold required accreditations and licences for import and sale of products into China (CNCA and CIQ approved)
  • Executed Agreements for the distribution of products with Watsons and Mannings, Hong Kong’s two largest chain of chemists
  • Commencing Infant Milk Powder sales into mainland China via domestic Chinese e-commerce channels such as KKSKY (www.kksky.com) and Jing Dong (www.JD.com)
  • Generated cash sales of $349k in 1H2019, an 84% increase on revenues of $419k in FY2018
  • Board and management with significant experience in global distribution networks sales and marketing in Asia

    Offer Overview

    Australian Nutrition & Sports Limited is looking to raise up to $6 million via its IPO and will have an indicative market capitalisation of approximately $14.7 million at maximum subscription.  

    The proceeds of the IPO will be used to:

    • increase the sales and marketing budget to expand brand awareness to drive both direct and retail channel sales for ANS’s current commercialised products with a focus on export markets;
    • grow sales and brand presence in Hong Kong by continuing to add new customers to the network with a secondary focus to expand in other Asian markets in which the company already has a presence;
    • rebrand the nutrition and fitness product ranges;
    • invest upstream into IMF and protein manufacturers;
    • continue the commercialisation of the portfolio of product formulations;
    • Provide working capital; and
    • cover costs associated with an ASX-listed company, and other typical administration costs.

    Business Model

    Australian Nutrition & Sports Ltd’s business model is to develop and brand its own high-quality products for the market segments in which it operates, and then to develop distribution channels for the profitable sale of the products. In doing this the company currently intends to rely on a capital light business model by outsourcing the production of its products to various third-party producers.

    All of the company’s nutrition and milk formula products are made in Australia at export quality and with all required export certifications. Outsourcing the production of its products to third parties gives the company the advantage of requiring less capital intensity, and also de-risks the supply of products as it reduces the risk to the company that would be caused by the loss of regulatory accreditation of, or other manufacturing disruption at, a company owned production facility.

    ANS Australia executed a supply agreement with Nature One Dairy in October 2018 for the manufacture and supply of Infant and Adult products. As part of the agreement, NOD agrees to supply IMF and AMF products to ANS Australia from its CNCA approved facility in Melbourne.

    Products

    Australian Nutrition & Sports Ltd has a broad and diverse product range comprising two main product classes, being milk formula and nutrition products:

    Milk Formula

    Australian Nutrition and Sports Ltd offers a range of milk formula products with four commercialised products. Three of the products are developed specifically to address the different stages of infant growth as a nutritional alternative to breast milk for growing infants. All milk formula products meet stringent export regulations and are Australian made in National Association of Testing Authorities (NATA) accredited laboratories.

    Nutrition

    In addition to the extensive milk formula range, the company has a range of Australian-made, export quality nutrition products with all required certifications, including protein powders, protein shakes, protein bars and rapid energy gels.

     

    Business Strategy

    Execution of the brand marketing strategy "The ANSWER".

    The company will focus its initial marketing efforts on promoting its brand and increasing awareness of our existing product range, with a view to increasing sales through existing distributors and retailers, as well as growing its network of distributors and retailers in Australia and abroad.

    Continue China expansion

    The distribution of IMF and AMF products into China is undertaken currently via CBEC (Cross Border e-Commerce) sales channel. This sales channel is large, is expected to continue to grow and is the current primary sales channel that the company will focus on for the sale of its IMF and AMF products into China. The company additionally intends to explore opportunities to sell its AMF products offline through traditional retail channels in China.

    Improve Australian market presence

    The company’s nutrition and protein products are currently sold in Australia in gym and fitness centres with its IMF and AMF products sold in a small number of retail outlets. The company intends to undertake an expansion of its IMF and AMF products into retail stores Australia-wide

    Industry Overview

    In September 2016, the nutrition, health and wellness industry had an estimated global market size of US$570 billion. Key demand factors that have been observed by the company in the market are: population growth; growth in the middle classes (particularly in China); positive social trends regarding health and wellness; and governments willingness to implement initiatives to address public health and ageing populations. The key component of the company’s PBNM products is Australian sourced protein, which is ultimately sourced from cow milk.

    Australia has abundant pasture and other resources for production of dairy based products, making it well positioned to meet China’s growing demand for dairy and nutrition products.

    Management and Board

    Australian Nutrition & Sports Ltd is led by a highly experienced Board with skills in supply chain management, global distribution networks, sales and marketing in Asia.

    • Thomas Lashan - Managing Director and CEO, with more than 20 years experience in the health, wellness and fitness industry in Australia and China. In 2006, he founded the company based on insights gained in his lengthy career as a leading Personal Trainer and Life Coach in Melbourne. Mr Lashan personally led the expansion into Hong Kong and CHina.
    • Peter Reilly - Non-Executive Chairman, with more than 30 years’ experience as a senior executive with public and private companies, including being the managing director of Ausdoc Group Pty Ltd.
    • Alexander Molyneux - Non-Executive Director with more than 10 years’ experience as a financier and company director.  Mr Molyneux is currently Non-Executive Chairman of Argosy Minerals Ltd (ASX:AGY), Chairman of Tempus Resources Ltd (ASX:TMR), and Managing Director of Galena Mining Ltd (ASX:G1A).
    • Simon Fraser - Non-Executive Director, held executive positions with various FMCG organisations over the past 25+ years. This includes Proctor and Gamble where he has held several senior executive positions in Australia and in Asia over a 20-year career.

    Risks

    You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Offer. Like all investments, an investment in the Company carries risk. As set out in Section 4 of the Prospectus, Australian Nutrition & Sports Limited is subject to a range of risks, including but not limited to business strategy and execution risk, limited history in the nutritional health and food products market, dependence on service providers and risks in ability to export food products to Asian markets.

     

    Section 734(6) disclosure: The issuer of the securities is Australian Nutrition & Sports Limited ACN 625 485 912. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. 

    OnMarket has a limited allocation. The offer may close early and the 'Pay By' dates may change. Bids over $10,000 may be scaled back more heavily. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.

    Disclaimer: All information on this section is of a general nature. Before making any investment decision, please seek the relevant advice.

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