EZZ Life Science Holdings Limited

Offering Details: EZZ Life Science Holdings Limited (Proposed ASX: EZZ) offers skincare and consumer health products to retailers and consumers in Australia and internationally. It is a wholesale distributor of the EAORON branded products for other non-exclusive channels such as other grocery retailers and on-line retailers in Australia and New Zealand. The company recently came up with an initial public offering (IPO), wherein it is offering a minimum subscription of 8,000,000 shares and maximum subscription of 12,000,000 share at an offer price of $0.50 per share. The offer was opened on 7 January 2021, and it will close on 12 February 2021. The purpose of the offer is to raise funds to enable the company to carry out its objectives, gain benefits of an increased brand recognition that arises from being a public listed company, broaden its shareholder base and provide a market for its Shares, and gain access the capital market for the funding of future growth.

IPO Offerings Details (Source: Company Prospectus) 

Funds Utilization: As per the company’s prospectus, ~40% of funds will be utilised for the development of manufacturing facility and rest of the funds will be utilized towards market expansion, concept store, R&D and other avenues.

Funds Utilization (Source: Company Prospectus) 

Financial Highlights: Despite the challenges caused by the COVID-19 pandemic, the company reported decent growth in its FY20 revenues to $16.95 million, compared to $11.18 million in FY19. Further, the company reported EBITDA of $1.43 million and NPAT of $949k in FY20.

Financial Summary (Source: Company Prospectus)

Risks: The Company’s financial performance is presently heavily reliant on the EAORON branded products which represent 95.8% of the company’s revenue in FY20. Secondly, the company relies on its distribution agreement with its related party Australian United Pharmaceuticals Pty Ltd for the distribution of the EAORON branded products and lastly the company’s presence in multiple countries, each of which has separate regulatory regimes or quotas. Trade restrictions or changes to existing trade policies may decrease the Company’s ability to export its products which may negatively impact on the Company’s future sales and the Company’s financial performance.

Summary: Despite the challenging situations in the times of COVID-19, the company was able to generate higher revenues and were into profits. The company will be utilizing the IPO proceeds to fund R&D and expansion of its manufacturing capabilities which would augment company’s revenues and profits going forward. Following the completion of IPO on 12 February 2021, the new shares will start trading on ASX from 26 February 2021.

Juno Minerals Limited

Offering Details: Juno Minerals Limited (Proposed ASX: JNO) is an Australian-based iron ore company with two iron ore development projects in the Yilgarn region of Western Australia namely - The Mount Mason DSO Hematite Project, and the Mount Ida Magnetite Project. Juno Minerals Limited recently announced that it is offering 120,000,000 shares to Jupiter Mines Limited (AS: JMS), the parent company of Juno, in exchange for the Central Yilgarn Iron Ore assets (CYIP) assets and $5 million in seed capital, provided by Jupiter. Further, it has initiated a public offer of up to 80,000,000 shares to raise an amount of up to $20 million (before costs). The offer was opened on 1 February 2021, and it will close on 26 February 2021.

Offering Details (Source: Company Prospectus) 

Funds Utilization and Focus Areas: The purpose of this issue is to raise funding for the development of the Mount Mason Iron Project and satisfy the requirements for the admission of the Company to the Official List of ASX. The company’s strategy for the Mount Mason DSO Hematite project is to bring it into production as expeditiously as possible. A secondary focus of Juno in the first two years after listing on ASX, will be the Mount Ida Magnetite Project with a view to testing an alternate mining and processing flow path to reduce capital and operating costs from previous work undertaken.

Key Risks: The profitability of Juno Minerals will depend largely on the prices received for the commodities produced. Accordingly, Juno Minerals’ future revenues and cash flow will be impacted by fluctuations in the price and available markets of those commodities.

Summary: Juno Minerals Limited does not generate any revenue presently and does not anticipate generating revenue in the immediate future. In the long run, the company expects to generate revenue through the sale of iron ore from the Mount Mason Project. Considering the continued strengthening of the iron ore markets, and the continued focus by steel mills to lock higher grade ore as feed to reduce pollution, the IPO and strategy of Juno is well-timed.

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