Kakariki Fund Limited 

  Hort  

  

  Kakariki Fund Limited  

The law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to this offer if you are a person who comes within Schedule 1, clause 3(2)(a)-(c) or 3(3)(a)-(b)(ii) (inclusive) of the Financial Markets Conduct Act 2013. This includes where the amount invested upfront by the investor (plus any other investments the Investor has already made in the financial products) is $750,000 or more.

If you fall within Schedule 1, Clause 3 of the FMCA, as a result of this exclusion, you may not receive a complete and balanced set of information. You will also have fewer other legal protections for this investment. Investments of this kind are not suitable for retail investors. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.

 

Overview

Kakariki Fund Limited is a New Zealand company that will enable "wholesale investors" - as set out in Schedule 1, clauses 3(2))a)-(b)(ii) of the Financial Markets Conduct Act 2013 (FMCA) - to invest in a range of large-scale, hard to access permanent crops that have delivered spectacular increases in grower returns. Kakariki aspires to be environmentally responsible and will adopt policies and practices that aim to achieve carbon neutrality, make good use of water and protect water quality.

 

The investment is in Shares in Kakariki Fund Limited at an issue price of $1.00/Share. The minimum application amount is 100,000 Shares ($100,000) and thereafter the size of an investment can be increased in multiples of 1,000 Shares. An initial payment of $0.25 /Share applied for is due at the time of application for Shares.

 

The Offer is for 100 million partly paid Shares plus up to a further $100 million of oversubscriptions. The minimum amount that must be raised for the Offer to proceed is $40 million (on a fully paid basis). This minimum amount will be sufficient to fund the purchase and development of the four Initial Investments conditionally approved by the Investment Committee.

 

The first assets in which Kakariki will invest are:

  • An 11 cha SungoldTM kiwifruit orchard
  • a 50% share in a large-scale (130 ha) aroma hop garden
  • 35 cha of RockitTM apples
  • A 2000 ha Manuka plantation

 

Subject to the success of this Offer, Kakariki will invest in the production and supply of a range of permanent crops using a mix of equity and bank debt, targeting an average loan to value ratio (LVR) of 25% across its investments. On this basis, Kakariki with $40-100 million of equity will have the ability to progressively build an investment portfolio with $53.3 - $133 million of assets.

 

Kakariki initially intends to invest in the production of SunGold™ kiwifruit, aroma hops, plantation manuka and Rockit™ apples. Other crops that will be immediately considered by Kakariki include apples, avocados, cherries, berries, and grapes. In time, Kakariki will also consider investing in other crops that meet Kakariki’s investment criteria, for example carbon forestry and aquaculture. It is also within Kakariki’s investment scope to invest in the supply chains of the crops that it produces.

 

The four Initial Investments approved by the Investment Committee subject to due diligence and finance are expected to cost a total of $47.4 million and require $36.8 million of equity, $9.29 million of debt from a tier one bank and $1.38 million from land use grants for plantation manuka. If $100 million is raised in the Offer, Kakariki expects to make up to eight further investments using the balance of the funds raised. Each individual investment will be made using separate 100% owned subsidiary Investment Companies formed for the purpose. Kakariki may co-invest in some investment properties where approved by the Kakariki Board.

 

After the first three years from the date of this Offer, the Kakariki Board intends to list Kakariki on the main board of the NZX and undertake a subsequent offer to raise additional capital for growth. It is also possible that Kakariki may make a further offer to wholesale investors prior to this if it needs further capital within three years. Conversely, if funds raised in this Offer are not fully called within three years of the date of issue of the Shares, the obligation to pay any unpaid capital will lapse.


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Issuer:
Kakariki Fund Limited
Issue Name:
Kakariki Fund Limited
Market:
Agriculture
Market Type:
Hort

isEOI: false

Financials

Investment Type:Wholesale

Total Units/Shares:40000000

Min Investment Units/Shares:100000

Min Investment Value:NZD 100,000.00

Par Value:NZD 1.00


Establishment Date: 27 June 2019

Financial Year End: 31 May 2019

Market Snapshot

Last Traded Value: 

Last Traded Price:NZD .00

Last Traded Quantity:

Last Traded Date:

Contact

Website: https://www.kakarikifund.co.nz

Email: info@kakarikifund.co.nz

Phone:06 323 2954

Document Name Description Last Update Date
Kakariki Information Memorandum 27 May 2019 Kakariki Information Memorandum 27 May 2019 30 May 2019 Preview/Download
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