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Highway22 Revisited

As we approach the end of the calendar year I was interested to see the recent article from 1News reporting the Reserve Bank says New Zealand economy’s 'likely' to enter recession”.

Date Created: 7/12/2022

Mack the Finger said to Louie the King
"I got forty red, white and blue shoe strings
And a thousand telephones that don't ring
Do you know where I can get rid of these things?"
Louie the King said, "Let me think for a minute, son"
And he said, "Yes, I think it can be easily done
Just take it on down to Highway 61"

Bob Dylan – Highway61 Revisited
 
As we approach the end of the calendar year I was interested to see the recent article from 1News reporting the Reserve Bank says New Zealand economy’s 'likely' to enter recession”.

Well, it’s easy make headlines but if you read the fine print it says "In New Zealand, household spending remains resilient, especially considering the rise in debt servicing costs, the fall in house prices, and low levels of consumer confidence.

"Employment levels are high, and income growth and household savings are supporting spending. The rebound in tourism is also supporting domestic demand.

“The Reserve Bank hopes the move will help stem the tide of inflation”.

Well, if that’s bad news; and they’re making their assumption from a rise in interest rates; from the lowest ever to stimulate the economy; to me it shows a “return to normal” not a recession.

Raising Loans

It’s not often I mention it in our newsletters, but a large part of our business is arranging loans for our clients, especially businesses. A major problem for the latter is the existing nature of their balance sheet which shows shareholder loans.

This results in lenders need security over specific assets, either in or outside the business balance sheet, the latter being the most common in the form of the borrower’s home.

Meanwhile those of you considering raising debt of all forms have some incentive to act now as it appears the current low interest rates may be in for a rise.

There are several alternatives to borrowing money, and this is a service TBK Capital provides. Reply to this email (or call me on 021 902 901) if this interests you

The economy

The “World Economic Recovery” may not be looking the best, but I’ll bet you when we look back on late 2022 we’ll see the economic recovery here was well on its way. And I’ll tell why I think so. Attendance at restaurants is great measure.

No I haven’t done a survey on these, but that’s what I’m seeing in those we visit in Auckland, and from discussion with the owners. And it’s Summer, and its Christmas, and it’s a New Year coming up.

Meanwhile it was interesting to read this article by Tony Robbins, why businesses do well in a recession, and another out of the U.S.A, why should Private Equity Stocks could be “a smart investment in 2022”.

Now New Zealand does not have the sophistication of these large markets, but other than the size of the offer, the principles remain the same. So as Summer arrives, and this feeling of normality returns, here’s a summary some of the Offers our clients are presenting.

Longridge Retirement Village – Investment Unit available

For a number of years now TBK Capital has arranged the equity and debt finance for the development of several Retirement Villages.
 
These are some of the most successful Offers we have raising capital from investors over the years. Investors in Retirement Villages receive substantial value from unique tax incentives that government introduced some years ago to encourage their development.
 
And the special partnership structure allows these incentives to be offset against the investors’ other source income.
 
A recent Offer was the Longridge retirement village. And we have just received a request from one of the investors who would like to sell their “share” in this 420-villa development. 
 
The ½ Unit they hold is expected to deliver a construction surplus of about $300,000 in 2 - 3 years’ time - which is in effect a profit to the holder - and on project completion and once mature, it shows an annual income of $90,000 with a capital value of the ½ Unit of $600,000
 
This is a marvellous longer-term investment and ideal for a family trust. Reply to this if you’re interested and I’ll send you a copy of the original Information Memorandum describing the Offer.
 
Pictor - New Product launch

Starting with the most recent, here’s an update on one of the most popular Offers we have made at TBK Capital and it’s is now announcing a $5 million extension tor that original round.

The project is already starting to receive publicity here. Our understanding is Sir John Key is writing a positive statement on their website.

As a result of this - and the interest in international businesses from New Zealand investors - the Pictor’s directors have decided to increase the original Offer here in New Zealand and are now looking to raise $7,000,000 at the same $1.25 share price.

This is a new must look at Offer. Reply to this email for a copy of the IM together with their own Investor Presentation
 
Nobilo Wines - Double your Money
 
Here’s a client that’s making a special Offer to readers of the TBK newsletters. This will assist Nobilo Wines in the marketing of its collection of this unique brandy. This is due to go live via website in the weeks or so. Email me for a copy of the new IM released last month.
 
This is a double your money loan. The maximum term would be 12 months. On the sale of those bottles of brandy by Nobilo Wines, your loan or loans - provided at $4,500 per bottle - would be repaid to you at $9,000 per bottle.  GST exclusive. Note the lender’s brandy will be sold first.
 
To participate in this Offer you would enter into a sales and purchase agreement by providing a loan to Nobilo Wines secured by a bottle or bottles of the brandy, which will be held by Nobilo Wines in a secure lockup.
 
You can secure the loan with bottles of the 60 available via this Offer. And if your loan is secured over 10 bottles you the lender will get a bottle for yourself for free.
 
Meanwhile here’s a series videos pertaining to the sale of the brandy. Meanwhile here’s a series of videos filmed in support of the brandy sale that will appear on the 7 Cellars Website. They give a clearer understanding of the 7 Cellars Brandy, the story behind it, and the Passion behind the person and the business.

These are a must view.

Get the Gold now - Batteries later

My last newsletter about Southland Silica shows they see immediate value for the Company will be through the mining of Gold. This will enable the business to accomplish early revenues.

However their main business will be providing the Silica for the recently developed silicon anode cells. These Li-ion batteries can charge batteries from 10% to 75% in 15 minutes, over 600 times. So their scalability of is enormous.  

Using contemporary and developing technology Manap?uri power, Southland silica and Australian lithium can be committed to workforce diversity and regional industry.

Renaissance One is Australia’s first advanced manufacturing gigafactory producing lithium ion batteries. They are Australian owned and operated meaning that Australasia can produce the next generation of grid storage and EV batteries.

Morgan Stanley recently summed it up saying the battery manufacturing supply chain will make a lot of money as there will be a “Battery Goldrush”. And I’ve just got hold of a 206 page document entitled “The Future is Electric”. Which is described as “A Decarbonisation Roadmap for New Zealand’s Electricity Sector”.

The intention now is to raise an initial $500,000 for 25% of the shares in the companies which own the rights. We’ve just completed an updated IM with the revised Offer so reply to this email for a copy.

This Offer is perfect for a Family Trust as it has a far reaching and long-term benefit from mining silica required for the inevitable advance in batteries.

KaiEtica – Ethical Food

Now here’s an Offer I’m really looking forward to presenting to you. This is business that was founded by a like-minded group of New Zealand farmers and businessmen with Canadian partners.

Under its different Supreme and Premium trademarked brands, KaiEtica will produce and sell unique ecologically sustainable ethical food products.  These will be manufactured locally in North America using the very best natural ingredients from qualifying farms around the world.

Its Managing Director’s background includes time at Fonterra where he designed and delivered the $50 million programme that transformed Fonterra’s end-to-end Milk Supply Operations. He was also Strategic Advisor to their $180 million Value Stream Optimisation programmes.
 
After leaving Fonterra he established New Zealand’s first commercial flat Oyster farming operations at Bluff in Southland and has now founded KaiEtica with a group of like-minded people. These include leading New Zealand red meat farmers who have won New Zealand’s highest environmental, farming excellence, and genetic performance awards.

The Company’s objective is to provide discerning in-market Consumers what they want and are prepared to pay for.

This will create a self-sustaining circular economy that will enable the Company to reward qualifying farmers for farming the impeccably produced food supplies consumers are demanding. The business is now just waiting on the finalisation of a location for new premises in Canada.

We are in the process of producing the IM describing the business and the Offer so reply to this newsletter if you’re interested in knowing more.

Southland Silica – Battery Revolution

My last newsletter about Southland Silica sees the immediate value for the Company will be through the mining of Gold as this will enable the business to receive early revenues. So the intention now is to raise an initial $500,000 for 25% of the shares in each the companies that own the rights.

This Offer is perfect for a Family Trust as it has a far reaching and long-term benefit from mining silica required for the inevitable advance in batteries.
Morgan Stanley aptly summed it up recently companies along the battery manufacturing supply chain will make a lot of money. There will be a “Battery Gold Rush.” The recently developed silicon anode cells can charge batteries from 10% to 75% in 15 minutes, over 600 times. The scalability of silicon Li-ion batteries is enormous.

This Offer is perfect for a Family Trust as it has a far reaching and long-term benefit from mining silica required for the inevitable advance in batteries. For example, I’ve just got hold of a 206 page document entitled “The Future is Electric”. Which is described as “A Decarbonisation Roadmap for New Zealand’s Electricity Sector”. This report has synergies with the ultimate goal of Southland Silica.

Renaissance One is Australia’s first advanced manufacturing gigafactory producing lithium ion batteries. They are Australian owned and operated meaning that Australasia can produce the next generation of grid storage and EV batteries. Using contemporary and developing technology Manap?uri power, Southland silica and Australian lithium and be committed to workforce diversity and regional industry.

We’ve just completed an updated IM with the revised Offer so reply to this email for a copy.

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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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