Veratin Ltd

Veratin Ltd (NSX:VTN)

Offer Price

A$0.100

per share

Offer Size

A$500,000

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Veratin Ltd

Placement

Veratin Ltd (NSX:VTN)

VTN

Lead Manager

Offer Price

A$0.100

per share

Offer Size

A$500,000

Placement

Veratin Ltd

Background

Veratin Ltd (NSX:VTN) is excited to announce the recent signing of two new supplier agreements for its Verigrow range, consisting of liquid fertilizer and soil improvement products. The agreements comprise:

  1. A binding Goods Supply Agreement with QFH Multiparts (QFH) for a minimum annual purchase of 10,000 liters of Verigrow®. The contract spans two years, with the option for Veratin to extend it for an additional three years.
  2. A Supplier Agreement with Elders Rural Services Australia Limited (Elders Rural) for the provision of the Verigrow® product line, following the unveiling of comprehensive broadacre trial results on January 9, 2024.

Elders Rural and QFH are esteemed distributors of agricultural products and services in Western Australia and across the country. These agreements underscore the success of previous product trials and are poised to bolster sales growth in the near term.

Offer Details

Veratin Ltd is looking to undertake a retail placement using an Offer Information Statement (OIS) to raise up to $500,000 via the issue of 5 million shares at an offer price of $0.10. 

The $0.10 offer price represents a 23% discount the $0.13 NSX trading price as at 30 January 2024.

Investment Highlights

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The Veratin Process

Veratin's technology transforms low-grade wool into sustainable, high-value products for various industries, unlocking its inherent value.

The company possesses intellectual property in the form of patents and trademarks, including the National Phase patent for Organic Fertiliser and Soil Improver. The IP strategy involves pursuing this patent in major agriculture and wool-exporting markets, with National Phase patents already filed in multiple jurisdictions.

Veratin holds trademarks for Verigrow® fertilisers and soil improvers, Veratin™ shampoos and conditioners, and Baa baa™ beverages. Additionally, the company holds a worldwide exclusive license for utilizing patented IP related to a biodegradable polymer, poised for applications as a replacement material for plastic in consumer products. Veratin also possesses a provisional patent for the preparation of alcoholic and non-alcoholic fermented products using wool.

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Fertiliser Market

Australia's fertiliser market boasts a size of $8 billion, ranking as the 10th largest globally. Between 2018 and 2023, the Australian market has experienced an average growth rate of 11.6%. The global fertiliser market reached USD 212 billion in 2023. Notably, there is a shift in the market towards sustainable fertilisers with a reduced environmental footprint.

Forecast U.S. Fertiliser Market Size

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Partnerships & Agreements

Veratin has established significant partnerships, trial collaborations, and supply agreements with the following entities:

  1. VegetablesWA Trial Partnership: Veratin inked a Trial Partnership agreement with vegetablesWA to facilitate horticulture demonstration sites in Western Australia. These sites will be supervised by an agronomist and a regional development officer. The demonstrations encompass three vegetable sites (lettuce, broccoli, and tomato) and two fruit tree sites (in collaboration with Stonefruit WA).

  2. Commencement of Turf Trial: Veratin has initiated independent product testing in a turf trial in collaboration with Betta Turf farm and Sport Turf Technology. This trial will assess the effectiveness of Verigrow® Fertiliser and Soil Improver, as well as Verigrow® Soil Wetter, in comparison to commonly used industry products.

  3. National Supply Agreement Executed: Veratin has entered into a National Supply Agreement with Australian Independent Rural Retailers (AIRR), as previously announced on November 13, 2023. AIRR, a locally-owned entity under Elders Limited (ASX: ELD), specialises in the wholesale distribution of animal feeds, fertilisers, agricultural chemicals, and other farm supplies to agricultural retailers across Australia.

  4. Broadacre Market Traction: While Veratin has predominantly employed a direct-to-consumer distribution model through its e-commerce website, it has recently enlisted the assistance of Primary Agronomy to support the expansion of Verigrow® in the broadacre market. Notably, the company secured its first 3,000L order in 2023 for broadacre crops following successful independent trial results on wheat.

Growth Opportunities

In addition to its fertiliser applications, Veratin's existing technology extends to the transformation of low-grade wool into various valuable products, including biodegradable biopolymers, nutraceuticals, functional foods, and cosmetics. Each of these product lines operates in expansive markets, offering Veratin diversification and significant growth prospects.

Biodegradable Biopolymers:

Biodegradable polymers break down into natural by-products through the action of naturally occurring microbes such as algae, bacteria, and fungi. These eco-friendly and non-toxic polymers have diverse applications, including controlled drug and gene delivery, tissue engineering, medical implants, surgical sutures, and more. Veratin has introduced its Verigrow® biodegradable plant pots as part of this initiative.

Nutraceuticals and Functional Foods:

Veratin disclosed successful proof-of-concept experiments on September 28, 2023, showcasing the isolation of amino acids and peptides from wool. Ongoing research focuses on the prepared amino acids and feasibility studies for scaling up. Simultaneously, the company has advanced its provisional patent application, 'Alcoholic and non-alcoholic fermented products and method of preparation,' through the filing of a PCT application. Veratin is leveraging this intellectual property for future products under its Baa Baa™ range of nutraceuticals and functional foods.

Cosmetics:

Veratin has opted to venture into the development of cosmetic products, specifically incorporating liquid keratin due to its potential in a lucrative market. The company launched its first two products in 2023 - Veratin™ Shampoo and Veratin™ Conditioner for Men. These products contain natural extracts such as eucalyptus, tea tree, aloe vera, and orange peel oils. Veratin plans to expand its cosmetic range by introducing new products, such as Veratin™ Shampoo and Conditioner for Women with a floral scent. Concurrently, the company is also in the process of developing a cleanser, exfoliator, serum, moisturiser, and eye cream.

Key Offer Statisitcs

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Use of Funds

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Risks

Liquidity strongly advised to thoroughly review the Offer Information Statement, as it provides comprehensive details about Veratin Ltd and the Offer. Similar to any investment, participating in Veratin Ltd carries inherent risks. As outlined in Section 6 of the Offer Information Statement, Veratin Ltd is exposed to various risks, including, but not limited to, challenges in safeguarding intellectual property rights, the approval of patents, potential risks associated with rapid growth, competition, reliance on key personnel, distribution agreements, commercial manufacturing and distribution capabilities, and dependency on wool suppliers.

Board and Management

Dr Ramiz Boulos

Dr Ramiz Boulos

Founder and Executive Chairman

Dr Boulos is an inventor and serial entrepreneur. He was born in Sudan and came to Australia as a humanitarian refugee in 1999. Dr Boulos graduated with a PhD in Chemistry from the University of Western Australia in 2011. Dr Boulos invented a new class of antibiotics and founded Boulos & Cooper Pharmaceuticals in 2013 to commercialise that research. He is the inventor of Verigrow® and the founder of Veratin. In 2016, Dr Boulos founded Boulos & Cooper Labs, which carries out research and development in different fields. He later invented a new type of biodegradable polymer and licensed it to Veratin. In 2021, he founded Founders First to help founders commercialise their IP. Dr Boulos holds an Adjunct Lecturer position at Flinders University and is a previous SA Tally Poppy (2014). He is a graduate of the Australian Institute of Company Directors.

Mr David Vincent

Mr David Vincent

Non-Executive Director (Independent)

Mr Vincent is the owner and Managing Director of the Farmers Market on Manning, Western Australia’s largest farmers market since 2009. The market has an average patronage of around 5,000 per week. Mr Vincent has a long successful history in retail food and a strong interest in innovative new concepts. He is currently the Chairman of the Western Australian Farmers Market Association.

Mr Giuseppe Lenzo

Mr Giuseppe Lenzo

Non-Executive Director (Independent)

Mr Lenzo is a Chartered Accountant and Registered Tax Agent. He has more than 13 years’ experience working in the Tax, Accounting and Business Advisory space. During that time Giuseppe has worked for KPMG and Deloitte, two of the largest accounting & consultancy firms worldwide, as well as a boutique tax specialist consultancy firm. Giuseppe currently runs his own practice, G Lenzo Consulting, which has been successfully operating since January 2017. He services a range of small businesses assisting them with their tax, accounting and business advisory needs.

Mrs Kellie Davis

Mrs Kellie Davis

Company Secretary

Mrs Davis has over 20 years of experience in accounting and ASX compliance, predominantly in the resources sector. Beginning her career in Audit with Ernst & Young, she has worked as a Financial Accountant and provided company secretarial compliance services for a number of listed ASX companies in the exploration and resources sectors. Mrs. Davis has a Bachelor of Commerce (Accounting and Finance) Degree and is a Chartered Accountants Australia & New Zealand member.

Mr Tony Bevan

Mr Tony Bevan

Incoming Non Executive Director

Mr Bevan is a Chartered Accountant with a diverse background in commerce and public practice. He has over 25 years of experience in commerce and the accounting profession, including 5 years as chief financial officer and company secretary of an ASX listed civil and mining contractor and 13 years as a partner of Chartered Accounting firms in the audit and corporate finance areas.

Ms Michele Teague

Ms Michele Teague

Incoming Non Executive Director

Ms Teague is an experienced senior executive and Non-Executive Director, having operated at management level within large corporates ($4billion+) in Australia and New Zealand. She has extensive experience in marketing and has navigated large organisations thought change and disruption. Previous executive roles have been at Managing Director and General Manager Marketing level with P&L accountability for $100m+ revenue.

Disclaimer

This deal is intended for Sophisticated/Wholesale Investors only, as defined by Section 761G of the Corporations Act, 2001.

This deal contains unsolicited general financial information only. In preparing this deal Liquidity Technology Pty Ltd ("Liquidity") did not consider the investment objectives, financial situation or particular needs ("Financial Circumstances") of any particular person and no recommendation (whether express or implied) contained in this deal should be considered reliable. Accordingly, before acting on any information contained in this email, you should assess whether the information is appropriate in light of your own Financial Circumstances. Liquidity believes that the information contained in this document is accurate and reliable however no warranty of accuracy or reliability is given in relation to any information or information contained in this document and no responsibility for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence), is accepted by Liquidity or any officer, agent or employee of Liquidity.

Section 734(6) disclosure: The issuer of the securities is Veratin Limited ACN 613 404 612. The securities to be issued are ordinary shares. The Offer Information Statement 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 Offer Information Statement. Investors should consider the Offer Information Statement in deciding whether to acquire the securities.

Liquidity Technology Pty Ltd has a limited allocation. The offer may close early and the 'Pay By' dates may change. Duplicate bids under the same investment profile, investor name or residential address may be cancelled.

Liquidity, its directors, associates and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions arising from any advice mentioned in this email.

Corporate Authorised Representative: 001293556 of AFSL 338731

Veratin Ltd

Placement

Veratin Ltd (NSX:VTN)

VTN

Offer Price

A$0.100

per share

Offer Size

A$500,000

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