Startup

ManukaLife Pty. Ltd.

Target Amount :
S$2,400,000.00
Amount Raised :
100 %
Equity Exchange :

20%

Campaign Date:
05 Jul 2018 To 05 Jul 2018
Status :
Past Campaign
Investment Agreement :
Escrow Agreement :

ManukaLife is a Western Australian Manuka development poised to be a global contingent supply delivering low cost and high quality Manuka. They have developed a hybridized Leptospermum scoparium through the Federally Funding plant breeding program that will allow them to not only grow high DHA Manuka producing plants in Western Australia, but to do so in a way that will significantly increase the output of Manuka Honey.

The focus for ManukaLife is to develop an integrated high grade production, distribution and manufacturing supply chain in Western Australia to supply both Australian and international markets. With global projections for the use of Manuka across key medicinal, pharmaceutical, nutraceutical and cosmetic industries, the projection and value of Manuka represents significant opportunities to take advantage of the State’s unique agricultural position and bio-security controls.


The Global Manuka Market Opportunities:

Medicinal: the medical category has the highest growth opportunities given the potential applications and commercial returns. Science-based evidence has proven Manuka to be effective in the treatment of wounds, burns, chronic skin ulcers for young and adults.

Cosmetics: there has been a rise in popularity of cosmetic products such as facial creams, oils, serums, masks and peels, body lotions and exfoliators in key markets of the US, China and UK which lists Manuka as one of its ingredients.

Pharmaceutical & Nutraceutical: the pharmaceutical market growth in China is expected to expand as demand for natural and healthy remedies for eczema, acne skin treamts, nasal sprays, and throat lozenges remain the popular choice.

Food: Manuka honey is a natural specialty food with a plethora of health benefits. This is very popular in the Asian market. It is also regarded as a high status gift.

ManukaLife Pty. Ltd. is currently doing a initial Seed Funding round to raise S$2,400,000 for 20% of the company’s shareholding. ManukaLife was previously fully funded by its founders alongside a AUD$750,000 research grant awarded by government approved in March 2017.

The investment strategy for ManukaLife is structured to provide investors with exposure to the capital growth potential across multiple phases of expansion within the honey production and downstream development.

The development of a bee company allows a fully integrated supply chain, reduces risk associated with honey collection, eliminates the royalty associated with 3rd party bee keepers and provides an additional revenue stream from bush honey.

The plant breeding program will allow the company to develop ongoing leadership with new varietals of plants to underpin the development of higher MGO rated plants with longer flowering, higher volume nectar production and capability of growing in drier conditions. This will also provide additional revenue streams from royalties and seedling sales.

January 2015 - Mr Tony Woods and Mr Paul Callander initiated research into the Manuka honey industry with the objective of creating a company to breed, propagate and grow Leptospermum for the production of medical grade Manuka honey.

April 2015 - Secured high-quality seed supply of eight varietals of Leprospermun Scoparium

August 2015 -  Government approval to import seed

September 2015 - ManukaLife was incorporated.

October 2015 - Finalized agreement with major nursery

18th October 2016 - Genotype and Environment Study agreement with Cooperative Research Centre lead by the University of Western Australia for Honey Bee Products 

December 2015 - Initial germination testing of seed and propagation of seedlings

January 2016 - Initial 500,000 seedlings grown at Manjimup nursery for planting

March 2016 - Partnership with large established apiarist in Western Australia

May 2016 - Finalised contracts for 150 hectares planted across different climatic areas

November 2016 - Initial nectar results indicate high-grade medical honey

27 March 2017 - Research Grant Agrgeement with AgriFutures (previously Rural Industries Research & Development Corporation (RIRDC).

April 2017 - Paul Callander, Managing Director of ManukaLife co-founded the Australian Manuka Honey Association (AMHA). He currently serves as Chairman of Board.

20th April 2017 - ManukaLife signed plant breeding agreement with Botanic Gardens and Park Authority, Australia giving them IP protection for their plant species and access to grants.

June 2017 - Established growers agreement with 20 farmers and 600 Ha of land to grow Manuka plants (Leptospermum).

21 June 2017 - Signed Letter of Intent with Advancis Medical to supply medical grade Manuka Honey to them.

24 July 2017 - Signed MOU with Davis Apiaries for bee keeping arrangements and harvesting of Manuka Honey. 

9 Dec 2017 - ManukaLife completes initial Seed Round capital raising of $2,400,000 in 2 separate tranches with Fund Singapore.

Post-investment Updates:

30 May 2018 - Australian Manuka adopts mark of authenticity to meet international standards. Under the new standards, methylglyoxal (MGO), a measure of potency and antibacterial properties in Manuka has replaced UMF ratings as the labelling requirement. The new mark of authenticity proves consumer confidence for Australian Manuka. 

What is MGO?
Methylglyoxal (GMO) is a naturally occurring compound that gives Manuka honey its special healing properties. There are different levels of MGO associated with variants of Leptospermum scoparium. MGO levels equal to or exceeding 800mg/kg are considered medical grade, and is best suited for external wound and oral care. ManukaLife's breeding programme selects variants of the Leptospermum scoparium plant that has MGO levels averaging above 1000mg (Read: 161104 Manuka Life 1 Nectar Report).

tableUMF_left_large

June 2018 - ManukaLife launches the ManukaBaby brand, a range of high quality certified organic skincare for babies. The unique healing properties of Manuka honey is capable of calming and nourishing the most delicate skin types. 

Investors are hereby invited to participate in this funding round for the amount of $2,400,000 to acquire a 20% stake in ManukaLife Pty. Ltd.

This offer of shares is made by APAC Honey Pte. Ltd. (the “Company”). The Company is a private limited company limited by shares, lawfully established and operating in Singapore The Company was incorporated by Fund Singapore Investments Pte. Ltd (“FSI”) on 25th October 2017 specifically for the purpose of investing in ManukaLife Pty. Ltd. (the “Investee”)

Registered office and contact details

Company   :           APAC Honey Pte. Ltd.

Address     :           65 Chulia Street #38-02/03, OCBC Centre, Singapore 049513

Email         :           [email protected]

Attention to:          Director

The investment will be for the amount of S$2,400,000. The Investors agree and understand that the Company’s shareholding in the Investee will be twenty percent (20%) pro-rated in accordance with the final quantum of investment. For clarity, the structure of the investment is set out as below.

Rights of Preference Shares

  • Dividends. Subject to the determination of the Directors, in their absolute discretion, that there are available profits of the Company for distribution by way of dividends (the “Available Profits”) and the approval of the Shareholders for a declaration of a distribution of dividends in respect of such Available Profits, the holders of Preference Shares (collectively the “Holders, and each a “Holder”) shall be entitled to receive one hundred percent (100%) of all such Available Profits (“Preference Dividends”). For the avoidance of doubt, the available profits of the Company shall mean all income received by the Company, after deductions for all expenses of the Company (whether operating or otherwise), and any applicable taxes.
  • Voting rights. The Holders shall not have any voting rights or powers, or be entitled to exercise any rights as a shareholder of the Company, except as provided by law.
  • Liquidation preference. In the event of a liquidation, dissolution or winding-up of the Company, the Holders shall be entitled to receive, on a pari passu basis as between themselves, in preference to holders of Ordinary Shares, an amount equal to one hundred percent (100%) of the issue price paid by or on behalf of the Holders at the time of issue of the Preference Share(s) (the “Liquidation Amount”), out of the net proceeds of the liquidation, dissolution or winding-up of the Company after payments to all creditors of the Company, whether secured or unsecured. If the net proceeds are insufficient to pay the Liquidation Amount, it shall be distributed to the Holders on a pro rata basis, calculated based on the number of Preference Shares held by each Holder at the material time. Thereafter, any remaining net proceeds shall be shared among all the holders of Ordinary Shares of the Company and the Holders on a pari passu For the avoidance of doubt, for the purposes of such distribution of the remaining net proceeds of the Company, one (1) Ordinary Share shall be considered as being equivalent to one (1) Preference Share, and vice versa.
  • The Preference Shares are non-convertible and cannot be converted into Ordinary Shares at the option of the Holder or the Company.

Risks

Investment in Crowdfunding Securities like all other investments has its risk. Investors are required to consult their own financial advisers before investing.

ManukaLife presents an opportunity for investors to gain exposure to the Manuka honey supply chain production, plant breeding and intellectual property rights, potential product manufacturing, retailing and associated bee business through ManukaLife Pty. Ltd. (Company). The Company is looking to raise funds in exchange for shares in the Company.

The raising of funds forms part of a broader capital raising program for ManukaLife with this initial offering focused on the use of funds for:

  1. Ongoing operating costs and expansion of Manuka production business;
  2. Development of a wholly owned bee company and services;
  3. Potential lease and/or acquisition of land;
  4. A plant breeding program; and
  5. Potential business acquisitions.

The Company is propagating 830,000 new seedlings for planting out in 500 Ha across the south west of Western Australia in May 2017. This is an increase from previous plantings of 150 Ha in 2016 and will require additional capital investments. The potential acqusition of land will further enhance the development of a fully integrated business model, eliminating part of the requirement for the growers' model within the Company.

The expansion of treatment with Manuka honey can have a large impact on these costs and outcomes in the medical industry. Australia has significant opportunities to become a dominant player in the industry if it leverages on its strengths to take a long term, cohesive and coordinated approach. Its strengths are as follows:

  • larger areas of flat land at lower cost for Leptospermum production
  • agricultural skill sets supported by automated farming capabilities
  • an absence of colony collapse disorder or pests such as Varroa mite
  • one of the healthiest honey bee populations globally with numerous plant species demonstrating high levels of antibacterial activity

Western Australia Producing Some of The World's Best Honey (Video)

https://thewest.com.au/news/today-tonight/wa-producing-some-of-worlds-best-honey-bc-5660970930001 

 

Manuka Honey - A Growth Story

ANZ-AgriFocus-20151012

Therapeutic Manuka Honey: No Longer So Alternative. April 2016.
https://www.frontiersin.org/articles/10.3389/fmicb.2016.00569/full 


Clinical experience with Leptospermum honey use for treatment of hard to heal neonatal wounds: case series. January 2014.
https://www.nature.com/articles/jp2013158 


Leptospermum Honey for Wound Care in an Extremely Premature Infant. February 2017.
https://www.ingentaconnect.com/content/wk/anc/2017/00000017/00000001/art00010 


The Bacterial Signature of Leptospermum scoparium (Mānuka) Reveals Core and Accessory Communities with Bioactive Properties. September 2016.
http://journals.plos.org/plosone/article?id=10.1371/journal.pone.0163717 

 

Health Benefits of Manuka Honey as an Essential Constituent for Tissue Regeneration
https://www.ingentaconnect.com/contentone/ben/cdm/2017/00000018/00000010/art00005 


Nutraceutical values of natural honey and its contribution to human health and wealth. 2012.
https://nutritionandmetabolism.biomedcentral.com/articles/10.1186/1743-7075-9-61 

Honey for Nutrition and Health: A Review
https://www.tandfonline.com/doi/abs/10.1080/07315724.2008.10719745 

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