News } TBK Capital

Great start to a hot year!

As we all know much of New Zealand shuts down just before Christmas and starts to awaken about mid-January through to now. So it was an encouraging start to the year to read Liam Dann’s recent article in the Herald that “the U.S. Federal Reserve’s has told the world that it will be ‘patient’ in determining the need for more interest rate hikes”.

Well it’s been a pretty good start to the New Year.
 
As we all know much of New Zealand shuts down just before Christmas and starts to awaken about mid-January through to now. So it was an encouraging start to the year to read Liam Dann’s recent article in the Herald that “the U.S. Federal Reserve’s has told the world that it will be ‘patient’ in determining the need for more interest rate hikes”.
 
The reason for the excitement is “the cost of borrowing in US dollars is going to remain cheaper for longer - turbocharging the economy and keeping the sharemarkets in the game as attractive investment options relative to putting money in the bank”.
 
As it happens, just about everyone I’ve been talking to over the Christmas break - and as recently as this week with friends I have in Queenstown - are of the same view. It’s been a good start to the year, but what are the new government going to do?
 
Confidence Up
 
This low cost of borrowing obviously also has an effect on New Zealand. Our economic outlook has received a vote of confidence from credit ratings agency Standard & Poor's, which has upgraded it to "positive" from "stable".
 
It reports New Zealand as “wealthy and resilient” with the Government’s plan to keep debt in check. S&P has reaffirmed its existing high-level sovereign rating, which is AA when borrowing in foreign currency, and AA+ in local currency.
 
These ratings are not far below AAA, the highest rating available, meaning those lending to the New Zealand Government should have a high degree of confidence. And this of course flows through to businesses, banks and lenders.
 
There’s also appears to be a strong appetite from overseas investors for buying up New Zealand companies, and this is expected to continue this year despite concerns it would dry up with the government’s clamp-down on foreign investment.
 
Investment Opportunities
 
For those of you who are interested in selling (or buying) companies you should contact our sister company Tabak Business sales which has offices in Auckland, Hamilton, Tauranga, Wellington and Christchurch.
 
But if you’re interested in investing in companies (or property) TBK Capital is the company you should be talking to.
 
We’ve started the New Year with several investment offers that we’re finalising now, and will be announced via our Opportunities Newsletters. If you don’t already belong to that list (or are not sure if you do) simply reply to this newsletter and I’ll make sure you will receive them.
 
In the meantime here below are just a few of the investment opportunities we’re either offering, or about to offer.
 
Northland Manuka Oil – Harvesting Now
 
Our client has commenced producing Manuka Oil from an existing fully grown Manuka plantation of 800+ Ha, most of which is 30 years old, and ready for harvest, on 944.5 Ha of Crown Land he has leased in Northland. Our client has a 5 x 5 year lease on the land and has already commenced small scale harvesting.
 
This will be the subject of a major capital raise by TBK but we want to get it “under way” first. The Opportunity is to provide $150,000 seed capital for 2 New Manuka Oil extracting stills, second hand tractor, front end loader and other equipment. Investment to be in the form of a convertible note to be converted to equity on the major capital raise in a few months’ time.
 
Estimated Income from sale of Manuka Oil is $216,000 per month at this initial stage. The property also has a tenant with existing hives producing Manuka Honey paying a rental of $100 per hive, currently with 1,000 hives and looking to increase to 2,000.
 
Aspec Dairy Processing
 
Our Client is a New Zealand company linked to a tightly owned group of companies in New Zealand, Malaysia and Hong Kong, marketing a range of liquid milk, milk derivatives and fruit formulated food products.

The Company has established itself as an OEM processing operator and has acquired an operational, MPI registered, Liquid Milk packaging facility with Ultra High Temperature (UHT) processing and filling capability. It is raising up to $5.5 million through the issue of Optional Convertible Notes (OCN) giving investors an interest rate return of 8% p.a. The money raised will be applied to working capital and to fund the purchase of new Ecolean plant.
 
The term of the Notes is the earlier of 3 years or on the sale of the business at which time the holder of the Notes will have the option to request the Notes revert to ordinary shares in the company based upon the valuation, or the sale price, of the company at that time.
 
Finally an FIT Solution
 
Free Independent Travellers are people who prefer independence when they arrive at their holiday destination. BNBLive Holdings has recently launched its first website with full integration to hotels, lodges, BNBs etc and will soon have its Mobile App available.
 
FITs form 89% of all tourists/travellers, are in the 24 - 54 age bracket, and BNBLive’s smart websites and Apps are specifically designed for them. It connects to hotels’ and motels’ PMS (property management systems) instantaneously, eliminating double bookings. It’s a Smart mobile App which, like Amazon, knows what you have looked at.
 
Accommodation, activities, rentals, travel and customised package tours are all in one place. Online Travel Agencies located out of New Zealand do not provide this one stop shop.  It is raising up to $1,000,000 by the issue of ordinary shares in the business. The full subscription would equal 25% of the company.
 
EPCM Ltd
 
Standing for Engineer, Procure, Construct, Maintain, EPCM Ltd is the conglomerate of 4 separate New Zealand companies providing industrial electrical services to blue chip companies and government SOEs such as Vector and Transpower. The business has been operating for 18 years in a highly technical and regulatory market with its subsequent barrier to entry.
 
In addition to selling and installing industrial switchboards, it offers maintenance contracts providing regular income. It does not currently have a website, which is under construction. A search for EPCM currently brings up a number of results.
 
It is seeking working capital to finance the expansion of its current operations. Currently in discussion with its bankers, it would also be interested in taking on long term partners through the issue of ordinary shares in the business.
 
Want to Know More
 
If you’d like to know more about the Offers listed above, or any others that may be coming up, reply to this email or call me on +64 21 902 901.

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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
 

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