PolyGenomX leading the way with elite polygenomic trees

PolyGenomX Limited (ASSOB: PGX) has developed biotechnology which produces stable, fertile polygenomic plants and trees that grow faster than peers, thrive in a wider range of environments, and can be specifically adapted to deal with salinity, soil deficiencies, drought or other man-made problems across the globe.

http://www.assob.com.au/pgx

Wurst-Meister now launching gourmet German food quick service restaurant franchise model

 Wurst-Meister Pty Ltd ACN 142 443 909 is developing an international gourmet quick service restaurant (QSR) producing (under contract/license) freshly grilled German gourmet sausages and sausage-related products/meals including non alcoholic beverages to consumers. Initially one restaurant outlet will be established to pilot and fine tune the offering, before expanding this QSR concept through a franchise model.

http://www.ramscove.com.au/investors-login.html

Got capital? Markets about to tighten. So start planning now.

Access to capital is what drives innovative companies. In this five part series, Dr Mark Rainbird proposes to share five vital steps towards getting and using capital successfully in a tight capital marketplace.
Everyone’s aware that obtaining capital is a tougher task now than it was before the 2008 global financial meltdown.
While there are constant murmurs about the markets bouncing back and lines of credit being freed up, those at the coalface will vouch that it remains tricky out there.
To make matters worse, a recent report by consultants McKinsey & Company indicates that capital is about to become more expensive. A predicted building boom in developing economies looks set to divert investment away from businesses in developed countries.
According to the report, companies with low overheads that can show stronger returns on invested equity will win in coming years as the people holding the pursestrings search for less capital-intensive operations.

What this means for your business

Capital raising — particularly when carried out by smaller companies — tends to occur in response to a particular need of the business, such as equipment or site purchase, working capital issues, merger and acquisition activity, or general expansionary activities.
While this makes perfect sense, there’s also significant value in building ongoing relationships with reliable sources of funding (both debt and equity), when not in immediate need, in order to provide your company with additional security in the future.
With such measures in place, businesses are able to respond quickly and effectively to market changes, capitalising on opportunities as they arise. In addition, capital will also be less expensive if sought strategically rather than from a reactionary position.
Having reliable lines of funding can reassure investors that your company will execute on its strategic business goals without having to resort to short-term, high-cost capital, or shareholders having to “stump up” more funds.
Having the right funding strategies, plus the right advisors and backers, will mean you don’t need to give away huge amounts of equity in your organisation to fulfil your goals.

The balance of economic power in the world is rapidly changing.

Companies from so-called developing countries are often running quite lean operations. In many cases, low wages, low material costs, and different taxation rules equals advantage over established companies from developed countries.
While it’s something that should be on everyone’s to-do list, working on your overheads and ensuring that you’re squeezing as much value from every dollar should be a priority this year if you’re seeking investment.
Keep in mind: they’ll have plenty of opportunities now to put money into companies with low capital outlay and high returns, so the more you can bring your business in line with this mode of operation, the stronger the chance that investors will want to work with you.
Over five articles in the coming weeks, I’ll discuss in more detail the vital steps towards getting and using capital successfully in these new, competitive markets.

Dr Mark Rainbird is the MD of Ramscove and has over 15 years capital and M&A experience, and has held senior executive positions in private, private equity, ASX and Government organisations.

PolyGenomXis now listed on the Australian Small Scale Offering Board

PolyGenomX Limited ACN 146 776 025 (ASSOB Code: PGX) has developed proven biotechnology processes that produce stable, fertile polygenomic plants and trees that grow significantly faster than their peers, thrive in a wider range of environments, and can be specifically adapted to deal with salinity, soil deficiencies, drought or other man-made problems.  Polygenomic trees contain extra copies of unaltered cellular genomes  which enable them to utilise more atmospheric carbon to grow 30% faster than other trees thus cutting years off the growth cycle of a wide range of commercial trees, from oilseed trees, to pulp to biomass, to carbon capture and storage, to high-value timber forestry.

Corporate Advisory | Capital | Introduction

Contact us via email

Unlisted Companies Provide Pathway To Next Blue Chips

Imagine investing $25,000 in the then start-up Google in 1998 at four cents a share - that investment would today be worth around $160 million.

We’ve all heard stories about someone investing in the early stages of a company and their investment paying off in spades, but who are these companies and how do you find out about them before everybody else?

Dr Mark Rainbird, managing director of the corporate advisory, capital and business introduction firm Ramscove, says while the unlisted public company sector is important for the growth of various industry sectors, it can also provide early stage investors with potentially huge returns.

“An unlisted public company is generally a small company not suitable for listing on a stock exchange, has shareholders and can raise funds for any commercial venture, however it cannot generally advertise for investors,” Dr Rainbird says

“Because of the nature of the legal restrictions around promoting investment in this sector, most opportunities in unlisted companies are never offered beyond friends, family or those associated with the company, which means many new investors never become aware of them.

“However there are an increasing number of people who are actively looking at the unlisted companies sector as part of their portfolio to be able to get in at an early stage and reap the eventual rewards.”

Australia’s unlisted companies account for around 43 percent of Australia’s GDP, a substantial contributor to the economy in terms of both finance and employment, and while not for everyone, an understanding of the sector can give investors an insight to the companies that are likely to become future initial public offerings and potentially the next wave of blue chips.

A range of investment opportunities exist from as little as $25,000 in companies looking to raise capital via a small scale offering (up to $5 million in equity), excluded offers (usually for larger amounts to sophisticated investors), convertible notes or debt instruments.

So how do you find out about these opportunities?

Dr Rainbird says a number of business advisors specialise in this sector and can help investors navigate through the maze of opportunities as well as the potential risks.

“If you’re not sure how to access these opportunities there are platforms such as the Australian Small Scale Offerings Board which provides investors a transparent way to compare and review potential investments,” Dr Rainbird says.

“For the right opportunity the returns can be just as significant as a stock exchange listing. Returns can be realised at “exit” via a trade sale or initial public offering, where retail investors are just entering the investment, an early stage investor may choose to exit some or all of their holding.

“Risk, however, forms a large part of investing in unlisted public companies so due diligence and advice from a professional advisor is a must before taking the plunge.”

As the unlisted companies market is extremely diverse and made up of a range of industries from start-ups through to mature public unlisted companies looking for growth capital and sound exit strategies, there is plenty of opportunity for an investment that meets an individual’s specific criteria and profile, Dr Rainbird says.

“Investors in unlisted companies can choose whether to be passive or proactive including participation at the board level or at the executive operating level, and the ability to help shape the investor exit. Many early stage companies welcome this involvement from a cornerstone investor,” Dr Rainbird says.

“This expertise and bringing new business networks, products, and business acumen to the table can add tremendous value to a company and there is potential to oversee your investment rather than being a minority shareholder in a large company as you would investing through an exchange.

“Some investors enjoy this participation to help move the company forward and being able to contribute their knowledge and skills, as well as getting a financial return.”

Dr Rainbird says funds needed are generally small and are in the $1 million to $5 million range, enabling investors to make either smaller or significant contributions.

“The use of capital raised through investment is usually deployed quickly for maximum benefit of shareholders to drive growth through new sales channels, gaining market access from global expansion, finalising R&D projects, IP protection, working capital or the acquisition of other products or businesses,” Dr Rainbird says.

“Many companies in the unlisted market are fast growing and profitable. They are creating innovation in their particular niche, are nimble, and are not constrained by large company structures and in many cases have access to a global markets.

“As opposed to debt funding, leveraging equity is a low risk strategy for companies maximising growth opportunities, therefore minimising company and investor risks.

“Given the current financial climate, with cash and listed companies proving volatile, the unlisted sector is offering excellent opportunities over and above the traditional investment channels.”

Corporate Advisory | Capital | Introduction

Contact us via email

Need money to fund a Technology Start-up?

Up to $18,000 in Startup Funding Available from TechStars: TechStars provides Startups with seed funding and three months of mentoring to help get ideas off the ground and greatly improve chances for business success and sustainability. TechStars typically funds web-based or other software technology companies located anywhere in the world; about 75 percent of accepted companies have received additional funding sources and/or immediately became profitable after completing the TechStars program.

Ramscove | Capital and Funding Strategies | Business Advisory | Director Services

http://www.ramscove.com.au/

How is your Capital Raising Going?

What factors are important in a successful capital raising?  While it is hard to be specific due to the fact that every capital raising "matter" is different.  We can however, engineer the factors that will make capital raising more likely to be successful.  These include:

• Structure of the business (private vs public unlisted vs public listed)
• The Board and Management team (who are investors placing their money with to protect it?)
• The capital or share structure of the offer
• The pricing of the offer (is it attractive to investors)
• The business proposition and leverage that the business has
• What is the exit for funders or investors - will they be stuck in funding a private company?
• The approach to investors

If your capital raising is not going as planned please contact us for a confidential discussion.

Ramscove | Capital and Funding Strategies | Business Advisory | Director Services
http://www.ramscove.com.au/

Small Business Capital Funding - The need to plan.

We are still getting unindated by small to medium businesses that are looking for capital or finance to expand their businesses.  A number of businesses need working capital to meet demand.  Others have run out of founders funds and are looking for more equity.  A range of businesses are seeking help once they have got into quite a bit of trouble with creditors, the bank and other stakeholders.

We advise business to get help early from professional advisors.  When looking for funds (either debt or equity) it is important to have the right fundamentals - a good Board, a solid managment team and good handle on the buisiness and an exit strategy for the investor or funder.  Get advice early and communicate with your stakeholders around your requirements.

All too often we see folk getting help too late without a proper funding and capital raising strategy in place.  Often companies rely on only one course of action leading to dissapointment when things get delayed or don't go "to plan".

Ramscove | Capital and Funding Strategies | Business Advisory | Director Services | http://www.ramscove.com.au/

Is credit starting to flow?

In the latest McKinsey Quarterly (see link), companies from around the globe are reporting that they are seeking external funds and this demand has increased significantly from previous surveys.

From our own experience we are seeing a strong demand for equity rather than debt.  The benefits of equity are that you don't have to pay it back, and from growing and emerging companies they can then leverage the eqity to obtain debt finance.  Credit still seems to be a problem in Australia and we are seeing a particular shortage for property developments.

We are also seeing a range of off-shore funders willing to invest in both ASX listed companies and public unlisted companies.  Some of the funding models are quite innovative and are relatively simple to procure.

Funding Strategies - Small Scale Offers

ASSOB ( www.assob.com.au) is the largest and most successful platform for showcasing investment opportunities in high-growth, unlisted Australian companies. The ASSOB platform supports companies from all sectors including mining, green technologies, energy, food & beverage, biotech, software / web / tech, finance, medical and many others. As a result of our association with ASSOB we can now facilitate capital raising listings for our clients onto ASSOB of between $500K and $2M+.

Companies wanting to list a capital raising offer (eg Offer Docs, IM, Prospectus etc) on ASSOB must first engage the services of an Accredited ASSOB Sponsor. Due to our ASSOB Accreditation we are pleased to now be in a position to offer the following additional services to our clients:

Assist companies with their ASSOB listing application;
Assist companies structure their ASSOB capital raising offer;
Assist companies prepare their ASSOB capital raising documentation;
Assist companies market their ASSOB capital raising offer;
Assist companies negotiate with potential investors;
Assist companies administer their ASSOB capital raising offer to ensure compliance;
Assist shareholders in unlisted companies to potentially exit their share-holdings via the ASSOB Secondary Sales functionality;
Assist advanced / profitable companies undertake an "ASSOB Compliance Listing” so existing shareholders can access the ASSOB Secondary Sales functionality.

“ASSOB is now one of the largest introducers of private investment to early-stage, high-growth companies through its network of accredited Sponsors and works within and relies upon the regulatory environment imposed by the Australian Securities and Investments Commission (ASIC) and the Corporations Act 2001.”

 Contact us so we can prepare a draft Captial Raising Scenario for your business.

The economy seems to be turning

The US economy seems to be declining significantly less according to the Washington Post - see graph of Qtrly domestic product output (Aug 09). Stockmarkets also seem to be in a more positive mood and there seems to be more activity - companies are starting to hire and from my own activity and discussions in the market things seem to be picking up. With my recent trips to Sydney, I would say that Brisbane is lagging Syd (and Mel). Hopefully we all see the up-swing soon.

The Return of the Salesman

I noticed this article from Harvard Business School (http://hbswk.hbs.edu/) regarding "The Return of the Salesman". This article triggered me thinking about my own recent experience. When calling on organisations that find themselves in need of assistance, rather than wanting strategic advice and coaching on how to move forward and executing on their strategic initiatives, many are looking for the "silver bullet" - the super sales person! They are looking for assistance to sell their products and services and hence improve revenue and bottom lines. Well networked and with executive level experience, I happen to fit the bill quite nicely. The issue then becomes one executing the appropriate sales and channel strategies and the details around branding, channels to market, compensation and delivery.
If you are thinking of going down this path, we can make sure your overall strategy business strategy is sound, while providing advice and operational capability on achieving your sales goals!

Avoiding Corporate Collapse

The recent feature article "Avoiding Corporate Collapse" [Company Director, Vol 25, No 03 April 09] highlights the issues Directors face when companies find themselves in trouble. One of the biggest issues Directors face is whether the company is trading insolvently. The consequences of trading inolvently can be devistating both to the company, creditors, staff and Directors. The AICD has lauched a new "mirosite" providing information on "Directing in Difficult Times". The general advice is to seek advice early and to deal with the issues. In another article "Insolvency up as more hit by tax bills" [AFR, p7, April 9-13], it was discussed that SMEs were at increased risk of insolvency in the current market and things were expecting to get worse".

In these difficult times it pays to have the right strategies and capabilities, and to be seeking appropriate advice.

Corporate Governance and Company Performance

The Australian Government has recently published a paper that reviews Corporate Governance compliance in relation to financial performance. Follow the link for the paper (http://www.treasury.gov.au/contentitem.asp?NavId=035&ContentID=1495). Essentially the paper confirms the general view that strong corporate governance leads to better financial returns. "Our results suggest that companies demonstrating greater compliance with the ASX Corporate Governance Principles outperform less compliant companies in each of these three financial areas" (of shareholder performance, operating performance and one year sales growth for the top 300 Australian listed companies.

In a paper published by Julie Hudson (UBS Investment Bank, 2008) "Coporate Governance and Capital Markets"; the connection is again confirmed. "Weak corporate governance is accompanied by an increased risk of potentially unwelcome surprises" and guides investors to avoid companies with weak governance in terms of portfolio selection.

In my own experience as a Board Director, I would have to agree with the research. Companies exhibiting stong Board Governance and adherence to Governance principles such as those published by the ASX or AICD were on whole better performing than those that were "less compliant".

Given the strong impirical and "personal practical" evidence I am an advocate of professional Board Governance.

Working Capital and "Going Concern" Issues

The poll that I have been running on Linkedin has indicated that the majority of respondents beleive that more than 20% of companies have working capital issues. I was quite surprised at the result. KPMG has released a paper on advice for companies and directors on assessing whether an organisation is a "going concern". Given the high level of anxiety around working capital issues, it is a must read for executives and Board Directors. See - http://kpmg.com.au/Portals/0/09FR-07.pdf

What percentage of current organisations have working capital problems?

I am interested in understanding the level of "distress" in the market with regard to managing working capital and other operational issues. Some of the symptoms are company not paying their creditors on time and banks being reticent to lend for working capital problems. How do management cope and manage such situations?

Corporate Transformation and Advisory Services

Mark Rainbird has extensive corporate transformation and advisory experience. With over 10 years of Board, operational transformation and restructuring experience Mark can help your management team (and Board) execute and provide much needed capacity and capability in difficult and demanding times.

Mark has recently assisted a Mackay based Mining Services organisation to cut $600K per month from operating costs as the decline in mining services revenue impacted the company. This successful transformation involved leading the change management agenda and building a strong capable team to move the business forward.

Other transformation experience includes:

Re-focused operations while undertaking due diligence, merger / acquisition activities and a scheme of arrangement, leading to solid revenue bookings (dramatically exceeding plan), new products being launched, a customer service focus and a stronger team.

Undertook a major transformation involving concerted change management to deliver a $7M turnaround in profit year-on-year within a complex technology services company. Implementation involved delivery of business “building blocks” together with alignment of people and strategy.

Worked closely with clients to provide improved service levels while implementing improved management frameworks and reporting to drive operating efficiencies (utilisation and grade-of-service).

Grew an innovative mining services company from $25 to $50M in three years, by combining technical problem solving and commercial acumen to deliver strong business outcomes. Management of the bottom line, developing new opportunities and overseeing manufacturing were key elements to the success.

Partnered with Caterpillar to drive a leadership position in providing a “mine-to-market” technology portfolio (hardware and software) to dramatically lower mining costs. Provided leadership and execution of global roll-out including marketing and alliance programs.

Re-established mining business at CGEY through building strong client relationships and bold propositions. An innovative “Mining for Profit” strategy provided a catalyst for client engagement and delivery of core business and technology assignments.