News } TBK Capital

Housing strength, Business confidence, and Investment spread

If you thought you had seen this heading for one of my newsletters before, you're right. In fact, you've read it twice, here ten years ago and here at the beginning of this year.

If you thought you had seen this heading for one of my newsletters before, you're right. In fact, you've read it twice, here ten years ago and here at the beginning of this year.
 
In the second newsletter published more recently, I wrote "As long-time readers of my newsletters will know, I believe the housing market leads the economy. So, the latest news on the increase in residential sales and prices is a sign of the future. Most if this is good - but it comes with a warning.
 
"The national median price rose an annual 8.1% to a new record $400,000 (up from
$382,000 in February). But over 90% of the increase in the median price came from Auckland and Canterbury - which account for about half of all sales".
 
Well, here we are 9 years later, and as of July 2023, the median house price in Auckland is $990,000. This is up from $560,000 10 years earlier. That means that the median Auckland property increased in value by 5.86% each year, or $43,000 on average".
 
Housing strength
 
Yes, there's no doubt that owning a house is a great investment on its own. However, it has another benefit for investors, as loans available through ownership of property provide for your diversification of risk and returns.
 
And I know that many, well probably the majority of the investors in the Opportunities we make available to our readers, are made possible for them to provide investment / asset diversification through the assistance of bank or other loans.
 
I mean how many of us have lots of spare cash in the bank or the wardrobe drawer?
 
Business Confidence
 
The ANZ Business Outlook Index in New Zealand climbed to its highest point since June 2021 on the back of robust export intentions and a strong rebound in employment outlook. Capacity utilization has notched the strongest level since November 2021, with expectations being less negative for profit, investment, and ease of credit. Inflation expectations and pricing intentions continued to ease slowly but steadily.
 
Investment spread
 
Well enough of that. I'm not an investment adviser.
 
However, TBK Capital offers you diversified investment opportunities that assist businesses and property developers to provide all of us with the services they offer.
 
So, here’s a couple of our current offers:
 
New Zealand Tea Tree Oil - Liquidity through backdoor listing
 
TBK Capital has identified certain NZX listed shell companies (no longer trading but listed on the New Zealand Stock Exchange) that NZ Natural Capital Partners Ltd could be backed into. The outcome of such an action would be to give New Zealand investors an early   liquidity opportunity through public trading of these shares on the NZX. This New Zealand liquidity event will be followed by a "pure profit" opportunity for New  Zealand investors in the U.S company when its shares start trading. Shares which the New Zealand investors obtained as free carry bonus shares arising from their original investment in NZ Natural Capital Partners Limited.
 
The outcome of such an action would be to give New Zealand investors an early liquidity opportunity through public trading on the NZX for the shares which they purchased in NZNC.
 
This U.S. trading will be on a registered secondary platform, followed by public trading on a U.S. stock exchange should the U.S. company successfully complete its planned IPO.
 
For further information and a copy of the Information Memorandum, reply to this email or call me on 021 902 901.
 
Organic Genetics Group - New Zealand Medicinal Cannabis
 
Our client, Organic Genetics Group Limited is an Auckland based company founded to commercially produce and distribute its exclusive, premium Medical Cannabis Products.
 
Located in West Auckland their initial glasshouse is 2,000 cubic meters has the capacity to produce up to 14,000 kg of highest quality medicinal cannabis per annum. Natural water sources are onsite.
 
It has a commercial distribution agreement with New Zealand based pharmaceutical company ANZPharma which has over 11 years of industry experience in sourcing and supplying pharmaceuticals to hospitals, pharmacies, doctors, and pharmaceutical wholesalers.
 
It holds licenses to import Schedule 2 (pharmacy medicine), Schedule 3 (pharmacist only medicine), and Schedule 4 (prescription medicine/animal prescription medicine). It supplies over 1100 pharmacies NZ wide. Including 31 partner-owned pharmacies, 350 Glencross Stores, 14 Chemist Warehouse stores, 30 Countdown Pharmacies and the remaining balance of Pharmacies are independently owned.
 
Organic Genetics is now making an Offer of new shares to raise $1,500,000 in new capital. This is for 10,000 new ordinary shares at a price of NZD$250 per share. The new shares will rank equally with the existing ordinary shares representing approximately 10%.
 
Interested parties can access a copy of the IM, describing the opportunity in more detail, by replying to this email addressed to my Partner, Jonathan Duncan and please include your contact details including your phone number.

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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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