Next Farm 

  Early Stage Capital  

  

  Pacific Channel Limited  

WARNING

The law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decision.

If you are a wholesale investor under the definition of that term in clause 3 of Part 1 Schedule 1 of the Financial Markets Conduct Act 2013, the usual rules do not apply to offers of financial products made to you. As a result, you may not receive a complete and balanced set of information.

You will also have fewer other legal protections for these investments. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.

Overview

VALUE PROPOSITION


Farmers face significant costs due to the lack of precision control of their on-farm water and nutrient resources. Data insights are worthless without a method of feasibly actioning outcomes on-farm. The Next Farm solution combines all necessary aspects of precision irrigation scheduling, from data input and analysis, to finally actioning the control. This allows farmers to monitor water and nutrient inputs to calculate their cost savings as well as improve yields.


Next Farm offers technology, that farmers can use to unlock potential value from data driven resource management, by applying the exact amount of water, in the exact place, exactly when it’s needed. On-farm water consumption decreases by 8–21% with the installation of precision water management tools and run off subsequently reduces by 19-55%. Given water is such a significant resource this equates to cost savings of between $50-$150 per hectare, per year. This financial benefit only increases as savings are funnelled into growing yields in other ways. 

 

Precision water management tools can help also reduce nitrogen inputs by up to 50%. With farmers currently spending $200-300 on urea per hectare; recent studies have shown that farms with precision irrigation tools in place reduce their nitrogen leaching by 27%.

 

Next Farm’s technology suite, therefore adds financial value to the farmer through their cost savings as well as having a positive impact on the local environment, helping to protect delicate flora and fauna.

 

BUSINESS MODEL AND GROWTH STRATEGY


Next Farm is operating with a business to business model by selling through distributors, allowing them to capitalise on existing sales channels. By partnering with irrigation companies, Next Farm is able to reach a mass audience of farmers without having

to invest in a large mobile sales team to reach sparsely populated rural regions. These companies are dealing with farmers on a daily basis, already being well known for all aspects of on-farm irrigation supplies and knowledge. Due to their large network they are constantly updated on farmer preferences and trends, which through relationships, allows Next Farm to easily access this information without the large-scale interviews otherwise needed. 


The initial markets for sales distribution are New Zealand, Australia, and South America. There is a considerable need and demand in NZ but, additionally, the many unique micro climates make this the ideal location for development and testing.


There are already two key international markets where potential distributors have approached Next Farm. The first is South America including Uruguay, Chile and Colombia, a region which is rapidly advancing its agricultural sector with immense irrigation development opportunities. Australia is the second key market due to its proximity and issues with water resources. Developing strong relationships in these two markets is a significant aspect of our growth strategy.


THE ASK

 

Next Farm is seeking $500,000 (plus permitted oversubscription) through an equity offer at a pre-money valuation of $2.2m.


Minimum subscription is $300,000, rolling close. Oversubscriptions of up to $250,000 may be accepted at the discretion of the company. At the close of a fully subscribed round of $750,000, new investors would own 25.4% of the company with a post money valuation of $2.95m. It is anticipated that a further capital raise will be required in the future to continue to execute in global markets.


Issue Type:
Early Stage Capital
Sector:
Agri-Tech
isEOI: true

Investment Details

Investment Type: Wholesale

Wholesale Investment Type:

Transaction Size:NZD 500,000.00

Committed Capital: 

Pre-money valuation:NZD 2,200,000.00

Minimum Capital Raise:NZD 300,000.00

Share Price:NZD 50,000.00

Unit Price:NZD 0.00

Minimum Investment Size:NZD 50,000.00

Advisor

Pacific Channel Limited

Website: http://pacificchannel.com/

Email:

Phone:

Document Name Description Date Uploaded
Next Farm offer doc Offer Document June 2019 25 July 2019 Preview/Download
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