4 Upcoming Floats – UBL, MKG, ETK and PYG

Universal Biosecurity Limited (Proposed ASX Code: UBL)

Market Expansion in Phases: The Company is an Australian company based in Perth with intellectual property rights to an apparatus that vaporises liquid fumigants (Fume8™ apparatus) for use in the fumigation industry. The University Biosecurity lodged a prospectus with ASIC on 30 January 2018 to raise $5,000,000 at 20 cents per share. In Australia, the Company will initially target the Fume8 apparatus which is being used with traditional liquid fumigants like methyl bromide on grain, pulses timber and in other structures for quarantine and pre-shipment purposes. The Company additionally intends to explore and target the development in other global markets. The Company has not yet developed any contractual relationships in other markets. Funds applied from this offer will be used for general research and development expenditure and will be applied to specific markets, with primary focus on the Australian market and secondary focus on the South Korean Market and tertiary focus will be on other global markets. The Company intends to allocate approximately $2,950,000 of the funds for further research and development. The Company’s target is to achieve capital growth for Shareholders by further developing the Fume8 apparatus so that it can achieve commercial success by using liquid fumigants and this will be used as a biosecurity solution upon available commodities. Opening date of the Offer was 7 February 2018 and closing date is 21 March 2018. Shares under the Prospectus will be issued on 27 March 2018 and will start to trade on ASX from 10 April 2018. One will have to make a minimum Investment of $2,000 (10,000 shares) and the offer is not underwritten.

Allocation of Funds: Source (Company Reports)
Objectives of the Offer

• Fund a 2-year research and development program for the Fume8 apparatus.
• Pay fees associated with patent protection.
• Fund 2-year corporate administration costs.
• Provide general working capital.
• Pay the costs of the Prospectus process.
• List on the ASX, which will provide the Company with improved access to capital markets

 
While the group aims to eventually target a US$7 billion global fumigation market at the back of the proprietary non-toxic pest control technology that is better than existing fumigants in terms of safety scenario, pest resistance and cost effectiveness, the two-year timeframe for further research and development is one key thing to put attention on.
 

Mako Gold Limited (Proposed ASX Code: MKG)

Investment from a key gold miner: Mako Gold is a junior explorer and has rights to explore properties which are prospective for gold discoveries in Côte d’Ivoire and Burkina Faso, West Africa. The main purpose of the offer is to raise a Minimum Subscription of $5,000,000 and a Maximum Subscription of $6,000,000. It will provide a market to the Company’s shares and Options and Company will be able to access capital markets in a better way while pursuing its growth strategy. The offer is to issue 25,000,000 shares at an issue price of $0.20 each, to raise a minimum of $5,000,000 and the offer has the provision of oversubscription of a further 5,000,000 shares so as to raise an additional $1,000,000. The offer has 1 attached listed Option which can be exercisable at $0.30 on or before 3 years from the Official Quotation for every 2 shares subscribed for and each option is exercisable into 1 share. The Company applied to ASX within seven days from the date of the Prospectus and the offer is not underwritten. The shares offered by this Prospectus will be issued as fully paid shares and when issued, will be ranked equally in all respects with the existing shares. The opening date of the offer was 2 February 2018 and closing date is 23 March 2018. Settlement and Allotment date of shares and Options is 29 March 2018 and it is expected that it will start trading on ASX from 10 April 2018.While the group has a $2 million cornerstone investment from mid-tier West African and Australian gold producer Resolute Mining Limited, which makes an interesting case to watch; the key area of concern is the gold exposure in place other than Australia, which derails some bit of confidence in terms of success and hold of operations.
 

Allocation of Funds from the Offer (Source: Company Reports)

Eden Health Industry Holdings Limited (Proposed ASX Code: ETK)

Targeting acquisitions from proceeds: Eden Health Industry Holdings Limited lodged the prospectus with the Australian Securities and Investment Commission (ASIC) for an offer of up to 80,000,000 ordinary fully paid shares at an offer price of $0.25 each to raise up to $20,000,000 with a minimum subscription to raise up to $15,625,000 before costs. The proceeds from the Offer will be primarily used to fund the Company’s Investment into Pure Aussie and in Reed Holdings and will help in expanding the Group’s Chinese distribution channels which will enhance the Group’s brand reputation. The closing date of the Offer was 5 March 2018; and on 12 March 2018, the Company issued new shares under the offer. It is expected that the shares will start trading on ASX on 20 March 2018. The funds raised will be used for the expenses of the Offer, for establishing the Australian Operations, in expanding distribution channels, in research and development (related to deep-processing products, including kiwifruit wine and kiwifruit tablets) and in generating working capital. The company will continue to look for collaboration opportunities for kiwifruit growth in Australia, and the kiwi industry looks to be an interesting watch.

 

Allocation of Funds (Source: Capital Reports)
 

PayGroup Limited (Proposed ASX Code: PYG)

Targeting accelerated business growth: The Company was recently incorporated as the holding company for PayAsia (collectively PayGroup). The Group is a provider of BPO solutions and Cloud (Software-as-a-Service or SaaS) based Human Capital Management (HCM) software that operates in the Asia Pacific region for multinational companies, and services over 400 client entities with more than 31,000 client employees across 18 countries. The Company is seeking to raise between A$5.5 million and $7.5 million by the issue of 11-15 million shares at an offer price of $0.50 cents per share. The prospectus was lodged with ASIC on 23 February 2018 with an opening date of 5 March 2018. If the minimum subscription amount of $5,500,000 is not raised within 3 months from the Prospectus Date, the Application amount will be refunded in full. The offer will be closed on 3 April 2018 and it is expected that the stock will be listed on 16 April 2018. It is envisaged that the proposed offer will allow PayGroup to target the accelerated business growth through increased sales and by marketing activities by adding sales and marketing resources in Melbourne, Sydney, Singapore and Hong Kong and in other key selling markets. Through the offer, the Company will be able to focus on the Group’s technology platforms, and on further development of functionality and refreshing the customer experience through user interface improvements.

For FY18, the group expects to deliver pro forma revenues of $7.6m and pro forma NPAT of $2.6m. While the group aims to improve client service efficiencies and offer products such as Corporate Payroll Debit Card, grow revenue from existing base, and partner and expand in the fast-growing cloud market, the risks relate to challenges in retaining existing clients and attracting new clients, and overall competitive IT landscape.
 

Allocation of Funds (Source: Company Reports)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.