Freeflow Pipes - FULLY SUBSCRIBED AND NOW CLOSED
Freeflow Pipes presented at an Investor Showcase Luncheon in Auckland last month. The feedback from interested parties shows conviction the business will revolutionise the industry here and in Australia, but they have a preference for share ownership from day one rather than the current offer of convertible notes.
Freeflow Pipes presented at an Investor Showcase Luncheon in Auckland last month. The feedback from interested parties shows conviction the business will revolutionise the industry here and in Australia, but they have a preference for share ownership from day one rather than the current offer of convertible notes.
Accordingly the directors of Freeflow Pipes are now offering 26% of the company by the issue of new shares raising the $800,000 required to expand the major home builder business here and launch it in Australia. All preference shares will be converted to ordinary shares beforehand.
Passive investors or a cornerstone shareholder are welcome. A sizeable investor would offered a seat on the board of Freeflow Pipes. Further investment can be offered at a later date to all subscribers interested in a larger stake in the company.
The business
There is an accelerating price gap between aluminium - which is getting cheaper - and PVC or colour steel products - which are becoming more expensive. This will inevtiably lead to the substitution of aluminium downpipes for PVC and colour steel downpipes.
Freeflow Pipes is seeking funds to expand it current operations to bulk supply of its revolutionary patented product to the home builder markets in New Zealand and Australia. It has patented a method of manufacturing downpipes on houses that:
- Eliminates turbulences and doubles the flow rate.
- Vastly reduces the cost of assembly and installation.
- Reduces the number of pipes required – and therefore the amount of storm water drainage.
- Are made of 1.7 mm aluminium tube which is stronger - and can be pressurised.
- Have three times the life of PVC or Color steel.
- Come in 130 colours with a powder coated impact and scratch resistant decorative surface.
The patents are valid in New Zealand and Australia.
Freeflow Pipes have a product that is more efficient and more cost-effective than anything else on the market. This comes at a time when building regulations and tolerances are being tightened to prevent leaky homes and where the housing market is demanding:
- More houses to be built.
- Cost savings in housing construction.
- More rigid specifications.
Freeflow Pipes can be ordered from a plan with only 10 product sizes making up 95% of New Zealand’s downpipe requirements.
Tank Test Laboratories
The IANZ registered laboratory, Tank Test Laboratories in Manukau City, have carried out Flow tests under a Laboratory accredited program on competing products.
The flow rate for the Freeflow Pipes showed a laminar flow rate 50% above the equivalent alternatives. Full details of the test are in the IM.
Group Housing Market
Managing Director Peter Barrett has made contact with over 80% of the top group housing companies in New Zealand to advise them of the benefits Freeflow Pipes can provide them and their end buyers.
The business has now secured a large share of the group home building market through housing companies like G.J. Gardner Homes, Golden Homes, Classic Homes, Platinum Homes, Signature Homes, Stonewood Homes, Jennian Homes, Mike Greer Homes and Lockwood Homes. It has also entered into an agreement with Roofing Industries to supply the Freeflow pipes through their supply chain outlets.
Peter Barrett says “Where else can you buy a product that is effectively multiple times the functionality and life of its competitors and which at the same time reduces the overall cost of the building project. All that’s required is the working capital to communicate professionally the extent of this development to the home builder market.”
This concept of bulk supply has been proven in New Zealand at the Ryman Health care villages in Wellington and Christchurch in January and February 2013 when Freeflow Pipes supplied all their downpipes to plan.
Australasian Market
Freeflow Pipes is concentrating it sales effort on the site developers in Auckland where 13,000 homes a year are needed for the next three years, and the 14,000 homes needed for the Christchurch rebuild. To get these customers to specify Freeflow Pipes on their plans to council, the product needs to be promoted to these builders.
This is a business that also has huge potential in Australia where the market is more suited to the mass production of building components and is 5 times the size of the market here.
Part of the funds being raised from this offer will be used to market the Freeflow pipes in Australia where 50% of Australia’s volume in housing is controlled by 15 major players. Their method of operation is mass construction to a plan for a 200 -300 home site at a time. Freeflow Pipes’ product is ideally suited to that environment as it can be mass produced and shipped competitively into Australia.
Financial Projections
The financial model produced by Freeflow Pipes shows New Zealand sales rising from $750,000 for the financial year ending March 2014 to $3.5 million in 2015, and $7.5 million in 2016 and 2017. Sales in Australia are projected to be $2.5 million by the end of the 2015, and $9 million in 2016 and 2017.
Share Offer
The original IM offering Convertible Notes has been withdrawn and a new IM for the share issue prepared. For a copy reply to this email or give me a call on +649 307 3257 or +64 902 901.
The above investment is not an offer of Securities to the Public and is available only to eligible investors as defined by the Securities Act, or those excluded from the Offer provisions of the Securities 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 solicitation in any jurisdiction in which such offers or solicitations are not authorised, or in which the person making such offers or solicitations is 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
JP
John Paine B.Sc., Dip BIA
TBK Capital Limited
Level 15, BDO Building
120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Fax +64 9 309 4519
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.
⇑ back to top