AUD10 Mil equity opportunity in Australian Abalone – PROJECT GREENLIP

BoxRED have been  jointly mandated along with a well known Sydney boutique corporate advisory firm to assist an Australian Abalaone operation in regards to facilitating global introductions for equity , joint venture and possible global offtake.

  • PROJECT GREENLIP  currently produces circa 80 tonnes of premium grade green-lipped abalone per annum, but has the capacity to increase this to 300 tonnes per annum with modest  capital investment.
  • It has undergone a major management transformation over the last two and a half years, and is now vertically integrated from hatchery (although hatchery spat are now purchased) to harvest, with current capacity and facilities readily capable of a three-fold increase in production.
  • The fish are spawned and grown out over two years at a land-based facility. The fish are then transferred to an ocean facility for a further grow-out period of circa 12 months.
  • The finished product is thus a premium grade, with quality  indistinguishable from wild-caught green lip abalone, but without the inherent variability in size, quality or availability
  • It is a major selling feature that GREENLIP ’s premium product is produced without quota, is sustainably produced in an environmentally sensitive (green and clean) process. This is becoming an increasingly critical differentiating feature when compared with wild-caught product.
  • The incoming equity investor/s has the opportunity to participate in the funding investing and ownership of a company that has a potential value in excess of AUS $40 million capital invested in it over the last 7 years to become a sustainable Abalone Farming Operation. Over A$2million worth of abalone is ready to be harvested during the next 5 months
  • The existing business has the opportunity of producing up to 150 metric tonnes of abalone for the value of A$6million per year.
  • The total cost of running the project providing 150mt harvest has been estimated at A$4million per year and the holding entity is planning to achieve the target of producing 500mt ( A$20million ) within 5 years of the operation for the cost ofA$9 million per year.
  • The Company is planning to increase the current production level of 60mt to 150mt within 2years thus providing profits/dividend to the investors.
  • The abalone produced are premium, produced without quota, and produced in an environmentally sustainable fashion. There only credible competition is wild caught which is subject to quota and other restrictions.

Ours Sydney based advisor  has engaged two leading Aquaculture specialists from the leading research firm in the field, Lonsec.

GREENLIP’s Board and Management team have completed:

–        An independent study and assessment;

–        Complete Financial Modelling;

–        A comprehensive Information Memorandum;

–        Ancillary draft documents to support investment, including;

  • Term Sheet
  • Subscription Agreement
  • Shareholders’ Agreement
  • Draft offtake agreement

A comprehensive and secure on line due diligence site is available

Interested parties should contact Sean Rothsey to register their interest and to discuss the potential investment. Normal confidentiality arrangements are required as a prelude to the provision of further information.

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https://www.merkin.com.au/?p=1514



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