News } TBK Capital

Good Finish to theYear

Yes it’s November already and near the end of the year. And it’s been a pretty good year for New Zealand business.


Stay, lady, stay, stay with your man awhile
Why wait any longer for the world to begin
You can have your cake and eat it too
Why wait any longer for the one you love
When he's standing in front of you

Bob Dylan - Lay Lady Lay

Yes it’s November already and near the end of the year. And it’s been a pretty good year for New Zealand business.

New Zealand commodity prices rose for a fourth straight month, and are now just 1.8% below the record set in April. Wool is at a 22-month high. The ANZ Commodity Price Index showed an annual increase of 23%.

The NZ Herald reports the latest global Nielsen consumer confidence survey, carried out between August 14 and September 6, showed New Zealand slightly ahead of Australia, with consumer confidence up from the last quarter, but behind the United States.

This confidence is reflected in the fact that new car sales hit a 24 year high in October; with the industry looking toward similar records on a full year basis.

The increase in confidence has also resulted in a good year for investment in business here – at all levels.

In the year to date the NZX main board All Index has risen 27% with the Small Cap index rising 18%. Meanwhile the “secondary board” NZAX has risen 9%.

And even Angel Investment has bounced back. The Angel Association of New Zealand reports that in the first 6 months of this year the Young Company Finance Index was up 18% from the same period the previous year. Cumulatively, $273.9 million has now been invested in young companies by angels since the index was formed in 2006.

Of particular interest to us at TBK Capital was the report that “Investors are showing strong support for existing companies which can demonstrate good progress. Of the $22.5 million invested in the last six months, 85% - or $19.2m - was follow-on investment.”

And chairman Ray Thomson’s remark “The higher proportion of funding going into follow-on rounds should be seen in a positive light. Astute investors are only pouring more money in when ventures are meeting sales and revenue targets.” 

Additional Resources

It's been this area of raising funds – both equity and debt - where we've been concentrating our efforts. This has resulted in TBK Capital taking on two new Associates to assist with the increased work load and seek new business.

  • Michael Brick - Joined TBK Capital in September to head up the debt brokerage side of the business. Michael spent 4 years in ASB Debt Recovery Unit specialising in turnaround of financially distressed businesses. Prior to that appointment he was Managing Director at venture capital business Consul Ltd. He has significant experience in the banking, finance and insolvency industries and has been a Chartered Accountant for over 20 years.
  • Vaughan Bayer - Vaughan joined TBK Capital in November to work within the equity side of the business. He is a Chartered Accountant, member of the Institute of Directors and a member of Enterprise Angels (Angel Investment Group in Tauranga).  Previous experience includes being a CFO of a  small NZX listed company, setting up of several businesses, an active angel investor and has worked with Private Equity, M&A and many entrepreneurs.

So here's the latest update on the investment opportunities we are looking to close before Christmas.  There are others in the pipeline which we will showcase next month.

Freeflow Pipes

The Information Memorandum for this Offer is now available. For an overview of this Australasian business see our website

The business has now secured a large share of the home building market through housing companies like G.J. Gardner Homes, Golden Homes, Classic Homes, Platinum Homes, Signature Homes, Stonewood Homes, Jennian Homes and Lockwood Homes.
It has also entered into an agreement with Roofing Industries to supply the Freeflow pipes through their supply chain outlets.

Since the IM was made available weekly input orders of Freeflow Pipes have risen from $21,000 week to $24,000. This is partly a result of targeting Auckland home developments like Latitude Homes, Legacy group 600 homes, Housing NZ 1,300 homes, and South park 1,600 homes.
This is a business that not only has huge  potential here but also in Australia where the market is more suited to the mass production of building components and is 5 times the size of the market here. For a copy of the IM call me on +64 9 307 3257 or +64 21 902 901, or reply to this email.

Established online services business with global reach

Ocula is principally a business to business online service provider, serving the global fine art market.    This market is currently worth around US$60 billion a year. is the most visited contemporary art website in the Asia Pacific region, with over a million page views in the last six months.  The portal already has around 150 represented galleries and Ocula aims to increase this to nearly 600 within two years. 

Following a strategic review, the directors have decided to concentrate their efforts in the short term mainly on growing the company’s expanding web portal business, rather than its online auction platform.   This change of focus significantly reduces Ocula’s funding requirements.  The company is now seeking investment of $1,100,000 by way of new ordinary shares, to be arranged in minimum tranches of $100,000.

The business model allows for multiple revenue streams including advertising, joint ventures, software licensing and digital marketing services, as well as the core online portal/online auction activities.  The company is projecting revenues of $6.2 million and EBIT of $3.5 million by 2017/18, with Ocula moving into profit by March 2015.

Visit our website for the revised summary. For further information and a copy of the Information Memorandum please contact Jonathan Barrett by email or phone +64 9 306 8634. 

Biz Card

BizCard is a Business to Business charge card targeted at SME customers who typically have an annual spend of $5,000 - $15,000 or less with any given supplier or merchant. For an overview of this business see our website.

BizCard is now finalising agreements with a number of suppliers for the provision of co-branded card programs. These include a 500 member Financial Services company, who will also be offering BizCard to their 40,000 SME customer base, and a supplier of auto parts to garages.

Supplier arrangements are also being completed for the provision of fuel (2 suppliers), stationery, telecommunications, safety equipment, engineering supplies, building and hardware suppliers, computer equipment, insurance and electrical goods. They are also in discussions with Autoshop and Bosch and associated companies.

The founding shareholders of BizCard Limited (via Opra Ltd) are Richard Francis, Ian Lamb and Simon White. Their background is given in the IM. Opra has appointed KK Low as its Company advisor as he is the current CEO of Cardtrend Systems Malaysia.

Opra Ltd will be issued 500,000 shares (for no consideration) in recognition of their preliminary work and providing the IT systems, giving Opra 41.67% of the company. The founders have arranged $500,000 of capital at $1 per share from the founders and close associates for 41.67% of the company   BizCard is looking for an additional investment of $200,000 at $1 per share for 16.66% of the Company. Anyone taking this up will have a priority opportunity to participate in the next round of capital raising.

For more information about this Offer call me on +64 9 307 3257 or +64 21 902 901, or reply to this email.

Revolutionary textile for Health and Athletics

Footfalls & Heartbeats is a New Zealand company that has developed a proprietary process for manufacturing smart textiles to improve healthcare and sports performance.  It is in the process of raising capital and has already raised 70% of the maximum equity investment it has on offer. For a summary of the offer see our website.

New investors include:

  • Dr Gary Pace, a Director of Resmed who is investing $100,000 and will become a director:
  • Jeremy Collins, a current Investor/Director of Footfalls who is investing over $100,000;
  • Sir Eion Edgar, Chairman of Forsyth Barr and
  • Two private investors in Australia with medical technology and separately a software and textiles background who are investing $100,000 and $150,000 respectively.

Managing Director Brent Ogilvie has just returned from a trip to the U.S. where he met with Sony which had approached Footfalls with an interest to license the technology as a smart vest to monitor people’s key health metrics. Footfalls also presented to the World Best Technology showcase in San Diego, where it was one of only 70 companies selected globally and the only from Australasia.

The share issue is closing soon so if you have any interest please call me on +64 9 307 3257 or +64 21 902 901, or reply to this email as soon as possible.

New Zealand Dairy Products Exporter

A company focused on New Zealand sourced milk powder products and health supplements targeted at Asia Pacific consumers, is about to finalise a second round of capital raising. Founded in New Zealand two years ago, the group has successfully raised about NZ$4.8 million of capital.

The business has offices in Auckland, Shanghai, Guangzhou, and Hong Kong. Sales to date are approaching NZ$1 million and forecast orders for the next 4 - 5 months are NZ$10 million.. Their products are currently available in over 200 Hong Kong stores and are targeted to be in over 1,000 stores in China by February 2014.

In the last round, US$2 million of Convertible Bonds was raised from Qualified or Excluded investors to fund general working capital. These Convertible Bonds pay 10% interest and, at the option of the holder on or before 31 March 2014, either redeem for cash or convert to ordinary shares at a company valuation capped at US$8 million.

The board has approved the raising of a further US$500,000 of Convertible Bonds, on the same terms, with the option to extend this to US$1 million. The company’s preference is for a cornerstone shareholder to take up the additional Convertible Bonds and participate in future capital raisings as the business expands.

For more information about this Offer call me on +64 9 307 3257 or +64 21 902 901, or reply to this email.

Heyrex is a New Zealand company that has come up with a revolution in Animal Welfare. It has invented a really clever way to monitor a dog’s (and in the future other pets’) health and wellbeing - even when the owners are away from home.  For further information see our website.

With significant founding shareholder investment to date, the company is now launching its products internationally and is seeking $1.25 million in return for 25% shareholding.  Since going to market, over $800,000 of the $1.25 million has committed. 

If you are interested in HeyRex and would like to have the opportunity to participate; please contact Alex Smith on +64 9 307 3569 or email him. 

None of the above are offers of Securities to the Public and are available only to eligible investors as defined by the Securities Act, or those excluded from the Offer provisions of the Securities Act. They are intended for distribution only to selected people to whom, under the relevant laws, they can be lawfully distributed. They cannot be distributed in any other jurisdiction, or to any other people. They are not offers 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.



John Paine
TBK Capital Limited
Level 15, BDO Building
120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Fax +64 9 309 4519
Mobile +64 21 902 901

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