Wholesale Investor Edition 6

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PRIVATE INVESTMENT OPPORTUNITIES FOR WHOLESALE, SOPHISTICATED AND HIGH NET WORTH INVESTORS

Plus: Green Air Conditioning Wholesaler (23)

Fast Growing Carpooling Website (24)

Proven On-line Cold Chain Monitoring Technology (25)

Latest Wholesale Investor National Survey Results (8)

Extracting the Strategic Value of a Business (15)

Investing into Distressed Assets (14)

wholesale investor.com.au

Volume 2 - Issue 4

Organization

CassTech Limitedacn 133 093 660

Integrated Farm Factory Feedlot

Burdekin Integrated Cassava Project

Agriculture Venture Capable of Producing 50% EBITDA Returns (20)

New Technology Allows Petrol Cars to Run on Hydrogen (26)

Integrated Property & Finance Company Seeks Expansion (21)

Retail Food Franchise Delivers Strong Profit Growth (32)

Established Accessories Brand Seeks International Expansion (19)

Renewable Energy & Food Venture using Sustainable Agriculture (22)

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The only 360 degree view of Australia’s top 50,000 companies is now yours

It’s no secret – information is the key to business success. Company360 is powered by the world’s leading brand in commercial information providing you with access to the most comprehensive financials, complete corporate family trees including structure and shareholder information, and in depth company and executive profiles. To learn more visit www.company360.com.au or to register for a free trial call 13 23 33.

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News Commentary

Company Profiles

People

Financials

Corporate Structures

ActivitiesCompetitors

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6 Company Updates8 Wholesale Investor National Survey August 2009 Results 10 The Inevtiable Redistribution of Power By Michael Power - Investec

11 Q&A with Venture Capitalist - CVC Limited By Steve Torso - Wholesale Investor

12 Recent Developments in The Life Sciences Market By Pricewaterhouse Coopers

13 Nice Set of Numbers By Adrian Herbert - Private Equity Media

14 Opportunies for Investing into Distressed Assets By John Quinlan - Australian Business Lawyers

15 Assessing the Strategic Value of Business By Tom McKaskill

16 Confidence in Your Confidentiality Agreement? By James Millea and Andrew Ireland - Argyle Lawyers

Editorial

Contents

Opportunities

Volume 2 - Issue 3

18 Hadley Green Investment Group

19 Kordz

20 Cass Tech

21 Property Planet

22 Agrifuels

23 Benson Distributors

24 The Daily Commute

25 Ceebron

26 Globo Hydro Power

27 Jadato

28 Activeplus

29 Floaties

30 Washpod

31 Biotech Australia

32 Retail Food Manufacturing opportunity (promoted by DC Strategy)

33 Pharmacy & Healthcare opportunity (promoted by DC Strategy)

34 Pacific Island Aquaculture

35 Viva Properties

36 Specialty Entertainment

37 Broome Hovercraft

DisclaimerThis Publication contains prominent statements appropriate for the particular medium by which the Publication is made to the effect that:

(A)the information contained in the Publication about the proposed business opportunity and the securities or scheme interests is not intended to be the only information on which the investment decision is made and is not a substitute for a disclosure document, Product Disclosure Statement or any other notice that may be required under the Act, as that Act may apply to the investment. Detailed information may be needed to make an investment decision, for example: financial statements; a business plan; information about ownership of intellectual or industrial property; or expert opinions including valuations or auditors’ reports; and

(B)a prospective investor is strongly advised to take appropriate professional advice before accepting an offer for issue or sale of any securities or scheme interests;

For more information, please visit our website www.wholesaleinvestor.com.au or email [email protected]

Wholesale Investor magazine is published by Wholesale Investor Pty Ltd

ACN 131 512 715

Managing Director - Steve Torso

Publisher - Reuben Buchanan

Senior Account Manager - Milton Papadopoulos

Directors

Steve Torso – Managing Director

Reuben Buchanan – Executive Director

Domenic Carosa – Non Executive Director

Advisory board - Tim Trumper

Address - Suite 204, 66 King St. Sydney

Phone - 1300 597 595

Web - www.wholesaleinvestor.com.au

Editorial Enquiries [email protected]

Advertising Enquiries [email protected]

Listing Enquiriesm i l t o n @ w h o l e s a l e i n v e s t o r. c o m . a u 1300 597 595

Subscription Enquiries [email protected]

Design/Layout - Dan Segal www.dansegal.org

Printer - Quality Print Group www.thequalitygroup.com.au

Distribution - D&D Mailing www.ddmail.com.au


5 Company Updates7 Angel Investing Hits A Tipping Point By Dr. Tom McKaskill - World Renowned Business Author

8 AVCAL Deal Metrics Survey By AVCAL

9 Q&A With CSIRO Investment Manager By Steve Torso - Wholesale Investor

10 Buying Distressed Assets May Save Troubled Businesses By David Kenney - Hall Chadwick 11 Controlling Structuring Risk for Business Angels By Andrew Ireland and James Millea - Argyle Lawyers

11 Attracting the Brains Trust to Your Business By Karen Jenkins - Six Figures

12 Risks and Rewards of a Management Buyout By Manda Trawtwein & Jonathan Hickey - William Buck

37 Considering Private Investments By Jordan Green - AAAI

38 Community Entrepreneurship Combines With Venture Capital By Stewart Craine - Barefoot Power

Editorial

Contents

Opportunities

Volume 2 - Issue 3

13 Broome Hovercraft

14 Speciality Entertainment

15 Viva Properties

16 Retail Food Manufacturing opportunity (promoted by DC Strategy)

17 Pharmacy & Healthcare opportunity (promoted by DC Strategy)

18 Pacific Island Aquaculture

19 Biotech Australia

20 Washpod

21 Floaties

22 MicroEquities23 Finerday.com

24 EcoBiotics 25 Jadato Holdings26 ActivePlus27 Focus Oil & Gas28 ZEEP Australia29 Kialla Primary30 McLaren Media31 Winteray32 E-Move33 Sustainable Energy Australasia34 TStix35 UKonekt Live

36 Mailing Lists Online

In the current market climate, funding the balance sheet has become the number one most important issue facing companies. With draw down facilities maxed out, tightening credit markets, falling revenues and asset values, there is a need for companies to explore alternative channels to raise capital. However, this is an unprecedented situation and most have little knowledge or relationships to raise capital in this climate.

The earlier you book

the more $ you save

Hear from:

BOOK NOW! online: www.terrapinn.com/2009/corp | email: [email protected] | phone: +61 2 9021 8808 | fax: +61 2 9281 5517

Where CFOs & Treasurers meet to identify best practice finance & debt restructuring solutions from traditional & non-traditional sources of capital.

9 – 11 November 2009, Sydney Marriot, Sydney

Researched and produced by:

www.terrapinn.com/2009/corp

VIP CODE: WI1

Pre Conference MasterclassMonday, 9 November 2009

Financial Modelling for Project Finance

Led by: Nick Crawley, Managing Director, Navigator Project Finance

Post Conference MasterclassWednesday, 11 November 2009

Developing and implementing a successful corporate turnaround strategy

Led by: Marcus Derwin, Partner – Restructuring Services, KPMG

Is the answer.

David Morgan Former CEO

Westpac Banking Corporation

DirectorBHP Billiton

David CraigCFO

Commonwealth Bank of Australia

John BroadbentHead of Domestic

MarketsReserve Bank of

Australia

Curt ZuberGroup Treasurer


Michael BraudeGM – Treasury, Risk

& InsuranceCoca Cola Amatil Event partner: Media partner:

Visit the website for the full speakers list

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DisclaimerThis Publication contains prominent statements appropriate for the particular medium by which the Publication is made to the effect that:

(A)the information contained in the Publication about the proposed business opportunity and the securities or scheme interests is not intended to be the only information on which the investment decision is made and is not a substitute for a disclosure document, Product Disclosure Statement or any other notice that may be required under the Act, as that Act may apply to the investment. Detailed information may be needed to make an investment decision, for example: financial statements; a business plan; information about ownership of intellectual or industrial property; or expert opinions including valuations or auditors’ reports; and

(B)a prospective investor is strongly advised to take appropriate professional advice before accepting an offer for issue or sale of any securities or scheme interests;

For more information, please visit our website www.wholesaleinvestor.com.au or email [email protected]

Wholesale Investor magazine is published by Wholesale Investor Pty Ltd

ACN 131 512 715

Managing Director - Steve Torso

Publisher - Reuben Buchanan

Senior Account Manager - Milton Papadopoulos

Directors

Steve Torso – Managing Director

Reuben Buchanan – Executive Director

Domenic Carosa – Non Executive Director

Advisory board - Tim Trumper

Address - Suite 204, 66 King St. Sydney

Phone - 1300 597 595

Web - www.wholesaleinvestor.com.au

Editorial Enquiries [email protected]

Advertising Enquiries [email protected]

Listing Enquiries [email protected] 1300 597 595

Subscription Enquiries [email protected]

Design/Layout - Dan Segal www.dansegal.org

Printer - Quality Print Group www.thequalitygroup.com.au

Distribution - D&D Mailing www.ddmail.com.au

WIM_Issue_2_V3.indd 3 13/7/09 12:00:42 PM


Welcome to the latest edition of Wholesale Investor.

The most recent survey of our investor database (see page 8 for full results) revealed that 55% of our investors, or more than 2,000, are interested in viewing Distressed Asset opportunities.

So we have set up a platform to promote distressed assets directly to our investor base.

Right now we have published a list of some companies that have recently fallen into the hands of Administrators. We are now in the process of contacting the various insolvency and accounting firms in order for them to list the distressed asset deals that they are working on.

Over time, investors will be able to log in and see what is on offer. This may provide companies, who are facing financial difficulties, with an alternative option to liquidation, DOCA, or expensive emergency finance arrangements.

Our investors have indicated to us that they may be willing to back a company that is facing sort term liquidity problems, in return for equity or an uplift on their invested capital.

If you would like to:

• Register to view distressed assets

• List a company, or its assets in our distressed assets section

Go to www.wholesaleinvestor.com.au and click on the link for Distressed Assets.

Wholesale Investor in the media:Financial Review

Wholesale Investor featured in an article by Enterprise editor Mark Fenton-Jones on the 18th August 09. The article is titled “Attracting investment needs more than a good idea”

www.afr.com.au

Sydney Morning Herald / The Age

Steve was interviewed Kristen Le Mesurier in an article titled “Business Angels”. Steve commented on the key elements for a successful capital raising.

www.smh.com.au

Daily Telegraph

I was interviewed by Jenny Dillon from The Daily Telegraph. The article was titled “Mastering the art of raising more capital” appeared on the 31st August 09.

Smart Company

The Wholesale Investor National Survey was the basis for a the article “Cashed-up investors looking for private companies: Survey” By Patrick Stafford. www.smartcompany.com.au

All the articles and videos can be viewed or downloaded from the Media Centre on the Wholesale Investor website.

Switzer - Sky Business Channel

I was interviewed by Peter Switzer on Sky Business Channel. We discuss the results of the latest Wholesale Investor Nation Survey, and what entrepreneurs need to do in order to enhance their chances of raising capital.

www.switzer.com.au

Media Partner and Event SponsorshipWholesale Investor is proud to be a media partner, or sponsor for the following events:

Building Wealth Through Business – by MBE Education www.mbeeducation.com.au

To receive a free ticket to attend, please email [email protected]

Capital Raising Summit – by Tonkin Corporation. See ad on page 17.

www.tonkincorporation.com.au

Trading & Investment Expo – by Event Management International

www.tradingandinvestingexpo.com.au Resources Investment Expo – Apollo Global

www.apolloglobal.com.au

Real Estate Investment World - Terrapinn

Alternative investment Summit 2009 – Terrapinn

Corporate Finance World 2009 – Terrapinn

www.terrapinn.com

If you would like to:

•Promoteyourinvestmentopportunitytoover4,600wholesaleinvestors

•SponsorWholesaleInvestor

•Establishastrategicallianceormediapartnership

Please email us at [email protected] or phone our officeon1300597595

Regards,

Publisher

Reuben Buchanan Steve Torso

Publisher Managing Director

Wholesale Investor launchesAustralia’s first distressed assets platform


In the current market climate, funding the balance sheet has become the number one most important issue facing companies. With draw down facilities maxed out, tightening credit markets, falling revenues and asset values, there is a need for companies to explore alternative channels to raise capital. However, this is an unprecedented situation and most have little knowledge or relationships to raise capital in this climate.

The earlier you book

the more $ you save

Hear from:

BOOK NOW! online: www.terrapinn.com/2009/corp | email: [email protected] | phone: +61 2 9021 8808 | fax: +61 2 9281 5517

Where CFOs & Treasurers meet to identify best practice finance & debt restructuring solutions from traditional & non-traditional sources of capital.

9 – 11 November 2009, Sydney Marriot, Sydney

Researched and produced by:

www.terrapinn.com/2009/corp

VIP CODE: WI2

Pre Conference MasterclassMonday, 9 November 2009

Financial Modelling for Project Finance

Led by: Nick Crawley, Managing Director, Navigator Project Finance

Post Conference MasterclassWednesday, 11 November 2009

Developing and implementing a successful corporate turnaround strategy

Led by: Marcus Derwin, Partner – Restructuring Services, KPMG

Is the answer.

David Morgan Former CEO


DirectorBHP Billiton

David CraigCFO

Commonwealth Bank of Australia

Tony D’AloisioChairman

ASIC

John BroadbentHead of Domestic

MarketsReserve Bank of

Australia

Peter McGregorCFO

Asciano

Event partner:Gold sponsor: Media partner:

Visit the website for the full speakers list

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Wholesale Investor launches


Company UpdatesFirst home buyer demand drives Viva Properties growthDespite the recent economic slowdown, 2009-2010 looks to be a bumper year for Viva Properties. All Victorian properties have been sold on the back of the onslaught of First Home Buyers. Construction works have commenced for two Tasmanian projects and 2 additional planning permits for 50 dwellings have been secured. Sales for Viva’s government-backed investment properties continue to exceed expectations - a recently released project was completely sold within 2 weeks and approximately $4.5m of properties in Tasmania were sold in this quarter so far. www.vivaproperties.com.au

Financial News Network launches Private Investment Channel with Wholesale InvestorAustralia’s leading online finance channel, Finance News Network (FNN) and Wholesale Investor have joined forces to launch Australia’s first Private Company Interview channel. Select CEO’s and Managing Directors of private companies are interviewed by respected financial journalist Clive Tomkins.

The channel is promoted to FNN’s distribution network to over 20 partners and is accessible to more than 10,000 investors. It is also promoted via Wholesale Investor to our database of over 4,600 investors. This new channel offers private companies the ability to ‘speak’ directly to investors using the latest online video and internet technology.

An interview with Zeep President Grant Scott has been posted and is ready to view. Go to www.finnewsnetwork.com.au and click on Private Company Interviews to view.

This channel is exclusive to Wholesale Investor. If you would like to enquire about featuring on the FNN Private Company Interviews channel, please contact us at [email protected] or phone 1300 597 595.

eMove reaches major agreements eMove is proud to announce that it has reached agreements with:

• Major national real estate online group

• Major removalist groups

Other announcements:

• Operational alliance agreed with mortgage brokers for impending expansion

• eMove Advisory Board to be appointed in September

• Imminent launch of two new services:

• International removal quotes

• Australia’s first retention service for utility connections

• Further major strategic arrangements to be announced soon.

eMove has appointed Steve Hobbs from Achieve Capital for additional strategic/marketing alliances and capital raising.

www.emove.com.au

eMovemoving made easy

•


Company UpdatesDBSU launch of next stage, and into global markets Direct Business Solutions Universal has released stage 1 of 3 of the new CRM Web-Site to accommodate existing customers and to allow access to view movement of equipment and personal through GPS.

Stages 2 and 3 will create complete functionality which will include Live Dashboard Control on equipment, and replace VBA Interfaces through complete web interaction only. CAD and a Machine Guidance Interface in Stage 3 will also attract huge interest in the product.

DBSU has also introduced a visionary concept of reporting through the use of the latest iButton technology.

The release of the fully secure and supported CRM Web-Site now allows DBSU to capture a very diverse market globally, with less input required from DBSU. This means a much improved cheaper product with better margin.

An affiliation with an Indian based GPS Reporting Company is happening as we speak, allowing DBSU to be promoted and supported in India, China and the Middle East, and giving more diversity to the DBSU product at the same time through additional functionality at a lower cost.

www.dbsu.com

Deep Value Microcap Fund continues to raise capital Following a strong month of net investment inflows from new investors a number of new positions were taken by our Deep Value Microcap Fund. Of notable mention, we can reveal that the Deep Value Fund took an initial position in recruitment firm Peoplebank Ltd (ASX:PBA) at an average price of 42c. The selection of this company followed careful analysis of the company’s financial performance, management strength, its market positioning and improved operating outlook for FY10.

Following a decision by Microequities Asset management to invest in the company, Peoplebank received an initial off-market takeover offer of 60c from PB Recruitment (Peoplebank’s main shareholder). The initial offer in our view was opportunistic and grossly undervalued Peoplebank. Microequities Asset Management took the decision of increasing the Deep Value Fund position in Peoplebank. A second revised offer of 75c plus final year dividend of 3.5c by PB Recruitment was then launched, though this offer represents considerably improved terms, it is still short of our expectations. We will be reviewing our position within the month ahead.

www.microequities.com.au/info/31

ZEEP Australia receives unprecedented level of interest

Since listing in Wholesale Investor, ZEEP Australia has seen an unprecedented level of interest in its next generation gasification technology. The Technology was originally developed by Boeing Energy but now under development by a United Technology Corporation subsidiary, Pratt and Whitney Rocketdyne (PWR). ExxonMobil is a development partner with PWR which further adds to the pedigree of this ground breaking technology.

ZEEP has identified potential strategic partners in Queensland, New South Wales, Victoria and Western Australia and is working with them to evaluate and bring forward poly-generation possibilities, value adding to partners coal resources and satisfying commodities needs. Distinct interest has been shown by major organizations in high value product markets (i.e. chemical, clean fuel, power) to take excess off takes that would be developed in conjunction with these strategic entities, making these projects bankable and providing excellent returns to investors.

Finerday.com is the world’s first family-specific, secure communications platform, designed to enable the entire family to keep in touch, wherever they are, whatever their age or comfort with technology.

Latest news:

• Intel supporting significant care home trial in the UK to be filmed by BBC/ITV

• Home Access Campaign- initially 300,000 computers, government target is 1million

• Education Authorities planning key study using Finerday in Primary Schools

• Discussions underway with major internet providers and mobile phone networks

latest news


Wholesale Investor NAtional Survey Wholesale Investor National Survey: August 2009

Below are the latest results of the Quarterly Wholesale Investor National Survey.

Wholesale Investor Database Breakdown Preferred Investment Style

Anonymous survey conducted August 2009 to Wholesale Investor registered database of 4,628 investors.

(1) Active investor (become actively involved in investee company).

(2) Strategic Investor (leverage IP/distribution). (Note: respondents could select more than one option)

Type Of Investments Sought Number Of Opportunities Reviewed Each Week

Your Views On The Current Investment Environment

KEY POINT:

81.5% are bullish about investing right now.

Funds Under Management / Capital Available

KEY POINT: 34.5% have $1m or more to invest.

Type Of Investments That Are Of Most Interest (Note: respondents could select more than one option)

Percentage Of Portfolio In Cash Vs Deployed

Most Important Deal Attributes When Making Investment Decisions ) (Note: respondents could select more than one option)

KEY POINT: Management strength is by far the most critical factor when raising capital. Contrary to popular belief, “Historical Earnings” ranks 7

th and “Quality of Pitch” ranks 8

th.

Sectors Of Most Interest Right Now (August 2009) (Note: respondents could select more than one option)

Biggest Challenge When Finding And Making Investment

KEY POINT:

Companies seeking capital need to focus on 3 main areas: Connecting with investors, Being investor ready and being realistic on the valuation.

If they achieve this, their chance of raising capital will dramatically increase.

Would Invest Into An Early Stage/Start-Up If: 1. Strong Board & Management In Place 2. Was In Investors Preferred Sector

Key Point:

87% of investors would back a start-up, meeting top 2 criteria.

To receive a PDF of the full survey results, please email [email protected] or phone 1300 597 595

KEY POINT:

29% review more than one deal per business day.

KEY POINT: 60.1% have half or less of their funds deployed at the moment.


Wholesale Investor National Survey: August 2009

Below are the latest results of the Quarterly Wholesale Investor National Survey.

Wholesale Investor Database Breakdown Preferred Investment Style

Anonymous survey conducted August 2009 to Wholesale Investor registered database of 4,628 investors.

(1) Active investor (become actively involved in investee company).

(2) Strategic Investor (leverage IP/distribution). (Note: respondents could select more than one option)

Type Of Investments Sought Number Of Opportunities Reviewed Each Week

Your Views On The Current Investment Environment

KEY POINT:

81.5% are bullish about investing right now.

Funds Under Management / Capital Available

KEY POINT: 34.5% have $1m or more to invest.

Type Of Investments That Are Of Most Interest (Note: respondents could select more than one option)

Percentage Of Portfolio In Cash Vs Deployed

Most Important Deal Attributes When Making Investment Decisions ) (Note: respondents could select more than one option)

KEY POINT: Management strength is by far the most critical factor when raising capital. Contrary to popular belief, “Historical Earnings” ranks 7

th and “Quality of Pitch” ranks 8

th.

Sectors Of Most Interest Right Now (August 2009) (Note: respondents could select more than one option)

Biggest Challenge When Finding And Making Investment

KEY POINT:

Companies seeking capital need to focus on 3 main areas: Connecting with investors, Being investor ready and being realistic on the valuation.

If they achieve this, their chance of raising capital will dramatically increase.

Would Invest Into An Early Stage/Start-Up If: 1. Strong Board & Management In Place 2. Was In Investors Preferred Sector

Key Point:

87% of investors would back a start-up, meeting top 2 criteria.


KEY POINT:

29% review more than one deal per business day.

KEY POINT: 60.1% have half or less of their funds deployed at the moment.

August 2009



By Michael Power, Investec

Redistribution of PowerThe Inevitable

The United States may have worn the super-heavyweight crown of the world for a long time, but China is proving that size need not be an inhibitor to agility.

When, in July 2007, an Economist magazine cover showed Uncle Sam as an ageing prize-fighter and carried the headline “Still No.1”, the word “still” immediately begged the question “for how much longer?” In GDP terms the US will likely retain its economic crown until the early 2020s. But between now and then, the waking dragon of China will, as Napoleon predicted, eventually take over. Indeed, this year, it overtakes the US to become the world’s largest industrial economy; only Uncle Sam’s larger service economy still keeps it at No.1.

China may lag in the field of services but in sectors that will ultimately help fashion a large service economy – the industrial production of steel, autos, ships, rolling stock – it is now the world leader. Furthermore, at $US426 billion per annum1, it runs the largest current account surplus, although it is still No.2 to Germany in the world of exports.

China is fast moving up the value-added chain (as Apple iPhone manufacture testifies), even at the risk of losing its hold on low-end manufacturing sectors like shoes and textiles. Contrary to popular myth, China is increasingly pioneering R&D, leading innovations in clean coal technology, and battery-powered cars via companies like BYD and New Power.

The US grip on the world super heavyweight title is currently secured by its military spending – at over $US600 billion per annum2 it constitutes 42% of defence budgets worldwide and exceeds the next 14 largest spenders combined. And, while China’s defence spending is rising, it

maintains its foreign policy doctrine of ‘peaceful rise’.The recent marked improvement in relations with Taiwan and normalisation of its links with Japan are clear evidence of this approach.

There is, however, an undeclared war being waged: centring on the value of the US dollar. With the largest foreign exchange reserves in the world – $US2.132 trillion – China has become the key foreign player in the US bond market and, by default, the determinant of the value of the US dollar.

Meanwhile, China is quietly pursuing alternative avenues in its efforts to diversify its external wealth away from the US dollar. However, China will soon find itself in a position where it cannot avoid undermining the US dollar and, although this will cause losses to its US dollar holdings, the subsequent re-alignment of the dollar/Renmimbi cross rate will hasten C-Day.

China’s diversification tactics include buying real assets like commodity stockpiles, deposits (such as MCC’s co-financing of Waratah Coal’s Queensland project) and even companies (such as Minmetal’s purchase of Oz Minerals). Elsewhere, the Bank of China is also facilitating bilateral, Renmimbi-denominated trade finance swaps with trading partners. Recently, it announced an agreement with Brazil aimed at facilitating bilateral Renmimbi/Real trades without using the US dollar as an intermediate unit of account.

China’s rise to economic superpower status is inherently intertwined with the so-called global economic crisis. Contradicting most Anglo-Saxon media outlets, the crisis is more a Western phenomenon than a global one. And, in this context, it is mainly a cyclical downturn whereby the excesses of the post-millennial boom are being shifted off the balance sheets of an overly indebted Western consumer onto sovereign Western balance sheets. Consequently, history will reveal the underlying secular dimension of the current downturn: the masking of the hand-over of economic leadership from the US to China; from West to East.

Western-based global institutions (such as the IMF, the World Bank and the G8) are ill-prepared for this epochal power shift.The lack of flexibility and adaptability now blatantly apparent in the world’s leading multilateral institutions is already giving rise to new groupings composed of the underrepresented. The recent inaugural meeting of the BRIC quartet in Yekaterinburg, Russia, in the wake of a meeting of the now well-established Shanghai Cooperation Organisation is an indication of things to come.

Ultimately, leadership in this world will be characterised by nations that can recognise the new challenges and adapt their endowments to meet them. Size need not be an inhibitor to agility. China – despite the fierce competition that it faces from well-established incumbents and from new kids on the block – is astonishing the world by showing us that even a dragon with 2.8 billion feet can dance.

Source1: Bloomberg, as at December 2008. Source2: Based on 2008 figures, Stockholm International Peace Research Institute (SIPRI) Yearbook 2009 Armaments, Disarmament and International Security.

Michael Power is a strategist at Investec Asset Management, based in South Africa.

He has 24 years of professional experience working in Africa, the Middle East and the United Kingdom. He ran the Barings London Stock Exchange-listed Simba Fund from 1996-1999, and has worked for Anglo American in South Africa and Rothschild’s in London (both Corporate Finance) as well as HSBC-Equator in Kenya (Development Finance).

Michael has a PhD in Economics, a Masters in International Business Practice and Law, and a Bachelor of Arts in Political Science and Economics.

For more information, please visit www.investec.com.au


Q.AsaVentureCapitalfirm,whatkindofdealsdoyoulookfor?

A. CVC Limited (CVC) began in 1984 as an MIC ( Managed Investment Company) but it has long since broadened its operations to become a Listed Investment Company dealing in listed and unlisted equity as well as property and funds management.

We tend to look for compelling management within our investee companies. These are companies which are serving a market need with a genuine ability to maintain, defend and grow their market position. We look for something solid about the offering that gives them the ability to grow that business.

Venture Capital and Private Equity deals are but one of our areas of focus. Venture Capital deals characterised the very early stage of our development. Today these kinds of deals are only done through our CVC REEF and CVC Sustainable Investments funds. These funds have picked up excellent opportunities in the Energy, Food and Waste Management sectors.

In terms of CVC Sustainable Investments, we look for a market opportunity that ensures there is a place for the product or service offered. Especially when Government support exists to support an absolute need to roll out the product or service. This type of situation gives real strength and viability to the opportunity leading to the potential for solid gross margins and returns on investment.

Q.Doyouhaveaspecificnicheorindustrywhichinterestsyou?

A. CVC does not limit itself to a specific niche. We look for investments in companies that offer strong margins. We tend to be a generalist but we have developed areas of expertise. Over our 20 plus years of operation we have developed a ‘nose’ for what is good – what is worth spending time on and what is not worth spending more time on. One of these areas of expertise has been that we have been able to go into well researched opportunities in the sustainability sector.

We try to work with companies which we can help grow, expand and consolidate. We like to buy well, add value well and sell well. Our key focus is to generate above average returns to our shareholders. Typically we aim to buy in at a private company multiple and sell at public company multiples. As we add value that can lead to a sale price that could be ten times the original purchase price or even more.

Q. How has the turbulent public markets impacted the private sectorandyourabilitytoraisemoneyforyourVCfund?(pleaseprovide a positive angle)

A. For the most part we are not looking to raise money at present. We note that managed funds in general have been spurned while investors put their houses in order. But in the sustainable funds area we are actively marketing with CVC Sustainable Investments (CVCSI) which has been sheltered from the turbulence. Investors in CVCSI are investing for the long term.

Q. How has the turbulent market impacted valuations, and how haveyoubeenabletobenefitfromthat?

A. The current market conditions have made many vendors see things in a far more realistic light. A lot of people under stress have been more willing to talk to us compared with a year or so ago and this means that the opportunities we are able to look at have very much increased in both quantity and quality

Q. What sort of percentage returns have you been able to achievethroughinvestinginprivatecompanies?

A. We have been able to generate returns for our investors of better than 15% for almost twenty years and this includes some investments that have stellar performance where in some cases the returns have been around 25%.

Q. What tips do you have for investors seeking to invest into companies?

A. You have to start with a top individual who can engineer success in the company. [see remarks below]

Q.Whatarethefirst5thingsyoulookforwhenlookingtoinvestintoadeal?

A. I can offer four things that are on our list.

Top of the list comes the management of the company being considered for investment. It usually starts with a compelling individual who knows what he or she is doing and has the ability to assemble a strong team. The type of person we are talking about is an entrepeneurial individual. It seems to us that this ingredient, the compelling individual, is present as the key factor in about 100% of the deals we would become involved in.

The next thing is that the offer has to be fairly priced.

Thirdly, the business model needs to be robust and scalable without requiring too much additional capital. We look for good margins, defendable positions and rapport. On this latter point let me say that it is a bit like a marriage … you have to feel like you are working with friends because you are going to be working together for a long time.

Lastly and very importantly we look for a natural group of people who are going to be in the market for the asset when the time comes to sell it. It’s no good going into a deal without having your eye on the end game. The better type of buyer [and it’s best if there are a group of buyers – not just one so we can have a bit of an auction] is the buyer that sees that we have done the hard work and that they are getting a strong deal served up to them. It’s like they are being handed it on a plate. There’s value all round in a situation like this and that’s what we aim to achieve for CVC’s investors as well as the eventual buyer.

Q. What do you look at as indicator for an ideal time to sell your shareholding?

A. I’d have to say that there is no ideal time although we are good at ‘scrambling’ to meet an emerging opportunity and have been in the right spot to catch the ball by reading the game well

We never seek to extract every last cent from the deal. There have to be good growth opportunities for others who are to own the investment in the future. Most of our uplift comes from transition from the private multiple to the public multiple. That’s what gives us a good return.

Q.Whatareyouoptimisticabout?

A. We are optimistic about companies that can hunker down in the current environment and get fit. These are companies that have become leaner on costs and given the human capital opportunities out there are putting on the best staff. This type of company comes out very, very strong in the future.

In this eventuality we see ourselves spending a lot of time adding value. Certainly it’s allowed vendors to be more realistic and this along with the increase in opportunities we see a good future ahead.

Q.Wheredoyouseetheopportunitiesoverthenextfewyears?

We are seeing opportunities everywhere. Approaches are coming in daily from would-be vendors. The key areas that we will be scrutinising are better pricing offered by vendors and the opportunity for CVC to be actively involved.

For more information about CVC Ventures, go to cvc.com.au

By Steve Torso

cvc ventures Q&A with a Venture Capitalist

CVC Limited


The healthcare industry is seen as a significant investment and business opportunity due to the ageing population and the need for expenditure on healthcare in both good and bad economic times. Life science companies are expected to play an important role in the delivery of world leading and cost effective health solutions in Australia and globally.

A spate of “megamergers” of major pharmaceutical companies further underscores the opportunity for life science companies.

As the so-called blockbuster drug “patent cliff” chips away at Big Pharma revenue, and in-house R&D continues with diminished returns on productivity, smaller life sciences firms will increasingly be positioned to fill product pipeline gaps by sourcing new innovations and drug prospects – especially with increased interest in diagnostic and therapeutic biologics.

US market provides guidance

US venture capitalists have been weathering the financial storm, placing rounds of funding into their most prized life sciences firms in the hope of an exit through an acquisition or, eventually, through an IPO.

Biologics, in particular, continue to shine as the bright spots – particularly therapeutic and diagnostic monoclonal antibodies (mAbs) and immune response effectors (including vaccines and interferons) – with VC investment soaring by 45% and 90%, respectively, in 2008 over 2007, according to the MoneyTree™ Report, a quarterly study of venture capital investment activity in the United States . Overall, US VC investment in human life sciences (excluding medical devices) fell by about 11% in 2008 against 2007, yet drew some major deals in the US$50m to US$100m range. The survey also found that funding of life sciences seed and start-ups rose sharply in 2008, while later-stage funding, though dropping slightly, was still relatively robust, demonstrating that VCs are still investing in promising areas and holding firm – and expensive – positions in life sciences companies with the brightest exit prospects.

The Australian listed life sciences market

There are a significant number of listed life science companies in Australia. PwC’s BioForum publication is released quarterly and provides an overview of the Australian listed life sciences (covering biotech and medical devices) market.

As can be seen in the chart below, for the year ended June 2009, both the PwC Life Sciences index and the PwC Life Science ex-majors index outperformed the All Ordinaries which was down 26 per cent (ex-majors decreased 0.7 per cent while the Life Science index was up 5.6 per cent).

Yearly movements of the Australian life sciences sector by market capitalisation compared to major indices

Whilst the Australian IPO market for Life Science companies has been closed for the last 12 months, in line with the broader ASX, there has been renewed activity in the secondary financing market in the June 2009 quarter. The market is now seeing stronger investment appetite on the retail side through several successful SPPs and rights issues. However, a number of SPPs were still heavily undersubscribed. Accompanying this was strong institutional support for placements in the June 2009 quarter, with significant overseas investor interest out of both US and Europe.

With the stockmarket at its current levels, the life sciences sector may continue to see limited action around IPOs as the sector is perceived by same investors as a higher risk/higher return proposition. Whilst institutions have been supporting placements, these have been limited to companies with solid results. However this placement support will not necessarily translate

into available institutional capital for new listings. In terms of pipeline, VCs have been investing quite consistently in follow-on funding rounds for their Life Science portfolio companies. Pragmatically, they’re prepared to delay exits until the IPO and trade sale windows begin to look more attractive and valuations improve.

Opportunities for investors

Life sciences companies (that survive cash shortages) with drug platforms that can potentially feed Big Pharma’s pipelines with biologics are in a propitious spot. There is significant competition among cash-rich pharmaceutical companies to diversify, which will likely drive further acquisitions of life sciences companies through 2009 and beyond. Life sciences companies struggling with solvency issues will become increasingly more open to raise additional capital or to being acquired, even at lower-than expected valuations.

For more information in relation to this article or for information on how you can maximise the financial performance of your business and investments please contact:

Manoj Santiago - Partner [email protected]

Adrian Bunter - Director [email protected] Tony Gellert - Manager [email protected]

To be added to the PricewaterhouseCoopers BioForum mailing list, or to download a copy of the latest BioForum publication visit www.pwc.com/au/bioforum

1. National Venture Capital Association (NVCA) based on data MoneyTree ™ Report is produced by PricewaterhouseCoopers and the provided by Thomson Reuters.

2. PwC Life Science ex-majors index excludes CSL, ResMed and Cochlear.

By Price Waterhouse Coopers

Recent developments in The Life Sciences Market


Six point four times investment over about six years and an annual average internal rate of return (IRR) of 39.2 per cent … that is a nice set of numbers for a business investment exit in this challenging year.

That is what early stage venture manager Start-up Australia Ventures achieved as a result of the takeover of Arana Therapeutics (ASX: AAH) by US company Cephalon in June.

That was a return of $36.53 million on an investment of $5.6 million – provided in a several tranches starting in 2002. Further cash of $1.45 million was received from another investment that was sold separately to Arana Therapeutics and is therefore not included in these investment statistics.

This deal illustrates that venture investing, and particularly early stage venture investing, can provide good returns.

There are lessons from this and similar successes for individual investors.

•Investinresearchlikelytodevelopnewtechnologieswithaworldmarket.

•Considerhumanandanimalhealthprojects;thereisastrongmarketforsuchtechnologies among trans-national businesses prepared to pay high returns.

•Look for areas in which local researchers have demonstrated expertise.Remember the adage about success being achieved by standing on the shoulder of others.

•Be guided by public sector and government recognition. Universities andresearch institutes and government commercialisation funding gets spread widely across lots of excellent projects. Private investment is however inevitably needed to develop profitable businesses around these ideas.

•Don’texpecttobetheveryfirstinvestortorecognisepotential.Thereissafetyin numbers and early investors tend to reap similar rewards in technology successes simply because a number of investment rounds are usually required allowing investments to be equalised.

•Dobepreparedtowaitforreturns,possiblyretaininganinvestmentafteritisconverted into a stake in a listed company.

A brief outline of the Start-up Australia Ventures investment which eventually became its investment in Arana follows. High net worth individuals, incidentally, were co-investors alongside the funds manager.

Start-up Australia Venture Pty Ltd invested $5.67 in EvoGenix over a number of investment rounds from August 2001 to July 2005.

The potential for a strong return was clear from the start, if not the route. The $40 billion human antibody market is a fast growing and extremely successful sector for drug development but is closely protected by numerous patents.

Start-up Australia Ventures investment in EvoGenix followed by its acquisition of US company Absalus, then in turn the merger with Arana Therapeutics produced a company with a complete technology package with clear competitive advantages over other available tecnologies and with a clear freedom to operate (that is, no conflicting patents).

Arana Therapeutics was one of only a handful of companies world-wide which had its own in-house technology which avoided the many patents in the area. The technologies also had a number of competitive advantages. This was demonstrated by the number of global partnerships Arana Therapeutics had achieved. Immediately prior to the acquisition by Cephalon, Arana had partnerships with eight companies worldwide covering 12 therapeutic drug products in development. In the six months to 31 March 2009, it had revenues of more than $24 million from commercialisation of its technology capabilities.

But let us go back to the beginning in 2002. EvoGenix was created by Start-up Australia Ventures to commercialise technology out of the CRC for Diagnostics and the CSIRO. The technology, which was later named EvoGene, was a powerful method of improving the properties of proteins. The investment proposition was that a revolution in genomics and proteomics would produce an explosion of protein-based therapeutics, particularly antibodies.

Start-up Australia’s initial $1 million investment funded “proof of concept” studies and intellectual property protection to enable the company to negotiate partnerships with pharmaceutical companies.

An experienced life science company executive Merilyn Sleigh was recruited to take on the role of EvoGenix chief executive at an early stage. Following a strategic review under Ms Sleigh’s leadership, the company made a decision to focus on the antibody market rather than on proteins in general. As a result, EvoGenix moved to acquire Absalus, a private Californian company with an antibody humanisation technology. This enabled EvoGenix to create an integrated suite of technologies to humanise and optimise antibodies. As a result, EvoGenix became significant player in the antibodies sector.

A critical component in the development of these technologies was the long term backing of investors prepared to see the plan through.

Over a number of tranches, Start-up Australia invested $5.6 million and Gordon Black of Biofusion Capital $1.2 million. Through an IPO in August 2005 EvoGenix raised a further $9 million. This was followed by $6 million in a secondary capital raising.

EvoGenix entered into a number of collaborative arrangements including multi-product deals with major pharmaceutical companies GlaxoSmithKline and Australia-based CSL Limited (ASX: CSL). This provided external validation that the technologies were robust and had good intellectual property protection.

In August 2007 another ASX-listed pharmaceutical developer, Peptech, which had a strong cash position, took over EvoGenix and changed its corporate focus to concentrate on the EvoGenix technologies. The merged entity was then re-named Arana.

After that it was essentially a case of continuing to develop Arana’s technologies until a trans-national life sciences company made a move.

Cephalon is by no means one of the giants of the sector but was big enough to make an attractive offer.

By Adrian Herbert - Private Equity Media

Nice Set of Numbers

*Adrian Herbert is Managing Editor of Private Equity Media, publisher of subscription journal Australian Private Equity & Venture Capital Journal. This article is based on material from the Journal.

For access to a free copy of Australian Private Equity & Venture Capital Journal and subscription information visit: privateequitymedia.com.au


By John Quinlan - Australian Business Lawyers

Opportunities for InvestingInto Distressed Assets

An attractive wholesale investment alternative in the current financial climate is investment in distressed debt and assets. This alternative investment opportunity has been brought on by the advent of the global financial crisis and in effect, created a secondary or distressed investing market in Australia which may offer attractive acquisition opportunities for investors.

With a substantial increase in the number of Australian companies entering into voluntary administration or other forms of corporate insolvency, their disposal of poorly performing, non-core assets or companies presents a unique opportunity for investors to inject critical capital into underperforming assets or companies at a discount to net tangible assets.

Distressed Investing

Distressed investing is focused on two (2) opportunities:

1. An investment in a distressed asset or company. These assets are typically stressed or in distress from a balance sheet perspective and are no longer deemed financially viable, whether as the result of unsustainable debt levels or depressed industry conditions.

2. An investment in distressed debt. Where a company is unable to service its debt obligations and it is facing an impairment loss on an asset, the ability of distressed investors to invest in non-performing loans can provide liquidity in the market by allowing lending institutions to release previously dedicated capital, which can then be allocated to financially viable businesses. This type of distressed investing becomes more relevant, as the increasing cost and availability of funding becomes more limited.

Distressed Opportunities

While distressed investing does not fit with every investor’s individual risk profile, those investors with a medium to high risk tolerance are currently entering the market to invest in distressed companies at substantially discounted prices, particularly where the financial circumstances of the business warrants a swift transaction.

The acquisition of distressed assets can benefit a number of parties, including business owners, shareholders and key stakeholders, as it may free up a company’s balance sheet that is compromised by a distressed asset. These opportunities allow distressed investors to facilitate successful restructurings by providing a distressed company’s management with time to strengthen a company’s total capital structure, and provide the company with the opportunity to adjust and rationalise operations with a view to securing and improving future operations and profitability.

The prevailing economic conditions have also resulted in an increase in the disposal of non-core business units to third parties looking to acquire underperforming companies as “bolt-on” acquisitions. This is particularly true in the case of private equity firms. As the disposal of an underperforming portfolio company has become increasingly difficult, private equity firms have turned to strategic acquisitions in the form of bolt-on acquisitions to enhance the value of those portfolio companies.

Further, as the market is deeply divided on company valuations, distressed investing creates opportunities to increase value in existing portfolio companies through the synergies offered by a bolt-on acquisition, thereby extending the range of those portfolio companies.

Distressed companies also present opportunities for current management to conduct a management buy-out. An increasing number of companies are under severe pressure from their creditors, shareholders, suppliers and customers seeking to protect their conflicting interests. This pressure has created opportunities for current management to preserve value by facilitating a quick sale of the company where this course has been determined to be the best method to maximise value for all stakeholders.

Retail vs Wholesale Distressed Investment

While some advisors advocate the acquisition of shares or units in retail funds geared towards the acquisition of distressed assets in order to mitigate the risk of distressed investing, investors should be aware that the New York University’s Stern Business School reports that the average global return for distressed funds was down 26%, with redemptions of 30%.

Accordingly, investors should not to overlook the opportunities presented by wholesale investment in distressed assets or companies in favour of a retail investment product. Summary

The establishment of a secondary market for distressed investing in Australia offers investors alternative investment opportunities at significantly discounted values. Further, the acquisition of distressed debt by investors may contribute to the stabilising of financial markets by facilitating the unlocking of capital currently deployed in non-performing loans and other underperforming assets. However,

distressed investors should ensure that the investment fits their risk profile and that asset and company valuations are at an attractive discount.

John Quinlan is a lawyer at Australian Business Lawyers. He works on corporate advisory, corporate restructures, including advice on capital structure, the acquisition and disposal of businesses and assets and corporate finance. Australian Business Lawyers is a commercial law firm which specialises in commercial and workplace law. www.ablawyers.com.au


By Tom McKaskill

Assessing the Strategic Value of a Business

To be investor attractive, an emerging company has to have an asset or capability which can drive high growth, either organically or in the hands of an acquiring corporation. If you look at the investment outcomes of the typical private investor you will see about half of the investments have lost money, thus the balance must make up the losses. This means that, going into the investment, the target rate of return needs to be in excess of 30%. Without high growth potential, this is almost impossible.

High growth eludes the vast majority of firms. The ABS statistics for 2007 show that only 10% of firms had more than 20 employees and only 6% achieved revenue in excess of $2 million. What we don’t know from this data is how long these larger firms took to get to the size they are. We do know from research into high growth firms that very few businesses exceed 10% growth for even a few years. Thus few firms offer an investor high growth potential from organic growth. But high growth potential in the hands of a large corporation is a different matter entirely. This is where strategic value investments really pay off.

Large corporations already have the market penetration, distribution channels, funding and organization structures to exploit an acquired product or capability which has the potential to negate a significant threat, reduce operating costs or offer an opportunity for new revenue. Not all products and services are able to create this outcome. To have strategic value, an asset or capability must provide a benefit to the acquirer which they could not easily buy, build or assemble. Basically, if they could do it themselves they wouldn’t need to acquire it. The value to the buyer comes from the cost savings, retained revenue or new revenue which can be secured only through the acquisition. The strategic value increases as the period of exploitation extends.

Strategic value is most often found in strong intellectual property such as patents, brands, trademarks, licenses and copyright. It can also be found in deep expertise which is hard to acquire or assemble. The strategic value is based in the uniqueness of the asset or capability and the capability and capacity of the acquirer to exploit it. While we would normally focus on strong and sustainable competitive advantage, strategic value can still be

found in very ordinary products and services which can be sold rapidly into a large customer base. It is the ability of the acquirer to exploit the asset or capability which is the main determinant of strategic value.

Significant strategic value can exist inside a small business even if that business does not have the capacity to exploit it themselves. It may not matter how many employees or customers it has or even if it is making a profit. The value is determined by projecting how the buyer will exploit the acquisition not how the business itself does. Finding the right buyer is therefore critical to leveraging a strategic value investment.

This view of enterprise value flies in the face of conventional valuation techniques. Instead of the firm valuation being based on their inherent profitability and growth rate, it is determined by how a large corporation will exploit their underlying asset or capability. A large corporation with 20,000 target customers does not need your small customer base of 20. If they have 200 salespersons, they really don’t need your two. In fact, what you have achieved in terms of revenue and profit may be quite irrelevant.

We all know that high growth is inherently risky and often elusive. But what if you don’t have to go down that path to generate a high ROI. As an investor, you could target those emerging firms which have assets or capabilities which have strategic value. Instead of building the business through the long hard slog of acquiring customers, you could focus instead on the tasks to bring the underlying asset or capability to a point where a large corporation can exploit it. You need to create an asset or capability which will have significant competitive advantage in the hands of the buyer, make it scalable and ensure it is ready to be exploited. Choose your prospective buyers carefully, those which can fully exploit the strategic value. At that point, put it into a competitive bid so that its value can be captured in the sale price.

As a crude estimate, strategic value is the discounted cost savings or gross margin on new revenue or retained revenue achieved by the buyer in the first two years after the acquisition. Thus rapid early deployment in the hands of the buyer is critical. A trade sale which returns 50 to 100 times the investment is not unusual in these types of deals.

Copyright © 2009 Tom McKaskill

Dr Tom McKaskill was the Richard Pratt Professor of Entrepreneurship, Australian Graduate School of Entrepreneurship, Swinburne University of Technology, Melbourne, Australia. He has taught at universities in the USA, Australia, New Zealand, and the UK, and completed his academic qualifications in Australia and the London Business School.

www.tommckaskill.com


Trade secrets, whether an “idea”, “invention”, “know how” or trade advantage such as customer lists can gain protection by a binding legal agreement (let’s call it an NDA), in certain cases by registration with some public authority (such as patents or designs with IP Australia) and in some other limited cases automatic protection is provided by the relationship of the parties, for example an employer/employee relationship.

But if there is no protection, what happens?

Let’s make it simple.

You cannot own trade secrets unless they are protected.

To protect information it has to be a secret disclosed in circumstances where the person to whom the trade secret is confided understands or ought to be aware that the information is confidential.

How many enthusiastic entrepreneurs have there been, anxious to not only show off their “idea” or “invention” but to also raise the funds to commercialise the “idea” or “invention”, found the potential investor liked the idea or invention so much that they pay the entrepreneur the ultimate compliment and decided to use the “idea” or copy the “invention” - but without the entrepreneur?

The most obvious way to gain protection for a trade secret is by an agreement such as a properly drafted Confidentiality Agreement.

Many inventors forget that if they disclose the secrets to their invention they traditionally lost the right to patent the invention. Disclosure could be to just one person or an obscure journal available to the public, even in another language and in another country.

One of our clients went so far to protect from prying eyes the testing of their invention prior to filing their patent application that they tested the invention at 3am in the morning.

While there is some limited protection in Australia and the United States where an invention is disclosed or used within 12 months before an application is filed to patent an invention, this protection does not exist in other countries in Europe and Asia and certainly not one a prudent businessman should rely on.

A common problem arises where “confidential information” is circulated within an organisation and shared out among staff and consultants. At some point the information risks becoming “public knowledge” and no longer protected.

But before you rush off and use any old NDA, you need to think about such issues as:

• What are you seeking to protect? A trap for young players is to claim that all information is “confidential” or is protected for an “unreasonable period”;

• Who owns the trade secret? Was it jointly created, created by an employee or independent contractor? Different rules apply depending on who and in what circumstances the trade secret was created;

• Who are you dealing with? There is a lot of difference between a business name and an incorporated company;

• Are you dealing with one company that is part of a Group of Companies? Are all members of the Group bound by the NDA?;

• Who has authority to sign documents - you would not usually expect a junior employee to have authority to bind a large public company;

• Whether the employees and consultants of a company to which a trade secret is disclosed should also sign a NDA? After all, simply because you have a NDA with ABC (Holdings) Limited, that does not necessarily bind each individual employee and consultant engaged by that company, most of whom may not even be aware of the NDA;

• Is the obligation of confidentiality between the parties mutual or simply one way?

• If the parties are in different countries, the law of which country should apply to the NDA, eg should it be the law of the UK, Denmark, Singapore etc? Different countries have different rules that apply to confidentiality and the protection of trade secrets;

• Should the NDA also include a provision that the party to whom the information or idea is disclosed may not “use” that information, ie a non compete provision;

• Has the NDA been properly signed and date

James Millea [email protected] and Andrew Ireland [email protected] are at Argyle Lawyers specialising in commercial and corporate law with a particular focus on private equity, renewable energy and commercialisation of intellectual property. www.argylelawyers.com.au

By James Millea and Andrew Ireland - Argyle Lawyers

do you have confidence in your confidentiality agreement?


Wholesale Investor Ad.indd 1 1/9/09 4:53:52 PM


Company Name Hadley Green SecuritiesSector Property Yr established 2001Business stage Expansion

Location Sydney/Canberra, AustraliaOpportunity Capital Raising

Executive SummaryHadley Green Securities is offering wholesale investors the opportunity for a 10% cash yield, 100% tax deferred, via units in the Chisholm Village Property Trust (CVPT) for the acquisition of the Chisholm Village Shopping Centre

The Chisholm Village Shopping Centre, located in the established Canberra suburb of Chisholm, is a modern, 5,034 sqm neighbourhood shopping centre anchored by a 2,597 sq metre Coles supermarket on a 15 year lease and supported by twenty specialty tenants. The investment will be managed by the experienced team at Hadley Green Asset Management (HGAM).

With a philosophy of active asset management and an experienced team, HGAM is confident of its ability to generate strong investor returns through attractive income distributions and potential capital gains.

Competitive Advantages• High initial yield of 10% p.a., 100% tax deferred.

• A “back-to-basics” direct property investment in a modern, well located, Coles anchored neighbourhood shopping centre

• Counter cyclical investment opportunity in Australia’s best performing commercial property sector

• Hadley Green has had over 8 years experience

• Proven history of shopping centre projects

• Secure income - over 50% of income from Coles and other major ASX listed Groups

• Competitive fee structure with no entry or exit fees

Key Investment Highlights• Secure income with attractive capital growth potential

• Initial Cash yield of 10% PA and initial equivalent pre-tax yield of 18.2% PA for top marginal tax payers

• Returns to investors will be highly tax-advantaged with distributions forecast to be 100% tax deferred for the first two years.

• Modern asset that has recently been substantially refurbished and expanded costing apprximately $5 million

• Strongly performing Coles supermarket anchor tenant

• Secure cash flows underpinned by 15 year lease to Coles & centre WALE (Weighted Average Lease Terms to Expiry) of approximately 9 years

• Attractive capital growth potential through counter cyclical purchase and attracive income growth

• Hadley Green has been successfully managing property funds invested in neighbourhood shopping centres on behalf of private investors since 2003.

Further Information:To learn more about this opportunity, including downloading the Information Brochure, go to

www.wholesaleinvestor.com.auclick on View Investment Opportunities and search for Hadley Green Securities.

Board & Management:

Hugh Zochling - Executive Director Hugh has an extensive background in property investment, management and research spanning more than 20 years in Australia and North America. Paul Hammon - Investment Committee Extensive property career having held senior positions with Stockland, AMP and Prudential. Nigel Oliver - Investment Committee Chartered Surveyor with over 20 years experience in Australia and the UK.

Corporate Structure

Chisholm Village Property Trust will be an unlisted unit trust.

Exit Strategy

The intended timeframe for this investment is 7 years. After 7 years, the shopping centre will be sold and net proceeds returned to investors. There is no redemption faciility prior to that, however investors will be freely able to sell their units in Chisholm Village Property Trust after 12 months.


Company Name Kordz Pty Ltd Sector Electronics Yr established 2003Business stage Expansion Location Seaford, AustraliaOpportunity Capital Raising

Board & Management:

David Meyer - Managing DirectorAss. Dip. Business (Acc), Retail & e-commerce business management.

Background in Accounting and natural business accumen. Also on the Board of CEDIA AP.

James Chen - Director - Sale & Operations 20 year AV industry veteran, retail, installation and wholesale experience.

Richard Woods - Non-salaried Executive Director Fellow of Chartered Accounts & and Tax Agent

Vast experience in financial management and accounting services.

Corporate Structure

Australian Pty Ltd company governed by a formal Shareholder Deed. Top tier Ordinary Shares with full voting rights.

Exit Strategy

Kordz Pty Ltd is proposed to effect a float on an appropriate exchange within the next 2-3 years.

Executive Summary Australian based specialist brand of AV interconnects & accessories, offshore manufacturing with matured Australia/New Zealand wholesale distribution network, currently expanding into the USA.

Competitive Advantages• Established and respected brand with registered trademark protection

• Multi-award winning, recognized and respected in the ANZ marketplace

• In-house R&D for high integrity products; we don’t just source & import

• Market focus on lucrative niche of specialist retailers & installers - CEDIA base

• Genuine licensed Adopter of HDMI technology

• Australian MD sits on Board of Directors for CEDIA Asia Pacific, enhances brand integrity

• US office already established in the heart of Silicon Valley, California USA, 1.9 miles from HDMI headquarters

• Michael Schaller, Director of Kordz USA, Inc is the former HDMI Licensing Global Compliance Director

• Company and brand focus on compliance & education of industry personnel, media and consumers

• 6 year matured business history

• Kordz “IMMORTAL” lifetime warranty on key product lines Key Investment Highlights• Invest into the genuine international growth phase of 6-year matured and proven business

model

• Comprehensive & unique skillset of the Kordz management & team for the highest investor confidence

• Market focus on CEDIA and HDMI, strong links with Kordz into both organisations for undisputed credibility

• Strong financial position with equity more than 80% of tangible asset value, pre-investment

• A majority of the new investment funds will stay on the balance sheet

• All R&D and marketing activities to be funded by existing cash flows, new funds for inventory & infrastructure

• Sales projections are conservatively realistic and VERY achievable, with absolute confidence of success

• Enhanced Shareholder Deed gives better balance and more rights to shareholders than is common practice

• Share holdings to remain in Aussie company, with Kordz USA, Inc being majority subsidiary

• R.O.I. projected at 2.5x initial capital investment over four years, effective 25% p.a compounding, plus franked dividends

Further Information: To learn more about this opportunity, including downloading an Information Memorandum, go to

www.wholesaleinvestor.com.auclick on View Investment opportunities and search for Kordz Pty Ltd.


Company Name CassTech LimitedSector Agro-industrial, clean tech Yr established 2008Business stage Pre-IPO (IPO team in place Location Burdekin region, AustraliaOpportunity Capital Raising

Executive SummaryCassTech Limited is seeking to establish an integrated cassava farm (6,000 ha), starch factory, stockfeed mill and feedlot in the water-rich Burdekin region of North Queensland. The enterprise will exploit the projected domestic and regional shortfall in the supply of starch - a key input in food and industrial applications.

Location of processing facilities on-farm and 24 hour per day farm operation will enable the company to be amongst the lowest cost producers of tapioca starch in the world. Co-location of downstream starch convertors within the starch factory/feed mill precinct is expected.

Energy, stockfeed, pellets and fattened cattle are produced as by-products. Consequenlty, the diverse revenue base of the company provides a strong platform for ongoing expansion in an agricultural region which is not constrained by water availability.

Competitive Advantages• Global food prices are rising on the back of carbohydrate (starch) shortages

• Regional shortages are being magnified by limited land availability and increasing demand for western diets

• Integrated cassava farming gives control over production inputs and delivers a very low production cost

• Low carbon footprint and full traceability is very attractive for Asian markets experiencing contaminated foods

• Diverse income stream from starch, stock feed, pellets and cattle

• Located in Australia’s most efficient, globally competitive agricultural region.

Key Investment Highlights• Accomplished Board and Management Team with expertise in Cassava, farming

and start ups

• Integration of farm and other facilities maximises project EBITDA with 50% EBITDA margin

• Project land secured

• Land value increases by $75M after conversion to cropping industrial land

• Low carbon footprint and full traceability delivers a Clean, Green Project

• Support for project by domestic and foreign starch consumers

• Interest from companies in co-locating starch converting facilities

• Detailed farm design commenced, factory contracted, feed mill and feedlot quotes received

• Pre-commercial growing trials demonstrate high yield (above modelled yield)

• Newer high yielding varieties sourced

• Short IPO turnaround time

Further Information:To learn more about this opportunity, including downloading the Information Memorandum, go to

www.wholesaleinvestor.com.auclick on View Investment Opportunities and search for CassTech Limited.

Board & Management:

Robert Ashley Pearce - Chairman BCom CA Chartered accountant with broad experience as a director of a number of companies listed on the ASX, LSE, AIM, TSX and NYSE. Mr Pearce was previously chairman of Gladstone Pacific Nickel Ltd. Lincoln Munro Doggrell - Non-Executive Director B.Sc (Tropical Agronomy) Lincoln has 40 years experience in technical, operational and corporate management in the agricultural sector in Australia. Peter Cain - Director B Chem Eng (Monash), B Economics (UQ), M Eng Sc (Monash) Peter has over 20 years technical and sales experience in the starch, biotech and paper chemicals industries across North America, Europe, Australia and Asia.

Stewart Peters - Director/ CEO B Chem Eng (UQ), B Economics (UQ), MBA (MBS) Stewart has in excess of 25 years engineering and project management experience in the resources, power, ethanol and pulp and paper industries.

Corporate Structure

Casstech Limited is an Australian unlisted public company with 21.2 million shares on issue held by 24 shareholders.

Exit Strategy

The project financing strategy proposes to seek admission to a suitable exchange at the earliest time

Organization

CassTech Limitedacn 133 093 660

Integrated Farm Factory Feedlot

Burdekin Integrated Cassava Project

Is cassava something new?No. Cassava is grown commercially in Australia in small quantities, and CSR, Bundaberg Sugar and Fielder Gillespie established 500 hectares in the 1980’s to produce bio-ethanol.

More recently, Meat and Livestock Australia and, independently, the University of New England have undertaken detailed studies to promote it as an alternative feedstock.

Page 5CassTech Limited

Is availability of water an issue?No. The Burdekin region has around 100,000 megalitres of unallo-cated water available. The project has 4.5 km of frontage along the Elliot Main Channel – a large irrigation channel.

What yields do we achieve?Cassava root yield was measured in Australia by the Department of Primary Industries in the 1980’s The results indicated yields of 60 tonnes per hectare in the Burdekin over a 9 month period.

Our farm is estimated to yield 70 tonnes per hectare based on:

overhead spray irrigation;

a slightly longer growing period.; and

higher yielding varieties (25 to 50% higher yield).

Yields of greater than 100 tonnes per hectare may be achieved as the project matures.

Elliot Main Channel

Burdekin River

What approvals are required?The project areas have approvals in place to commence full-scale farming operations. A Land and Water Management Plan is re-quired to purchase additional water. This documents farming activities with reference to soil types, water usage and farming practices.

Building approvals for the starch factory follow the Integrated Planning Act. The land is zoned “Farming and Farm-related Proc-essing”, therefore a public process is not required.

Feedlot approvals are administered by the Department of Primary Industries on behalf of the Environmental Protection Authority. This process is very rigorous and is expected to take 12 months to complete.

Will we use herbicides/pesticides?Yes/No. Cassava does not have natural pests and diseases in Aus-tralia so it is not expected to require pesticides. However, it is will be necessary to use herbicides to control weeds which are abun-dant in the Burdekin.

The herbicides will be selected for their suitability for livestock as it requires zero residues. Pesticide run-off to the reef is a major point of focus for Environmental Authorities in the Burdekin.

The Company is well positioned to establish sustainable cropping technologies.

Can we compete with Thai producers?The cost of producing cassava root in Thailand is around 1.3 to 1.4 Baht per kilogram. At 26,5 Baht to the Australian dollar, this is the same as our cost of production. Frequently, the Thai government intervenes and sets a floor price of around 1.8 baht per tonne.

We are able to be competitive because: Land is owned by CassTech and full crop value is extracted ; GPS guidance and wireless to maximise throughput; 24 hour/days, 365 days/year operation; No delays in the roll-out of improved planting material ; High speed, high horse power farm equipment;Mechanised planting & harvesting; and Better agronomic practices including fertiliser and irrigation.

Does cassava contain anything bad?Cassava is known to contain cyanuric acid or cyanide. This breaks down during processing and is not known to be present in tapioca starch. Cassava root is the fourth most important staple food in the world with records of its consumption dating back 4,000 years.

Foliage must be stored for 2 weeks to allow the cyanide to break down. The same applies to other crops such as sorghum. The presence of cyanuric acid within the plant deters pests and elimi-nates the need to apply pesticides.


Company Name Property Planet Pty Ltd Sector Property Yr established 2003Business stage Early StageLocation City AustraliaOpportunity Capital Raising

Board & Management:

TIm Jamieson - DirectorLeft Delfin Lend Lease in 2003 to commence company. Strong sales and marketing experience in land and new home market.

Simone Bertalli - Secretary Mortgage Broker, Licenced Estate Agent

Solid sales and marketing experience in Property and Finance. Also Director of Finance Planet

Corporate Structure Propriety Limited Company.

Exit Strategy

This unique investment offers returns in full within 6 months or the option to roll funds over into additional cash advance deals. Alternativley there is the option to invest in the company and the Cash Advance system. The exit for the business is to list on a suitable exchange post Stage 2 of the business plan

Executive SummaryProperty Planet provide quality and affordable house and land packages First Home Owners and Investors in Melbourne, Australia. We currently specialise in the sale of single storey dwellings on the fringes of Melbourne. We have two operational sales centres in display villages with four more locations in growth areas soon to open. We outsource all building to registered builders and have zero risk associated with our core product. We have developed a very successful finance product that offers substantial scope to be intergrated across the property market. There is simply no kind of investement opportunity that offers as much security and scope in the property sector as our Cash Advance model.

Competitive Advantages• Cash Advance: This facilty is an exclusive product in Australia. No builder or land developer

offers anything similar.

• Product Offering: Our Cash Advance offer combined with out affordable homes, finance approval rates and special promotions makes us not only the only option but in many cases the best option.

• Tested & Measured: We have tested and measured lead generation, sales and adminstrative process over an extended period and have a unique, simple and effective system.

• Low Risk: We have no substantial risk in the operation of the business. Land is provided by developers, houses are provided by builders and staff are sub-contractors.

• Scalaility: Our business model can be replicated anyhwere in Australia and vertically integrated to the land development industry.

• Performance: We have built this current model in 6 months and acheived 100 house sales. We expect to tripple this in the next financial year.

Key Investment Highlights• Low Investor Risk: We have mitigated all risk for investors offering four levels of security including

property security on each Cash Advance deal.

• Investor Returns: We provide guaranteed returns of 12%. As our incubation period of funding is 6 months, returns can be annualised at 24%.

• Purchasers able to take advantage of State and Federal Government grants and incentives.

• We have tested our system for successful exit strategy.

• Opportunity: We offer two levels of investment. Firstly, as a pure cash return investment on each Cash Advance opportunity or secondly as a stakeholder in the company to fastrack our solid business plan.

• Targets: We continue to exceed targets monthly and are on track to produce $1m+ EBIT in the next 12 months of operation.

• Growth Prospects: We have set acheivable targets to have 600 sales in Victoria by 2011 before focusing on interstate replication.


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Company Name Agri Fuels LimitedSector Renewable energy/agri-business Yr established 2006Business stage Early StageLocation Sydney/Childers, AustraliaOpportunity Capital Raising

Executive SummaryRENEWABLE ENERGY, FOOD AND GREEN POWER USING SUSTAINABLE AGRICULTURE.

The project (in Childers, QLD) is based around a proprietary variety of the powerful energy crop Sweet Sorghum.

In the AgriFuels business model, the grain head of the Sweet Sorghum is used for food/fodder. The remaining stalk yields sugar juice and fibre (bagasse). The sugar juice is processed into syrup, alcohol, yeast and biofuel; the fibre is used as fertiliser, animal feed, paper pulp or is combusted for green electricity to power the mill and refinery. Excess electricity is sold back to the grid for additional profit.

Competitive Advantages• Low production cost of renewable energy

• Sustainable profits with ethanol production cost less than A$0.40 per litre

• Carbon-neutral end-to-end process

• Total control of input costs -- (unlike biofuel projects)

• Generates food rather than using food for fuel production

• Produces electricity from waste fibre at a cost equivalent to coal

• License for Govt import approved, proprietary, high-yeilding crop variety

• All necessary technology to process products is current and proven

• Asset backed investment -- project owns agricultural and commercial land

• Refinery is cost-effectively adaptable to next generation technology

Key Investment Highlights• Strong agribusiness cashflow projected from 2010

• Substantial cashflow from 2nd year of renewable energy refinery operations

• Multiple revenue streams with demand greater than production capacity

• Low technology risk with farmland and commerical property asset backing

• Crop of choice develops sustainably higher farm income than comparable crops

• Significant Intellectual Property from past four years of international R&D

• Experienced, multi-disciplinary management team and board

• Strong political and community contacts in region

• First project located in Childers, QLD with additional projects planned for other regions


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Board & Management:

Gregory Lee - Non Executive Chairman CPEng 30 years experience in oil and gas industry and project management Brendon Elett - Managing Director B.Sc, Dip Mkg, PG Dip Ecc Mgt10 years corporate marketing and business management and 10 years agricultural farming operations. Guiseppe Graziano - Non Executive Director CA17 years experience in public practice. Considerable client base in a variety of business structures.

Robert Smallwood - Executive Director B.A. Comms. F.C.C. License 1st Class (USA Senior management roles in renewable energy, IT & Telcos.

Corporate Structure

AgriFuels is a public unlisted company. Currently there are 58 shareholders and 21,117,850 shares on issue.

Exit Strategy

3 - 5 year exit opportunity via trade sale or listing a suitable exchange. Anticipate substantial positive cash flow upon project being fully commissioned, making AgriFuels an attractive takeover target.


Company Name Benson (WA) Distributors Pty Ltd Sector Air Conditioning Yr established 2009Business stage Seed Location Perth, AustraliaOpportunity Capital Raising

Board & Management:

Matthew Posselt - DirectorInvolved with all aspects of running the Air Conditioning company.

Charles Posselt - Director Has been in Air Conditioning Industry for over 15 years. Has installation company

Corporate Structure

Benson (WA) Distributors Pty Ltd is a private company.

Exit Strategy

Possible for investor to exit in approximately 6-12 months.

Other options will be considered.

Executive Summary Benson (WA) Distributors Pty Ltd is a Green Air Conditioning Wholesaler, which will supply

both Domestic and Commercial Air Conditioning to WA’s Builders, Mine Sites and general

population. It is a Global Leader through the use of non ozone depleting refrigerants used

on all systems.

Competitive Advantages• All Benson Enviro3 Air Conditioners use R290 Refrigerant

• Global and Market Leader with Hydro Carbons

• Only Manufacturer with AC Hot Water Technology

• Tested for Higher operating temperatures

• 100% Australian Owned

• Some of the highest Energy Ratings

• Ability to obtain RECs for AC Hot Water

• Carbon Neutral, 2 trees plant for every system sold

• Plasma Air Stream standard in all ducted systems

• Global Warming Potential reduced from 1,890 to only 3!!

• Benson has support and the backing from Green Peace International, the United Nations Environmental Department and the United Nations Environmental Development Organisation

•Green Peace are supporting R290 as the refrigerant of the future. Key Investment Highlights • Margins set for a large return

• Knowing the Investor is helping the Environment

• Australias largest Environmentally product range of Air ConditionersOnly manufacturer with AC Hot Water Technology

• Market leader in refrigerant and designs

• Constantly updating technology

• Great connections with factories over seas

• Can design systems to order

• The United Nations is trying to ban CFC’s and HCFC’s in Air Conditioning

• Suitable for all sectors of the market, domestic, commercial, industrial etc..


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Distributor

Benson AirconditioningPhone: 1300 4 BENSON (1300 4 236766)Email: [email protected]: www.bensonairconditioning.com.au

Disclaimer The information in this brochure was deemed correct at time of printing June 2009 however may be subject to change. Benson Airconditioning reserves the right to discontinue or vary products and offer without notice.

Benson Enviro 3Ultimate Eco System Solar

Coming soonWant to reduce your carbon footprint while heating/cooling your house and also heating your hot water...for free*?

Benson's Earth Saver Package combines Solar Panels and the Benson AC Hot Water System to give you:

• Free Heating

• Free Cooling

• Free Hot Water

Solar Panel 1,800 watt

Indoor fan coilHeating/Cooling your house

Outdoor unit available as:

• 3.4kW Cooling and 3.5kW Heating + Free Hot Water

• Standalone Hot Water System

Tank sizes available"

50 to 300 Litres

*While the sun is powering the Solar

panels

Distributor

Benson AirconditioningPhone: 1300 4 BENSON (1300 4 236766)Email: [email protected]: www.bensonairconditioning.com.au

Disclaimer The information in this brochure was deemed correct at time of printing June 2009 however may be subject to change. Benson Airconditioning reserves the right to discontinue or vary products and offer without notice.

Benson Enviro 3Reverse Cycle

AC Hot Water System

The Benson Enviro 3 AC Hot Water System can be used as booster system or as a complete hot water system with high efficiencies of 1kW input to near 4kW heating output. It can also be used as a normal Airconditioning system - cooling or heating as required. What makes this system so special?While system the unit is heating or cooling, it can heat your hot water for free. Yes - free!We have added a special process to the air conditioning system to remove the heat to your hot water systems.Unit sizes• Cooling 3.4kW, Heating 3.5kW (Model Number: BENHW-1P-W-34R / RC)• Cooling 4.9kW, Heating 4.9kW (Model Number: BENHW-1P-W-49R / RC)• Cooling 6.3kW, Heating 6.4kW (Model Number: BENHW-1P-W-63R / RC)Related productsA Ducted System is also available, this system has a chilled water loop.

Benson Airconditioning has been working together with companies overseas to design the Benson AC Hot Water Sytem for Australian Conditions. This standard unit is now to be launched and exported world wide.

While our system is heating and cooling your house, it can also:• Heat or boost a solar system• Heat a storage tank, new or oldReap the benefits of incredible energy economies:

• 1kW of power into the AC Hot Water system Generates 3.1kW Cooling Effect plus 4kW Hot water Heating Effect (1kw = 7EER)**Some conditions apply


Company Name The Daily CommuteSector Green / Transport / IT Yr established 2008Business stage Early stage, ExpansionLocation Melbourne, AustraliaOpportunity Capital raising and Strategic Partnership

Executive SummaryThe Daily Commute (TDC) is a dynamic and robust ridesharing website, enabling organisations the opportunity to implement an environmentally responsible, smart, secure transport solution, through a pioneering web-based application.

The solution utilises an innovative SMS feature and makes ridesharing viable by offering live matching anywhere where Google Maps has street directories available, through TDC’s ridesharing algorithm.

TDC offers analytics and reports, as well as the ability to connect to a specially designed reporting database.

TDC’s unique marketing vision can assist in advocating the uptake and use of ridesharing among organisations and users.

Competitive Advantages• SMS, with iPhone technology in development.

• Allows for the reduction of carbon footprint and heightens Corporate Social Profile.

• Relieves pressure on roads and public transport systems and reduces road congestion.

• Security - available to organisations and their employees (users).

• Other security functions (i.e user identification/profile).

• Works with Google Maps through a GIS enabled application, utilising TDC’s ridematching algorithm.

• Ease of use and navigation, including Online Help functionality.

• Strategic vision for engaging users and encouraging ridesharing (eg Events-based ridesharing).

• Innovative development framework to allow for technology/service add-ons.

• Available through a licensing agreement.

Key Investment Highlights• Debates the Government’s opinion that there is no ‘silver bullet’ to the countries road

congestion problems.

• Scalable worldwide (26 countries where Google Maps exist).

• Absence of a strong brand in the (ridesharing) sector of the transport industry.

• Multiple ongoing revenue streams.

• Provides serious scale in profitability without being capital intensive.

• Partners have a vested financial interest in the business.

• Business sector falls within Government’s current agenda (enabling further R&D grants).

• Self-sustaining business & financial model.

• Attractive business as a franchise development.


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Board & Management:

Glenn Batson - CEO & MD Glenn brings 16 years of entrepreneurial, business and commercial skills to TDC.

Sectors to which Glenn has strategic and tactical business experience includes agriculture, property development, equity trading, tourism and IT development.

Amit Pathik - Chief Software Architect A Business Intelligence/Data Warehousing professional, with a decade of experience in building and analysing complex systems / applications for large corporates.

Corporate Structure

TDC is an Australian private company, looking to raise capital preferably through strategic partnership.

Exit Strategy

Trade sale or listing on a suitable exchange at the appropriate time.

The Daily Commute


Company Name Ceebron Pty Limited Sector ICT Food TechnologyYr established 2003Business stage Expansion Location Sydney AustraliaOpportunity Capital Raising

Board & Management:

Don Richardson - CEOM.Eng Sc. BSc Don has managed businesses and corporate development of major corporations in international food markets over 27+ years including some 9 years based in USA

Emyr Jones - Chairman - Non-Executive BA Econ (Hons), FCA Over 30 years’ experience in listed UK companies and non-executive director of, and investor in, emerging business.

Dr. Philip Bennett - Non-Executive Director MBA, BComm Over 25 years experience across a broad range of industry sectors. Director of UK public company.

Roderic Holliday-Smith - Independent Advisor to Board BEc (Hons) Chartered Accountant, Ric has more than 20 years’ experience in banking and finance in the UK, USA and Australia. Director of Australian public companies.

Corporate Structure

Australian Pty Ltd company governed by a formal Shareholder Deed. Top tier Ordinary Shares with full voting rights

Exit Strategy

The likely ultimate exit strategy for the company is the sale of its business as going concern to an international ‘supply chain technology’ company.

Executive SummaryCeebron has developed and proven an on-line cold chain monitoring technology, using state of the art communications technologies to protect foods, vaccines, pharmaceuticals and other temperature sensitive perishables from abuse and degradation during road, rail and sea transport. Ceebron has raised over $5 million for its technology developments efforts and now seeks downstream commercialisation funding. Current ‘risk reducing’ corporate partnerships and relationships include Meat & Livestock Australia (MLA), Motorola Inc, Minorplanet Systems Plc. and CSIRO.

Ceebron’s Smart-Trace tm System provides the transparency and audit controls necessary for food safety of perishable goods from origin to destination, as mandated by international legislation, and now recognised internationally in the non-negotiable terms of international trade. This is a web enabled solution.

Competitive Advantages• Ceebron has been granted patent protection in major international markets, enjoys an early

priority date and has successfully defended these comprehensive business process patents

• The Smart-Trace solution makes the temperature history of the products totally transparent in real-time from supplier to retailer, with automatic alerts, making the supplier the first to know of problems, with his product.

• The solution is a better, faster, cheaper, on-demand one - that is accurate, reliable, usable, and affordable

• Ceebron has had CSIRO as independent auditor, sign-off on its extensive field trialling efforts.

• Ceebron has a business plan that reflects the staged penetration of it targetted country markets and first 8 customers ready to roll-out, once funded for product manufacture and working capital

• The projected high quality of earnings of the business model are driven by: 1. high repeat rates, 2. IP protection, 3. Massive/growing global trade in perishables 4. Regulatory/food safety ‘non-negotiability’.

Key Investment Highlights• Investment is a high growth rate, global opportunity, underpinned by a disruptive and protected

technology

• Investment is to take Ceebron to cashflow positive by third year, for a highly profitable mid term realisation

• Investment has economic, environmental, social and corporate governance, benefit aspects - feel good factor!

• Global business ultimately using alliances for international expansion- agile- ecommerce business

• Target customers (Food or Pharma) are quality conscious, large, many international - very low commercial risk

• Beyond the more affluent countries initially targeted, there remain many huge markets with seriously underdeveloped cold chains, but which are rapidly moving to the western diets and food forms. Brazil, Russia, India, China and Middle East. Typically their poor cold chains result in 20-30% waste, and new investments in technology growing at ~20%pa..


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Company Name Globo Hydro Power LimitedSector Green and Clean Industry Yr established 2009Business stage Pre-IPOLocation Sydney, AustraliaOpportunity Capital Raising

Executive SummaryGlobo Hydro Power is a fuel enhancing process suitable for application within fossil fuelled internal combustion engines, which has been 5 years in development. Specific applications are Petrol, LPG and Diesel engines of the inclusions of motor vehicles, motorised equipment, power generators, marine transport and locomotive transport.

Globo Hydro Power Limited’s Founding Directors have been the driving force over 4 years of product R&D and 1 year of business establishment. This involves the sourcing of parts that make up a product installation kit, the branding of installation kits, the set-up of operational infrastructure, the securing of product and personal liability insurances associated with Globo Hydro Power Limited, and the promotional awareness of Pre-IPO shares that will lead to a comprehensive product release into the consumer market place.

Competitive Advantages• GHP as a product is a minor engine adaptation, necessitating no design, structural or

operating changes to an engine.

• GHP is a fuel enhancer, thus it works with an engine’s existing fuel system.

• GHP utilises hydrogen as its chemical enhancing substance, of which is naturally present in fossil fuels, no foreign substances added.

• GHP utilises 99.5% hydrogen purity, providing greater safety over Brown’s Gas utilised in on-board electrolyser systems.

• GHP utilises compressed hydrogen gas, stored in steel cylinders, over on-board electrolyser systems that produce chemicals as you drive.

• GHP installations are conducted by Authorised Auto Mechanics/ Auto Electricians within 1.5 hours, compared to > 2 days as with LPG systems.

• GHP saves up to 50% in fuel costs, comparative to LPG conversions but LPG systems use up to 30% more fuel in operation.

• GHP reduces up to 45% negative greenhouse emissions, highly favourable to Vehicle Operators falling under emission reduction mandates.

Key Investment Highlights• GHP Limited is an established business entity for the sole purpose of commercialising the

GHP product.

• Supply agreements in place with a listed multi-national, for the supply of Hydrogen.

• The company has established multiple revenue streams, including the sale of hydrogen.

• GHP Limited is growing its business related Industry Alliances and associated operating infrastructure development.

• GHP Limited commences as an Austalian Company, with International expansion planned to occur upon receipt of further investment, and when Australian business objectives are reached.

• GHP Limited will expand into other and larger industries, beyond automotive, in line with business growth directives.


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Board & Management:

Elaine Johns - Joint Managing Director Industrial Psychology, HRD, Business Management. Founding Director, whom is moving “Globo Hydro Power” from concept to commercialisation. Peter Feeley - Joint Managing Director HRD and Business Management. Founding Director, whom is moving “Globo Hydro Power” from concept to commercialisation. Rajeev Shirodkar - Director Finance Management. Company Director providing a financial control element to the business and its operations.

Dorothy Johns - Director Company Director providing a public perspective to the business and its operations.

Corporate Structure

Globo Hydro Power Limited is a non-listed public company.

Exit Strategy

• As an exit strategy for Pre-IPO Investors, sale of shares on a suitable exchange.

• IPO is visioned and planned for 2010, however if sales are as actual as business opportunity presents, then Investors may elect to retain their shareholdings and receive favourable dividends.

• The growth plan for Globo Hydro Power Limited is up to 20 years, with its life span far more, as its product applications move into other and larger industries, thus the “Ultimate” exit plan is to attain a lucratively buy-out from a Corporation(s) that will add value to their company via the GHP Limited acquisition.


Company Name Jadato Holdings Pty Ltd Sector Agriculture Yr established 2008Business stage Early stage, expansion Location NSW and QLDOpportunity Capital Raising

Board & Management:

Peter – CEO 12 years banking industry and founder of a major PLC in the UK. Born and raised in the industries Jadato are targeting. Full details in IM.

Brian – Director Engineer by trade and a successful rural developer. Full details in IM.

Neil – Director Retired from the building industry bringing valuable construction knowledge

Stuart – Director Effective August 2009,17 years property developing and currently in banking

Deloittes - as auditors and advisors

Allen Arthur Robinson - as legal team

Corporate Structure

• Jadato Holdings is a Proprietary Limited Company

• Jadato manages majority owned subsidiaries with key staff that have vested interests in their businesses

Exit Strategy

• Potential Trade Buyers have been identified

• Jadatos structure allows for an appropriate exchange listing

• Jadatos founders believe a MBO will exist in time

• Exit and Risk strategies are constantly under review

Executive Summary• Jadatos goal is to invest in sustainable properties, in the agriculture sector, in order to

supply fresh, organic products to consumers

• Jadato offers a diverse, integrated supply chain incorporating;

• Grain farms in geographically disparate regions to ensure a reliable supply of grain to livestock farms and grain mills;

• Grain mills for the production of grain-based feeds and supplements;

• Livestock enterprises to take supply of grain-based feeds and supplements;

• Organic fertiliser production to maximise income from the grain milling and livestock operations by taking waste by-products and converting them to a saleable commodity

Competitive Advantages• Drought proof products (in fact we like the drought!)

• Several uses for product if traditional markets downturn

• Control of the supply line

• Manageable upsizing returning greater profits than independent operations and minimizing risks

• Our waste by-products from milling and egg operations are our most valuable asset used for producing organic fertilizers

• Capacity for considerable market share increase only limited by available capital

Key Investment Highlights• Each property/business must have land assets that can have value added and on multi titles

• Organic, sustainable practices within agriculture currently command premium consumer prices

• Recession proof – products for human and animal consumption mostly under sales contracts

• We buy businesses showing 35% plus returns and secure key staff to manage on our behalf giving them “ownership with reward”

• Growth opportunities exist in business model duplication by state

• The existing businesses we buy currently have no export contracts!


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Company Name Activeplus Pty Ltd Sector Health care Yr established 2008Business stage Early stage

Location Sydney, AustraliaOpportunity Capital Raising / strategic partner

Board & Management:

Geoff Crittenden - Executive Chairman Geoff is an entrepreneur who has spent the last nine years running his own company. Prior to that Geoff was CEO of a Transfield-Worley JV.

Rakesh Raj - Managing Director Rakesh is a highly experienced senior manager who, until recently, was director responsible for the pharmacy division of global pharmaceutical company Sanofi-aventis. Prior to joining Sanofi, Rakesh was General Manager of the generic pharmaceutical company Sandoz, part of the Novartis group.

Stuart Hackett - Finance Director (Non-Executive) Stuart worked in the financial services industry in Australia and UK for over 25 years. His previous positions have included CEO, GIO Building

Society, CEO, Challenger Life Ltd, General Manager, Superannuation

Managed Investments, GIO Australia Ltd.

Corporate Structure Currently Activeplus is a private company but plans convert to Public (unlisted) following investment.

Exit

• After the Company has converted to an Unlisted Public Company shares can be bought and sold through the company’s share register.

• Ultimately the business will be sold through a trade sale.

Executive SummaryActiveplus is a dynamic consumer healthcare company focused on selling high-value Australian made complementary medicines which promote well-being and an active lifestyle.

The Australian market for vitamins and supplements is worth $1.5 Billion; 2 out of every 3 Australians take a form of complimentary medicine. The market has more than doubled in the past five years. Over 70% of the profit in this category is generated by 20% of the products on sale.

Our strategy is to simplify selected categories for both the pharmacy and consumer by offering core products that provide clear consumer benefits and higher profits to pharmacy.

Competitive Advantages• All our products are Australian Made

• 60% of our products have unique formulations

• Pharmacy only distribution has generated strong support for our brand from pharmacists and distributors

• Creative packaging design stands out from competitors

• The only company to offer an every day 1 for 5 consumer offer

• Innovative business model offers excellent profit incentives to pharmacists

• Fully integrated sales incentive scheme

Key Investment Highlights• Activeplus has an experienced and highly respected management team

• Low risk business model minimizes the requirement for capital expenditure on infrastructure

• EBIT will be in the order of 15-20% of revenue

• Trade sale multiples for mature companies in this sector are in the 12-16 x EBIT range

• Estimated ROI 33%

• Product is already ranged in 2 major national wholesalers and with 2 significant pharmacy chains

• 1000 units sold in April with sales predicted to double month on month

• Excellent growth opportunity to expand the company into other categories using ‘Active’ brands.

• Export opportunities to India and Middle East.

Activeplus sells safe, reliable and affordable pharmacy-only Australian-made

healthcare products which promote well-being and an active lifestyle.

Our purpose is to build equity in our brand portfolio through sales

and marketing operations in the pharmacy channel.


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Company Name Klaus Maertin (Aus) Pty Ltd t/a Floaties

Sector Consumer goodsYr established 2008Business stage Early stageLocation Sydney, AustraliaOpportunity Strategic Investment

Board & Management:

Philip Maertin – Managing Director Philip is the reason why Floaties ® was invented. He has a life long involvement with the brand and more than 20 years experience in market and product development and innovation. He has worked with a number of blue-chip companies across a range of consumer products internationally.

Phil Evans – Director Phil is the director of corporate relationships.

Don Champagne – Chief Executive Officer

Advisory Board

Peter Nagle Barrister

Kieren Perkins Olympic champion swimmer

Professor Joan Ozanne-Smith Head of Prevention Research Services – Victorian Institute of Forensic Medicine

David Bonython Strategic Sourcing Australia

Edward Smith Director – Beijing Consulting Group

Corporate StructureKlaus Martin (Aus) is a proprietary limited company.

Exit StrategyKMA intends to build a global business prior to converting into a public company and listing on a suitable exchange.

Further InformationTo learn more about this opportunity, including downloading an overview document, go to

www.wholesaleinvestor.com.auclick on View Investment Opportunities and search for Klaus Maertin.

Executive SummaryKlaus Maertin (Aus) Pty Ltd (“KMA”) is a new company formed to re-launch worldwide the iconic Australian brand, Floaties ®. KMA holds the rights to all Floaties trademarks and brands. Floaties ® is instantly recognisable world wide for a range of inflatable aquatic / swimming related products and pool accessories.

Every year more than 126 million children are born. The objective of KMA and Floaties ® is to reach a significant percentage of these children with a product relevant to their needs and to promote worldwide swimming tuition.

KMA has agreements in place with Funtastic, Australia’s leading toy distribution company. In partnership with Funtastic, KMA will develop world wide marketing, distribution and manufacturing solutions to ensure Floaties ® is represented in all significant markets.

Competitive Advantages • A world market for the Floaties ® brand

• Trademarks registered in all key markets

• Licensee manufacturers established

• Sales agents in key markets including USA, China and Japan

• Discussions on-going with major blue chip companies for licensing of product, as well as with smaller companies

• Expanded range of products ready for development

• Economies of scale achievable through a worldwide business focus

Key Investment Highlights• Opportunity for an investor to take a minority shareholding in KMA

• Instant brand recognition of Floaties ®

• A trusted brand with a long history in the market (over 40 years)

• Swimming is a life skill and Floaties ® is synonymous with swimming

• A truly international business opportunity with the potential for sales in the world’s largest markets through a combination of licensing and manufacturing in key locations.

• Established manufacturing methodology for mass production

• Substantial investment in global IP protection

• Development of a core range of products, brochures and ranging with the major retail department stores for the 2009 Australian summer


Company Name Wasabi Holdings Pty Ltd t/a WASHPOD

Sector Automotive & IndustrialYr established 2004Business stage Expansion, pre-IPOLocation Perth, Western AustraliaOpportunity Capital Raising

Board & Management:

Paul Piercy (Chairman) Mr Piercy was Managing Director of WesTrac Equipment from 1997 to 2000 before playing an integral role in the successful establishment of WesTrac China, as its Chairman/CEO based in China. His broad mining, industrial and equipment management/ servicing experience also includes International roles in Africa, China, UK and Papua New Guinea.

Fenton Goddard (Managing Director) Founding director, technical innovator and driving force behind the WASHPOD™ concept, Fenton is a pioneer in the field of Automotive Workshop Productivity Improvement with six patents to his name in the field. With 20 years specific experience in all facets of the automatic parts washing industry he heads the rapidly growing team.

He is a Licensing Executive member of Licensing Executives Society of Australia and New Zealand and a member of the Australian Institute of Company Directors.

Corporate Structure:Wasabi Holdings is an Australian private company looking to raise capital.

Exit Strategy• Early opportunity to exit via Public Listing

• Flexibility to extract early partial returns and hold for growth

Executive SummaryWasabi Holdings Pty Ltd trading as WASHPOD has designed and developed a range of “HIGH IMPACT” automatic parts washing machines marketed under the brand name of “WASHPOD™”.The machines use only water and detergent to clean and de-contaminate mechanical and electrical parts in a range of industries, from the automotive service industry to mining, marine, aviation and manufacturing sectors.

WASHPOD™ is a disruptive technology that has been specifically designed to displace the incumbent technology of rented manually operated solvent based parts washing.

The Company is in a strong commercial and financial position with the rapid acceptance of the product in the very competitive local Perth market and having successfully concluded negotiations with a credible Chinese based manufacturer on 90 day payment terms that match a line of debt capital credit facility from the National Australia Bank to fund the roll-out of the WASHPOD rental fleet.

Competitive Advantages• Provides superior value for money compared to competitors

• Delivers a higher quality cleaning performance with a lower operating cost

• Is safer and more environmentally sustainable

• Faster cleaning with a shorter wash cycle

• Significantly reduced service and maintenance requirement for lower rental equipment operating costs

• Totally eliminates the use of petroleum based solvents

Key Investment Highlights• Unique disruptive technology driven by strong environmental and occupational safety trends

• Strong development history with proven management team

• Market proven product already developed & tested

• Proven long term profitable rental product to market strategy

• Product “sells” strongly in recessionary times (rental)

• High production capability with China and Australian based manufacturing with planned rapid market penetration

• Powerful Co-Marketing Uber-Brand leverage to accelerate market penetration rate

• Long, stable, highly profitable rental fleet income stream delivering strong dividends and high capital growth potential


www.wholesaleinvestor.com.auclick on View Investment opportunities and search for Wasabi Holdings.


Company Name Biotech Australia Pty Ltd

Sector Clean technologiesYr established 2009Business stage Early StageLocation Western Australia, WorldwideOpportunity Capital Raising / strategic partner/ Debt Equity / Loan

Board & Management:

Dominic Calabro - Project / Finance Manager Project management commercial construction finishing trades, HR

Les Mccall - Scientific Director Experience in construction, new technologies and innovation, has produced technology for the advancement of prior refineries.

Martin Rice - Co Director Currently a Co-Director in Refinery in Liverpool (UK).

Will Mccall - IT Manager Currently the IT designer for the Refinery in Liverpool (UK).

Corporate StructureProprietary Limited Company

Exit Strategy• Either interest paid or sale within company

• 1 year to 5 years

• Company aims to achieve a listing on a suitable exchange within two years

Executive Summary

Chemists have reported the development of what they termed the first economical, eco-friendly process to convert algae oil into biodiesel fuel — a discovery they predict could one day lead to the Planet independence from petroleum as a fuel.

Biotech Australia Pty Ltd is a company which currently has the technology to deliver biodiesel fuel to the market. It has a plant at Liverpool in England which is ready to commence production.

Biotech Australia Pty Ltd will be at the forefront of biofuel production globally due to its technology and plants which are in readiness for production.

Competitive Advantages• First to market technology

• Proprietary extraction and growth methods

• Efficient to build and run compared to standard refineries

• Requires less land area than current researched technologies in same sector

• Abundant feed source

• Scalable production and expansion capabilities

• Many base products – Waste management, water purification, power and electricity generation and food sources

• Billions of dollars mandated from Governments to this area

• Large scale demand for core and bi-products

• Waste management

• No waste or emissions

Key Investment Highlights• 4 month timeline for project development and diesel refinery

• 6 -8 months for construction of Omega 3 Refinery

• Upon completion of construction, production commences immediately

• Additional revenue opportunities from the bi-products of feed stock for humans and animals, land fill regain and power generation

• Research and development complete

• Currently in negotiation with strategic partners

• Multiple Government Grants are available

• Taxation credits available on investment capital


www.wholesaleinvestor.com.auclick on View Investment opportunities and search for Biotech Australia.


Company Name WithheldSector Food Manufacturing & Retail Yr established 2003Business stage Expansion and pre-IPO Location AustraliaOpportunity Capital Raising

Board & Management:

Professional board structure has evolved in the company over the past two years to provide the necessary governance and direction for the business.

Expertise

• Food Manufacturing

• Financial

• Retail

• Strategic

Corporate StructureThe business operates under a series of private Australian companies.

Exit StrategyThe business has the options of IPO, private sale and international expansion as potential exit strategy within the next 3-4 years.

Executive Summary

• This is an exciting opportunity to invest in an established market leader in the food manufacturing and retail sectors in Australia. The business model is vertically integrated with ‘branded retail locations’ and food manufacturing to supply the retail locations.

• The business has recently built a new manufacturing infrastructure that can support a 500% increase in group revenue across Australia by supplying retail and wholesale locations from one manufacturing plant.

• The growth capital will be applied to scale the wholesale and retail distribution across Australia over the next 2-3 years as a precursor to broader international expansion.

Competitive Advantages• Largest retail network in its sector in Australia with an end game of 150+ stores and significant wholesale distribution planned

• The only business in the sector to have a centralised manufacturing model capable of supplying fresh to all Australian retail locations

• A retail store model that generates above industry average returns

• Significant gross margin advantages due to less capital intensive vertically integrated business model

• DC Strategy input as the region’s leading specialist consulting and legal firm that have developed the networks and brands of many of the region’s most successful businesses such as Boost Juice, Pandora, Flight Centre, OPSM, and Gizmo.

Key Investment Highlights• Proven business with $2million EBIT+ position where scale in distribution will lift profits into the $4million+ within 2-3 years

• Founding family committed to the business and key driver of the success

• National expansion in Australia provides serious scale in the profitability without being capital intensive

• International expansion is planned in a 3-5 year timeline

• Wholesale distribution is a significant expansion opportunity that has yet to be commenced but could double the turnover of the business

• The business has experienced management and stakeholders that have the capability and track record of scaling nationally and internationally.


www.wholesaleinvestor.com.auclick on View Investment opportunities and search for DC Strategy.

Wholesale_Investor_Issue2_11_08.indd 24 13/7/09 2:59:07 PM


Executive SummaryThe Pharmacy and health care sectors in Australia are set for significant change in the next 5 years. This business has completely reinvented the approach to pharmaceutical and healthcare retailing which has resulted in significant changes to store design, location and retail approach which has created profit results considerably above the industry average.

With a string of awards and exceptional consumer and pharmacist interest the business has planned for national expansion to take full advantage of the forthcoming industry changes and the absence of a strong brand in the industry.

Competitive Advantages • A fresh, exciting and award winning approach to an old established sector with the opportunity for a national footprint of 200+ locations

• Existing sales results prove the early impact and sustainability of the business model and innovative approach

• The change in demographic over the next 5-10 years will result in significant growth in the sector against any historical benchmarks

• Proven business model that has been replicated on multiple occasions successfully

• Significant interest from landlords and pharmacists

• DC Strategy input as the region’s leading specialist consulting and legal firm that have developed the networks and brands of many of the region’s most successful businesses such as Boost Juice, Pandora, Flight Centre, OPSM, and Gizmo.

Key Investment Highlights• Seeking $1million equity capital to expand the network using a combination of franchised and company operated locations in both greenfield and conversion of existing operator scenarios.

• An exceptional opportunity to be involved in a proven business model and network that have scale in a stable growth sector

• The Healthcare sector is forecast to experience a significant uplift in growth over the next 5-10 years

• Existing results have proven the innovative and fresh approach achieve above industry returns that will only scale as the network grows

• DC Strategy input with a proven track record of building national and international networks

• Award winning founder committed to the future growth of the business

• National expansion focused over the next 3-4 years prior to an international expansion to take advantage of the international growth in healthcare


www.wholesaleinvestor.com.auclick on ‘View Investment Opportunities’ and search for DC Strategy.

Company Name Withheld

Sector Pharmacy Retail & Healthcare Yr established 2006Business stage Early stage Location AustraliaOpportunity Capital Raising

Board & Management:

Professional board structure has evolved in the company over the past two years to provide the necessary governance and direction for the business.

Expertise

• Pharmacy

• Retail

• Strategic

Corporate StructurePrivate Australian company.

Exit StrategyThe business has the options of IPO and private sale within the next 3-4 years and international


Board & Management:

Malcolm Garbutt - CEO 20 Years experience in successful startups from IT to Boating and Marine.

Rick Hewson - Executive Director Over 20 years experience in Fish farming and aquaculture. Was on an advisory committee to Great Barrier Reef Marina Park Authorities and QLD fisheries aquaculture projects. Master 2 shipping Captain

Jovesa Korovulavula Executive Director of Fiji Fisheries, 20 Years experience with Aquaculture.

Corporate StructurePublic Unlisted Company

Exit Strategy• Planned exit strategy will be trade sale, company buyback of shares or IPO

• Estimate exit time will be 3-5 years

Further Information: To enquire or download an Information Memorandum, go to

www.wholesaleinvestor.com.auclick on View Investment Opportunities and search for Pacific Island Aquaculture.

Executive SummaryPIA Fiji Aquaculture is a company that will be breeding the Mahi Mahi fish in the tropical waters of the Fiji waters utilizing the proven sea cage methods of the tuna industry, with modifications to suit the Mahi Mahi Fish.

We have been in negotiations with the Fiji government, councils and Island Chiefs for the last 4 years and have secured water rights for the sea cages, full access to the processing plants and land for the development of the hatchery, and the south pacific bait license.

Competitive Advantages• Full support of the Fiji Government and related fisheries.

• Mahi Mahi Fish produce up to 80,000 eggs every full moon.

• Massive demand for high omega 3 fish products.

• Mahi Mahi grows to plate size in 3 months.

• Fiji Fisheries executive is a shareholder.

• Fiji will not allow the Japanese or Taiwanese to start an aquaculture business in Fiji, but will allow them to buy the fish.

Key Investment Highlights• Current supplies only satisfy 10% of the market demand.

• High demand from the Asian and American markets.

• Trials conducted on a small hatchery in Fiji 2 years ago were very successful on hatchery breeding.

• This is stage 2 which will has the capacity to produce approx $10M EBITDA 18-24 months after commencement

• Potential to generate 100% ROI in 18-24 Months

• Stage 3 will involve duplicating stage 2 by a factor of 5 to 10

• Key players are shareholders and have a vested interest in the success of this project

Pacific Island AquacultureFish Farming 2009 Seed/Early Stage QLD Australia / Fiji Capital Raising

Company Name

Sector

Yr established

Business stage

Location

Seeking


Board & Management:

Michael Ta – Executive Director BCom , Barts, MasBusSys, Dip. Financial Services (PS146 Compliant), licensed Real Estate Agent (VIC, NSW, TAS).

10 years of Project Management and I.T. experience.

8 years experience in Real Estate - specialist in affordable residential housing development.

Greg Rips – Executive Director Dip. Building Technologies 17 years in business, and over 8 years experience in real estate - specialist in affordable residential housing development.

Corporate Structure• Viva Properties Pty Ltd is a private company. It owns a portfolio of residential property projects a large portion of which have pre-leasing arrangements with the public sector.

• National Affordable Properties Ltd is an unlisted public company.

Exit Strategy• Investors in National Affordable Properties Ltd will receive their initial investment back (via a buy back of pre-shares) and profit distributions from the project at completion.

• Viva Properties Pty Ltd is open to discussion with interested parties relating to wrapping projects in its portfolio into fund raising structures, which can


www.wholesaleinvestor.com.auclick on ‘View Investment Opportunities’ and search for Viva Properties.

Executive SummaryViva Properties Pty Ltd (“Viva”) is a niche property development company specialising in the development and construction of affordable housing in Australia. It has developed IP and methodologies specifically to procure and manage the entire supply chain to operate profitably in the affordable property market segment.

Viva recently secured tenders and partnering arrangements with the public sector and is currently a major supplier of affordable housing for the Tasmanian State Government and is a recognized expert in this property market segment. Viva is seeking to expand via joint venture arrangements or equity funding initiatives. As part of its expansion plans, Viva has launched a special purpose vehicle (National Affordable Properties Ltd) to raise funds for a 75 residential unit development.

Competitive Advantages• Viva has existing key relationships with government bodies in the affordable housing space

• Established player in the market - Viva has been developing affordable properties for over 8 years and has a successful track history

• Increasing body of intellectual property in this market niche

• Extensive due diligence carried out on Viva’s methodologies and systems as part of public tenders and prospectus reviews

• Proven history of profitable project delivery Key Investment Highlights• Project is underpinned by 50% of the dwellings in the development being set aside to be leased to the Tasmanian State Government

• Existing high demand for affordable housing in Hobart

• Target project duration is 2 to 3 years

• 50% of net profit from the project will be distributed to investors on a pro rata basis at completion

• Vendor is an owner of other sites in the region

• Vendor terms are available and are flexible

Viva PropertiesReal Estate2001 ExpansionMelbourne, AustraliaCapital Raising and JV Projects

Company Name

Sector

Yr established

Business stage

Location

Seeking


Board & Management:

Craig Caruana - Managing Director Craig has been involved with the management of franchise companies for over 10 Years. Craig is the President of the Australian Amusement Association.

Grant McFadden - Director Of Operations Over 15 years experience in site management and training and is the leading consultant to installations For Freestyle Slides Inc (USA).

Corporate Structure:Speciality Entertainment Pty Ltd is a Privately owned Company.

Exit StrategySpeciality Entertainment is ideally suited to being purchased by a larger Entertainment and Leisure operation looking to expand their operations into new lucrative markets within the next three years.


www.wholesaleinvestor.com.auclick on View Investment opportunities and search for Speciality Entertainment.

Executive SummarySpeciality Entertainment™ is Australia’s largest supplier of Licensed inflatable’s with over thirty franchise locations across Australia and New Zealand. The company has secured exclusive licenses to the worlds largest brands including The Wiggles, Marvel Comics, Hi-5 Bratz, Barbie, Thomas the Tank Engine and the National Rugby League (NRL). Speciality Entertainment™ leverages off the millions of dollars invested in these well known brands.

The success of the companies franchising model has provided a number of unique opportunities with the company planning to expand its operations in Western Sydney to include the development of a 50 Acre site into a Family Fun Park with substantial returns forecasted for investors.

Competitive Advantages• Well established company with growing profile with 40 Franchised locations, 300 Corporate clients and 5000 birthday parties every year.

• Experienced management team within the Amusement and Leisure Industry.

• Proven business model with low risks and provides for multiple revenue streams

• Exclusive rights to world leading brands, including Spiderman, The Wiggles, Marvel Comics and the National Rugby League

• Demand for Products and Services within Region with no competitors

Key Investment Highlights• Averaged over 50% compound annual revenue growth since 2004

• Scalable infrastructure and business systems to allow for strong growth.

• International Expansion, Merchandise sales, Catering and new brands provide additional revenue opportunities

• Revenue projected to grow at over 45% over the next 3 years

• 50 Acre site in which to develop a large scale Family Fun Park

Speciality Entertainment Pty LtdLeisure & Entertainment2004 Early Stage/Expansion Sydney AustraliaCapital Raising

Company Name

Sector

Yr established

Business stage

Location

Seeking


Board & Management:

Roger Colless - Sole Director

Roger is a qualified aircraft engineer with 20 years in the RAN Fleet Air Arm; ten years in offshore oil and gas management; ten years in design engineering and project management before starting in the tourism industry.

He is now a qualified hovercraft master who can train and endorse all hovercraft pilots.

Corporate Structure• The company structure is flexible and can be discussed with investor to suit

• Currently an unlisted Pty Ltd company though could become a public company with Australia wide expansion program.

Exit Strategy• Investor can exit by selling his shareholding, either to the current owner or to a third party partner.• Looking at 5-10 years time frame, with agreed options.• The ultimate exit is a sale of the business, or geographic portions

Further Information: To enquire or download an Information Memorandum, go to

www.wholesaleinvestor.com.auclick on View Investment Opportunities and search for Broome Hovercraft.

Executive SummaryBH provides adventure tours around Roebuck Bay with Scenic & Historic tours, Sunset Cocktail tours, WW2 Flying Boat Wrecks tours and Charters.

Pre & post conference tours and activities, company incentive seminars, wedding ceremonies and soon, ferry trips to other remote locations north & south of Broome with the new, bigger hovercraft.

The Hoverport is also set up for food and beverage service, the licences for which are close to approval.

Competitive Advantages• Hovercraft tours in Australia have no direct competitors

• Prices kept higher than the rest of the field; people pay for quality

• Hovercraft can go where no boat or land vehicle can travel

• Currently we are turning many people away due to lack of seats

• New hovercraft can operate on higher tides thus increasing numbers of tours each day and to other coastal attractions.

• Broome Hovercraft has an unblemished record for safe operations

Key Investment Highlights• The investor will be entering a unique and exciting business which currently is the only commercial hovercraft operator in the southern hemisphere.

• The returns for the investor are excellent, particularly with the intended expansion program almost doubling the gross income.

• The hovercraft is one of the most popular tours in Broome.

• Almost 100% of creditors pay out within 30 days, with 60% prior to the tours and tour agents guaranteeing payment.

• Within the specified parameters, hovercrafts are very safe and smooth in operation, giving an exciting amphibious tour over the tidal flats and the sea.

• 500% increase in return over the first six years of operation.

• Broome is a booming tourist, natural resource and pearling town

• Partnership already started for operation along the Tamar River in Launceston, and likely development in Hervey bay, QLD

Broome Hovercraft State, national & international tourists1999 ExpansionBroome, Western AustraliaStrategic partner or outright buyer

Company Name

Sector

Yr established

Business stage

Location

Seeking


Be part of Australia’s largest gathering of leading environmental, cleantechand clean energy companies. Every company and fundpresentingisanAustralianorworldleaderintheirfield.

The Forum is suitable for investors, advisers, environmental companies, entrepreneurs and other leaders

from all parts of the industry.

Eco Investor Forum 2009

21 October, Hilton Hotel, Sydney

Arrow Energy - Australia’s largest pure play coal seam gas developer

Geodynamics - Australia’s largest geothermal energy developer

CleanTeQ Holdings - a leader in air and water purification and metals recovery

Willmott Forests - a leading plantation land and forestry business with a focus on renewable energy

Ceramic Fuel Cells - Australia’s leading fuel cell developer

Carnegie Corporation - Australia’s leading wave energy developer

Jackgreen - Australia’s largest pure play green energy retailer

BluGlass - Australia’s leading high-tech LED efficient lighting developer

CVC Sustainable Investments - Australia’s leading unlisted and listed environmental equities fund

Australian Ethical Equities Trust - Australia’s leading environmental and ethical equities fund

Impax Environmental Markets Trust - a leading international environmental equities fund

August Investments - Established in 1981, August is Australia’s oldest environmental equities fund

PLUS!Pitchesbyfive‘InvestmentReady’unlisted companies

PLUS!21/2 hours of networking time.

SPONSORS:

Presentations by:

www.ecoinvestor.com.au - 02 9713 7608

Eco Investor Forum is presented by Eco Investor Magazine, Australia’s specialist environmental investment magazine.


Be part of Australia’s largest gathering of leading environmental, cleantechand clean energy companies. Every company and fundpresentingisanAustralianorworldleaderintheirfield.

The Forum is suitable for investors, advisers, environmental companies, entrepreneurs and other leaders

from all parts of the industry.

Eco Investor Forum 2009

21 October, Hilton Hotel, Sydney

www.ecoinvestor.com.au - 02 9713 7608

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Wholesale Investor Edition 6