Pictor Offer – new shares available
You may recall that the Pictor Offer, which was mentioned in my Opportunities Update newsletter last month, was heavily oversubscribed and the owners had decided to raise an additional $2,000,000 via a new share issue of ordinary shares priced at $1.25.
You may recall that the Pictor Offer, which was mentioned in my Opportunities Update
newsletter last month, was heavily oversubscribed and the owners had
decided to raise an additional $2,000,000 via a new share issue of
ordinary shares priced at $1.25.
I mentioned at that time that the “directors of Pictor believed it
would be prudent to raise significant funds from a U.S. fund to position
the company for an acquisition and enable it to negotiate from a
position of strength.”
And that:
- The Company was “contemplating a US$10 million funding round in mid-2021 - at an expected pre-money valuation of NZ$50 million - and is targeting a trade sale in excess of US$200 million”;
- and “If COVID-19 had not arrived, the goal had been to sell the company for around NZ$100 million sometime after the launching of their Dengue assay in India (that launch will still happen in 2021) and their M.bovis assay.
The project is already starting to receive publicity here. And as a result of this - and the interest in international businesses from New Zealand investors - the Directors have decided to increase the Offer to raise $7,000,000 at the same $1.25 share price.
This in effect partly replaces the policy given in my January Newsletter, namely “The company is contemplating a US$10 million funding round in mid-2021 - at an expected pre-money valuation of NZ$50 million - and is targeting a trade sale in excess of US$200 million. If this was achieved, the multiple for investors in the current round would be 9.5”.
Based on a NZ$31.77 million pre-money valuation, this Offer represents 18% of the Company. Accordingly with the investors obtained from the previous Offer we raised here, investors will have a significant 27% holding in the Company.
The Information Memorandum for this new Offer is now available, so for a copy reply to this email and please include your phone number.
Patented
A patent for the novel COVID-19 assay was filed with a priority date of July 29, 2020. And now MPI has approved a grant of $400,000 for Pictor (in collaboration with LIC) to develop the Bovine panel for Johne’s and Milk Pregnancy Test.
The patent for this has been filed which will circumvent a Monsanto patent for milk pregnancy testing. This has potential to be used for livestock other than cattle.
A Market Study has been completed for Pictor by international consultant myNext. This provides a road map for Pictor’s COVID assay to be clinically validated and launched in the markets of Europe, the U.S.A, and India - as well as New Zealand.
Exit strategy
This was given in my previous newsletter namely “targeting a trade sale in excess of $200 million”.
It’s not that often that we have the luxury of being able to invest in New Zealand companies that have international reach, and consequently more sought by investors or as takeover targets.
Want to know more?
An Information Memorandum, an investor slide deck and a subscription agreement are all available for intending investors.
So if you’re interested in investing, or would like more information, reply to this email or give me a call on +64 21 902 901
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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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