Something is happening now, but I don’t know what it is
As New Zealand creeps out of lockdown - and we suddenly realise its only 3 days to the end of September – at last it look like “something is happening” and there’s going to be relief to all businesses as the end to this clampdown draws to a close. A great look is food outlets and restaurants opening. It’s a drag to have to wait outside in spaced queues but at least it’s a start.
You raise up your head and you ask, "Is this where it is?"
And somebody points to you and says, "It's his"
And you say, "What's mine?" and somebody else says, "Well, what is?"
And you say, "Oh my God, am I here all alone?"
But something is happening and you don't know what it is
Do you, Mr. Jones?
Bob Dylan – Ballad if a thin man 1976
As New Zealand creeps out of lockdown - and we suddenly realise its only
3 days to the end of September – at last it look like “something is
happening” and there’s going to be relief to all businesses as the end
to this clampdown draws to a close. A great look is food outlets and
restaurants opening. It’s a drag to have to wait outside in spaced
queues but at least it’s a start.
However as the lyrics of this Bob Dylan classic reminds us, there still
remains some uncertainty. And you can certainly see it walking through
and around all parts of Auckland with most shops still closed.
The good news – of a sort – is the Governments weekly Economic Update report that “The
evidence is becoming ever clearer that the economy was in a robust
state prior to the Delta outbreak and has been resilient to the
lockdown. There is also increasing evidence of inflationary pressure.
Consequently, it seems increasingly likely that the Reserve Bank will
lift interest rates.”
And there’s even been some predictions in a Herald article last month that “New
Zealand will be the fastest growing economy in the Australasian region
over 2021 and 2022 with its success attributed to the effective
containment of the Covid-19, coupled with broader border relaxations
expected in 2022”.
So I thought this would be a good time to update readers of some good
news, which includes a couple of investment opportunities that, for
different reasons, deserve some attention now.
Technology Fund closing this week
Icehouse Ventures has a strong history and their Late Stage Technology Fund – as I reported last week
is now just shy of $100 million as they approach their final close.
Latest figures I have are $92 million firm and $8.8 million indicated.
This includes a recent commitment by Harbour Asset Management which shows a strong vote of confidence in the Fund.
Yes it’s closing this week. To ensure your spot email me now if you’re
interested and how much you’d like to invest. The minimum is $50,000.
Pictor raising capital offshore
Pictor, which was a feature in my last News newsletter, continues to attract investment, with the Offer
now out in as well as New Zealand. The Company has just held its AGM
in which it reported Equity funding and non-dilutive Grant funding since
1 April 202 is now over $8 million.
Three of the company’s senior executives are based in the U.S. and their
Covid-19 assay is set to target that market with FDA approval now a
priority. The latest forecasts I’ve been given for 5 different, not just
the Covid-19 products they produce, to New Zealand, Germany, India, and
the U.S. are in excess of NZ$10 million.
Not surprisingly the sales forecasts outside New Zealand account for 86%
of the total. And they haven’t even started to look at Australia yet.
The current Offer is for $7 million with $3.1 million subscribed to date. Email me if you’d like to discuss this further.
Outlook full of face masks
Only last month Fitch Solutions reported that New Zealand will be Australasia’s fastest growing economy in 2021/2022. Well I’m hopeful that’s right.
You’d have to say though, looking around Auckland city, there’s a fair
bit to do to get back to “normal”. My journey there over the last few
days has been “drab” is the best way I can explain it. Full of face
masks.
The best solution I’ve read recently came from John Key. “The
aim should no longer be to exist in a smug hermit kingdom, but to get
back to a life where New Zealanders can travel overseas – for any reason
- knowing they can return home when they want to, and where we again
welcome visitors to this country.”
Let’s hope we can see that soon.
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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