Wholesale
Castlemain Capital

Knewe Biosystems Limited

Agri-Business

Register Interest

WARNING

The law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decision.

If you are a wholesale investor under the definition of that term in clause 3 of Part 1 Schedule 1 of the Financial Markets Conduct Act 2013, the usual rules do not apply to offers of financial products made to you. As a result, you may not receive a complete and balanced set of information.

You will also have fewer other legal protections for these investments. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.

Transaction Size
AUD 1,000,000.00
Share Price
Minimum Investment
AUD 25,000.00
Issue Type
Agri-Business
Sector
Agri-Tech

The opportunity exists for wholesale investors to express interest in an in an investment in Knewe Biosystems Ltd (“Knewe”). Knewe was formed in 2017 to commercialise Knewe® products, which are breakthrough inventions that significantly improve all three aspects of animal husbandry - increased productivity, enhanced animal welfare and reduced environmental impact. Knewe’s primary activities of the last three years have been focused on getting improved definition of these benefits, and development of manufacturing and sales strategies for supplying it’s addressable markets. Knewe has now reached the point of launching full commercialisation in New Zealand, and extending market development to Australia, Europe (including the UK) and then North America.

The Knewe Board intended to seek new investment in Knewe of a further $A6,000,000, by way of a new share issue, however, due to Covid 19 this strategy has been deferred for up to nine months. Knewe has now decided to commence an interim capital raise by way of Convertible Notes up to A$1,000,000. These funds (in aggregate) will be invested in further market development, funding the growth in stock holding and the appointment of key full-time staff to take Knewe to the next stage in its development. Funds are also required for further strengthening intellectual property protection.

The deferred issue of new shares is now likely to proceed sometime in late 2020. Knewe will be aiming to raise a total of A$6.0m in this issue, and part of the funds raised will be utilised to repay RCN’s where investors seek repayment rather than conversion. We also expect that the relationship with the major agri-business will have been finalised by this time.

The offer of Convertible Notes described in the Information summary gives investors a

chance to invest in a business which is now well past its “start-up” stage, and is making progressing towards full commercialisation. The investment will initially provide a return of 7% per annum, with the option to be either repaid in eighteen months or be

converted to ordinary shares in Knewe.

Knewe intends a make new share issue offer within 9 months, and meanwhile, offers investors the opportunity to participate in anissue of convertible notes.

The funds being raised in this Convertible Note issue will allow Knewe to;

  • Strengthen its Intellectual Property protection.
  • Provide sufficient working capital until the new share issue.
  • Strengthen Knewe’s international Distributor network.

Knewe’s product now has been developed well past the preliminary trial stage, and the product is being sold and used in the field by end users, in the dairy, beef, deer and equine sectors. This includes use by one of New Zealand’s largest agribusinesses that has been working with Knewe specifically to test the ability of Knewe® products to reduce the amount of nitrogen the dairy cow excretes to the environment, relative to production. On completion of these investigations, this company will move to establish an exclusive distribution arrangement for New Zealand and may look to take up a position giving them access to global product sales.

To access further information, click on the Documents tab. Register interest for further information.

knewe - Convertible note information pack August 28
August 13, 2020
13/8/2020
knewe - Convertible Notes Issue Agreement August 28th
August 13, 2020
13/8/2020
knewe - Covid impact statement v2
August 13, 2020
13/8/2020

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