Aeroflora - flowers at airports
Those of you who read my most recent Opportunities newsletter will have seen several investment Offers we have recently made available.
Those of you who read my most recent Opportunities newsletter will have seen several investment Offers we have recently made available.
Well, I’m pleased to say we now have finalised the structure of a new
Opportunity to invest in a business we understand - the sending of
flowers from an airport in appreciation for services or favours
provided.
This is a new company called Aeroflora Limited which sells flowers set
at around $74 a large bunch – maybe a bit more than a bottle of wine but
less costly than a fragrance. The owners have already registered the
AEROFLORA name in New Zealand, the U.K. and Australia.
The Market
Many people buy a gift for someone when they fly. Research shows 85%,
with 34% - 48% making the gift purchase at the airport - either on
departure or arrival.
There are 2,000,000 monthly passenger movements at the three main
airports of Christchurch - where the initial business will be set up –
Auckland and Wellington.
Support for the development of this specialist flower breeding programme
has been received from Callaghan Innovation, Crop and Food Research and
Te Waka – the Waikato Regional Innovation Centre.
Scope also exists for international franchising. And an established
brand has the potential to be as disruptive in the cut-flower/airport
space - as Uber and Air BnB have been in their markets.
The Offer
The intention is for Aeroflora to open first in Christchurch. To do so
the directors wish to raise up to $750,000 by the issue of shares in
this new company which will be owned 50% by the promoter and 50% by the
new investors.
The financial forecasts show in the 3rd year sales over the 3 main
airports of 800,000 “boxes” of flowers producing revenues of $55 million
in the third year with a gross margin of $25 million. Fixed cost are a
similar figure
The investors would be entitled to 50% of the net income after expenses.
The other 50% is payable to the promoter as the fee for running the
business.
Details of the allocation of funds are in the Information Memorandum. A
substantial investor would be invited to become a director.
Note there is also an option, on agreement by other investors, to
structure the Offer as a Special Partnership which would allow initial
tax losses to be offset against their other source income.
Reply to this newsletter for a copy of the Information Memorandum.
..................................................................................................
The above 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
For more information, please click the contact button below to send us a message.
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