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
Software & Services
$0.20
Size of Offer Up to $5 million
Minimum Bid $2,000.00
Opening Date 20/01/2020
Closing Date 31/01/2020

The lead manager has confirmed they have received commitments for the minimum subscription

Key Investment Highlights

  • thedocyard’s platform has been designed as a leading technology in the emerging cloud-based deal management space.
  • Software is proprietary to thedocyard.
  • Technology is already in use with high quality customer base.
  • Revenue generating technology company with focus on sales and marketing.
  • The Company’s platform and internal business operations are scalable to handle significant increases in customer growth and transaction volume and size.
  • Experienced Management team led by founder and Managing Director, Stuart Clout, who drives the vision and execution of the Company’s business plan. The Board has experience in the development of technologies, commercialising and conducting operating businesses and in the capital markets.
  • Existing and growing Australia and New Zealand customer base which, given the strong financial and legal links between the two countries and service firms connected with both, provides opportunities for sales into UK (which is the next key market).
  • Growing user base and network of people and organisations that have been exposed to the platform by working on deals hosted on the platform.
  • Transactions occur in both expanding and contracting economic circumstances and as such demand for thedocyard’s product is unlikely to be severely affected in an economic downturn.
  • Two new strategically important global legal and accounting clients onboarded in the UK in late 2019 giving confidence for the Company’s move into the UK market.
  • Funds from the prospectus are to be predominantly used to fund further sales and marketing of the product particularly in Australia, New Zealand and the UK.

Introduction

thedocyard Ltd (ASX: TDY) is a developer and provider of cloud-based software designed to allow all aspects of corporate transactions to be undertaken on the one central platform. It operates a SaaS business model with its target clients being organisations that undertake corporate transactions on a regular basis such as investment banks, legal and accounting firms, corporate and financial advisers, financial institutions and listed or multinational companies.

thedocyard has a strong competitive position as they offer a complete transaction wide solution to manage and compete a deal, all within a secure encrypted cloud environment.

The platform has the following key features:

  • Workflow management - standardise repeatable processes to make deal management more efficient, including checklists
  • Collaboration - allows all the parties to work on the same platform to compete a deal
  • Secure file sharing - store, share and access documents in one secure location
  • Project management - complete deals in an efficient and auditable manner

Offer Overview

thedocyard Ltd is looking to undertake an IPO on ASX to raise up between $4 million and $5 million via the issue of up to 25 million shares at an offer price of $0.20.  The company will have an indicative market capitalisation of $27.39 million at the maximum raise.

Key Offer Statistics

Funds raised from the Offer will be applied as follows:

For further information on the Key Offer Statistics and Use of Funds, please see the prospectus.

Industry Overview

Thedocyard operates in the deal technology market which includes each and every party involved in the process of signing inter-organisational transactions as well as internal group restructures. Besides the parties in the deal itself, each deal is likely to include a variety of consultants, banks, accountants and lawyers to support a successful deal process. The deal technology market is a world-wide market.

In 2018 private equity funds in Europe alone have been involved in 12,147 deals with a cumulative value of €210b, including fundraising, investments and divestments, with the largest market in the UK. Organisations supporting deals would likely advise on multiple deals annually, making them key target clients for our deal management platform.

Business Overview

thedocyard is an Australian technology company with the ambition to become a leading provider of deal technology to the world’s deal makers and advisors.  thedocyard’s service offering is highly scalable, already in the market and being used and accessed by deal makers and advisors globally.

thedocyard has developed and brought to market next generation transaction management technology aimed at solving pressing issues facing all organisations involved in a wide variety of transactions including (but not limited to):

  • mergers & acquisitions
  • equity / debt capital transactions
  • exchange listings (Initial Public Offerings, Reverse Takeovers etc)
  • corporate actions
  • commercial real estate transactions
  • complex commercial procurement

The Platform

thedocyard platform has been specifically designed with the aim of delivering safer, faster and more secure deal execution and the Company hopes to create a new industry standard of how deals are done. While it is a relatively new entrant into the market, the platform empowers all parties involved in deal-making, including the actual parties to the deal and the entirety of the deal’s supporting cast: consultants, banks, accountants and law firms.

thedocyard platform provides the digital infrastructure that:

  • can contain all data related to the deal;
  • hosts internal and external party communication regarding the deal;
  • allows all task and issues management on a deal to be managed in one place;
  • provides management and collaboration tools over documents that may be sensitive to some of the parties by allowing management of access privileges to different parties;
  • facilitates processes requiring diligent and thorough review, such as signing documents and performing negotiations;
  • ensures deal-makers are at the forefront of regulatory compliance and ensures that sensitive data is secure according to the highest information security standards.

The Technology

The technology has been subjected to and passed the information security and risk assessment processes of globally leading organisations such as:

  • two (2) of the big 4 accounting firms;
  • global law firms;
  • listed corporates (including financial services organisations).

The systems have 8 levels of redundancy and require no down-time for updates. As such it is extremely reliable and accessible.

thedocyard has engaged the services of a leading security consultancy which holds globally recognised information security certifications to perform vulnerability and penetration tests that covers a wide range of potential attack vectors and weaknesses and provide advice on security infrastructure, policies and the ever-growing threats to security.

Growth Strategy

thedocyard will continue to grow their presence in their home market and will immediately expand into the UK to drive further sales and brand position. A key feature of the growth will be the deployment of a sales force focussing on lead generation and conversion and equipped with appropriate technology and repeatable sales processes to optimise the sales. This will be complimented through digital marketing accessing our network of individual deal users. In the longer term the company will find further growth through expansion into the Asian and North American markets. The Company plans to have a total of 7 sales groups in place servicing the Australia, New Zealand, UK and Asian markets within 9 months of completing the Offer.

Revenue

The Company offers thedocyard platform as a Software as a Service (SaaS) by means of subscription. There are three levels of subscription being:

  • Essentials - an initial pilot to encourage new users to the platform
  • Professional – focussed on mid-market deals typically under a value of $50M (AUD) – has less features than Premium
  • Premium – focussed on large complex deals which require the full suite of features on offer

thedocyard subscription service is available in pilot, monthly, annual and multiannual packages. The Company bases its fee for service on the number of transactions undertaken by a client on the platform regardless of the number of users. This gives thedocyard elasticity in its target customers as organisations with low levels of transactions are not priced out of the offer.

Historical Statements of Profit and Loss and Other Comprehensive Income

Cash balance as at 12 November 2019 was approximately $1,064,000

Key Board and Management

James Walker – Non-Executive and Independent Chairman

James is an experienced leader in commercialising technology in new markets, with roles as a Non- Executive Director and Chief Executive of ASX-listed companies or Chief Financial Officer at a UK, AIM-listed technology company as well as executive roles in other growth companies.

Stuart Clout – CEO and Executive Director

Stuart is the Founder + CEO of thedocyard. Prior to founding thedocyard Stuart practiced as a corporate lawyer both in large law firm partnership with Colin Biggers & Paisley in Sydney and in house with the Tesco Group, a Fortune 100 company in London.

Steven Coffey – Non-Executive Director and Independent Director

Steven is currently a non-executive director of Kazia Therapeutics Limited (ASX: KZA - NASDAQ:KZIA), he is the chair of its audit, risk and governance committee. He has previously served on the board and acted as company secretary of an ASX listed public company and sits on the board of a number of large private family companies.

Neale Java – Chief Financial Officer and Chief Operations Officer (CFO/COO)

Neale is an experienced commercial and technical operator who brings proven results in setting strategy, shaping development and directing execution to deliver the growth & profitability agendas of businesses.

Stephen Aspey – Chief Technology Officer (CTO)

Stephen is a highly experienced technical architect and software engineer with over 25 years’ experience of building enterprise grade solution and worked on numerous projects for Fortune 500 companies in fields as diverse and banking, insurance, law, telecommunications and utilities.

Greg O’Reilly – Business Development & Sales Director Aust & NZ

Mr O’Reilly has 25+ years’ experience working with professional advisory firms in Australia, UK, Europe and USA and founded his own successful technology services business in the UK in 1996 expanding it to offices in USA and Europe.

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 thedocyard Ltd carries risk. As set out in Section 7 of the prospectus, thedocyard Ltd is subject to a range of risks, including but not limited to limited operating history, market risks, regulatory, competitor and pricing risk, exposure to potential security breaches and data protection issues and reliance on third parties.

 

 

Section 734(6) disclosure: The issuer of the securities isthedocyard Limited ACN 602 586 407. 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. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.

IPO
Biotech
$0.45
Size of Offer Up to $10 million
Minimum Bid $2,000.00
Opening Date 7/01/2020
Closing Date 17/01/2020

Introduction

Little Green Pharma Ltd (ASX: LGP) was founded in 2016 with the aim of improving the quality of life for a child debilitated by seizures through the use of a patented small particle formulation and to take advantage of opportunities relating to the emerging medicinal cannabis industry in Australia and in certain international jurisdictions.

Together with its exclusive manufacturing partner and via its distribution arrangements, LGP operates a vertically integrated medicinal cannabis business comprising cultivation, production, research and development, manufacturing, and distribution of medicinal cannabis products.

As the first Australian company to achieve production of a locally grown medicinal cannabis product for patient use, LGP has a track record of nearly two years of successful cannabis cultivation. Over this period LGP has invested significantly into product development, sales and marketing and cultivation capabilities with the aim of becoming a leading Australian medicinal cannabis company.

LGP produces locally grown product in final dose form that has been used by more than 1,400 patients in Australia, with over 4,500 bottles of medicinal cannabis oil sold. The Company is currently expanding its cultivation facility to have capacity produce sufficient cannabis flower to manufacture more than 110,000 bottles of medicinal cannabis oil per annum. 

Internationally, LGP recently received its first commercial order of 2,400 units to be distributed to Germany, fulfilment of which is expected to take place following completion of the cultivation facility expansion. LGP has also entered into proof-of-concept conditional agreements in Canada and New Zealand.

LGP product sales and patient numbers

1. Bottles Sold Compound Monthly Growth Rate since January 2019
2. Fulfilment of order is expected to take place following completion of cultivation facility expansion

LGP’s mission is to transform the lives of patients around the world, and in doing so, become globally recognised as Australia’s leading medicinal cannabis business.

Key Investment Highlights

  • First mover advantage and barriers to competition: LGP was the first Australian company to achieve production of a locally-grown medicinal cannabis product for patient use. LPG has a track record of nearly two years of successful cannabis cultivation and is continuing its stability testing which is currently for 24 months in cold storage conditions (2-8°C) and twelve months at ambient conditions (below 25°C).
  • Accessible, proprietary-branded product range: LGP currently offers three Little Green Pharma-branded medicinal cannabis oil products in the Australian market and is proposing to launch additional products in the near term.
  • Nationwide patient uptake: Following the launch of Little Green Pharma’s first medicinal cannabis product in August 2018, more than 1,400 patients in Australia have used Little Green Pharma products.
  • Highly scalable production with planned expansion: LGP is currently expanding its cultivation facility to have capacity to produce sufficient cannabis flower to manufacture more than 110,000 bottles of medicinal cannabis oil per annum.
  • Fully licenced business: LGP, together with its exclusive Manufacturing Partner and distribution partners, holds all the necessary licences and permits to operate a vertically integrated medicinal cannabis business from cultivation to distribution.
  • TGA GMP-certified manufacturing facility: LGP has an exclusive agreement for manufacturing services at a TGA GMP-certified manufacturing facility, which is a prerequisite for Australian medicinal cannabis producers to sell medicinal cannabis products into Australia and overseas.
  • Export distribution: LGP has non-binding supply arrangements with distributors in Germany for the supply of Little Green Pharma-branded and white labelled products at a premium to Australian pricing and has received proof of concept conditional purchase orders for Little Green Pharma products from Canada and New Zealand.
  • Education programmes: LGP has developed, and is a sponsor of, the Green Choices portal, aimed at the education of physicians and patients to support patient access to medicinal cannabis.
  • Growing intellectual property portfolio: LGP has patented a small particle formulation with the aim of improving the delivery of medicinal cannabis. The Company continues to undertake research and development with respect to alternative delivery systems with the aim of identifying additional patentable innovations. 

Offer overview

LGP is looking to undertake an IPO on ASX to raise up to $10 million via the issue of up to 22.2 million shares at an offer price of $0.45.  The Company will have an indicative market capitalisation of approximately $60 million at maximum subscription.

Key Offer Statistics

 

 
  1. As at the date of the Prospectus, it is proposed that a further 375,000 Shares will be issued to Mr Michael Lynch Bell and Dr Neale Fong, subject to Shareholder approval, prior to Admission.
  2. On listing, 1,500,000 Shares will be issued to Mr Angus Caithness and 738,890 Shares to certain employees.
  3. This assumes the issue of Shares on or about 21 January 2020 and this number will increase if the Convertible Notes convert on a later date.
  4. Options with an exercise price of $0.30 and expiry dates of 31 July 2020, 31 December 2020, 31 January 2021 and 28 February 2022.
  5. 2,036,768 Options, each with an exercise price of $0.42 and expiring 31 July 2022 and 2,036,768 Options with an exercise price of $0.48 and expiring 31 July 2022.
  6. Comprises 1,000,000 Performance Rights currently on issue and 6,000,000 Performance Rights to be issued, subject to Shareholder approval, prior to Admission.
  7. Calculated by multiplying the total number of Shares on issue after completion of the Offer by the offer price of $0.45 per Share. The price at which the Shares trade on ASX may be above or below this amount.

Funds raised from the Offer will be applied as follows:

For further information on the Key Offer Statistics and Use of Funds, please see the prospectus.

Industry overview

LGP operates in the medicinal cannabis industry. Medicinal cannabis is defined as cannabis products used under recommendation by a medical professional for a defined medical condition. These products are typically provided in the form of either

  • prescription (Rx) pharmaceuticals licensed by a regulatory body, such as the US Food & Drug Administration (FDA), European Medicines Agency (EMA) or the Australian Therapeutic Goods Administration (TGA), which are prescribed by a physician and dispensed in a pharmacy; or
  • as unregistered therapeutic goods comprising controlled and standardised plant-based products recommended/authorised by a physician and supplied through a special access process by licensed suppliers.

An increasing number of countries are introducing legal frameworks that allow for the cultivation, manufacture, sale and consumption of cannabis products under appropriate licensing arrangements. This has significantly increased the availability of medicinal cannabis and has stimulated the number of patients and authorisers. Over the past two-to-three years alone, countries including Germany, UK and Australia have introduced legislated legal frameworks for medicinal cannabis. Over time, consumption will be further stimulated as medicinal cannabis becomes available in additional countries.

Countries with Legal Framework for Medicinal Cannabis, 2019

Business Overview

LGP, together with its exclusive Manufacturing Partner and via its distribution arrangements, operates a vertically integrated medicinal cannabis business, comprising cultivation, production, research and development, manufacturing, and distribution of medicinal cannabis products.

The Company has invested significantly into product development, sales and marketing and cultivation capabilities to become a leading Australian medicinal cannabis company. Nearly two years of successful cultivation has allowed LGP to produce locally-grown product into final dose form with more than 4,500 bottles of medicinal cannabis oil sold to more than 1,400 patients in Australia.

LGP Business Model

1. If the Manufacturing Partner wishes to terminate the agreement for convenience it can only do so after 22 November 2023 and with 12 months’ notice, meaning the earliest date on which the manufacturing agreement could be terminated is 23 November 2024.
2. Subject to the Company receiving the Maximum Subscription under the Offer

Cultivation and Production

Little Green Pharma’s cultivation facility, located in Western Australia, operates an indoor, closed-loop hydroponic system to ensure cannabis plants are cultivated under highly specific climate, light, and irrigation control at all times.

There are currently two flowering rooms operating in the cultivation facility which have the capacity to produce cannabis flower to manufacture approximately 15,000 bottles of medicinal cannabis oil per annum. Following the completion of a planned expansion of its cultivation operations, which is targeted for completion in Q1 CY2020, and subject to Office of Drug Control (ODC) licensing and permitting, a total of nine flowering rooms are scheduled to be operational along with two vegetative and two mother rooms, together with drying, manufacturing and storage capability at premises on an adjoining site. At full capacity it is expected that the cultivation facility will have the capacity to produce sufficient cannabis flower to manufacture more than 110,000 bottles of medicinal cannabis oil annually, the equivalent of approximately 1,750kgs of dry cannabis flower.

LGP’s cultivation facility in Western Australia

Manufacturing Partner

LGP has entered into an exclusive six-year agreement with its manufacturing partner (Manufacturing Partner), a fully licensed TGA GMP-certified pharmaceutical manufacturing company in Western Australia, to manufacture final dose form medicinal cannabis products on LGP’s behalf.

LGP’s medicinal cannabis products are manufactured by the Manufacturing Partner on a semi-automated production line on a batch-by-batch basis in accordance with applicable GMP guidelines in facilities audited and certified by the TGA.

The Manufacturing Partner has the ability to produce oil, gel cap, suppository and sublingual spray products, and is anticipated to be able to manufacture dry cannabis flower in early 2020. The Company is actively monitoring market demand, with a view to determining which delivery systems are preferred in the various potential markets.

Product Range

LGP has developed a proprietary range of LGP-branded products suitable for distribution in the domestic and certain international markets. The current product range comprises the “Classic” line of oil-based oral medicinal cannabis products, providing three oil formulations with different THC:CBD ratios.

LGP has sold over 4,500 units of product since launch with approximately 45% of patients using LGP products prescribed for the first time over the 3 months prior to the date of the Prospectus. The Company is continuing its stability testing which is currently for 24 months in cold storage conditions (2-8°C) and twelve months at ambient conditions (below 25°C). Such stability testing is commercially recommended for many domestic and international distributors to sell pharmaceutical products.

In addition to oil-based products, LGP is also able to produce dry cannabis flower meeting TGO93 requirements. Interest for dry cannabis flower has been expressed from distributors in European markets.

Overview of LGP Product Range

1. Fulfilment of order is expected to take place following completion of cultivation facility expansion

LGP is also considering developing a “Plus” product range. Plus would combine the Classic product with the Company’s small particle formulation technology to potentially enable reduced dosing requirements compared to LGP’s current Classic oil line. LGP also plans to develop a line of “Plus Natural” products, which would use LGP’s patented small particle formulation containing higher ratios of carboxylated cannabinoids.

Sales and Distribution

LGP currently distributes its products across Australia via its Australian distribution partners and intends to continue growing its market penetration and market awareness of its medicinal cannabis products within Australia. As it expands, LGP also proposes to capitalise on Australia’s international reputation for trusted and high-quality products by exporting its products offshore, including to Germany, the UK, Canada and New Zealand.

Little Green Pharma currently sells and distributes its medicinal cannabis products in Australia through Oxford Compounding Pty Ltd for patients in Western Australia and Health House International Pty Ltd for patients in other states and territories.

As of October 2019, more than 1,400 patients in Australia have used LGP’s products.

Cumulative Number of Australian Patients using LGP Products

 

Internationally, LGP has identified Germany as a highly prospective territory for market entry, as medicinal cannabis products have been approved for reimbursement through health insurance. The Company has recently received its first commercial order of 2,400 units to be distributed to Germany.  Fulfilment of this order is expected to take place following completion of the cultivation facility expansion.

LGP has also entered into proof-of-concept conditional purchase orders with parties in Canada and New Zealand for the sale of LGP products.

Clinical development

LGP believes that its brand recognition and reputation as a medicinal cannabis provider will likely be derived from its commitment to clinical development activities aimed at developing innovative products, including novel delivery systems and precisely formulated cannabinoid products, as well as improving the methods, processes and technologies employed to manufacture such products on a commercial scale.

The Company has a number of clinical development activities underway, including:

  • A patented small particle formulation - the use of a small particle emulsion is anticipated to result in more rapid absorption, higher bioavailability, prolonged therapeutic effects, lower toxicity, and improved ease of administration and dosage control than simple oil products
  • ARISE - A novel product development and formulation project with Curtin University in Western Australia using atomised rapid injection for solvent extraction (ARISE) technology that generates particles of active pharmaceutical ingredients that are more readily absorbed by the body.
  • Clinical Investigations - LGP is involved in several clinical investigations, including two open-label designed studies as well as a double-blind placebo-controlled clinical trial run by a leading Australian research organisation for palliative care and advanced cancer. These study and trial outcomes will assist in informing the Company’s future clinical trial plans and product development.

Medicinal Cannabis Licences

Little Green Pharma holds all licences and permits required in Australia to cultivate, produce and sell medicinal cannabis products, and all licences to import and export medicinal cannabis products offshore. Little Green Pharma’s Manufacturing Partner holds all relevant licences to import and export medicinal cannabis products as well as all licences and permits to manufacture and distribute finished medicinal cannabis products for Little Green Pharma. The Company holds the following licences and permits:

  • Medicinal cannabis licence
  • Medicinal Cannabis Permits
  • Indent Licence
  • Schedule 9 Licence
  • Licence to Import
  • Licence to Export
  • ARTG Exporting

A summary of the licences and expiration dates is provided in Section 3.10 and 9 of the Prospectus.

Key Board and Management

Michael David Lynch-Bell – Independent Non-Executive Chair

Michael is an experienced corporate finance executive and consultant. Michael was appointed on 13 November 2018. His early Ernst & Young career was focused on auditing clients within the oil and gas sectors and later added mining to his portfolio. Michael also led Ernst & Young’s UK IPO and Global Natural Resources transaction teams in the Transaction Advisory practice.

Fleta Jennifer Solomon – Managing Director

Fleta drives the strategic vision of the business and as Managing Director of Little Green Pharma has grown the company from a medicinal cannabis startup to an industry-leading medicinal cannabis brand in Australia. Fleta has 17 years’ experience in corporate and consumer health markets. Over ten years, Fleta established, grew and sold one of Australia’s largest providers of workplace health services

Angus McDougall Caithness – Executive Director

Angus is an experienced corporate finance executive and consultant in Australia and international markets. Angus has ASX experience as a non-executive Director of Lindian Resources Limited (ASX:LIN), CFO of Hunnu Coal (ASX:HUN) and Company Secretary for the IPO of Haranga Resources (ASX:HAR).

Dr Neale William Fong – Independent Non-Executive Director

Neale is a registered medical practitioner with over 35 years in senior leadership roles in private hospitals, the public health systems, management consulting, academia, health research, aged care and not for profit organisations. He is currently Chair of the Western Australian Government Country Health Service Board, Professor of Healthcare Leadership at Curtin University, Executive Chairman of Bethesda Health Care and a Director of a number of health-related start-up companies.

Bhavesh Morar – Chief Financial Officer

Bhavesh has extensive experience in finance, commercial, business turnarounds and change management. Prior to Little Green Pharma, Bhavesh held senior finance roles with BHP for 11 years in their nickel business and global functions.

Paul Long – Chief Operating Officer

Paul is a key executive driver of the Australian operational team at Little Green Pharma as well as leading the export growth opportunities into Germany, United Kingdom, Canada and New Zealand. Paul has a successful track record across multiple health related organisations in Australia. Paul founded one of Australia’s largest workplace health companies in 2004.

Craig Basson – Company Secretary

Craig is a Fellow of the Institute of Chartered Accountants, a Fellow of the Governance Institute of Australia, a graduate of the Australian Institute of Directors’ Course and holds a Bachelor of Commerce (Hons) degree in accounting and finance.

Risks

An investment in Little Green Pharma Ltd is subject to a range of risks including but not limited to failure to maintain required licences, facility expansion, reliance on key personnel, key inputs for growing medicinal cannabis, agriculture and export and import risk. For more information read Section 6 of the Prospectus.  These risks should be considered in detail.

 

Section 734(6) disclosure: The issuer of the securities is Little Green Pharma ACN 615 586 215. 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. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.

 

 

IPO
Materials
$0.20
Size of Offer $4m - $6m
Minimum Bid $2,000.00
Opening Date 4/07/2019
Closing Date 28/02/2020

 

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.

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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