Living Green – NZVIF Participation - FULLY SUBSCRIBED AND NOW CLOSED
Just before Christmas I sent you an Opportunities Newsletter describing Living Green, a value added export business seeking capital. Following is a reminder of what is involved with the business and an update on the offer – including the participation of the government owned New Zealand Venture Investment Fund (NZVIF).
Nigel McLisky is the founder of a number of private companies including Innovair Ltd where he completed a trade sale to SC Johnson & Sons in the USA for about $50 million. More recent companies he has founded include:
- Living Green Limited, a marketer of branded, speciality eco-friendly accredited cleaning and infection control products.
- ZPAC Limited; secured the exclusive manufacturing and distribution license for all Zoono infection control products for Australia and New Zealand.
- Elitepac Limited, is a contract green chemical manufacturing, packaging, bottling and aerosol canning business with a number of brands and channels to market.
These three entities have now been “merged” - with Living Green Limited as the Parent company – which is seeking equity funding of $750,000 for 50% of the business.
Of the share capital sought, $250,000 will be provided by NZVIF. Entities associated with founder Nigel McLisky will subscribe for $157,000and the company has received a further $205,000 in provisional applications the directors intend to convert to firm allocations.
Allowing for a further $100,000 in oversubscriptions this would leave only $238,000 available for subscription.
Living Green’s Objectives
Living Green aims to be New Zealand’s leading manufacturer, marketer and exporter of innovative green care and infection control products into speciality high value market sectors. They have developed and make over 50 proprietary green cleaning and infection control formulations and have exclusive rights to make and sell other uniquely effective hygiene products. They will sell their new commercial cleaning and hygiene programs direct to businesses, and consumer products through speciality retailers to owners of boats, cars, bikes, pets and so on.
“Made in New Zealand”, and its established “New Zealand 100% Pure” image, is valuable to their premium brands and products internationally. They project a profitable business first in New Zealand, then Australia. As soon as demand is proven they will appoint distributors in selected world markets including SE Asia, China and Europe. The business is expected to cash flow positive during 2013.
Since the offer was finalised late last year, here are just some of the things Nigel has achieved towards the product launch planned to commence in the next few weeks.
- Signed exclusive VIPCARE™ licence and sales agreement for day care, aged care, and medical; a separate EASYKLEEN™ sales agreement to commercial kitchens, cafes and hospitality.
- Commenced ZOONO™ infection control product sales via NZ Shopping Channel. It also packed initial orders of ZOONO™ products for Peru, Nigeria and India.
- Commenced CELLARGUARD™ sales to NZ and Australian wineries.
- Negotiating an exclusive license with a major NZ commercial supply company to sell its ECONOGREEN™ brand exclusively in NZ; an exclusive license with a commercial cleaning company to sell its OFFICEPROTECT™ brand exclusively in NZ.
- Product trials under way in Fonterra factories.
Financial Projections
Consolidated sales revenues are budgeted at $380,000 over the next six months to 31 March. The business is projected to move into profit in the March 2014 year ($770,000 before tax). By the March 2015 year sales are projected at $5.6 million with a pre-tax profit of $1.5 million. The March 2016 years projections are $7.5 million and $2.1 million respectively. Detailed financial projections are given in the Investment Statement.
Capital Funding
The founders have invested over $900,000 in the establishment of Living Green, Elitepac and ZPAC including the establishment of facility, plant and equipment, research and development of its product range inventory, branding and management systems.
The funds raised from this share issue will be used to appoint a CEO, obtain “green” certification for its products and manufacturing processes, launch products into speciality outlets including speciality and hardware stores in New Zealand and Australia, and to initiate international market development through partnering with established overseas based distributors.
This is not an offer of securities to the public. This offer 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 an offer or solicitation is not authorised, or in which the person making such an offer or solicitation is not qualified to do so, or to any person to whom it is unlawful to make such an offer or solicitation. 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. No expression of interest will involve an obligation of any kind.
I have updated the current situation with the issue at the commencement of this newsletter. So if you are interested you should contact me promptly for a copy of the Investment Statement.
Have a great summer.
Cheers
JP
John Paine
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