International Ethical Food Business
KaiEtica means ethical nourishment. It’s a business founded with Canadian partners by a like-minded group of New Zealand farmers and businessmen. You may have seen it mentioned in my last Newsletter.
KaiEtica means ethical nourishment. It’s a business founded with
Canadian partners by a like-minded group of New Zealand farmers and
businessmen. You may have seen it mentioned in my last Newsletter.
It wishes to raise an initial $1.5 million pre-revenue, to install and
commission its cook plant into a lease facility in Canada, and to prove
the business with initial sales throughout Canada.
The Company has just formalised an option to lease a new CFIA federally certified export facility in Alberta. This provides several advantages for manufacturing compared with New Zealand.
There, under their different Supreme and Premium trademarked brands,
they will produce and sell unique ecologically sustainable ethical food
products they have already developed, and for which they are fully
licensed to produce.
These will be manufactured locally in North America using the very best
natural ingredients from qualifying farms around the world, including
qualifying New Zealand and Canadian red meat supplies.
The Promoter
The 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 programme.
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 Objective
The Company’s objective is to provide discerning in-market Consumers
highest-quality locally made food products that they want and are
prepared to pay for
In turn, this will enable the Company to reward qualifying farmers for
farming the impeccably produced food supplies consumers are demanding
for ‘ethical nourishment’.
The Offer
The Company wishes to raise an initial $1.5 million pre-revenue to
install and commission their cook plant into a lease facility in Canada
which will prove the business with initial sales throughout Canada.
Fully subscribed this will be 12% of the company giving it a Pre Money
Valuation of $11,000,000. This is based on forecast (budgeted) EBITDA’s,
after commissioning of their plant, of $1,800,000 in Year 1, $3,800,000
in Year 2, and $8,900,000 in Year 3. They would also have the right to
take over subscriptions up to $3 million at the same PMV.
An Information Memorandum describing the business and the Offer is
available now. Current accounts are available under confidentiality to
those of you interested in participating. Reply to this newsletter if
you’d like a copy or are interested in knowing more.
The Future
Following this Offer the intention is to raise further capital sometime
in year 2 or early year 3 to support a decision within the Canadian
Subsidiary company to lease or build a new facility and fund additional
operational plant/equipment to continue to expand the business.
At that time, they will be near maximum production capacity within the
lease facility for which they now have an option. Depending on the
decision to lease or build, they expect an IPO likely at that time.
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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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