Readers of our newsletters may recollect way back in April 2019 one about a New Zealand manuka & kanuka tea tree project in the Far-North. Much progress had been made since then.
Readers of our newsletters may recollect way back in April 2019 one about a New Zealand manuka & kanuka tea tree project in the Far-North. Much progress had been made since then.
Private capital has been arranged with a Far-North oil supply business between two operators who have installed purpose-built plant oil extraction units. One in Cable Bay, the other in Tauranga Bay.
These fully commissioned units are now ready to process the millions of dollars’ worth of manuka and kanuka foliage available in the far North on Kohumaru Station. They will be harvested to tikanga protocols to ensure product purity.
New Zealand Offer
Investment in the project is now available. This will be in the form of 5,000,000 Common Voting Shares in Tribal Health Corp Ltd. As a “Revenue Generation” product launch they are priced at 33 cents per share, raising NZ$1,650,000 (US$ 1,000,000).
This offer will support the follow-on SEC Regulation Crowdfunding (REG-CF) campaign in the U.S offering 2,500,000 shares priced at U.S.$2.00 per share to raise US$5,000,000 from U.S. retail investors.
A listing agreement with an SEC licensed, FINRA registered, equity crowdfunding intermediary has been signed which, upon clearance by Tribal’s U.S. securities attorney, will result in a U.S. crowdfunding campaign launch.
Assuming a successful campaign, the Tribal Common Voting Shares will have a book carry value of US$2.00 (NZ$3.30) each, delivering a paper profit of US$1.80 (NZ$2.97) per share.
Negotiability of the shares is planned to be made available on a registered secondary share trading platform, which will enable early-stage share trading to commence.
Tikanga Advisory Council
As with halal certification, process compliance is key to tikanga product integrity. Working with kaumatua and tribal elders, the partners support tikanga compliant regenerative agriculture focused harvesting systems.
These ensure sustainable revenue streams from the flower for wild bush honey and from the leaves for terpene rich, New Zealand manuka and kanuka tea tree oil. This typically retails in the US for around US$2,500 per kg. So this is a product ten times more valuable than manuka tea tree honey.
A comprehensive business plan has been developed to capture the premium pricing attached to New Zealand tea tree oil. This will be via New Zealand wholesale production with a U.S. retail distribution ecosystem developed to enable a low product cost-to-market model. This will enhance operational profitability and returns to both investors and the taonga Grower-Producers.
New Zealand and U.S. showcase launches
This terpene rich, low beta triketone chemotype oil from the tribal owned whenua in the Far-North will be positioned in two sectors of the US health market. These being the:
-
US$256,000,000,000 Infection Control, Disinfectant/Antiseptic market.
-
US$201,000,000,000 per annum ingestible Heath Supplements market, as gender specific, natural therapeutics delivering “1,000 years of protection in a bottle”.
Tribal’s founding shareholders have incorporated “Tribal Therapeutics Inc” in Fort Lauderdale as the importing/distribution entity operating from a retail product showcase store there which will deliver a US$475,000 core capitalization in the distribution subsidiary company
Use of Funds
Once the planned Series A launches, and assuming it closes fully subscribed, the NZ$1,650,000 raised will be deployed in the production and shipment from New Zealand of 36,000 SKU’s, with an FOB value of NZ$873,600 and a US based shelf value of US$2,332,000.
A portion of this first shipment will be bundled with the “Tribal Ambassador-Packs”. US retail that US investors will receive on a “Free of Charge” basis as part of their crowdfunding investment.
Financial Projections
Due to NZ-US cross-border launch lead in times, the first financial reporting period will be for 18 months during which time, 100,000 SKU’s are forecast to be exported producing revenues of NZ$2,768,426, delivering a NZ production EBITDA of NZ$1,230,412 .
In the US for the same 18 month period, the distribution of these 100,000 SKU’s are forecast to produce sales of US$4,990,000, delivering a distribution EBITDA of US$2,280,795.
On consolidation of both NZ production and US distribution forecast trading figures by Tribal Health Corp, they will total US$3,090,552 / NZ$5,066,000 delivering non GAAP EBITDA earnings per share of US$0.1671 / NZ$0.279 per share.
On a forecast multiple of fifteen times earnings, this would deliver a market value of US$2.51 / NZ$3.86 per share producing a market capitalization of US$46,358,281 / NZ$71,320,433.
For further information simply reply to this newsletter.
……………………………………………………………………………………..
The above investment is not an offer of financial products that requires disclosure under the Financial Markets Conduct Act 2013 (Act) and is available only to wholesale investors as defined by that Act. It is intended for distribution only to selected people to whom, under the relevant laws, it can be lawfully distributed. It cannot be distributed in any other jurisdiction, or to any other people. It is not an offer or solicitations in any jurisdiction in which such offers or solicitations are not authorised, or in which the person making such offers or solicitations are not qualified to do so, or to any person to whom it is unlawful to make such offers or solicitations. Any representation to the contrary would be unlawful. No action has been taken by any person that would permit a public offering in any jurisdiction where action for that purpose would be required.
Cheers
John Paine B.Sc., Dip BIA
TBK Capital Limited
Level 10,120 Albert Street
Auckland 1010, New Zealand
Phone +64 9 307 3257
Mobile +64 21 902 901
Email john.paine@tbkcapital.co.nz