Projects } TBK Capital

ReGen Software - Pasture Management for Farmers

The New Zealand Institute of Economic Research reports that the Dairy sector contributes $7.8 billion (3.5%) to New Zealand’s GDP, and remains our largest export sector.

The New Zealand Institute of Economic Research reports that the Dairy sector contributes $7.8 billion (3.5%) to New Zealand’s GDP, and remains our largest export sector.

ReGen is an existing business that provides specialist cloud based software to farmers to provide them with accurate water and effluent irrigation recommendations and Nitrogen application rates – every day.

It was formed in 2010 to assist farmers to meet regulations for dairy farm effluent irrigation. Its software ensures farmers can keep their pasture within optimal growing range reducing water use and nitrate leaching.  These benefits - which are delivered via mobile app directly into the farmer’s pocket - have been shown to give over $50,000 value back to the farmer on an average 350 Ha farm.

As an example, a major Canterbury-based Irrigation Scheme recently entered into a 3 year contract with ReGen to provide a complete water and nutrient monitoring management and reporting system for the 200 farms within its scheme.

Financials

ReGen now has a positive cash-flow and a proven market within New Zealand.

The company now wants to capitalise on its opportunity within the New Zealand irrigated pasture market – the addressable market is about $6.5 million – and to grow its product set to include row and tree crops via a Callaghan co-funded project.

This will give ReGen a broader reach to support its international sales ambitions to the overseas market of approximately $500 million where there is an increasing focus on water irrigation management. Income from offshore is budgeted to commence this year and to surpass New Zealand income in 3 years’ time.

The Offer

ReGen is looking to raise capital to grow the company and take advantage of the current and future market potential.  It is seeking to raise $1.5 million for growth capital in return for a 25.86 % share of the company. NZVIF currently holds 12.27% of the shares in ReGen.

The funds will specifically be used for:

  • Co-funding product development project.
  • New Zealand market scaling.
  • Backend system scaling.
  • International sales pipeline development.

The likely exit strategy is a trade sale of ReGen as a going concern, or a sale of ReGen’s intellectual property rights to a strategic acquirer. It may be possible to list ReGen on the NZX or another stock exchange in the future, capital markets permitting.

For a copy of the Information Memorandum email or call me on +64 21 902 901 or +64 9 307 3257.

.............................................................................................................................................................................................................

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

JP

John Paine B.Sc., Dip BIA
TBK Capital Limited
Level 10
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.

CONTACT US

⇑ back to top