Puro New Zealand Limited

By Puro New Zealand

PledgeMe.Investment

Product,



NZ $2,000,000 pledged


724 people pledged


Closed


NZ $500,000 minimum target


Min

NZ$500,000

Max

NZ$2,000,000

100 100% Complete

Pledges will only be confirmed if the target is reached by: 06/12/2019 at 10:00 AM (NZDT)

Make a Pledge

About

Puro New Zealand Limited

Puro's equity crowdfunding and wholesale campaigns are now fully subscribed. To be on the waiting list and be kept in the loop on possible future capital raising, please register your interest by clicking here.

Puro is setting out to become New Zealand’s best cultivator of medical cannabis and hemp.

We have secured two premium growing sites in sunny Marlborough and have formed a world-class team of experts to drive us forward. 

We are the first medical cannabis company in New Zealand to have an approved cannabis licence prior to conducting a PledgeMe crowdfunding campaign, and already have purchase agreements with seven pharmaceutical manufacturers and wholesalers.

With land secured, a licence in place and letters of intent signed with large buyers, there’s only one thing we need to get growing: You.

We invite you to join us on our journey now. An investment with us positions you for considerable growth in this exciting industry. With Puro, you’ll be at the forefront of pioneering new medicine.

 

 

Growth Sauv

Offer at a glance

Puro is undertaking an equity crowdfunding campaign to raise $2million from New Zealand residents. Concurrently, a wholesale campaign is also being undertaken to raise a further $2million from wholesale investors. Shares are priced at $1 each for both offers.

  • The crowdfunding offer equates to 7.29% of the investor shares available. The minimum investment amount is $500.
  • The wholesale offer is separate to the crowdfunding offer and is also for a 7.29% stake in Puro New Zealand Limited. The minimum investment amount is $50,000. 

Our land

Puro has secured two premium growing sites in Marlborough. These sites provide us with the capacity to be the largest cultivator in New Zealand.

We handpicked our sites due to their high sunshine hours, intense UV ratings, and its clean environment. Couple that together with rich soils and a unique micro-climate give us the perfect locations.

Marlborough already produces some of the world’s premium food and wine, our product will be equally world-class.

 

Destined to become Puro's research headquarters, this 9-hectare property is currently part of an existing cherry orchard nestled in a quiet area of the Waihopai Valley in Marlborough. We plan to build high-security greenhouses for growing medical cannabis and establish research facilities in existing buildings.

This will enable us to produce premium indoor cannabis — a product that we anticipate will be among the best in the world.

We expect to grow up to 200 plants in our secure facility at Waihopai, and undertake research on all strains and cultivars including high-THC genetics

  • Optional expansion: 33.5 ha
  • Site crop: Premium medicinal cannabis
  • Facilities: 400m2 research facility with three vegetative growing room and commerical greenhouses covering 10,000-30,000m2 
  • Potential output: 20,000—60,000 kg dried flower PA
  • Lease duration: 21 years plus right to purchase

Our research has shown this coastal site is high in sunshine hours and receives a gentle salt spray from the ocean, which our botanists say will ward off pests naturally, and improve plant health. This natural self-defence has another benefit: it will also increase the cannabinoid profile of our plants. This should translate into higher yields, which makes for greater returns for our investors. 

  • Optional expansion: 80 ha
  • Site crop: Low THC hemp
  • Potential output: 40,000—160,000 kg dried hemp flower PA
  • Lease duration: 20 years

Licenced to grow

Under current New Zealand law, growing, extracting, and manufacturing cannabis for therapeutic use can only be undertaken for scientific research. This will change soon with the introduction of the Medicinal Cannabis Scheme, which we expect will be operational in March 2020.

Puro is the first medical cannabis company in New Zealand with an approved licence to undertake scientific cannabis research prior to commencing a crowdfunding campaign.

We currently have our licence pending with the Ministry of Health to cultivate low-THC hemp at Kekerengu, and we anticipate this to be granted in advance of our planned planting in December 2019.

Beehive

Potential

A rapidly growing market

The global medical cannabis market is big and getting bigger. With governments around the world increasing access for those with chronic health conditions, it’s one of the fastest-growing industries in the world. 

While it is clear that the global medical cannabis market is increasing, estimates of the exact size of the international medical cannabis market vary greatly.

For example:

Closer to home, research from The AgriBusiness Group into the New Zealand market concluded that if 1% of those who could benefit from medical cannabis in New Zealand obtained a prescription, the market could be worth $379 million each year.

Valuation, growth plans and revenue

Given the rapidly growing nature of the medical cannabis market, it is not surprising there is potential for significant investor returns.

Puro has been conservatively valued at $25million, using an EBITDA multiplier of just 2 and an implied revenue multiplier of only 1.1.  If the average Canadian multipliers (revenue multiplier of 4.8 and EBITDA multiplier of 15.9) were used to value Puro it would result in valuations between $98.9 million - $199.4 million, demonstrating the potential significant upside for investors.

Based on conservative profitability assumptions, we anticipate PledgeMe investors can expect an after-tax return on investment of 34% at the end of our first full year of production (at March 2021), and 66% by March 2022. 


Use of Capital 

Funds raised through our PledgeMe campaign will be primarily used to:

  • Build our research facility
  • Invest in security
  • Purchase extraction equipment
  • Greenhouse development
  • Expand further into international market 
  • Adminstration and capital raising costs

 

 

Capitalisation Table 

Shareholding details for pre- and post-offer shall be as follows: 

 

About our Team

Puro was setup in 2018 by passionate South Islanders and since then we have formed a formidable team with considerable business, finance and cultivation expertise.

 

Tim Aldridge (managing director): Tim was born and raised in Blenheim and worked in business consultancy before setting up Party Warehouse in 2001, which he grew to become the South Island’s largest marquee and event company. HireKING was Tim’s next success, and in 2017 it was named as one of the top 50 fastest growing companies in New Zealand. Tim was also a founding director of Team Event, which runs some of the largest annual events in the South Island including the Great Kiwi Beer Festival and Electric Avenue.

        

 

Sank Macfarlane (Director): A 5th generation Marlbourian, Sank’s family have farmed the Winterhome Farm, at Kekerengu on the Kaikoura Coast, for 130 years. Prior to his current role, Sank enjoyed a 16-year career in international banking, which provided him with a deep understanding of global financial markets. Sank is also a board member of the Marlborough Kaikoura Trail Trust which is funding, designing and building a cycleway from Picton to Christchurch.

 

 

Wayne Bailey (director): With more than 40 years’ experience as a chartered accountant, Wayne is the Executive Director of financial consultancy Taurus Group. He is a specialist in corporate restructuring, financial and succession planning as well as developing, growing and advising businesses. Wayne is an astute businessman, a clear thinker and a smart communicator.

   

 

Tom Forrest (cultivation director, agronomist): An Australian 2018 Churchill Fellow, author of ‘A Global Analysis of Cannabis Cultivation’, and a leading consultant in the global cannabis space, Tom is leading Puro’s agronomic team to produce quality high-yielding cannabis and hemp at scale. Tom, who is co-founder of Indicated Technology, has also been instrumental in connecting Puro with pharmaceutical manufacturers and international buyers.

 

Puro is surrounded by a talented team with proven track records across a range of sectors – from start-ups, investment and investor relations to governance, finance, horticulture and farming. Add to this the expertise of our internationally respected botany, agronomy and research partners, and you’ll see Puro is perfectly positioned for success.

Puro has partnered with the leading experts and brightest lights in the medical cannabis industry.

By aligning ourselves with the best in the world, we aim to generate the highest yields whilst reducing our costs of production. Ultimately, this will help us to increase profits and provide optimum returns for our shareholders.

Puro's achievements and what lies ahead

Our financial modelling will to take advantage of lucrative short-term pricing, which will put Puro into a cashflow positive position once our commercial facilities are built and operational (commencing mid-2020).  This cashflow could be used to pay a dividend to all shareholders including, of course, our PledgeMe investors, although our anticipation is to use all surplus cash to expand and bolster our commercial facilities in order to scale quickly and enter global markets. We believe that reinvesting any dividends will leverage our growth and strengthen the company.

Any dividend payments made will be distributed equitably to shareholders, including, of course, our PledgeMe and Wholesale investors. Likewise, any increase in company value as we move into commercial cultivation and expand globally will be reflected in the value of your shareholding.

The directors have not outlined any exit strategy and nor can we make any promises around our intentions or possible directions in this space.  Saying that, if Puro can achieve its plans of producing the “Sauvignon Blanc of Cannabis” becoming a NZ’s best and potentially biggest cultivator, with a global brand recognised for its quality, trust and consistency, our company could possibly become appealing to a larger buyer.  This may potentially include another company wanting to enter the market or to leverage our branding and success into their existing operations and distribution channels.

The directors are unlikely to list Puro on the NZ or Australian stock exchanges (NZX or ASX).

 

Risks and Mitigation

 

 

Note from PledgeMe 

We have completed a Veda check on the company and their Director, as well as a Google check. There were no adverse findings.  

The Directors's have all passed Police vetting and responsible person's tests as part of the cannabis research license approval.

 

Updates 7

We did it!

06/12/2019 at 10:59 AM

THANKS!

 

In just four weeks we’ve gone from being an unknown start-up to raising $4million on PledgeMe - the highest ever equity crowdfunding campaign in New Zealand and Australia. 

 

And today we are planting hemp at Kekerengu!

 

And we have you to thank for it – thank you for believing in us.

 

We’ve raised $2million in our equity campaign and $2million in our wholesale campaign, and will use the money to build medical cannabis growing facilities and buy state-of-the-art processing equipment. We'll begin building our medical cannabis research and growing facilities at Waihopai next year.

 

Once again, thank you so much for your support. It’s been incredibly humbling.

 

We have the land, we have the team, we have the licences and the buyers. And now, thanks to you, we have the capital we need to get growing.

 

Let’s do this!

 

The Puro team

 

Tim, Sank, Wayne and Tom

🎉👏🏼$2million target reached 👏🏼🎉

29/11/2019 at 1:49 PM

Thank YOU for believing in us!!!!!!!!!!

We're stoked to say we've reached our $2million equity crowdfunding target on PledgeMe.

A very special thanks to our 723 amazing pledgers – we’ve been humbled by the amazing support and your vote of confidence in our plans to become New Zealand’s premium grower of medical cannabis and hemp.

Thanks to you, we broke the PledgeMe record and we're well on our way to becoming NZ's leading medicinal cannabis grower.

We’ve got another milestone coming up next week – we’ll be planting hemp at Kekerengu! We couldn’t have done it without you.

And we're not done yet! Our Wholesale campaign continues - if you know of anyone who could be keen on investing in our Wholesale offer please send them our way 😉. 

Once again, thank you so much for believing in Puro, and in the potential of medical cannabis to make a real difference to the lives of New Zealanders.

The Puro team

Tim, Sank, Wayne and Tom

You need to pledge to see this update.

Puro roadshow starts this week! 🤝

18/11/2019 at 5:25 PM

Kia ora,

The Puro team will be ‘on tour’ this week and it would be great to meet you (and your friends!!) to talk about the rapidly growing medical cannabis market.

 

Tim, Sank and Wayne will talk about Puro, the medical cannabis market and legislative framework, and our current PledgeMe campaign. And of course we'll answer any questions you may have.

Puro Investor Roadshow - Wellington

Date:  Wednesday 20th November, 4-7pm

Venue: Intercontinental Hotel, 2 Grey St, Wellington.

 

 

Puro Investor Roadshow - Auckland

Date: Thursday 21st November, 4-7pm

Venue: Wynyard Pavilion, 17 Jellicoe St, Wynyard Quarter, Auckland.

 

Puro Investor Roadshow - Christchurch

A Christchurch investor workshop is being planned for the week starting 25 November. We will send an email out once we have the details nailed down.

For more information, or if you'd like to like register - click here (drop-ins also welcome!)

Thanks for all your support, 

Team Puro

One week in... over one million raised 🎉

14/11/2019 at 2:26 PM

We’re just over a week in and we’re excited to say that…  we’re over half way!

We’re delighted that so many people believe in what we’re doing and are backing us to get there. The medical cannabis industry is about to take off, and it’s great having you on board.


So far we’ve raised $1,111,200, with pledges coming from 269 great New Zealanders. The average amount pledged is $4,130.

We’d be forever grateful if you let your friends know about us – we need to raise the full $2 million so we can build the research and growing facilities we need to get growing.

 

Thanks again for your support and aroha,

 

The Puro team - Tim, Sank, Wayne and Tom.

For more visit https://www.pledgeme.co.nz/investments/378 or check us out on Facebook www.facebook.com/puronz or on the web at www.puro.co.nz

We're getting closer!!

11/11/2019 at 2:51 PM

Thanks New Zealand!

 

Six days since kicking off our crowdfunding campaign and we’ve gone over the $800,000 mark.

 

A very BIG thanks to all of those who have pledged - it means a lot that you’re backing us.  

 

Last week we passed our $500,000 minimum milestone, which means Puro is going to grow! But we’re not there yet. To become New Zealand’s premium grower we need more people who are passionate about the potential of the medical cannabis to join us and help us grow.

 

Please help share the love - if you know people who believe in the power of medical cannabis to improve people’s lives then we’d really appreciate it if you let them know about Puro. We’d love it if you told your friends about us, and shared what we’re up to on Facebook (https://www.facebook.com/PuroNZ/).

 

Puro has the capacity to be New Zealand’s largest grower of medical cannabis, but we need more support so we can fund the greenhouses, research facilities, site security and extraction equipment we need to get growing.

Thanks again for all the pledges, support and aroha. It’s a vote of confidence that really does mean a lot.

The Puro team - Tim, Sank, Wayne and Tom.

For more visit: https://www.pledgeme.co.nz/investments/378

 

YrFunding

You need to pledge to see this update.

    Details

    Offer Details

    Current Valuation 23,417,862
    Raise Minimum 500,000
    Raise Maximum 2,000,000
    Share Price 1.00
    Maximum Shares Offered 2,000,000
    Explanation of valuation:

    An independent valuation of Puro New Zealand Ltd by Taurus Group has valued the company shares at $23,417,862. This has been determined by using a forecasted equity value analysis using an EBITDA (Earnings Before Interest, Tax, Depreciation & Amortisation) multiple of 2 for the 2021 year and accumulated losses from the initial 2020 year.

    Another common method to value a company, particularly for crowdfunding in New Zealand, is to use a revenue multiplier (4-5 times revenue is often adopted). International benchmark data for the cannabis industry has determined multiples of 0.9 to 10.5, with an average of 4.8.
    Applying a conservative multiplier of 1-2 times to forecast 2021 revenue would result in a valuation of Puro shares of between $20.6million – $41.2million. If the average multiple of 4.8 was applied, the valuation of Puro would lift to $98.9million, demonstrating the potential upside to investors.

    The Directors have valued the total shares pre-raise at $23,417,862 in accordance with our independent valuation. Post-raise, if both our crowdfunding and wholesale offers are fully subscribed the valuation for Puro will be $29,347,845. We believe this provides excellent potential returns for our shareholders with forecasted return on investment on the above valuation being 34% (after tax) for the first full year trading 2021.

    Financial Summary

    Prev Year Current Year Est. FY 2021 Est. FY 2022
    Revenue NZ $ NZ $172,080 NZ $20,596,560 NZ $37,585,200
    Operating Expenses NZ $0 NZ $1,713,672 NZ $6,857,624 NZ $11,149,009
    EBITDA NZ $0 -NZ $1,596,592 NZ $13,305,523 NZ $25,363,818
    Net Profit NZ $0 -NZ $1,703,354 NZ $12,267,735 NZ $24,047,187

    Company Details

    Company Name: Puro New Zealand Ltd

    Company Number: 7148653

    Company details are currently being synced with the Companies Office, please wait.

    Company Documents

    Documents no longer available to download, as this campaign has closed

    Director Details

    Name Role Profile URL Invested?
    Timothy James ALDRIDGE Managing Director https://www.linkedin.com/in/tim-aldridge-080586179/
    Errol Wayne BAILEY Director https://www.linkedin.com/in/wayne-bailey-15994710/
    Sandford Samuel MACFARLANE Director https://www.linkedin.com/in/sank-macfarlane-14747674/

    Questions 39

    Ask a Question (You must login to ask a question)


    Are we able to see a breakdown and the assumptions behind the revenue forecasts? How does Puro plan to achieve $20m in revenue in the first/second year of operation. Thanks!

    Posted on 06-11-2019 by Robert Banks

    Hi Robert. We have uploaded our cashflow and projected statement of financial performance into the "details" section above. Let us know if this assists.

    Answered on 06-11-2019 by Puro New Zealand


    Can you please tell me more on how returns will be paid out. Will these be paid out in dividends at the end of the financial year? Am I able to reinvest and maximise the compounding effect?

    Posted on 06-11-2019 by shamatay

    Hi, sorry I attempted to answer this yesterday but it appears my response wasn't upload. Sorry for the delay.

    Initially we will reinvest all surplus cash into expanding our cultivation facilities and the company value (your share price). The directors will review our dividend policy each year and we will look to distribute a return to our shareholders once the company is further established. Until then, our focus is on providing the best return to our shareholders via expanding the company and increasing share price. Regards, Tim

    Answered on 07-11-2019 by Puro New Zealand


    How will investors be able to sell their shares if needed? Would you go into the recreational market if it were to be legalised in NZ?

    Posted on 06-11-2019 by Tom

    Hi Tom.

    Yes you will be freely able to sell your shares and if you know a buyer then you can do this privately. The directors will setup an exchange via Syndex 1-3 times a years enabling our shareholders and the public to buy and sell Puro shares. Any pricing will be determined by the market, the directors will facilitate the exchange but we wont set pricing. We can of course advise on the current state of the company and our projected financial position.

    We haven't even considered the recreational market. Puro's focus in on Medical Cannabis and making a difference to those in our community. We have pharmaceutical buyers for our medical cannabis, the market is huge and we wish to produce a premium product at a premium price. Recreational cannabis isn't on our radar.

    Thanks, Tim

    Answered on 07-11-2019 by Puro New Zealand


    Does the amount you pledge become the amount of shares you buy if the target is reached. $1 pledge = 1 share?

    Posted on 07-11-2019 by Hamish Cooper

    Hi Hamish, yes that is correct. Shares are $1ea. Thanks, Tim

    Answered on 07-11-2019 by Puro New Zealand


    Thank you for your response to my earlier question.

    Can you please explain who can purchase into the 'wholesale' offer? I understand there is a minimum of $50,000 to purchase but is that the only difference beside also getting voting rights?

    Posted on 07-11-2019 by shamatay

    Great question!

    To participate in the Wholesale Offer the investor must be an approved "wholesale investor” as per the Financial Markets Conduct Act 2013. If you unsure of your eligibility, please refer to 'Definition of wholesale investor' on Puro's wholesale campaign page (https://www.pledgeme.co.nz/investments/381-puro-new-zealand-limited) or contact me directly tim@puro.co.nz and I will be able to assist.

    The minimum investment for the wholesale offer is $50,000, and yes, voting rights will be attached to these shares. However, the exact same voting rights will also apply to our crowdfunding investors if they invest $50,000 (ie they will also receive voting rights). We are encouraging wholesale investors to invest in the wholesale offer to free up opportunity for more crowdfunding investors to become a shareholder (as the maximum we can raise through crowdfunding is $2m).

    Note the share price for crowdfunding and wholesale is exactly the same, we have done this to ensure our smaller investors are not disadvantaged. Crowdfunding investors between $500 - $49,999 will receive non-voting shares. Crowdfunding investors at $50,000 or above will receive the same voting rights as wholesale investors, we will treat them the same. We did this to ensure anyone wanting to invest $50,000 is not disadvantaged simply because they cannot meet the wholesale investor criteria as per the above Act.

    Thanks for the questions.

    Tim

    Answered on 07-11-2019 by Puro New Zealand


    Page 25 of the IM says if 1% of those that could benefit in NZ purchased medical cannabis then the market is worth $379million. This would indicate if 100% of those that could benefit purchased it the market would be worth $37.9 billion yet the GDP of NZ is only around $200 billion. How is this possible?

    Posted on 07-11-2019 by Peter Rowney

    Hi Peter - very happy to flick your question to the economist who wrote the report for a detailed answer.

    In the interim you can read the report from the NZ Agribusiness Group on the potential of the local cannabis market here: https://puro001.cdn.prismic.io/puro001/09da4e58-93db-4bfb-b312-2da965205e05_Puro+NZ+Market+Report+2019+FINAL.pdf

    thanks

    Tim

    Answered on 07-11-2019 by Puro New Zealand


    Hi - I see there is a '*' beside the flowering investor class of investor perks - but the * doesn't seem to go anywhere? (i.e. the only '*' on the page seems to appear beside this perk? can you confirm what the condition to this reward is (assuming there is one?)

    Posted on 07-11-2019 by Brent

    Apologies Brent - will get that sorted. In our IM the * links to a note says "approved entry to our site is subject to meeting security protocols and conditions as per our operating licences."
    thanks, Tim

    Answered on 08-11-2019 by Puro New Zealand


    On valuation - Are you able to provide the independent valuation? As the valuation feels high for a company in an uncertain regulatory environment that is pre-revenue.

    I'm keen to understand what the thinking is behind the comparison of retained earnings to market cap for comparable cannabis companies in Aus & NZ (pg 43). I haven't ever heard of that being used as a justification for value. How do these companies EV / Revenue mutliples compare to what you are pricing this offer at?

    On the comparable Canadian multiples do you think these are relevant? It is a far more established market which has proven the revenue model and the companies are significantly larger. I also note the actual paper you linked provides LTM multiples which if you generously applied the median EV / Revenue to your forecast FY20 numbers you would get a valuation of c.$8.4m. Applying forecast multiples to such aggressive forecasts feels like you are significantly overstating current value

    Posted on 08-11-2019 by Andrew

    The independent valuation was completed by the Taurus Group, and our financial modelling has been peer reviewed.

    Medical cannabis has a low regulatory risk - the law has been passed and the Medical Cannabis Scheme is to be enacted next month and operational early next year - we believe it will be in March 2020. You can find out more about the regulatory environment here: https://www.health.govt.nz/our-work/regulation-health-and-disability-system/medicines-control/medicinal-cannabis

    Puro has been valued on future potential. These numbers have been reduced to ensure they conservative and to price this fairly for our investors.
    Given the fact medical cannabis is still in the early stages it is important that Puro’s financial model is compared with that of both local and international companies.

    Comparing Canadian companies is of significance given Canada has the largest trading cannabis company’s and we are dealing with a relatively small global sample size. The Canadian multiples provide a suitable reference and demonstrate the huge upside if Puro achieves its revenues and forecasts. We have applied valuation multiples to the first full-year trading. Interestingly, if we applied the minimum Canadian EBITDA multiple of 3.1 this would still value the company higher than the $23m we have adopted.

    The directors remain confident the company has been valued attractively to investors.

    Answered on 08-11-2019 by Puro New Zealand


    You mention independent evaluation by Taurus Group, however, the Director of Puro is the " Executive Director of financial consultancy Taurus Group". Could you clarify how this is independent? Thanks!

    Posted on 08-11-2019 by Isaac Spedding

    Hi Isaac. Our valuation is professionally independent as neither Wayne Bailey, a director of Puro New Zealand Ltd, or any of the staff of Taurus Group Ltd, have a financial interest in the company. Wayne, who is a charted accountant of 50 years, is an independent director and chair. His role is to manage the board and to provide Puro New Zealand sound financial advice taking advantage of his considerable expertise. Regards, Tim

    Answered on 08-11-2019 by Puro New Zealand


    You state that "If just 1% of those who could benefit from medical cannabis in New Zealand used it, the market could be worth $379million each year."

    Your supporting evidence for this claim is the referenced Agribusiness Group report.

    The report reaches this figure via the following steps:
    - Taking the entire NZ population of 4,794,000 million people (as at May 2019) and applying a market penetration rate of 1.1% to reach an estimated annual patient figure of 52,734 people.
    - It then assumes an average monthly spend of $600NZD per patient ($7,200NZD per year).
    - Multiplying the assumed 52,734 patients by an annual patient spend of $7,200NZD per year reaches your estimated NZ market figure of $379million.

    It is worth noting that the report indicates these are high end estimates and that the market would have to mature, reaching this size in 2025.

    I have a couple of questions in response to this:
    - It seems to me that your above statement is implying the entire NZ population could benefit from medicinal cannabis, can you please justify this claim?
    - Are you assuming that medicinal cannabis prescriptions will be government funded? If not, how do you justify assuming the average patient will spend $7,200 a year or $138 a week ($5,200 for the low estimate) in the context of NZ?
    - Your projected statement of financial performance indicates expected revenue of $13,920,000 in FY21 from cannabis sales at your Waihopai site. Can you please provide detail on the assumptions driving this?

    Apologies for any misunderstandings,
    Oliver

    Posted on 08-11-2019 by Oliver

    Hi Oliver.

    Sorry about this, we could have worded it better and we didn’t mean to suggest the entire population of NZ could benefit from medical cannabis.

    To confirm; if 1% of the New Zealand population obtained a prescription, the market could be worth $379 million each year. Dr Jay Whitehead outlines the average patient spending in his report which can be viewed on our website (follow the link about half way down the page); https://www.puro.co.nz/news/the-global-medical-cannabis-market-is-big-and-getting

    The revenue figures are based on a commercial facility being ready at our Waihopai site for cannabis cultivation. We are modelling on 500 grams of dried cannabis flower per m2 per cycle based on pricing provided to us from our LOI partners (buyers).

    Thanks, Tim

    Answered on 08-11-2019 by Puro New Zealand


    Hi there, I have a few questions:
    1. Are the supply agreements you have entered into binding?
    2. Is there a price agreed for your products within these agreements?
    3. I see in your cash flow projection you have income from hemp sales in March 2020 of 860,400k less 688,320k production conversion loss allowance, can you please explain what the production conversion loss allowance is?
    thanks

    Posted on 09-11-2019 by Brian Simpson

    Hi Brian.

    Our seven supply agreements are signed non-binding letters of intent with some of the leading pharmaceutical companies in Australasia (and their parent companies). LOI's are common in the industry until Puro, as a grower, have been licensed and have product ready for commercial cultivation. We have received draft supply contracts from some of these partners so we could review and understand the terms and conditions required for supply, which are acceptable to us. These companies only partner with the best in the industry who are able to produce the highest quality cannabis and Puro is in a privilege position to have this vast distribution network, primarily due to Tom Forrest leading our cultivation team. These companies see us as a leading supplier of medical cannabis.

    Puro has been provided current and projected long run pricing by some of our priority LOI partners and we have used such pricing in our financial modelling. Exact terms and pricing will be negotiated at the time of production or sale, and we may be able to achieve higher returns. The production capacity of our entire distribution network is significant and across all seven uptake partners we will have sold our product several times over (meaning we are not expecting all agreements to end in final contracts). We will continue to negotiate with each uptake partner to determine optimal pricing and returns for our shareholders, it’s a great position to be in.

    The production conversion loss each year is a reflection of the value of the crop and our ability to generate any revenue outside of market pricing and volume constraints. We have used this to reflect growing risk, conditions of our license or to simply tamper down our financial forecasting and profit expectations.

    Regards, Tim

    Answered on 09-11-2019 by Puro New Zealand


    Can you please post a full copy of the valuation report, so investors can guage on what basis the valuation was done. Given the invovlement of one of your directors with the company doing the valuation it is hard to see this as being Independent.

    Posted on 10-11-2019 by Ralph Shale

    Hi Ralph. We've included the details of the valuation in our Information Memorandum.

    thanks

    Tim

    Answered on 11-11-2019 by Puro New Zealand


    You make a comment of conservative valuation, I note your projected EBITDA is around 65-70%, while all of the more established and larger Canandian companies used as a valuation comparable have EBITDA's of around 20-25%. Why would a start up be so much more profitable than larger more established businesses?

    Posted on 10-11-2019 by Ralph Shale

    The average forecast EBITDA used in Canada to value ratio is nearly 16x, with a minimum of 3 and a maximum of 30. Puro’s value is based on just 2x forecast EBITDA, demonstrating the potential upside to investors if we are able to achieve everything we set out to achieve. The directors are confident in the numbers and with any startup, we can only forecast returns.

    We interpret our valuation as conservative compared to other more directly comparable companies in NZ who have entered the market before us and raised capital at valuations higher than Puro. All companies have the same medical cannabis licence as Puro and currently have either have nil or minimal revenues – they too have been valued by the market on future potential.

    Our financial forecasts have been contributed to by several leading experts in the industry and the workings reviewed by two chartered accountants. They are based on lower-mid end industry norms as far as production and output goes and the directors are confident in the numbers.

    Placing a value on any start-up can be contentious especially in a new industry with limited pubic data. Puro directors are aware what other cannabis companies in NZ have raised their capital at, either before or after a valuable cannabis license has been obtained, and we are confident in our business model, distribution model, our team and our land.

    We also have our cannabis licence and whilst not a physical asset, it is extremely hard to obtain and therefore a valuable intangible asset.

    Answered on 11-11-2019 by Puro New Zealand


    Crop Logi, listed on the ASX is valued at A$15m but has completed a one year harvest programme for hemp and is in the process of selling that product. Estimated revenues are A$30 - 50m. so trading at around 0.3 - 0.5 times this years revenues. Is that not a more direct comparable for Puro. Than long established $100m+ companies?

    Posted on 10-11-2019 by Ralph Shale

    A direct comparison between Puro and CropLogic is problematic as CropLogic is not a direct competitor.

    CropLogic primarily provide consultancy services and software into the hemp industry whereas Puro are solely medical cannabis and hemp cultivators. Puro will be growing medical cannabis for higher value medical end use purposes.

    Answered on 11-11-2019 by Puro New Zealand


    Will there be any opportunity for people to invest amounts below $500?

    Posted on 10-11-2019 by Jason George

    Hi Jason. The minimum investment amount is $500 sorry. Regards, Tim

    Answered on 11-11-2019 by Puro New Zealand


    Hi Puro Team:

    How many years that the cultivate a prohibited plant licence last for and what is the requirements of renewing this licence?

    What are the return of the shareholder with Puro?

    Posted on 10-11-2019 by Piau Lim

    Hi Piau. The cannabis research license is issued for 12months and this is standard across the industry here in NZ. Once a company has obtained a research license, and as long as they are following the correct security protocols and all other conditions as per the license, the Ministry of Health is likely to renew. It is only if we are in breach of our license that a renewal maybe in jeopardy. Note, the Ministry is reviewing license duration as per the Medical Cannabis Scheme (commercial framework) due to be announced next month. Thanks, Tim

    Answered on 11-11-2019 by Puro New Zealand


    Hi Tim
    Congrats - great concept and I am sure will do well. I am interested in being part of this. Just a quick question - you will have 66.6% of the equity - about $15m - based on valuations. What assets are you bringing with you - for this equity (land etc.)? The prospectus does on show fixed asset values close to value of the projected equity or have I missed something.

    Posted on 11-11-2019 by Arvind Masilamani

    Thank you!

    As the founding shareholder I have funded the company from inception to attain the current valuation based on the intangibles created to date.

    Regards, Tim

    Answered on 11-11-2019 by Puro New Zealand


    Hi, Will the company own any land? or will the land be leased?

    Posted on 12-11-2019 by Carlo Magni

    Hi Will - Both properties have a secure 20-year lease in place. We also have an option to purchase the Waihopai property.

    Cheers, Tim

    Answered on 12-11-2019 by Puro New Zealand


    Are overseas investors able to invest small amounts (15,000 nzd) through pledgeme? if so is there any particular process to go through?

    Posted on 12-11-2019 by Carlo Magni

    Hi Carlo - thanks for your interest.

    Please seek your own legal advice but here are guidelines to help you...

    International investors need to confirm this offer is compliant with all applicable laws in their country of residence, and confirm they are a 'wholesale investor' within the meaning of the Financial Markets Conduct Act 2013. This is further explained through our wholesale offer: https://www.pledgeme.co.nz/investments/381-puro-new-zealand-limited.

    New Zealand Citizens living overseas need to confirm this offer is compliant with all applicable laws in their country of residence.

    The minimum investment is $500 and maximum investment is $200,000, via Puro's crowdfunding campaign (please refer to pages 6 and 45 of the IM).

    Once the campaign closes, PledgeMe will request information to confirm investor eligibility, including proof of address.

    Cheers

    Tim

    Answered on 13-11-2019 by Puro New Zealand


    Hi, I see your forecasts are based on the assumption that you will get $4M in funding this round. There is also another $4M capital injection forecast in Mar '20. Where is this coming from? Also $6M in bank funding is forecast. Is it likely the bank will lend you this money, given you haven't generated any revenues at that stage? What happens if you don't get all of this funding and what will be the effect on your forecasts? You stated you would continue to lease the land and glasshouses if you don't get the bank loan, but the glasshouses don't exist yet? Will the company remain solvent if it can't get the equity capital / bank loans required? Even with the assumed $10M in extra debt/equity funding you are forecast to run out of cash in Feb '21, except that suddenly you are expecting a massive $14M in revenue in Feb '21 from virtually nothing, to get the company out of the pickle....(I note this is nearly 2 times the expected revenue in comparable periods in FY '22). Why is this such a massive month from nothing and relative to FY '22 periods? I also note that at end of Jan '21 your annualised EBITDA is sitting at -$4M (valuing the company at??). In 2 months it miraculously becomes +$13.3M (suddenly valuing the company at $23M). I'm really interested in how you expect to achieve this outcome with your supply arrangements. I also understand the Canadian multiples are based on FY '20, not the FY '21 you've used, so their multiples for FY '21 will be considerably lower so I don't believe you are comparing like for like?

    Posted on 12-11-2019 by James Cameron

    Hi James

    The assumptions are currently based around the capital raise reaching our target of $4m ($2million in this offer and $2million in our wholesale offer). We are planning a second wholesale capital raise in March 2020.

    The directors have received strong indication from their financiers that they will receive the bank funding required once the equity raising has been completed. However, if bank funding is not forthcoming in the short term, Puro will concentrate on the Hemp side of the business until we have the funding in place.

    All of the cash inflows are related to the timing of harvesting our product - there is a small harvest in the March 2020 year, three in March 2021 year and 4 in the 2022 year.

    It is likely that the value of both hemp and cannabis will reduce as more participants attain the required licenses and enter the market. You will note that the directors have erred on the side of caution and expect several significant reductions in the value in the price per gram of both dried hemp flower and dried cannabis flower over the projected period. In the consolidated cash-flows, this is best exemplified in the year to March 2022 where the June ‘21 and October ’21 cannabis harvests show a significantly higher return in comparison to the February ‘22 harvest from the same growing site (measured $/m² of planted area). As an early entrant into this market, Puro will have the advantage of scale and established markets over the newer entrants as they enter.

    Thanks, Tim

    Answered on 12-11-2019 by Puro New Zealand


    I do not believe you have answered the questions I asked.

    (1) I asked for a copy of the independent valuation to be provided so people can review on what basis that valuation was done. What is in the IM looks like a summary. As you say early stage valuation is difficult, and the reasonableness of the valuation will depend on a number of assumptions. An the disclaimers and other conditions attached to the valuation.

    (2) Re the EBITDA - I did not ask about the multiple. I quote "We have taken a conservative approach to our financial forecasting, using lower profitability and revenue formulas than is generally accepted in the NZ industry. ". Yet the EBITDA to Revenue Margin in your forecasts is 65 - 70%. The comparables you provide look like they range from 20 - 50%. These are all much larger more established companies. Can you explain how your business will be 1.4 - 3 times more profitable in your first year?

    (3) Crop Logic started the business as an Ag Tech Service provider, they have seriously changed direction in my view. Of this years projected revenues of A$30 - 50m only around $2-3m will come from ag services. Crop Logic is a hemp grower and they trade at significantly lower multiples. You may want to to re-consider this as a reasonable comparable. I would be interested to understand why the valuation firm left this off the list of comparables.

    Regards

    Ralph

    Posted on 12-11-2019 by Ralph Shale

    Hi Ralph

    The valuation referred to in the IM has been used by the Directors of Puro as a guide to ensure we are offering a good opportunity to investors. We recognise that there are some people who have the skill to do their own analysis and we encourage that. The link below gives a good summary of the methods used in determining the value of cannabis and hemp businesses: https://www.fticonsulting.com/~/media/Files/us-files/insights/white-papers/cannabis-valuation-approaches-evolving-market.pdf

    The comparable quoted reflects our lower head-office overheads and the R&D research focussed nature of the more established players in the Australasian market. We are growers of medical cannabis and hemp, not downstream processors. Puro are investing in research and development, focussed on improving our genetics and production capabilities so we can sell what we grow to others who will turn them into medicines. While in start-up phase for the next 12-18 months we won’t be carrying the burdensome overhead costs of more established companies.

    As you mentioned, CropLogic are primarily an Agri-tech firm, who have recently changed strategic direction with all that entails. They weren’t considered for comparison.

    Answered on 14-11-2019 by Puro New Zealand


    Hi I’m really keen to invest, I’m a NZ resident but my PR doesn’t come through until next year, my visa does allow me to stay in NZ indefinitely and I’ve lived here for 5 years already, can I still invest? Thanks

    Posted on 12-11-2019 by Nicola

    hi nicola - thanks for the supportive comments

    Yes you can invest provided you can provide PledgeMe with copies of:
    - NZ Drivers Licence and/or Overseas passport
    - Proof of NZ Address
    - Residence visa

    Hope that is not a problem for you Nicola!

    Tim

    Answered on 13-11-2019 by Puro New Zealand


    Hi Tim, thanks for promptly answering my previous question. I am also interested in your very high projected profitability (68-70% net profit margin (after tax) and 97% gross margins are exceptionally high!) for any company let alone such an early stage start-up? Can you please elaborate on this? If any forecast funding is not met and you have to focus on hemp side as you say (projected FY21 revenue = 5.5M) then will your associated operating costs also be significantly reduced and would you still expect to run a profit in FY21 or would you end up in a large loss situation and having to recapitalise?

    Posted on 13-11-2019 by James Cameron

    Hi James,

    The net profit reflects the state of the market and prices at the moment. You will note from the cashflows that we expect the price paid for our product will go down over time as more growers enter the market.

    Regarding the Gross Margin question, the bulk of the costs related to growing both Hemp and Cannabis is wage related. It was decided that wages would be placed as an expense rather than a COGS (it can go either way from an accounting perspective). If we are forced to fall back to a hemp-only strategy in the short term, associated operating costs will decrease to reflect that.

    Regards, Tim

    Answered on 16-11-2019 by Puro New Zealand


    Hi there, can you please provide a link to the independent valuation?

    Posted on 14-11-2019 by Matt

    Hi Matt. We have included details of the valuation within our Information Memorandum. Regards Tim

    Answered on 16-11-2019 by Puro New Zealand


    Hi again, can you please confirm whether Tom is actually permanently employed by the company or is he just temporarily contracting to Puro through his Indicated Technology consultancy business as a 3rd party advisor (as specified in the IM)? Tom appears critical to the company achieving its forecasts - how long do you see him working for you? If permanent, will he be giving up his other consultancy business to focus on Puro? What if something happens to him - could the company carry on as forecast without his expertise on board?

    Posted on 15-11-2019 by James Cameron

    Hi James. We agree that Tom is an important piece of the puzzle! He is a substantial shareholder (through Indicated Technology) and therefore has a strong incentive to ensure the business goes well. Part of Tom’s role in the business will be training our cultivation team to ensure the whole team has the knowledge necessary to grow high yielding and high value crops. Cheers, Tim

    Answered on 16-11-2019 by Puro New Zealand


    I was reading about Medicann's demise in NZ and am interested in your comments on this, especially as it relates to Puro, as it seems Canadian companies are also struggling with below expected revenues (low demand / oversupply??) "Brian Gaynor, head of investments at Milford Asset Management said the liquidation was probably down to oversupply in the market. "The issue with marijuana is that its very easy to grow and there's a big oversupply of it world wide and everyone thought there was going to be a big boom. So you know it's easy to produce and there are a whole pile of companies setting themselves up, but I'm not sure the demand is anywhere near the supply. "They think there will be a huge increase in use but it does look like an awful lot of anticipation and it looks like companies are struggling to sell. It's a classic example of something that happens when a new industry starts up.""

    Posted on 16-11-2019 by James Cameron

    Hi James,

    MediCann clearly went into liquidation as a result of tension between key shareholders. The quote you reference by Mr Gaynor ( https://www.stuff.co.nz/business/109928685/cannabis-company-liquidates-less-than-a-year-after-starting-up ) seems very out of context with the rest of article, and all other articles related to the demise of MediCann.

    Medical Cannabis and Hemp must be sourced from licensed growers and the licenses are not easy to obtain. As previously mentioned, we have factored in a significant reduction in the market price of both medical Cannabis and Hemp into our cashflows and financial modelling, in the anticipation of new entrants entering into the market.

    Cheers, Tim

    Answered on 17-11-2019 by Puro New Zealand


    Hi Tim,

    Thanks for your response. I note the valuation information you have provided in the IM, but that doesn't answer the question that was asked. Is there a reason you can't, or won't, provide the independent valuation?

    In response to a similar question Puro states, "The valuation referred to in the IM has been used by the Directors of Puro as a guide to ensure we are offering a good opportunity to investors. We recognise that there are some people who have the skill to do their own analysis and we encourage that."

    Given the independent valuation has been used as a guide to ensure the directors of Puro are "offering a good opportunity to investors" could you provide that information to investors, and potential investors, to enable them to make that assessment for themselves?

    Thanks

    Posted on 17-11-2019 by Matt

    Hi Matt,

    We feel comfortable that we have given enough valuation info in the IM for investors to make an informed decision.

    As stated in an earlier question, for people wanting to perform their own valuation there is some great info available online and in this article: https://www.fticonsulting.com/~/media/Files/us-files/insights/white-papers/cannabis-valuation-approaches-evolving-market.pdf . These methodologies can be used to make comparisons with Australasian companies as well if that’s what’s desired.

    The directors feel it is important that investors determine for themselves what constitutes fair value and how this investment compares with other opportunities.

    Cheers, Tim

    Answered on 18-11-2019 by Puro New Zealand


    Hi there,

    One other question - how much are the executive director's, directors (i.e. Wayne) and Tom being paid in salary and/or director's fees pre and post the current PledgeMe funding round?

    I note that the monthly wage bill (in the cash flow statement) increases from $9k in Nov/Dec 2019 to ~$90k in February 2020 (more than 10x) which then drops to $27k in April 2020 before increasing to ~$430k in August 2020.

    Cheers,
    Matt

    Posted on 17-11-2019 by Matt

    Hi Matt

    The Directors fees are set at $20k per director pa.

    Executives’ salaries are reflective of the start-up nature of the company and well below what those individuals would be getting if they remained in their corporate jobs. The company’s remuneration packages will be independently reviewed once the company is fully operational in 12-18 months. As explained in a previous question, the lumpy nature of the wage bill reflects both the high labour intensity and seasonal nature of the business.

    Cheers, Tim

    Answered on 27-11-2019 by Puro New Zealand


    The offer description says "Puro has been conservatively valued at $25million" while the IM says "The pre-raise valuation is $23,417,862" so which valuation amount is correct?

    Posted on 20-11-2019 by Cristian

    In preparation for going to PledgeMe the directors have used lower end forecasting. This resulted in a pre-raise valuation of $23,417,862.

    Answered on 27-11-2019 by Puro New Zealand


    Hi again,

    Will you be communicating full financial results (and business updates) with shareholders and at what frequency?

    Posted on 21-11-2019 by James Cameron

    Hi James

    Puro will be posting six-monthly updates to investors disclosing key financial data and KPI’s. Financial accounts will also be available as per s207F of the Companies Act.

    Cheers, Tim

    Answered on 27-11-2019 by Puro New Zealand


    Hello! Will you cover the annual cost with Syndex? Thanks!

    Posted on 25-11-2019 by Jason Alipao

    Hi Jason

    Yes Puro will cover all costs relating to our shareholders being registered onto Syndex. This includes registry management, investor relations services, investor portal and a secondary market for Puro's shares.

    The only cost to shareholders will be brokerage fees of around 0.1% with a minimum of $150 if they were to sell their shares. All other costs will be covered by Puro.

    Thanks, Tim

    Answered on 27-11-2019 by Puro New Zealand


    Hello, is it correct that only NZ residents and major investors are allowed to invest? I am a minor investor from Europe - I would really like to support you. Is it possible?

    Posted on 26-11-2019 by calm anchor

    As mentioned above, you’ll need to seek your own legal advice but here are guidelines to help you;

    International investors need to confirm this offer is compliant with all applicable laws in their country of residence, and confirm they are a 'wholesale investor' within the meaning of the Financial Markets Conduct Act 2013. This is further explained through our wholesale offer: https://www.pledgeme.co.nz/investments/381-puro-new-zealand-limited.
    New Zealand Citizens living overseas need to confirm this offer is compliant with all applicable laws in their country of residence.
    The minimum investment is $500 and maximum investment is $200,000, via Puro's crowdfunding campaign (please refer to pages 6 and 45 of the IM).
    Once the campaign closes, PledgeMe will request information to confirm investor eligibility, including proof of address.
    I really hope this helps and that you can Join the great team of Puro investors.

    If you wish to discuss this further please reach out to me directly tim@puro.co.nz and I will put you in touch with the amazing team at PledgeMe who can guide you through any processes.

    Cheers, Tim

    Answered on 27-11-2019 by Puro New Zealand


    I just want to quickly ask two questions.

    1. If I invest money now (don't want to miss out before shares are all gone) Can I then invest more on pay day? Will the minimum amount still apply? or will it see that I have invested earlier in the week and just apply it to that?
    Example - I put in 1500 now can I add 300 later in the week?

    2. - If I buy into the flowering investment category how many people can come on the tour of the Cannabis research facility and commercial cultivation site?
    Example - If I have someone to invest with me and we put our Investment together can we both go on the tour?

    Posted on 26-11-2019 by Yolanda

    Hi,

    1. We can combine two pledges into one. Further, if you pledge now the funds are not needed to be transferred until after the campaign closes (6th Dec). Please pledge carefully and ensure you do not stretch yourself financially.

    2. An extra visitor would be fine. We look forward to showing you around.

    Cheers, Tim

    Answered on 27-11-2019 by Puro New Zealand


    Hi Tim. If I'm not mistaken I note that the amount pledged has dropped from $1,880,000 approx earlier today down to $1,783,769 as I write as at 2.11pm today. How is this possible?

    Posted on 27-11-2019 by Geoff Hawke

    Hi Geoff

    PledgeMe have transferred a couple of the large investors ($50k+) from the crowdfunding campaign across to the wholesale platform as their paperwork for wholesale has just been approved. This allows more small investors to get involved as shareholders of Puro, something we are really passionate about.

    We referred to this on our Facebook page yesterday: https://www.facebook.com/PuroNZ/
    You can view both campaigns at this link on PledgeMe; https://www.pledgeme.co.nz/profiles/149642

    Cheers, Tim

    Answered on 27-11-2019 by Puro New Zealand


    Good answer to my query and thanks for it. Cheers.

    Posted on 27-11-2019 by Geoff Hawke

    Thanks Geoff - we appreciate the support.

    Answered on 28-11-2019 by Puro New Zealand


    Hey
    My family and I are buying the shares together.
    Are we able to have all our names listed as shareholders or would we need to sell them to each other in order to do so?
    Or would it be easier for us to pledge individually as I read you can combine pledges as we would love to be in the flowering Investment sharer

    Posted on 28-11-2019 by Sharleen shergold

    hi - sorry for not getting back to you yesterday on this. Our Equity campaign is now fully subscribed - if you were not able to invest you can go on the waiting list at https://www.puro.co.nz/invest/

    Answered on 29-11-2019 by Puro New Zealand


    Why are you not lsiting on the nzx?

    Posted on 28-11-2019 by Jonathan

    Hi I was reading through the questions and read the following: "The only cost to shareholders will be brokerage fees of around 0.1% with a minimum of $150 if they were to sell their shares. All other costs will be covered by Puro." does this mean that if I invest 1000 I will need to pay $150 to sell? instantly losing 15% of my initial investment? or am i missing something. Cheers

    Posted on 28-11-2019 by Joseph Weaver

    Hi Tim , congrats on the launch is an exciting industry thats way over due to get traction, obvious the share you are offering in this pledge me campaign are for "PURO NEW ZEALAND LIMITED (7148653)" what is the purpose of the company "PURO SHAREHOLDING LIMITED (7805378)" ? cheers Sean

    Posted on 28-11-2019 by sean

    Pledgers 724

    Caitlin McMurray
    2019-11-28 13:34:15 +1300

    "So excited to see this happening!"

    George
    2019-11-28 13:25:22 +1300

    "Great management team organised with excellent experience and track record of performance. Worth financially supporting a NZ based business to take on some of the goliaths already established in USA and Canada. Prospects for a good return while assisting to provide quality medical products to alleviate the pain in the world is a noble and worthy cause. We look forward to being on the journey and watching the company grow in the next 3-5 years."

    Denise Coughlan
    2019-11-28 13:19:24 +1300
    Courtney Wilson
    2019-11-28 12:59:35 +1300
    Martijn
    2019-11-28 12:32:45 +1300
    Anthony Lefebvre-Allen
    2019-11-28 12:25:03 +1300
    Simon
    2019-11-28 12:20:09 +1300
    Wayne Smith
    2019-11-28 12:07:22 +1300
    James Cameron
    2019-11-28 11:41:01 +1300
    Melissa
    2019-11-28 11:30:13 +1300
    Duncan
    2019-11-28 11:27:35 +1300
    Mike Ekdahl
    2019-11-28 11:25:09 +1300
    Ben
    2019-11-28 11:05:18 +1300
    Lucy
    2019-11-28 10:52:30 +1300
    Russell Rutan
    2019-11-28 09:50:11 +1300
    Alex Gardiner
    2019-11-28 09:19:05 +1300
    Jane
    2019-11-28 09:18:03 +1300

    "Growing a successful NZ"

    Gary Lord
    2019-11-28 09:14:35 +1300
    Larna
    2019-11-28 09:13:48 +1300
    Leanne Clarkson
    2019-11-28 08:48:59 +1300
    Tim Jefferson
    2019-11-28 08:30:30 +1300
    Clare Turner
    2019-11-28 07:59:32 +1300
    Dan Martin
    2019-11-28 07:50:34 +1300
    Diana Ward-Pickering & Geoff Pickering
    2019-11-28 07:38:04 +1300
    Mike Bain
    2019-11-28 07:33:12 +1300

    "Everybody must get stoned (Bob Dylan)"

    Asher campbell
    2019-11-28 07:14:22 +1300
    Ben jefferson
    2019-11-28 07:07:01 +1300
    David Kipnis
    2019-11-28 05:25:28 +1300
    Kris Gledhill
    2019-11-28 05:08:25 +1300
    Trix
    2019-11-28 01:48:33 +1300

    Puro New Zealand Limited

    Puro's equity crowdfunding and wholesale campaigns are now fully subscribed. To be on the waiting list and be kept in the loop on possible future capital raising, please register your interest by clicking here.

    Puro is setting out to become New Zealand’s best cultivator of medical cannabis and hemp.

    We have secured two premium growing sites in sunny Marlborough and have formed a world-class team of experts to drive us forward. 

    We are the first medical cannabis company in New Zealand to have an approved cannabis licence prior to conducting a PledgeMe crowdfunding campaign, and already have purchase agreements with seven pharmaceutical manufacturers and wholesalers.

    With land secured, a licence in place and letters of intent signed with large buyers, there’s only one thing we need to get growing: You.

    We invite you to join us on our journey now. An investment with us positions you for considerable growth in this exciting industry. With Puro, you’ll be at the forefront of pioneering new medicine.

     

     

    Growth Sauv

    Offer at a glance

    Puro is undertaking an equity crowdfunding campaign to raise $2million from New Zealand residents. Concurrently, a wholesale campaign is also being undertaken to raise a further $2million from wholesale investors. Shares are priced at $1 each for both offers.

    • The crowdfunding offer equates to 7.29% of the investor shares available. The minimum investment amount is $500.
    • The wholesale offer is separate to the crowdfunding offer and is also for a 7.29% stake in Puro New Zealand Limited. The minimum investment amount is $50,000. 

    Our land

    Puro has secured two premium growing sites in Marlborough. These sites provide us with the capacity to be the largest cultivator in New Zealand.

    We handpicked our sites due to their high sunshine hours, intense UV ratings, and its clean environment. Couple that together with rich soils and a unique micro-climate give us the perfect locations.

    Marlborough already produces some of the world’s premium food and wine, our product will be equally world-class.

     

    Destined to become Puro's research headquarters, this 9-hectare property is currently part of an existing cherry orchard nestled in a quiet area of the Waihopai Valley in Marlborough. We plan to build high-security greenhouses for growing medical cannabis and establish research facilities in existing buildings.

    This will enable us to produce premium indoor cannabis — a product that we anticipate will be among the best in the world.

    We expect to grow up to 200 plants in our secure facility at Waihopai, and undertake research on all strains and cultivars including high-THC genetics

    • Optional expansion: 33.5 ha
    • Site crop: Premium medicinal cannabis
    • Facilities: 400m2 research facility with three vegetative growing room and commerical greenhouses covering 10,000-30,000m2 
    • Potential output: 20,000—60,000 kg dried flower PA
    • Lease duration: 21 years plus right to purchase

    Our research has shown this coastal site is high in sunshine hours and receives a gentle salt spray from the ocean, which our botanists say will ward off pests naturally, and improve plant health. This natural self-defence has another benefit: it will also increase the cannabinoid profile of our plants. This should translate into higher yields, which makes for greater returns for our investors. 

    • Optional expansion: 80 ha
    • Site crop: Low THC hemp
    • Potential output: 40,000—160,000 kg dried hemp flower PA
    • Lease duration: 20 years

    Licenced to grow

    Under current New Zealand law, growing, extracting, and manufacturing cannabis for therapeutic use can only be undertaken for scientific research. This will change soon with the introduction of the Medicinal Cannabis Scheme, which we expect will be operational in March 2020.

    Puro is the first medical cannabis company in New Zealand with an approved licence to undertake scientific cannabis research prior to commencing a crowdfunding campaign.

    We currently have our licence pending with the Ministry of Health to cultivate low-THC hemp at Kekerengu, and we anticipate this to be granted in advance of our planned planting in December 2019.

    Beehive

    Potential

    A rapidly growing market

    The global medical cannabis market is big and getting bigger. With governments around the world increasing access for those with chronic health conditions, it’s one of the fastest-growing industries in the world. 

    While it is clear that the global medical cannabis market is increasing, estimates of the exact size of the international medical cannabis market vary greatly.

    For example:

    Closer to home, research from The AgriBusiness Group into the New Zealand market concluded that if 1% of those who could benefit from medical cannabis in New Zealand obtained a prescription, the market could be worth $379 million each year.

    Valuation, growth plans and revenue

    Given the rapidly growing nature of the medical cannabis market, it is not surprising there is potential for significant investor returns.

    Puro has been conservatively valued at $25million, using an EBITDA multiplier of just 2 and an implied revenue multiplier of only 1.1.  If the average Canadian multipliers (revenue multiplier of 4.8 and EBITDA multiplier of 15.9) were used to value Puro it would result in valuations between $98.9 million - $199.4 million, demonstrating the potential significant upside for investors.

    Based on conservative profitability assumptions, we anticipate PledgeMe investors can expect an after-tax return on investment of 34% at the end of our first full year of production (at March 2021), and 66% by March 2022. 


    Use of Capital 

    Funds raised through our PledgeMe campaign will be primarily used to:

    • Build our research facility
    • Invest in security
    • Purchase extraction equipment
    • Greenhouse development
    • Expand further into international market 
    • Adminstration and capital raising costs

     

     

    Capitalisation Table 

    Shareholding details for pre- and post-offer shall be as follows: 

     

    About our Team

    Puro was setup in 2018 by passionate South Islanders and since then we have formed a formidable team with considerable business, finance and cultivation expertise.

     

    Tim Aldridge (managing director): Tim was born and raised in Blenheim and worked in business consultancy before setting up Party Warehouse in 2001, which he grew to become the South Island’s largest marquee and event company. HireKING was Tim’s next success, and in 2017 it was named as one of the top 50 fastest growing companies in New Zealand. Tim was also a founding director of Team Event, which runs some of the largest annual events in the South Island including the Great Kiwi Beer Festival and Electric Avenue.

            

     

    Sank Macfarlane (Director): A 5th generation Marlbourian, Sank’s family have farmed the Winterhome Farm, at Kekerengu on the Kaikoura Coast, for 130 years. Prior to his current role, Sank enjoyed a 16-year career in international banking, which provided him with a deep understanding of global financial markets. Sank is also a board member of the Marlborough Kaikoura Trail Trust which is funding, designing and building a cycleway from Picton to Christchurch.

     

     

    Wayne Bailey (director): With more than 40 years’ experience as a chartered accountant, Wayne is the Executive Director of financial consultancy Taurus Group. He is a specialist in corporate restructuring, financial and succession planning as well as developing, growing and advising businesses. Wayne is an astute businessman, a clear thinker and a smart communicator.

       

     

    Tom Forrest (cultivation director, agronomist): An Australian 2018 Churchill Fellow, author of ‘A Global Analysis of Cannabis Cultivation’, and a leading consultant in the global cannabis space, Tom is leading Puro’s agronomic team to produce quality high-yielding cannabis and hemp at scale. Tom, who is co-founder of Indicated Technology, has also been instrumental in connecting Puro with pharmaceutical manufacturers and international buyers.

     

    Puro is surrounded by a talented team with proven track records across a range of sectors – from start-ups, investment and investor relations to governance, finance, horticulture and farming. Add to this the expertise of our internationally respected botany, agronomy and research partners, and you’ll see Puro is perfectly positioned for success.

    Puro has partnered with the leading experts and brightest lights in the medical cannabis industry.

    By aligning ourselves with the best in the world, we aim to generate the highest yields whilst reducing our costs of production. Ultimately, this will help us to increase profits and provide optimum returns for our shareholders.

    Puro's achievements and what lies ahead