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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
Materials
$0.20
Size of Offer $4.5 million
Minimum Bid $2,000.00
Opening Date 16/05/2019
Closing Date 26/08/2019

Update

The company has advised that a Supplementary Prospectus has been lodged and the offer has been extended until 26 August 2019.  Announcement available here

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
Software & Services
$0.08
Size of Offer $2.7m - $4.0m
Minimum Bid $2,000.00
Opening Date 31/07/2019
Closing Date 20/08/2019

Introduction

The GO2 People Ltd (ASX: GO2), an ASX listed company, is a leading provider of vertically integrated recruitment, training and building services throughout Australia.  GO2 are raising capital to acquire Industry Pathways, a high margin, highly scalable online education and training provider.  Industry Pathways complements GO2’s recruitment business, with potential to cross-sell Industry Pathways training programs to GO2’s 175,000 job applicant database.  Stand-alone, in FY19 Industry Pathway expects $6m revenue and $2m EBITA whilst GO2 expects its first cash positive month from July 2019.

Offer Summary

The GO2 People are looking to raise up between $2.7 million to $4 million via its Documented Retail Placement at $0.075 and investors will receive one (1) free attaching New Option for every share issued. The Options will be exercisable from 31 July 2020 and have a 10 cent exercise price. For more information on Options, please see page 11 of the Prospectus.

The capital raise offer and the broker options offer are subject to shareholder approval which will be sought at the general meeting to be held on 9 August 2019. 

Business Overview

Transaction Summary

Financial Overview

 

Risks

As set out in Section 7 of the Short Form Prospectus, The GO2 People Ltd are subject to a range of risks, including but not limited to completion of the acquisition, risk of shareholders not approving the acquisition and capital raising, due diligence, dilution, workers health and safety, reliance on major clients and key management.

 

Section 734(6) disclosure: The issuer of the securities is The GO2 People Ltd ACN 616 199 896. The securities to be issued are ordinary shares together with an option to acquire an ordinary share, for each ordinary share issued. 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 close and the 'Pay By' dates may change. Bids over $10,000 may be scaled back more heavily. Duplicate bids under the same investment profile or investor name will be combined into a single bid.

IPO
Materials
$0.20
Size of Offer $4m - $6m
Minimum Bid $2,000.00
Opening Date 4/07/2019
Closing Date 10/09/2019

Introduction

Tartana Resources Limited (ASX: TNA) is a zinc and copper exploration company with assets being the Tartana Copper and Zinc Project in northern Queensland and the Zeehan Zinc Slag Project in western Tasmania.  The Tartana Project is the flagship project. It comprises four mining leases which contains an open pit which was the source of copper oxide ore for historical copper sulphate production using heap leach pads and a solvent extraction/crystallisation plant, still on site

Past exploration on the mining leases has defined four separate exploration projects and mineralisation in each potentially relates to an interpreted deeper porphyry copper system. The projects are the Queen Grade Zinc Project comprising a zone of interpreted zinc skarn mineralisation, a Copper Oxide Project which is based on mineralisation evident within and around the existing open pit, a deeper Copper Sulphide Project below and to the north of the pit and lastly, the Valentino Copper/Gold/Silver/Cobalt Project which is further east but may also be related to the deeper sulphide mineralisation.

Recent work by the Company has involved defining JORC 2012 Exploration Targets for the Queen Grade Zinc Project and both the deeper Copper Sulphide and Valentino Projects.

Investment Highlights

  • Exploration potential – The Tartana Copper and Zinc Project is located in the prospective Chillagoe region and has previously operated as a mining operation and with further exploration, each of these Projects has potential for the Company to define copper or zinc resources.
  • Historical data – The Tartana Copper - Zinc Project has been sporadically explored over the years with historical drilling, geological and geophysical data available. The Zeehan slag dumps have been drilled by past explorers and the company has recently completed further drilling to upgrade the mineralisation to resource status.
  • Attractive commodities  - copper and zinc are two commodities with attractive supply and demand fundamentals
  • Granted mining tenements – The four tenements associated with the Tartana Project are long-dated Mining Lease, the Zeehan Slag tenement is under a newly granted Mining Lease and the Mt Hess and Amber Creek Tenements are granted exploration permits renewable in 2022.
  • Experienced management team with significant expertise in mineral projects, project development and corporate finance.

Offer overview

Tartana Resources Limited is looking to raise $4 million to $6 million.  The company proposes to use the funds raised from the Offer to:

  • undertake drilling on the projects within the Tartana Copper and Zinc Project mining leases;
  • advance the Zeehan Zinc Slag Project, commence initial exploration on the Mt Hess and Amber Creek Projects and undertake project generation;
  • Provide working capital; and
  • to pay for the variable costs of the Offer.

The Mining Projects

Tartana has a mission to become a significant copper and zinc company through development of its existing projects, acquisitions of new projects and exploration success.

The Tartana Project has been broken into four separate projects within the four mining leases and these are; Copper Oxide Project, Copper Sulphide Project, Queen Grade Zinc Project and the Valentino Copper/Gold/Silver/Cobalt Project. 

Tartana Copper and Zinc Project, North Queensland

The flagship project is located approximately 150 km west of Cairns and 40 km northwest of Chillagoe along the Burke Development Road.  This area hosts major porphyry and skarn related deposits including the Red Dome porphyry copper-gold skarn, the Mungana porphyry copper-gold-zinc-lead deposit, the King Vol high grade zinc skarn deposit and numerous smaller deposits along the belt.  Historically, copper mineralisation has been reported at Tartana Hill where small scale mining has occurred in the past as well as elsewhere across our leases.

Separately, zinc mineralisation is present in the Queen Grade Project within our mining leases, and has similarities with the zinc mineralisation in other projects in the Chillagoe region including the neighbouring King Vol Zinc mine.

 

Copper Sulphate Production and Copper Oxide Potential

The previous owner and operator treated copper oxide mineralisation in a small scale heap leach solvent extraction operation which produced high quality copper sulphate. The process involved mining shallow oxide copper ore in an existing and now partially rehabilitated open pit and which was stacked on the leach pads for leaching to produce copper sulphate for sale into the mining and agriculture industries. There is ample evidence that oxide copper material is still available in the base and walls of the pit and also in a zone extending 280 m north of the pit and we will focus some of our exploration work on quantifying this copper mineralisation (See Figure 5 and 6).

 

Figure 5 - Heap leach pads and Solvent Extraction plant.

 

Figure 6 - Copper Sulphate in one tonne bulka bags which has been produced by the previous owner and awaiting shipment).

 

Zeehan Zinc Slag Project, Western Tasmania.  Tartana’s wholly owned subsidiary, Intec Zeehan Residues Pty Ltd owns Mining Lease ML 3M/2017 located approximately 2.5 km south of the township of Zeehan in western Tasmania. This lease contains an old smelter site along with residue stockpiles of zinc-rich slag.

The Zeehan smelter operated intermittently from 1898 and 1948 recovering lead, silver and copper from the processing of locally mined ores and ore concentrates.  The Company recently implemented a 7-hole air core drilling programme to assist in verifying historical drilling data and to enable an upgrading of the mineralisation to a JORC 2012 Indicated Resource status

Tartana is investigating opportunities to monetise the zinc in the slag to provide working capital to finance other activities. And also to have the opportunity to improve the site in terms of its historical significance.  They have investigated a number of options which include:

  • Leaching the slag to recover the zinc. This includes leach testwork which has been carried out by Core Resources Pty Ltd, and demonstrates that high zinc recoveries are achievable in a leach process.
  • Slag sales to a third party processor in Europe. Samples have been collected and sent overseas for testing in a Waelz kiln in Europe.
  • Slag sales to local smelters. This has involved the collection of a 5,000 tonne bulk sample which has been trucked to the Port of Burnie. This bulk sample has been shipped to Nyrstar’s Port Pirie smelter in South Australia and been used in trial processing.

The Exploration Projects

Tartana has two exploration projects in Queensland which are held in the Company’s 100% held subsidiary, Oldfield Resources Pty Ltd.

Mt Hess Copper-Gold Project - The Mt Hess Project is located approximately 100 km southwest of Mackay. The project area covers part of the Gotthardt granodioritic intrusion which intrudes into the overlying Permian sediments of the Bowen Basin. Skarn and porpyhry copper mineralisation is associated with this intrusion and within the Mt Hess Project area there are numerous copper-gold prospects in an area north of the Gotthardt granodiorite.

Amber Creek Molybdenum-Tin-Tungsten Project - The Amber Creek Project is located 177 km southwest of Cairns and comprises an area covering a number of separate molybdenum, tin and tungsten prospects. These prospects are within the undifferentiated metamorphics which are probably related to the McDevitt Metamorphics which have been intruded by the Elizabeth Creek Granite.  Oldfield has conducted geological mapping along with soil and magnetic surveys over the area and has also identified several discrete mineralised vein structures. Tartana will implement an initial exploration programme focused on sampling these structures.

Commodity Outlook

Copper

Copper is often referred to as a bellwether of the markets and the supply/demand balance is often dominated by demand expectations which itself reflects the outlook for world economic growth but particularly with China. As well as copper demand in electric vehicles, stronger copper demand stems from new infrastructure projects in China and India including the expansion of their respective power grids and in China, the development of the high-speed rail network and domestic demand (air conditioners, etc.).

Zinc

According to the International Lead and Zinc Study Group, after increasing by 1.3% in 2018, global zinc mine production is forecast to rise by 6.2% to 13.48 million tonnes in 2019. New zinc supply has been dominated by Australian producers.  China is also a significant player in the zinc market as investment in infrastructure and any pick-up in construction could drive overall demand higher.

Management and Board

Tartana Resources Limited is led by a team which has extensive experience in geology, mining and metallurgical processing and product marketing as well as financial, technical and management experience in the resources industry.  These include:

  • Dr Stephen Bartrop (Executive Chairman) with more than 30 years’ experience covering periods in both the mining industry and financial sector. With a geology background, Steve has worked in exploration, feasibility and evaluation studies and mining in a range of commodities. In the financial sector, Steve has been involved in research, corporate transactions and IPOs spanning a period of more than 20 years, including senior roles at JPMorgan, Bankers Trust and Macquarie Equities.
  • Bruce Hills (Executive Director) is currently an Executive Director of Breakaway Investment Group Pty Limited which operates the Breakaway Private Equity Emerging Resources Fund. Bruce is a Director of a number of unlisted companies in the mining and financial services sectors including The Risk Board and Stibium Australia.
  • Peter Rohner (Executive Director) with over 30 years’ experience in the mining industry and has been involved in mineral processing technology development including development of the Jameson flotation cell, IsaMill fine grinding and more recently had significant involvement in further development of Glencore’s Albion Process (fine grind oxidative leach) technology.
  • Craig Nettelbeck (Non-Executive Director) successfully forged global relationships enabling him to negotiate numerous complex transactions before moving into the corporate advisory sector specialising in the agriculture, energy and mining sectors.
  • Robert Waring (Non-Executive Director) with over 40 years’ experience in financial accounting and company secretarial roles, principally in the resources industry.

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 9 of the prospectus, Tartana Resources Limited is subject to a range of risks, including but not limited to exploration and development, development of acquisition opportunities, valuation of tenements, dependence on key personnel and native title and land access risks.

 

Section 734(6) disclosure: The issuer of the securities is Tartana Resources Ltd ACN 126 905 726. 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).​

Breakaway Research Pty Ltd has provided only a distribution service to OnMarket using its database. Please note that Stephen Bartrop is a director of Tartana Resources and is also a director of Breakaway Research Pty Ltd.

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
Biotech
$0.83
Size of Offer Up to $12.1 million
Minimum Bid $2,000.00
Opening Date 12/08/2019
Closing Date 19/08/2019

 

The Imricor Medical Systems, Inc. IPO has closed for applications via OnMarket.  

The IPO is underwritten by lead manager Moelis Australia, and OnMarket has a limited allocation. Bids more than $5,000 may be scaled back more heavily. 

The offer may close early and the payby dates may change. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.

Introduction

Imricor Medical Systems, Inc. (ASX:IMR) is a U.S.-based medical device company, focused on designing, manufacturing and selling MRI-compatible products for cardiac catheter ablation procedures to treat arrhythmias. Imricor believes it will be the first company in the world to bring commercially viable and safe MRI-compatible products to the cardiac catheter ablation market.

Imricor currently has 18 issued U.S. patents, 40 corresponding granted foreign patents and 2 foreign patent applications that have been allowed.

Imricor currently generates revenue from licensing IP for use in implantable devices and a contract research project in the area of MRI-guided interventions. However, given that the company has obtained CE mark approval to place one of its key products, the Advantage-MR EP Recorder/Stimulator System, on the market in the European Union, and is in the final stages of the CE mark approval process for its other key products, the Vision-MR Ablation Catheter (with an indication for treating type I atrial flutter) and the Vision-MR Dispersive Electrode, Imricor plans to establish a third revenue stream from the sale of these products. This third revenue stream is expected to become its primary revenue source, with forecast revenues of US$6.9 million for 2019.

Following receipt of CE mark approval for the Vision-MR Ablation Catheter, Imricor intends to begin a controlled limited release of its key products to iCMR lab sites in the Netherlands, Austria, Germany and Switzerland (Phase One of three phases), and is aiming to have 13 iCMR lab sites purchasing consumable products by the end of 2019.

Imricor's Advantage-MR EP Recorder/Stimulator System

Investment Highlights

  • Expects to have the world’s first commercially available MRI-compatible catheter ablation devices

  • Large addressable market, growing to US$4.37bn in 2021, with favorable market drivers including rising incidences of cardiac disease and a shift towards minimally invasive procedures

  • Leveraging strategic relationships with Koninklijke Philips N.V. and Siemens Healthcare GmbH, global leaders in the provision of MRI equipment to hospitals and labs

  • The potential to successfully address unmet needs in the ablation technology currently and deliver value to stakeholders, including patients, physicians, hospitals and insurers

  • Strong IP portfolio and IP protection with 18 issued U.S. patents, 40 corresponding granted foreign patents, 2 foreign patent applications that have been allowed and 17 pending patent applications worldwide

  • Founder-led business with deep med-tech experience management team

Offer Details

Imricor is looking to raise approximately A$11.1 million by issuing 13,373,494 new CHESS Depositary Interests (CDIs) representing shares of Class A common stock in Imricor (Shares) at A$0.83 per CDI (Offer Price), with the ability to accept oversubscriptions for up to 1,204,819 new CDIs to raise an additional A$1.0 million (the Offer).

Lead manager, Moelis Australia, has underwritten the Offer up to A$11.1 million, being the minimum offer proceeds.

Imricor is also conducting a concurrent private placement of 1,084,337 Shares (equivalent to the same number of CDIs) to certain accredited investors in the U.S. pursuant to Regulation D of the U.S. Securities Act (U.S. Private Placement). The U.S. Private Placement will be at the equivalent price per Share as the Offer Price (but in U.S. dollars).

The Offer and the U.S. Private Placement are together referred as the Combined Offers and are expected, together, to raise minimum gross proceeds of A$12 million (approximately US$8.2 million) or maximum gross proceeds of A$13 million (approximately US$8.9 million).

Industry Overview

Arrhythmia is an abnormal heart rhythm. Certain untreated arrhythmias can lead to serious cardiac conditions, such as blood clotting, stroke and/or death.

Where a long-term treatment option is required (as opposed to acute treatment options for arrhythmias which require immediate management), cardiac catheter ablation is one of the recommended first-line therapies for the treatment of a number of different type of arrhythmias. The procedure involves an electrophysiologist (a cardiologist with specialist training in the treatment of arrhythmias) guiding a catheter into the heart and aiming the tip of the catheter at one or more areas of abnormal heart tissue. Energy travels through the tip of the catheter with the aim of intentionally creating a scar or permanently destroying (also referred to as creating lesions or ablating) the tissue that triggers or supports the arrhythmia.

The market for cardiac catheter ablation procedures is experiencing increased global growth in developed economies such as the United States, Europe, the Middle East and Africa and the Asia Pacific.

This growth is supported by drivers such as:

  • rising incidences of cardiac diseases;
  • a shift towards minimally invasive procedures with improved medical imaging; and
  • cost savings that have been associated with catheter ablation as a treatment method for certain arrhythmias.

Based on a recent industry report and other market data, the market for cardiac ablations is expected to grow by a CAGR of 7.6%, with annual revenues across the global cardiac ablation market forecasted to increase from US$3.03 billion in 2016 to US$4.37 billion in 2021.

Global cardiac ablation market annual revenue 2016-2021 (US$ billions)

 

Product offering

Imricor designs and manufactures consumable products and capital equipment; all of which are designed to be used in performing MRI-guided cardiac catheter ablation procedures. Imricor’s key products are the Advantage-MR EP Recorder/Stimulator System, the Vision-MR Ablation Catheter and the Vision-MR Dispersive Electrode. The Advantage-MR EP Recorder/Stimulator System is capital equipment which can be used in multiple procedures, while the Vision-MR Ablation Catheter and the Vision-MR Dispersive Electrode are single-use consumable products.

Imricor is also in the process of developing other products for use in cardiac catheter ablation procedures, and is exploring the potential to develop MRI compatible products for use in a number of other types of procedures which may be more effectively carried out under MRI guidance.

Value proposition for stakeholders

Whilst MRI technology is not new, there are several challenges associated with developing products for MRI-guided cardiac catheter ablation. Imricor has overcome these challenges to deliver what it believes to be the world’s first commercially viable MRI-guided cardiac catheter ablation solution. Imricor believes its products have the potential to successfully address unmet needs and deliver value to stakeholders, including patients, physicians, hospitals and insurers in the following ways:

 

Intellectual Property

Imricor has 18 issued U.S. patents, 40 corresponding granted foreign patents and 2 foreign patent applications that have been allowed. In addition, Imricor has 17 pending patent applications world-wide. Imricor’s intellectual property is relatively new, with the Company’s oldest issued patent expiring in 2030. In addition to protecting Imricor’s devices and procedures, its patents provide an opportunity for the Company to license its technology to third party medical device companies (particularly implant manufacturers) to help make their devices compatible with MRI.

Business model

Imricor currently generates revenue from licensing IP for use in implantable devices and a contract research project in the area of MRI-guided interventions. Post CE mark approval, Imricor plans to establish a third revenue stream which, in the future, is expected to become its primary revenue source, from the sale of MRI-compatible catheter ablation products to hospitals and clinics for use in Interventional Cardiac Magnetic Resonance Imaging (iCMR) labs.

Sales Channels

The installation of iCMR labs by hospitals and clinics is driven by MRI equipment vendors (MR vendors). Imricor works collaboratively with MR vendors such as Koninklijke Philips N.V. and Siemens Healthcare GmbH to target certain sites and help design iCMR labs for those sites. As of the date of the Prospectus, Imricor, in collaboration with Koninklijke Philips N.V. and Siemens Healthcare GmbH, is currently in discussions with over 45 hospitals and clinics about establishing an iCMR lab.

Though Imricor will initially sell all of its capital and consumable products directly to the hospitals or clinics, it is pursuing agreements with MR vendors such as Siemens Healthcare GmbH and Koninklijke Philips N.V., which will allow the Advantage-MR EP Recorder/Stimulator System to be sold to hospitals and clinics through these MR vendors as part of a larger lab construction package.

Growth Strategy

Following completion of the Combined Offers and receipt of CE mark approval for the Vision-MR Ablation Catheter, Imricor intends to begin a controlled limited release of its key products to iCMR lab sites in the Netherlands, Austria, Germany and Switzerland (Phase One), and is aiming to have 13 iCMR lab sites purchasing consumable products by the end of 2019.

Imricor aims to then expand its focus to Australia (if and when Australian regulatory approval is obtained), France, Hungary and the United Kingdom in 2021 (Phase Two), followed by the Czech Republic, Italy, Spain, Sweden and other EU countries around 2023 (Phase Three).

The actual timing of these phases will, however, depend on a number of factors such as the level of adoption in each preceding phase and when greater growth opportunities are identified in the next phase.

Proposed use of funds

The Combined Offers are being conducted to:

  • Fund the commercial launch of the Advantage-MR EP Recorder/Stimulator, Vision-MR Ablation Catheter and Vision-MR Dispersive Electrode in the European Union;
  • Grow sales, marketing, and manufacturing capabilities to support commercialisation in the European Union;
  • Progress regulatory approvals for the Australian and U.S. markets;
  • Continue to develop the Company’s line extensions (including the diagnostic catheter) and additional products; and
  • Fund general working capital requirements

Risks

An investment in Imricor is subject to a range of risks which, if they eventuate, could have a significant negative effect on Imricor’s business, financial position and the value of your investment. The key risks associated with an investment in the Company are contained in Section 4 of the Prospectus, which should be considered in detail.

 

Section 734(6) disclosure: The issuer of the securities is Imricor Medical Systems, Inc. ARBN 633 106 019 . The securities to be issued are CDIs. 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 $5,000 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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