Cobre Limited

Advancing Towards IPO: Cobre Limited (Proposed ASX Quote: CBE) is engaged in the exploration of base metal projectsin Australia. The company has recently announced that it is advancing towards an IPO on ASX and is planning to raise$10,000,000 before costs. The prospectus contains an offer to issue 50,000,000 shares at an issue price of $0.20 per share. The funds raised from the offer will be utilised primarily for the purposes of drilling, geophysics and geological studies to progress the Perrinvale Project, along with the exploration of the Sandiman Project and ongoing working capital requirements. The offer was opened to the public on 16^th December 2019 and was closed on 6^th January 2020. It is expected that the company will be officially quoted on ASX on 15^th January 2020.


Key Offer Details (Source: Company Reports)

Key Investment Risks:The company added that potentialinvestors should be aware of the number of risks involved. The company has a limited history, which inherent uncertainty. Also, the company holds 80% of the shares in Toucan and does not have a complete control, therefore, it cannot transfer its shares in Toucan without the consent of any other shareholder. 

Proposed Strategy: The business model of the company aims to generate value from the discovery of mineralisation and mineral resources and involves identifying the projects, which are aligned to the company’s strategy. The company will also emphasise on the exploration of projects that indicate untested or undeveloped potential.
 

Emerald Clinics Limited

Plan for An Initial Public Offering: Emerald Clinics Limited (Proposed ASX Quote:EMD) is engaged in the operation of the network of specialist medical clinics and uses purpose-built software and technology to gather high-quality clinical data from consenting and informed patients. The kind of evidence Emerald will gather is needed by licensed producers, regulators, prescribers and patients to ensure any potential benefits of cannabinoid medicines for patients can be realised. The company has recently announced its plan for an initial public offering for which the prospectus has been issued to the public. It contains an initial offer of up to 40 million shares at an issue price of $0.20 each to raise up to $8 million before costs. The prospectus also incorporates the offer of up to 20,625,000 shares to be issued on the conversion of the convertible notes. It has been proposed that public offer, as well as convertible note offer, would be closing on 17^th January 2020. The company expects its quotation on ASX on 7 February 2020.

Financial Highlights: For the year ended 30 June 2019, the company’s sales revenue amounting to $109,909 and the following picture provide a brief overview of the same:

 
Financial Highlights (Source: Company Reports)

Expected Deployments: The company believes that the funds raised as a result of public offer will provide them with enough working capital. The company plans to use these funds for operation and expansion of the number of clinics throughout Australia. These proceeds primarily will help the company to develop novel IP concerning the use of cannabinoid medicine and will further develop and commercialise the Data Platform.

Key Investment Risks: It is important for investors to be aware that subscribing to an IPO may involve risks. One of the major risks is that the company’s growth strategies are dependent on its business plans and strategic initiatives and there is no assurance that the company will be successfulin implementing these plans. Another risk is that of liquidity.

Castile Resources Ltd

Non-Renounceable Pro-Rata Entitlement Offer: Castile Resources Ltd (Proposed ASX Quote: CST) is a public company incorporated in Australia, which is in the business of mineral exploration and development in the Northern Territory. The company is conducting a non-renounceable pro-rata entitlement offer to the eligible shareholders of up to 99,844,305 new shares based on 1 New Share for every 1 Share held, at an issue price of $0.20 each to raise up to $19,968,861 before costs. The minimum subscription requirement is to raise at least $11,000,000 before costs. The Offer is partially underwritten by Canaccord Genuity (Australia) Limited. The offer was opened to the public on 11^th December 2019 and closed on 10^th January 2020. It is expected that shares will start trading on ASX on 29^th January 2020.


Key Offer Details (Source: Company Prospectus)

Key Risk Factors: Mineral exploration and development is a speculative and high-risk undertaking and subscribing the offer involves several risks. The operations of the company might be affected by various factors, which primarily include failure to locate or identify mineral deposits, and failure to achieve predicted grades in exploration and mining. 

Principal Purposes of the Offer: The non-renounceable pro-rata entitlement offer will provide the company with access to equity capital markets for future funding needs and will enhance the public and financial profile of the company to facilitate further growth of the business.The company will mainly use the funds for Rover Project- Regional Exploration, working capital reserves, corporate and equipment costs as well as general working capital.
 

ARMnet Limited

Initial Public Offering: ARMnet Limited (Proposed Listing Quote: AR1) is a global Integration Platform as a Service (iPaaS) and cloud-based platform as a service for the financial services industry and particularly for the non-bank lending market. It provides software integration, automation and workflow solutions that address each processing phase of assets for financial services organisations. The company has recently announced an offer to raise a minimum of $8.5 million and a maximum raise of $11.0 million by the issue of 42.5-55 million new shares at $0.20 cents per share. The offer is expected to open on 22^nd January 2020 and will be closed on 19^th February 2020. The shares are expected to begin trading on ASX on 26^th February 2020.

Key Financial Features: Over the period of FY15 to FY19, revenue of the company went up to $4,928,408 in FY19 from $2,543,211 in FY15. During FY19, EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) of the company stood at $611,463.


Financial Performance (Source: Company Prospectus)

Expected Deployments: The proceeds raised from this offer will be used to execute a clear global growth strategy. This strategy includes the opening of dedicated sales offices in the United Kingdom and North America and expanding sales and business analysts in Australia. The company is also planning to increase some expenditure on marketing and use some funds to acquire Axcess Consulting.

Investment Risks: The company may witness risk of significant control by existing shareholders and vendors as existing shareholders and the vendors will own or beneficially own roughly 67.31% of the company’s issued capital assuming that 42.5 million new shares are issued (at the Minimum Subscription) as well as the acquisition of Axcess Consulting happens at the same time. Moreover, increased competition is another risk.

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.