The Company has advised that they have extended the offer close date to 28th June 2019. Whilst they have received good investor interest, including firm commitments in excess of $3 million, the offer has been extended to:
Please note that OnMarket has a limited allocation and the offer may close earlier than 28 June.
Commencing operations in 2016, New Zealand Coastal Seafoods Limited (ASX NZS) (NZCS) is a profitable and growing processor, distributor and exporter of premium seafood products including ling maw, sea cucumber and soft and hard bones (such as elephant fish backbone and dogfish backbone). NZCS focuses on Asian markets and its products are sold, directly and through distributors, to customers, restaurants, seafood traders, supermarkets and other retailers in New Zealand, Australia and Asia.
NZCS sources products exclusively from New Zealand primary suppliers of raw seafood and operates a seafood processing and drying facility in Christchurch, New Zealand, with a current annual production capacity of 60 tonnes of raw seafood products input. NZCS’ products are generally targeted at Asian populations who value the perceived health and beauty benefits of collagen-rich ling maw, as well as other seafoods.
A key competitive advantage for NZCS, particularly in Asia, is that New Zealand is renowned for its ‘clean & green’ reputation. Consequently, NZCS’ products attract a price premium relative to the Asian-processed products that are common in its target markets.
NZCS generated EBITDA of NZ$164,673 for the nine months ending 31 December 2018, building on the NZ$56,284 for the full financial year ending 31 March 2018.
The issuer of the prospectus is xTV Networks Limited (ACN 124 251 396) (ASX: XTV) (to be renamed New Zealand Coastal Seafoods Limited) which announced that it had entered into a binding share sale deed to acquire 100% of the issued capital in New Zealand Coastal Seafoods Limited. New Zealand Coastal Seafoods Limited will trade under the ticker ASX: NZS. For more information, please refer to the Prospectus.
New Zealand Coastal Seafoods Limited is seeking to raise up to $6 million and will have an undiluted market capitalisation of approximately $14.2 million at maximum subscription.
NZCS intends to apply the funds raised from the public offer over the first two years following readmission of NZCS to the official list as follows:
NZCS operates in the fast-moving consumer goods (FMCG) industry, focusing on the seafood market. The global seafood market is currently valued at over US$160 billion. China is now the largest consumer of seafood products in the world, accounting for over a third of all global seafood consumption and projected to total over US$67.3 billion in 2019. Consumers in China and other Asian countries increasingly have diets with high seafood content, and a growing middle class with rising disposable incomes is further stimulating growth. China’s seafood imports grew 44% in 2018, increasing from US$3.6 billion to US$11.9 billion. Seafood exports from New Zealand continue to be in high demand in Asia, with over half of New Zealand’s exported seafood destined for Asian markets. In 2017, New Zealand exported 128,000 tonnes of seafood worth NZ$1.8 billion.
Dried seafood is considered to have many health benefits in Asian markets, and is commonly used in festive banquets, daily cooking, and traditional tonics. Highly desired dried seafood includes intensely-flavoured dried abalone, sea cucumber, shark cartilage and fish maw, which is currently NZCS’ key product. These dried seafoods are considered delicacies in many countries.
NZCS is currently selling the following products in New Zealand and through distributors for export to international markets:
NZCS’ primary product line is currently dried maw taken from the ling fish. Dried ling maw is sold by weight, with larger pieces typically sold at premium over smaller pieces. The ling fish is a large, white fleshed fish found in deep cool waters and the maw is the swim bladder of the fish. Ling fish is one of New Zealand’s top ten seafood export earners and is certified by the Marine Stewardship Council (considered to be the global gold standard for sustainability). Ling maw is cholesterol-free and rich in nutrients and proteins, including collagen. Accordingly, ling maw is valued for its perceived health and nutritional benefits, particularly by Asian populations who eat ling maw in soups that are considered delicacies.
NZCS also sells dried New Zealand sea cucumber and dried soft and hard bones (including elephant fish backbone and dogfish backbone), which are also used in dishes that are considered delicacies by Asian populations.
NZCS is implementing a number of growth strategies to increase sales, with a particular focus on Asian markets, including China. These strategies are centred around the following three pillars:
NZCS generates revenue by selling its products through a variety of channels, including direct to customers, restaurants, seafood traders and other retailers in New Zealand, as well as to wholesale distributors who distribute the products to restaurants, supermarkets and various other customers in New Zealand and for export to Asia and Australia.
New Zealand Coastal Seafoods Ltd is led by a management team with extensive experience in FMCG and the seafood industry, including:
You are encouraged to read the Prospectus carefully as it contains detailed information about the Company and the Offer. Like all investments, an investment in the Company carries risk. New Zealand Coastal Seafoods Ltd is subject to a range of risks, including risks associated with limited trading history, growth risk, product pricing, consumer demand, supply risk and season and environmental risks. Please refer to Section 7 of the prospectus for further details.
Section 734(6) disclosure: The issuer of the securities is xTV Networks Limited ACN 124 251 396 (to be renamed to New Zealand Coastal Seafoods Limited). The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).
OnMarket has a limited allocation. The offer may close early and the 'Pay By' dates may change. Bids over $10,000 may be scaled back more heavily. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.
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New Zealand Coastal Seafoods Limited (pending code ASX: NZS) is a processor, distributor and exporter of premium seafood products. NZCS’ products are sold, directly and through distributors, to customers, restaurants, seafood traders, supermarkets and other retailers in New Zealand, Australia and Asia. These products are generally targeted at Asian populations who value the perceived health and beauty benefits of collagen-rich ling maw and New Zealand’s ‘clean & green’ reputation relative to the Asian-processed products. Revenues for the 9 months to 31 Dec 2018 were NZ$1.53 million, up from NZ$1.18m for year ending 31 March 2018.
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