Readers, Products | Updates

Dear Readers,

Welcome to the October 2020 edition of the Funding Strategies newsletter!

Flora Mok, our Director M&A (pictured left), recently attended Mergermarket Australia's M&A Forum and provided us with the following notes:

There is increased M&A activity for companies with enterprise value ("EV") below $100m.
Despite the global pandemic, there are not too many distressed assets in the market.
There are not many deals involving companies with EV above $100m.
The main difficulties involving M&A activities now are "difficult to maintain relationship with virtual meetings" and "difficult to determine the valuation".
When compared with GFC in 2008, there are no liquidity issues and it is expected that there will be a quicker recovery than after the GFC.
Asia is optimistic and a faster recovery is expected due to an increase in sentiment. Asia had previous experience with SARS and has been better prepared for this pandemic than other regions.
The Australian FIRB's increase in threshold means a longer approval process which leads to increased risk, uncertainty and finance costs. Hence, there has been a significant drop in the transaction size and amount (though it is expected to be temporary). Australia and New Zealand are the key locations for Japanese investors.
In order to cope with the travel restrictions, virtual due diligence has been performed by investors and banks in some countries such as the US, Japan, etc. No physical due diligence has to be done. Deals can now be done 24x7 due to everything being done online. Excellent project management is necessary to reduce risk.
Sponsors have been active in public companies and are supported by foreign investors. There has been lots of money in the public market. Banks have seen loan markets and equity markets doing quite well and are supporting strong customers.

About

Funding Strategies

Funding Strategies is a capital markets firm providing venture equity capital and finance services to small business and companies seeking capital for growth and expansion in the unlisted and pre-IPO capital markets.

We specialise in creating and implementing successful funding and capital raising strategies for issuers, and provide investment opportunities in the high growth alternative asset space for investors.

We serve predominately private and public companies, and sophisticated investors, with a broad range of services.

Funding Strategies and Investor Ready Services
Equity and Debt Capital Raisings
Small Scale Offerings and Venture Capital
Grant Funding
Migration linked investment
Mergers,Acquisitions and Divestments
Strategic Trade Sales
Technology Commercialization
Providing Opportunities for Investors
Director and business advisory services
Investment management
Fund management services

Find out more

This edition of our newsletter includes:

Our Products: COVID-19 support;
Introductions to Project Pars and Cluster Biotechnology;
An update from Enviro Sand;
Partnering with BRICKLET;
Updates from BlueMount Capital: Introducing Project Slate and Project Linteum, update from XING;
Upcoming events from ACBC.

As always, we invite you to download our updated deal list from our website (registration / log-in required, membership is free).

View our latest opportunities here

For more information please contact us. We look forward to hearing from you!

Our Products: COVID-19 support

These are challenging times for business. We invite you to explore options; whether you are looking for business advice, dealing with stakeholders, having issues with execution, changing strategy, new markets or obtaining finance or equity.

How can we help?

Companies impacted by the current changing market conditions can look to Funding Strategies to assist with:

business strategy roadmap and execution
financial modelling and cash flow forecasting
investment ready services including presenting to stakeholders (investors, shareholders, boards and financiers)
investor distribution and strategic investors
debt finance including non-bank and bank
equity finance and convertible notes
exits, divestment, acquisitions and partnerships
distressed situations and workouts
human capital around Board governance and execution
networks to support new markets and introductions

Introducing Project Pars

Project Pars is an Australian company with a fragmented property investment platform backed by two major property developers

Project Pars unlocks the value of real estate without the burdens of owning an entire property.

Project Pars enables true independent part ownership of properties for multiple owners on a properties land title, thereby creating affordable, tradable fragments.This creates affordability, flexibility and liquidity in the real estate market which is unique in this asset class.

Find out more here

Introducing Cluster Biotechnology

Cluster Biotechnology are service providers and product developers in Biotechnology and Chemistry.

The Company's customer focused teams count on a range of scientists with previous experiences from academia, corporate and government, and its state of the art facility includes cutting edge technologies that make research & development rapid and precise.

Cluster Biotechnologies' services mostly focus on developing probiotic technologies, biofilm engineering, safer chemical mixtures, molecule discovery and more, which set it apart within the Biotech industry.

The Company also conducts business development, IP elaboration, regulatory applications and more, which make it the ideal partner of industry, businesses and governments.

Cluster Biotechnology is 100% Australian owned and operated, and helps customers cover all aspects of project design, technical execution, IP protection, pilot manufacturing, human & animal trials, and also assists establishing commercial partnerships.

The Company has been exceeding expectations since foundation in 2015, and the team takes pride in their capabilities, traceable services, transparent operations, and exceptional turnaround time.

Enviro Sand update

Enviro Sand is among 19 companies that will share nearly $27 million to divert almost one million tonnes of waste from landfill. These projects support 303 new jobs statewide and position Queensland as a leader in resource recovery.

"Enviro Sand Chairman Jim McKnoulty said more than 60 per cent of the world’s glass waste ends up in landfill representing one of the waste industry’s biggest unsolved problems.

“Our recycled glass sands can be used in road surfacing, pool filtration systems, countertops and furniture. Using glass sand instead of quarry sand also reduces the workplace risk of Silicosis by 90 per cent,” Mr McKnoulty said.

“This new $3.4 million project will allow us to increase our production capacity to meet the demand for this product.” "

Read more here

Introducing Funding Strategies partner BRICKLET

Fragmented Property Investing

Funding Strategies has recently partnered with BRICKLET to help Australians invest in real estate, even on a small scale. Giving you the opportunity to build a diversified investment property portfolio with ease.

“Real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth.” – Robert Kiyosaki

Real estate affordability in Australia is holding back Aussie investors. Currently, only 7.9% of Aussies hold property as an investment. While just a measly 2.15% can afford to own more than one investment property.

At Funding Strategies, we have solved this problem for our Australian clients. Allowing them to build a diversified property portfolio fast, for less than the cost of a one-bedroom apartment. Through something called fragmented property investing.

Fragmented property gives you the opportunity to own a fragment of a property, on title. Retaining all of the rights of a sole property-owner. Properties are fragmented and purchased through BRICKLET – AFR’s Top Proptech to Watch in 2020. Their property marketplace offers Australians everything they need when buying, owning or selling an investment property. From conveyancing to tenancy management and maintenance. BRICKLET keeps this all in one place, making it simple for you to manage the property portfolio.

To learn more, register on the Funding Strategies-BRICKLET Portal here.

BlueMount Capital updates:

- Introducing Project Slate;

Introducing Project Linteum;
- XING update.

Introducing Project Slate

Project Slate is a Singapore-headquartered

EdTech company offering a suite of

Assessments, Exams and Tests (AET) solutions

to meet all the requirements of

educational institutions

The launch of its digital AET solution made the Company a pioneer in the digital exam / testing space.

Following its successful launch at a large government university in India, the Company has since signed up 15 more institutions including marquee names.

The solution has high 'stickiness', with multi-year contracts and annuity revenues. The total value of outstanding contracts is ca. US$13m, of which US$8.5m is yet to be executed.

Project Slate’s flagship platform has successfully delivered more than 2.5 million high-stake exams translating to over 55 million answer pages, all of this with zero loss of data. More than 50,000 students and over 4,000 faculty members currently use the solution.

Introducing Project Linteum

A smart connected solution to prevent pressure injuries and other patient monitoring functions

Project Linteum's pressure injury management system provides a targeted, convenient, and cost-effective solution for clinicians and carers.

Project Linteum has developed a smart connected solution to solve the global health problem and costs associated with Pressure Injuries, currently costing $51b health burden across US, UK and Australia.
The current standard of care is a subjective visual and tactile risk assessment, which has been described as ‘no better than a coin flip’.
The revenue model is based on a reusable sheet (consumable) with a year-long life of use as well as a subscription model for data and algorithm use
Market entry will initially focus on selling in Australian hospitals and aged-care facilities by late 2021. Hospitals, specifically the Intensive Care Units (ICU), will be targeted first, followed by expansion into other wards and operating theatres. Following the Australian entry, the Company plans to enter the US market.
Project Linteum has a working proof of concept and are about to commence hospitals trials. The team have also commenced the early-stage validation of the device to read other signals such as bed-falls, bed-wetting, respiratory rate, weight gain, lymphodema and heart rate
The Company has brought in 'heavy-hitting' key advisory board and key opinion leaders (KOL) supporters.
Commenced active discussions around trialling the prototypes in hospital setting and an aged care facility.

XING update

"Rapid COVID-19 test could detect virus

'virtually instantly'"

XING receives $1.5m State Government grant

"...Queensland scientists who are developing a rapid COVID-19 test, likened to pregnancy testing kits, said the test could eventually be used at home and have a result "virtually instantly".

The technology, dubbed XavTrap, uses bio-engineering yeast molecules to test for a disease caused by an infection and was originally created to quickly detect viruses such as Dengue in less developed countries."

Head of Brisbane-based development company Xing Technologies, Tom Esplin, said the test was currently being trialled in the US and worked similar to a pregnancy dipstick. "You don't pee on it — but you take saliva or nasal fluid and put it on the test strip," he said. "That will show a visible, 'yes you've got live virus', or 'no you don't'."

The test can currently detect the virus in under 10 minutes and would need to be administered by a health professional but researchers expect it could provide a rapid result at home.

"Brilliant scientists are working on a virtually instant test … so we can process a lot of people very quickly," Mr Esplin said."We've certainly positioned our development so that it can be a home test you can do yourself and very, very low cost."

The research has drawn funding from the US Government and recently received $1.5 million from a State Government grant in a bid to fast-track the technology."