April 02, 2019
The NZ agriculture and horticulture industry has huge potential, but is often stymied by investment difficulties. Here, Ross, CEO, talks about how Syndex can support these industries by making these investments more accessible.
[transcript] “Syndex is now solving a lot of problems for agriculture, horticulture and other primary sector businesses. New Zealand has a great opportunity as an efficient producer of natural foods, but to take advantage of this opportunity it needs to be able to invest in research and development to achieve productivity gains, and of course into best practice environmental management. To do that businesses need capital and new sources of capital. It needs to be different from traditional family capital that has been provided and it needs to compensate for the fact that it is now more difficult to access foreign investment and bank capital.
To access new capital there needs to be new innovative structures that new types of investors can invest into, so they will see how the asset is performing at all times. They will also get access to liquidity so they can buy and sell on the Syndex secondary exchange or investment opportunities market and they have some comfort that if they need to sell their asset they’ll be able to do so.
What that does for the agricultural, horticultural and other privately-owned primary sector businesses is, it opens up new classes of investors. For example a city dweller who has some interest in the agricultural sector whose only option previously was to raise enough capital to buy an entire farm or orchard can now invest proportionally in an asset that they have some passion about. Or a retired farmer or grower who doesn’t necessarily want to continue to own and operate a farm can invest in a proportion of a farming or horticultural asset knowing that they are investing in an asset that they understand and potentially can continue to contribute to the growth of that asset through advice or involvement in governance and that they will benefit from the returns of that asset as part of a wider diversified investment portfolio.”
Ross Verry is CEO of Syndex and a shareholder. The views expressed above are purely his own. Please assess and research all your investment.