Before the Gold Rush
As we all creep, or jump, out of lockdown - to some extent based upon our business but largely upon our attitude - it’s indeed a pleasure to see a new feeling of confidence that accompanies the onset of summer.
I
was lying in a burned out basement
With the full moon in my eyes
I was hoping for replacement
When the sun burst through the
sky
Neil Young – After the Gold Rush
As we all creep, or jump, out of lockdown - to some extent based upon our
business but largely upon our attitude - it’s indeed a pleasure to see a new
feeling of confidence that accompanies the onset of summer.
This confidence was confirmed by a visit on Sunday to the Mt Wellington
commercial and industrial park - to get a minor part for a clothes drier from Mitre10 - the road to which was like a
traffic jam and when there almost impossible to find a car park.
So for the many of us that feel that relief to get out, it was comforting to
see the latest economic snapshot from OECD opens with the
statement “Economic growth should
reach 4.7%
in 2021,
reflecting the bounce-back from the disruption caused by the pandemic but will
slow to 3.9%
in 2022 and 2.5% in 2023 as macroeconomic policies tighten and
capacity constraints are alleviated only gradually after the border begins to
re-open in early 2022”.
It will be interesting to see if the Labour Government’s policies of
instigating lockdown, and its actions during it, will have any effect on its
popularity. National’s opposition under Judith Collins has been weak, but in my
view will improve greatly with the rise of Christopher Luxon in the Polls. And clearly
most opponents of Labour were not that keen about David Seymour and/or ACT.
Jacinda Ardern, by contrast, is beginning to attract criticism for
second-guessing Covid19 on the conservative side. She rejected the notion that
parts of the country out of Auckland could move to level 1, the suggestion
Auckland could leave level 4 early, and the idea the Auckland boundary could be
dropped. 33 % of New Zealand's population lives in Auckland, and this is
projected to increase to 39% by 2043
Accordingly the appointment of Cristopher Luxon, who’s now seen as a new John Key, will I believe result
in the changes National supporters have been seeking. A matter confirmed by
this article in the Herald.
“No one really regrets cracking
the whip on Covid restrictions: the likely unnecessary lockdowns of early
2021 and Wellington level 2 restrictions of June didn't shake confidence in the
Government.
“By contrast, National still
regrets comments made by former leader Todd Muller about eventually opening the
border to China. Likewise, the party copped flak for its vociferous support of
the transtasman bubble, which some have blamed for the latest outbreak (likely,
incorrectly - given the bubble was suspended on July 22).”
I was also delighted to receive comments about Luxon in another of Chris Lee’s
excellent “Taking Stock” newsletters, parts of which by
permission I quote as follows. He opens by saying
“May I politely suggest you have
far better skills and standards than most. You are in a different league from
any of your predecessors”.
Then later adds “You may
potentially be the only Prime Minister in my lifetime whose business background
implies the level of skill, wisdom, and energy that could add details to my
on-liners, delete those with which you disagree, and add those I have
overlooked.
You will produce a costed,
credible financial budget, a time budget and a resource budget that would spell
out priorities and would attract a commitment to get the plan executed.
The goal must be to create a New
Zealand that has higher sustainable living standards for all those who want
higher standards and that is inclusive of all demographics and cultures”.
This feeling of confidence
has been reflected in the resumption of requests for both equity and debt
funding we’re now receiving at TBK Capital.
These requests include finance for developments, one of which is large, and
would have institutional appeal. I’ve been thinking we should wait until
business commences in the New Year to offer participation in the funding of
that – for both investors and lenders. But if it’s of interest email me for
details
Meanwhile here’s an update on other Offers we have out in the market.
vWork
vWork is a job scheduling and management
software business which is now expanding its customer base. A recent addition
to the Offers we have available, this business has already seen a 27% revenue
growth this year in Australia through new customer acquisition.
With revenues of $3 million and exceptionally low revenue churn, it
is achieving growth through acquisition and expansion within its existing customer
base, which includes such names as Noel Leeming and New World for grocery home delivery.
The business also has a strong base of B2B customers in transport and delivery,
agriculture and infrastructure. Recent wins include agriculture giant Nutrien, global tire company GRI, and building products company Dindas.
Led here by Roy Moody (former Phitek CEO) and joined by two other former
Phitek senior executives, vWork has customers in 8 countries and plans for
revenues of $25 million by 2025.
The new capital being raised via TBK Capital will be focused on
increasing its sales force and marketing activity. And working on the
success vWork has demonstrated in Australia, they will also be making this
Offer available there via our friends Wholesale investor.
Pictor
In the past few days, Pictor received the data from the first of its COVID-19
clinical trial sites – Boca Bio in Florida. The accuracy
achieved in diagnosing positive samples was incredibly accurate. 100%
sensitivity was achieved, that is the Pictor test was able to detect positive
samples in 100% of the banked samples that were tested.
This amazing result reflects the power of the Pictor multiplex platform which
is able in one test to detect both Spike Protein and Nucleocapsid Protein
antibodies.
As previously advised this Offer was to close in New Zealand at the end
November. So far subscriptions have reached $3.75 million. However the
directors have agreed to keep the Offer open at a modest increase in the share
price from $1.25 to $1.50. To ease the ability to invest they are allowing
payments to be spread over 6 months.
Meanwhile the Offer also remains open in Australia.
SiteSoft
Subscribers to my Opportunities newsletter will have recently received the
invitation to invest in a company that intends to list on The Australian Stock
Exchange. You can read an update on that Offer here.
They’ve now received sufficient interest in this to close the New Zealand Offer
and make it available to Australian investors.
So if you’d like to know more, or invest in the business, please reply to this
email with your phone number.
Metrino
I’ve previewed this in a previous newsletter, a New Zealand owned
company owns 100% of the intellectual property and the rights to commercialise
a new form of urban mass transport with a global market. It arrived here via
the “inventor” having moved to New Zealand.
Stake holders have so far committed US$1.55 million to develop the project and
now wish to raise up to $1 million that will enable the opening of an office in
the U.S. which will raise the next level of US$5 million.
The investment is in the form of an interest bearing convertible note, the
terms of which include the choice of receiving shares in the New Zealand parent
company.
Please email me for further information.
.............................................................................................................................................................................................................
Any reference above to
investment is not an offer of financial products that requires disclosure under
the Financial Markets Conduct Act 2013 (Act) and is available only to wholesale
investors as defined by that Act. It is intended for distribution
only to selected people to whom, under the relevant laws, it can be lawfully
distributed. It cannot be distributed in any other jurisdiction, or to any
other people. It is not an offer or solicitations in any jurisdiction in which
such offers or solicitations are not authorised, or in which the person making
such offers or solicitations are not qualified to do so, or to any person to
whom it is unlawful to make such offers or solicitations. Any representation to
the contrary would be unlawful. No action has been taken by any person that
would permit a public offering in any jurisdiction where action for that
purpose would be required.
Cheers
John Paine B.Sc.,
Dip BIA
TBK Capital Limited
Level 10, 120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Mobile +64 21 902 901
Email john.paine@tbkcapital.co.nz