GPSOS Limited
By Scott Lee
PledgeMe.Investment
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NZ $176,683 pledged
114 people pledged
Closed
NZ $125,000 minimum target
This campaign was successful and closed on 20/07/2020 at 8:00 PM.
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GPSOS Limited
Letter from our Founder
Dear reader,
All of this started, because my wife Bronwyn got cancer, and my best friend lost his wife.
As a security guard, I’ve had my share of scary situations, but when Bronwyn got cancer, that was the scariest time of my life.
When Bronwyn was finishing chemotherapy, it was freeing. Bronwyn’s best friend (the wife of my best friend) was planning a trip to reward us for when the treatment would have finished. One night, her best friend was using her laptop to plan the trip that we were going to do. Unfortunately, she went to sleep and never woke up.
Shortly after that, my best friend’s father had a stroke. He had a medical pendant but because of the stroke he was unable to activate it and unfortunately, he didn’t survive.
With 40 years’ experience in the security industry, I thought there has to be better technology, there has got to be something better that we can use to help people like my friend and his family.
Our pendants are a totally mobile GPS tracking, two-way talking unit. When someone is in trouble and they need help, they simply push the button and a call comes into our monitoring center, which is monitored 24 hours a day. The beauty of our technology is that we have two-way 
talk. We’re talking to them about what’s going on, plus we have the GPS technology. We know where they are, which means we know exactly what’s going on with them and can be there for them, get people to them quickly, comfort them, and to help them stress less.
We run an Alzheimer’s or dementia programme that knows when one of our customers leave their property, and with their permission we can live track them and find them. Without this technology, it can take hours to find them - if ever.
This is not a medical device. This is a safety device to allow people to live more freely. Our whole programme has been developed to keep people in their homes and communities safer and for longer with greater independence. That’s been the dream and the more we build this technology, the more we’re going to better help people, and that for me is the most important thing.
It’s not just our customers that we support, we also support our nationwide team and local community of Whanganui.
We’ve worked with Workbridge, an organisation that supports people with disabilities into paid employment, to bring 27 of our 32 team members into the business, who have faced some of the issues our customers have faced. It means we know the stress our customers face intimately, and are here to help.
We’ve spent almost four years building our technology and customer service; now we need the final funds to secure contracts and get to cash flow break even.
Please invest in a company that cares about people, regional employment, and the community. We can do this together.
Cheers,
Mark
Our Background
Mark is passionate about people living more independently and being free to enjoy their lives, their way.
We know we are all 25 in our minds, it’s just our bodies that have changed a little. The thought of not having choices in our lives because our physical bodies don’t work the way we (or society) may want, should not be a barrier to most things in life.
That’s why Mark has created a business to help older and disabled people which is staffed by older and at-risk people and owned by older and at-risk people. Using his mum as inspiration, he has designed and built pendants and watches that give users greater freedom in their lives.
GPSOS’s value proposition goes beyond the capabilities of its products. It is inherent in the response teams, the pro-active outreach service and in the fact that many who work at GPSOS are experiencing what our customers experience. All of this is delivered from the perspective of almost 50 years’ experience in emergency and security response, call centre operations and a strong commitment to all New Zealanders’ wellbeing.
The Company’s technology and service package is at the front end of the market. No other current provider can match GPSOS’s offering in New Zealand:
- The functions, connectivity and other features of both the pendant and the watch
- The service offering
- The ease of use of the products and services
- The pricing and back-up offering (12-month full replacement warranty).
GPSOS is committed to leading the development of this technology and creating a family values based service offering, which means we lead with love and are there to serve our customers.
Market Opportunity
GPSOS is focused on three key markets:
1) The young person aged 25 or under, with a disability.
They are thinking of moving out of home and need some additional confidence to ensure they feel safe and confident doing this.
2) The older person aged over 70, who desires a little more safety when they are out and about.
Knowing that someone is there 24/7 is important when you either live alone or no longer feel 100% comfortable living your life the way you want.
3) Sons and daughters aged 40 to 65, who have a Mum or Dad who have early stage dementia or Alzheimer’s.
They want to help, but can’t always be there. As long as Mum and Dad are wearing the GPSOS product, we can find them in seconds.
The market for personal safety devices and responsive monitoring has changed globally. People want to talk to real people and GPSOS has real people, many with lived experience, that monitor our products and the people that use them.
GPSOS has based its strategy on three key factors that are affecting the industry in NZ and around the western world.
Structural shift in population: Over the next 15 years, a net 40,000 people per year will turn 65 in New Zealand. By 2034, numbers of people aged over 65 will have doubled to over 1.2 million and 180,000 people will be over the age of 85.
Cost-effective technology: Technology has improved significantly from what is currently offered in the market. GPSOS has created products that are low cost, multi-functional and ahead of the market. GPSOS has excellent research and development partners who continue to adapt and grow these products with GPSOS to ensure it stays ahead of the competition.
For example, GPSOS received feedback on its version seven watch that it was too big and too bulky. In early June, GPSOS will release its version eight watch that offers its customers greater comfort and ease of use. The response to the limited number of these watches that are available currently has been fantastic.
The market for this technology is expanding at a significant rate: Not only is the aged care market expanding, the technology has multiple additional uses, including for New Zealanders with access needs (disabilities), lone worker safety, bullied school children, among other uses.
There are many people in New Zealand that may need GPSOS to support them, with one in four New Zealanders (1.2 million people) having permanent access needs or disabilities.
There are also 17,000 registered security guard lone workers, service station workers on over 5,400 sites, over 10,000 lone DHB workers, over 723,000 people over the age of 65 and there were 213,000 claims for ACC patients recovering at home in 2017.
Why we’re crowdfunding
There are so many people that love GPSOS and have been asking if they can invest, but couldn’t as the amount required to invest was too high. We want to make it possible for anyone to own a piece of the company that serves them and their community.
This way, they can invest, have a pendant and help others to enjoy the peace of mind that GPSOS provides.
Strategic Growth
We have created a strategy to address the needs of our customers with the aim to be:
1. New Zealand’s leading provider of independence and safety products focussed on competing with affordability.
2. Creating a competitive service that puts our customers at the centre, with a diverse workforce that understands the needs of the customers we are serving.
For the next 12 months, we will focus on two overlapping key markets:
1. Welfare and health of the older person – those seeking greater independence and for the families of those with Dementia or Alzheimer’s.
2. Welfare and health of those with access needs - from very young to older, these needs are widespread across New Zealand and we employ people who understand these needs and seek to show we care and want to help.
In our forecast we are aiming for 12,000 pendants and watches (net) to be sold within three years. Through our business strategy we have more ambitious plans in place and will aim for significantly higher sales within three years than the stated forecast.
We will aim to create new markets for our products and services.
Use of Capital
Software
Our software works well currently and has all the functionality we require. Completing a software upgrade will provide additional functionality that will future proof the business into 2021 and beyond.
Marketing
This is critical to GPSOS becoming well known across the country, our marketing strategy will be overseen by well credentialed parties who have run campaigns of this nature in the past with great success both in NZ and the UK.
Working Capital
Keeping the business operating on a weekly basis while we build our customers is crucial to the success of GPSOS. This is paying for our team members, rent and incidentals associated with keeping the business operating. This could include paying down some of the existing debt to non shareholders to a maximum of $50,000.
Stock
This provides us with stock to fulfill orders for the pendants and watches as they arise. The supply of stock from China is still able to be fulfilled through DHL (during COVID-19) and the quality remains excellent.
Privacy Legal Review
We have existing privacy policies in place. However, we wish to collect qualitative data from our interactions with our customers. In order to support better allocation of resources, we want to share this information in an aggregated way with government entities and relevant organisations to ensure better outcomes for our customers and New Zealand in general.
To do this, we need to ensure that people’s privacy is protected, so we need to employ the best lawyers.
Share Offer
We are issuing up to 120,000 shares at $4.17 per share. This will represent 24% of the company. We are offering a minimum of 29,977 shares (for the offer to go live) and up to a maximum of 120,000 shares. The minimum goal is $125,000 with a minimum pledge of $95.91 for 23 shares.
Capitalisation Table Pre and Post Raise
Types of Shares on Offer
* Unless you invest $50,000 or more then these shares are considered wholesale voting shares
The Crowdfunding Investor shares (folk usually call them “investor shares” or “B-class shares”) are non-voting but will have the following rights:
Non-voting shares do not give the holder the right to vote at meetings of shareholders. In very limited circumstances (to ensure the shareholder’s core rights are protected) each non-voting share gives the holder the right to one vote. This only occurs where there is a proposal or resolution that will affect the rights attached to the Investor Shares, to put the company into liquidation and/or for the disposal of the whole, or a material part, of the property, business and undertaking of GPSOS Limited.
Non-voting shares will give the holders the right to an equal share in dividends and other distributions made by GPSOS Limited (subject to the rights of any other class of share) and the right to an equal share in the distribution of surplus assets of GPSOS Limited. However, investor shareholders have no rights to vote on removal or appointment of directors.
The A Shares are voting shares and have full voting rights attached. You can read more about the rights attached to ordinary and non-voting shares in our Constitution.
Our Financials
You can view our full forecasted financials and current balance sheet in our Information Memorandum. Please note, that we only officially launched 31 July 2019. We have provided forecasts for the calendar year rather than financial year.
Who we are
Mark Simmonds (Founder and CEO)
Key responsibilities: Product development; Technology & monitoring design; Quality & Accreditation Mark has worked in and run his own businesses in the NZ security industry for over 40 years. During this time Mark brought home detention technology to NZ; he’s been injured in the line of duty numerous times. In his time in the industry, Mark has established 10 Monitoring Stations and run award-winning call centres. He is NZQA accredited as a skills workplace assessor and still provides training for the security industry. Mark is a committed regional player and was a Ministerial Appointment to the Regional Advisory Committee for UCOL; which he chaired for 5 years. Mark chairs Mainstreet Whanganui and was President of the Chamber of Commerce for 5 years. He has been a Justice of the Peace for the last 20 years and a member of the New Zealand Security Association (NZSA) and American Security Association (ASAS) for 20 years. Mark is passionate and committed to GPSOS and helping as many people as possible to live more independent lives, like his mum wanted. Mark and his wife Bronwyn live in the 106 year old Heritage House in Whanganui, which is a beautiful heritage building and function centre.
Scott Lee (COO)
Key Roles: Strategic planning; Business development; Finance; Sales & marketing Scott has been in the finance industry for over 25 years, working for investment banks, private equity firms and for eight years with the ANZ including as Regional Manager for Commercial and Agri in Manawatu/Whanganui. Scott is adept at business and financial planning and is committed to ensuring GPSOS is successful in this rapid growth period. Scott has helped to grow numerous businesses including Radius Health Care, Jade Software and Rodney Wayne. A well-connected and pro-active networker, Scott uses his relationship management skills to open doors and build trust and confidence in the product, people and support packages. When Scott is not working he is spending time with his 9 year old son, surfing or you can often find him in a cafe talking to someone.
Levi Irving (Monitoring Station Manager)
Key Roles: Operational Centre Management; HR & Training Management Levi’s engaging and diplomatic manner coupled with practical management experience ensures she is the perfect person to lead and inspire our team of front-line call centre operatives. Levi worked for Whanganui Security for five years, ultimately managing the emergency response centre. Levi has also worked at UCOL, and brings her experience of the training and education sector to this role. Levi has two beautiful children who she loves and adores. Levi whakapapas to a number of different Iwi and including locally in Whanganui to Ngati Apa, Nga Rauru ( Patea) and Nga Puhi up north
Our Advisory Board
Elaine Reilly (Governance Expert and Chief Question Asker) - Palmerston North
A flexible practitioner with excellent leadership skills and a creative flair for generating governance and management solutions, Elaine is an assured and credible communicator in a diverse range of working environments, from ministerial level to individual business owners/managers. Key skills include strategic thinking, governance, people engagement and alignment, project planning and performance delivery. In 2018, after 12 month's development, she launched CLAN, a development programme for women where cohorts of women meet regularly to pursue their professional and personal development. Elaine lives with her husband and has two amazing children now pursuing their own careers. Elaine loves getting out with friends and family to enjoy good food, wine and great chat.
James Igglesden (Sales expert and successful entrepreneur) - Melbourne
James has successfully grown sales in a number of businesses including Triodent, a dental supply company built in NZ that grew between 2002 and 2014 when it was eventually sold to US multinational Dentsply Sirona. While James was Marketing Director the company grew from 10 to 100 people and grew sales by 300% in a twelve month period. James is currently focused on launching an innovative dental product in Australia and helps run several family businesses in consumer-facing online retail. James believes in establishing value at every opportunity in the pipeline and educating sales people and the customer alike to maximise value. He has a passion for pricing and crafting good product stories which empower sales people and win customers. James lives in Melbourne with his wife and three sons and loves to cook for family and friends whether it be a simple pasta dish or an Indian curry prepared from scratch.
Grace Stratton (Disabled Entrepreneur)
At just 20, Grace is leading a revolution to destigmatise disabilities and the deficit thinking society has. Grace is the founder of All is for All, a communications, talent and media agency working to change the way businesses (including Estee Lauder, Suncorp, The Warehouse Group and others) approach disability and accessibility. Grace was the only New Zealander other than Jacinda Ardern to be named on InStyle’s Badass 50 ‘women changing the world’ and her work saw disabled models included in fashion week for the first time, she’s also received an award for Innovation from the NZ government. Grace is working for a major marketing firm in Auckland while finishing a double degree at AUT University.
Our wider team
We have a staff of 33 that do inbound and outbound calling. We have 14 at our Head Office in Whanganui in the inbound monitoring centre and 19 doing outbound sales calls based largely in the regions. We intend to grow our team over the coming years by up to 200 as needs require. Half of our sales team have not worked for a number of years or this is their first job and we are proud to be able to train them, to build their confidence and help them to achieve life goals.
Risks and Mitigation
Equity Market Risk
Prospective subscribers should recognise that the price of the Company’s Shares may fall, as well as rise. The priceat which the Company’s Shareholders are able to sell their Shares may be less than the price they have paid for them or the Shareholder may be unable to sell his/her/its Shares at all due to market volatility or because there is no market at all and no exit mechanism, or for other reasons. There are no current plans to list the Company’s shares, which would make the tradability much easier. Many factors may affect the price of the Shares which are outlined in our IM.
Liquidation
If the Company is placed in liquidation, the residual value of assets may not be enough for Shareholders to recover the full value of their original investment. In liquidation, claims by secured creditors and other creditors will rank ahead of claims of Shareholders. Shareholders will rank equally with one another. If the Company becomes insolvent, Shareholders have no additional liability to the Company or to any person whatsoever.
Shareholders should be aware that there is no guarantee that they will receive returns of their investment.
Operational Risks
Operational risk may arise from inadequate or failed internal processes, people and systems employed by the Company and could expose the Company to potential financial or reputational damage.
Market Risks
Confidence could fail either in the economy in general or the finance sector in particular. This could occur as a result of the failure of a market participant, a recession, an event of terrorism or otherwise, in New Zealand or overseas.
Regulatory Risks
There could be substantial changes in laws and governmental policies affecting the Company’s business. The commercial impacts of law changes are often not apparent for some time after their introduction.
Environmental Risks
Natural and other disasters such as floods and earthquakes, and the failure of essential utilities, could impact directly or indirectly on the Company’s business.
Although the Company has in place risk strategies which recognise most of these risks where possible, the Company cannot give any guarantee or assurance that these strategies will remove the risks. Given that the Company is seeking to build a new business, it is impossible to offset all the risks.
Board Performance
There is a risk that the performance of the Board does not meet the required standards either individually or collectively. The Board is aware of its responsibilities and the requirements of New Zealand companies and securities law in relation to good governance and will continue to develop its code of governance.
Forward-Looking Statements
Certain statements in this IM constitute forward-looking information. The accuracy of such forward-looking information may be affected by known and unknown risks, uncertainties and other factors which may cause
the actual results, performance and achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information included in this IM. Such factors include, among other things, general economic and business conditions.
Given these uncertainties, prospective subscribers are cautioned not to place undue reliance on the forward- looking information contained in this IM. In addition, under no circumstances should the inclusion of such forward-looking information in this IM be regarded as a representation or warranty by the Company or any other person that anything predicted in any such forward- looking statements will be achieved.
To the extent permitted by law, the Company disclaims any responsibility to update any of the risk factors outlined above or publicly announce the result of any revisions to any of the forward-looking information contained in this IM.
Competition
The elderly safety care sector has several incumbent competitor businesses in New Zealand. The operating and financial performance of the Company will be influenced by the progress made in this area of technology, by the Company and by other competitors in the market, in the next years. There is always the risk of unknown competitors who may enter the sector or other technologies that might disrupt the market.
Licencing Arrangements
The Company has entered into design and technology licence agreements with key parties offshore. GPSOS undertakes research and development activities and seeks to protect any intellectual property that is of value to the Company’s business generated from those development and research.
The Company has and will continue to seek to contractually protect its position including the exclusive right to its territories. However, the Company has some exposure under these arrangements.
Supply Chain Risk
The Company contracts production out of China. There remains a supply-line risk of not being able to access products if China’s borders are closed or there are issues with transport/logistics in importing the stock to New Zealand. The Company has some mitigation strategies for this risk. It currently has access to approx. 1,000 products sitting in storage in China which can be deployed quickly.
Economic Risk
The operating and financial performance of the Company will be influenced by economic and business conditions affecting the New Zealand and world economies. A Shareholder may sell his, her or its interest in the Shares to another person (subject to any relevant restrictions), however the Shares are not presently intended to be listed on the any stock exchange and there is currently no established market for the Shares which means that the risk to Shareholders of unfavourable changes to economic and business conditions is heightened.
Delay in Returns
No dividends are expected to be paid to Shareholders for at least three (3) years.
Key Personnel
In such a small company key personnel are very important. GPSOS is materially reliant on its small Executive staff.
Additional funding will seek to mitigate some of this risk by engaging more people.
Note from PledgeMe
PledgeMe is licensed and regulated by the Financial Markets Authority, and the share offer made by GPSOS Limited will only be available for acceptance through the PledgeMe website. We have completed an Equifax check on the Company and its Director, as well as a Google check. There were no adverse findings.
Updates 6
Another big sales week - and a big pledges week! We’re making some changes to the campaign
19/07/2020 at 5:38 PM
Well that was another big week for GPSOS, which is exciting!
One of NZ’s progressive DHBs hosted GPSOS this week, alongside a large health care business that agreed to start a trial with 20 GPSOS pendants - 6 for staff and 14 for clients. Watch this space, this trial is an important one for GPSOS and we know it can help with the changing face of healthcare in NZ.
GPSOS’s Te Pouhono a Iwi continues to create magic with hui’s around the country helping to create awareness among Aotearoa’s Māori community. These hui’s include the Kaunihera kaumatua at Nga Tangata Tiaki, writing an article for Age Concern Whanganui and Te Oranganui who they are visiting next week and an impromptu presentation at Whanganui DHB to assist whanau.
https://www.facebook.com/photo?fbid=3310520775666392&set=a.484732841578547
The kaumatua we are engaging with and have signed up recently really believe in GPSOS, so highly that they have taken it upon themselves and given themselves their own title as ambassadors and advocates to promote GPSOS and its devices and bring awareness to those who may benefit from GPSOS.
You may have also noticed some updates to our website that is providing more information about why we are here and who we are here for. These updates include incorporating Te Pouhono a Iwi and Te Ao Maori to ensure when someone visits us online they can see what we are about.
This week we sold another 50+ pendants including the first trucking company (30 pendants) which is keeping us on track for the significant growth we have being experiencing. This keeps GPSOS on track for achieving its 2020 growth targets.
GPSOS has been introduced to another large DHB’s Geriatrician doctors who have a number of dementia patients they would like to see working with our products. We have meetings with them in early August.
We have been nominated for the Attitude Awards and talked to Attitude TV this week who seemed genuinely interested in what we were doing.
On a personal note, Mark’s wife had a need to set off her pendant this week. Mark was away in Wellington and Bronwyn fell down the stairs and broke her shoulder. She pressed the button on her GPSOS and within minutes the ambulance were there, who commented positively about Bronwyn still talking to the GPSOS customer care team through the pendant as they arrived.
We are grateful that Bronwyn is comfortable and recovering restfully now. Thank you to the GPSOS customer care team for your support.
In terms of the capital raising, you may have seen the recent pledges of $500 and $10,000 and there is a further substantial pledge to follow. We appreciate each pledge, thank you.
Due to some discussions that are occurring with some large potential investors who could invest over $200,000, we have decided to make some changes to the PledgeMe campaign. This means the following:
The minimum we are seeking is $125,000;
The valuation has been lowered from $2.4m to $2.0m and this applies to all pledges, existing and new. This means existing pledgers will receive more shares for your pledge.
We will hit the minimum by 8pm tomorrow night when this closes, so if you have been thinking about pledging and not done so, please get in and make your pledge. I would not want you to miss out on being able to invest in our company.
We have a Facebook Live tonight at 7.30pm and if you have any questions, please jump on the GPSOS Facebook page and we can answer these tonight.
Talk soon
Mark and Scott
100% growth & ten more days
10/07/2020 at 6:17 PM
We would like to give you a further update as to how GPSOS is tracking as a business and what we are doing next.
Firstly, we are approaching having 400 pendants in the market. This represents growth of 100% in the last 6 weeks and we are not slowing down!
Second, we were on Maori TV this morning, the article and video (there was a delay on the Skype FYI) can be found here:
This was exciting as it links closely to our strategy of supporting older people and disabled people across New Zealand.
Thirdly, we found out today that GPSOS will be featured as a product that can be used to help with Alzheimers and Dementia patients on the LandSARS - www.wandersearchnz.org.nz website. This will help drive awareness in a core market for GPSOS.
Finally, we appreciate the pledges to invest that have been made to date and are very grateful! As we have progressed with this crowdfunding round we have learned a lot about what this involves. We believe we are close to achieving the momentum required to complete the first stage of our capital raise.
We are currently talking to large organisations in NZ and one offshore party about investing into GPSOS and believe that with a smaller crowdfunding raise - around the $150,000 to $200,000 mark, this could support us getting to a large one off strategic investor becoming a shareholder as well.
Therefore we have decided to extend the crowdfunding capital raise until Monday 20 July as we see this momentum building and we want to ensure we can give an update next week as to what we think could be achieved with the larger investors. As we discuss this option further we may choose to lower the crowdfunding minimum to ensure we are prudent with the shares we release at this early stage.
We look forward to keeping you updated further as we progress through next week.
Have a fabulous weekend.
Scott and Mark
Two more days to go!
08/07/2020 at 1:37 PM
We are really excited this week and here’s why:
In the last two days we have sold 67 pendants. This is the equivalent of over $20,000 per annum in new revenue and means 67 people are safer than they were at the weekend. We are very excited at the rapid growth that is happening. We are 7 days into July and have already sold two-thirds of what we did in all of June!
Not only that, the majority of these sales are with organisations or groups that will need a lot more of our pendants and monitoring in the future!!
As an example, twenty of these were sold to our local Kaumatua, who think our products are amazing and this was facilitated by our amazing Maori sales team - Pou Hono a Iwi (connectors to the people). We had a hui Monday to discuss what we can do across New Zealand for the Kaumatua and matua and this is already showing fabulous results with Maori radio network interviews booked, hui to speak at and many other opportunities. This is a group of seven amazing Maori women who are excited about what they do and working hard.
We have also started to work with the Indian and Asian communities and are linking through our existing contacts to make this possible. These communities usually don’t put their older people into care, so the opportunity to have greater peace of mind is uplifting.
We featured on The Cafe TV show this morning, where Scott was interviewed by Mel Homer and we showed how the GPSOS pendant worked. You can see the clip of the interview here:
https://www.facebook.com/watch/?v=318428172517684
Mel asked about the Crowdfunding we are doing through PledgeMe as well and we were able to share this with the Cafe audience. What we couldn’t share was that we now have two large organisations looking to invest into GPSOS. While we can’t tell you who they are, they are important to the New Zealand health sector and a tie up with either one would be incredibly lucrative for both parties.
We look forward to giving you more information about this when you are a shareholder. There are two days to go until the crowdfunding is completed, so if you have not yet invested, please support us and go and pledge and share with your friends and family asking them to invest alongside you, because then you can all follow GPSOS’s progress together.
Thank you so much for your support,
Mark and Scott
We’re almost 20% funded!
02/07/2020 at 5:59 PM
We are so excited. Things are picking up on the campaign, with almost $40,000 pledged now. Thank you to everyone who has pledged so far.
We’re also getting some great coverage. If you’re online tonight we will be doing an interview with Manaaki on IGTV at 8:30pm. Here’s the link to follow if you want to watch: https://instagram.com/wearemanaaki
We are also going to be on The Cafe TV Show next Wednesday (8 July), about 9.30am on TV3. Scott just finished filming this with Mel Homer (the presenter) today and it went well.
On the sales front, we’re going really well, to the point that might even run out of pendants soon. This is both a good and a bad thing! We love that we are getting the demand growth, the bad thing is potentially missing out on sales.
We believe that an investment into GPSOS will ensure we keep up this growth and maintain the great interest in what we are doing. Particularly after the $25,000 pledge last night and a commitment to share this with their crowd.
If you haven’t shared our campaign yet, we would love it if you could. We truly believe that this campaign is amazing and what we can achieve for our customers, staff and shareholders is significant!
We can’t wait to grow this business further with you.
Cheers,
Mark and Scott
We’re growing - but need a bit more time
26/06/2020 at 3:58 PM
Over the last few weeks we’ve been really busy in the GPSOS office.
We’ve trained 24 new contractors to sell GPSOS pendants, who are showing their support for our mission proudly on social media - including the great engagement on our Facebook Live earlier this week. You can watch Scott being interviewed by Anna from PledgeMe about the company, and our current equity campaign, here: https://www.facebook.com/GPSOSNZ/videos/2376426482666516
We’ve been growing not only our team, but also our sales.
Since we launched in August 2019, we have sold 300 pendants. 100 of those were in the last month alone. That means our pendant sales have increased 50% in one month on the total sold in the previous 11 months. Based on the growth we have in front of us we expect to grow by 500% to 700% by October 2020, which would put us on track to deliver to our forecast but we still need the investment to be able to deliver that growth.
We’ve been progressing not only our direct sales, but also our connections to large organisations. Six new sizeable organisations have confirmed contracts with us in locations around Aotearoa ranging from Christchurch, Tauranga, Huntly and Auckland including a rest home, two lone worker contracts and a Maori health organisation. These were between 4 and 16 pendant contracts and are expected to grow and gives us an introductions into their wider networks.
Our Iwi focussed new business team will be established and operating next week. This means that GPSOS will engage with Kaumatua, Maori health organisations and other Maori or Iwi based enterprises to support their communities to live more confident lives as well. We believe this is a big point of difference between us and the existing medical alarm providers.
We’ve been so busy growing the business, that we feel like we need a bit more time to get this equity crowdfunding campaign across the line. That’s why we’re extending our deadline two weeks to close on Friday, 10 July at 8pm.
If you have any questions about our plans, or our company, please feel free to ask them on our campaign page or email Scott direct on [email protected]. He's also doing a Facebook Live tonight at 7pm if you'd like to tune in - just head on to our Facebook page: https://www.facebook.com/GPSOSNZ
Thanks again to everyone who has supported our company to get to this point. We can’t wait to see what we achieve together. If you haven’t pledged yet, here’s the link: https://pledgeme.co.nz/investments/406-gpsos-limited
Cheers,
Mark and Scott
We've made our own pledge
15/06/2020 at 8:44 AM
We are celebrating the first week of our equity crowdfunding campaign and to celebrate we’ve decided to make a pledge of our own - for investments over $1,000, we will gift a pendant to someone in need. We think that’s a win/win/win - you are pledging to get shares in our company, we are getting the investment we need to grow, and someone in the community that needs this support will be able to get a pendant for free.
Thank you so much, to all of you who have pledged so far as it really means a lot to us and to those that we help on a daily basis! We’d like to ask that if you can, please share our campaign page with your own crowds; together, we can do so much more good work in our communities around New Zealand and want to continue to grow our company by doing good and doing well.
Everyone here at GPSOS is focussed on our future, and expanding our social impact for our customers - whether they’re seeking more independence, or a greater sense of safety that allows them to live their lives to the fullest extent possible.
We’ve had a great week on the business front - with some larger organisations moving through the final steps of purchasing our products. This could mean that your communities become safer, the team we work with become busier and GPSOS gets that little bit bigger.
We look forward to including you in our hardworking and caring team - let’s do this!
Mark and Scott
Details
Offer Details
| Current Valuation | 2,000,000 |
| Raise Minimum | 125,000 |
| Raise Maximum | 500,400 |
| Share Price | 4.17 |
| Minimum Pledge | 95.91 |
| Maximum Shares Offered | 120,000 |
Explanation of valuation:
A discounted Cash Flow with a 20% WACC with a value of $1.9m and EBIT multiples of 3 x year 3 EBIT earnings ($880k) equates to $2.64m.
The board decided that $2 million valued GPSOS for further upside in this capital raising.
Financial Summary
| Prev Year | Current Year | Est. FY 2025 | Est. FY 2026 | |
|---|---|---|---|---|
| Revenue | NZ $ | NZ $1,058,570 | NZ $3,505,320 | NZ $6,534,120 |
| Operating Expenses | NZ $ | NZ $2,090,103 | NZ $3,318,054 | NZ $4,919,206 |
| EBITDA | NZ $ | -NZ $1,031,533 | NZ $187,266 | NZ $1,614,914 |
| Net Profit | NZ $ | -NZ $1,521,057 | -NZ $179,877 | NZ $880,628 |
Company Details
Company Name: GPSOS Limited
Company Number: 7222153
Company Documents
Director Details
| Name | Role | Profile URL | Invested? |
|---|---|---|---|
| Mark Simmonds | Founder and CEO | https://bit.ly/3dqYBgz | ✔ |
Questions 1
The memorandum talks about “number 8 wire” and “design and build”, so can you provide some more background on the design and ownership of the technology? I’m not sure specifically what to ask (is it IP?), but I guess I’m wondering if there are competing products out there that one of the other organisations you mention might opt to bring to NZ to compete?
Posted on 08-06-2020 by Philip RoyThanks for the question Phillip, apologies for taking so long to answer this.
The design of the technology was created by Mark, the CEO. He knew what he wanted to create, but could not find the right product in the market. He worked with a Chinese assembler/manufacturer to pull together the parts he had found around the world, assemble this and create the software so it suited his needs - Mark helps write the software for new protocols we build into the product. We didn't have the cash to pay for the tooling and other requirements at the time, so they paid for it and we took the New Zealand rights to the technology.
There are competing products of sorts, there is a write up in the information memorandum. Other organisations may bring new products in, but the beauty of Mark is he is constantly developing, so what ever someone else brings out, Mark expects to be one step ahead. In the last 3 months, Mark has added functionality to the pendant such as non movement, which is really beneficial to older people in case of being very sick and not being able to get up or in the unfortunate case of someone passing away we can find this out very quickly. By the time we get to the end of this year, we will have version 15 of the pendant, which has some exciting features to be added that Mark is working on now. We are at version 12 now.
We believe in constant and never ending improvement and Mark is dedicated to staying ahead of the competition.
Answered on 26-06-2020 by Scott Lee
Pledgers 114
22/07/2020 at 2:56pm
20/07/2020 at 7:54pm
20/07/2020 at 7:49pm
20/07/2020 at 7:34pm
"Thank you Mark, Scott and team. Amazing people, amazing product. This has such a huge impact on so many lives! :)"
20/07/2020 at 7:21pm
20/07/2020 at 7:20pm
20/07/2020 at 6:54pm
20/07/2020 at 6:49pm
20/07/2020 at 6:49pm
"Good luck on this venture!"
20/07/2020 at 6:46pm
20/07/2020 at 6:45pm
"All the best of luck in your new venture, I appreciate our very own homeland security systems keeping others safe Maori Queen Aotearoa"
20/07/2020 at 6:34pm
20/07/2020 at 6:18pm
"Good luck Mark and Bronwyn"
20/07/2020 at 6:07pm
20/07/2020 at 5:47pm
20/07/2020 at 5:29pm
20/07/2020 at 5:24pm
20/07/2020 at 5:14pm
"Great work!!"
20/07/2020 at 5:04pm
20/07/2020 at 5:02pm
20/07/2020 at 4:55pm
20/07/2020 at 4:50pm
"good work hope we get there never give up"
20/07/2020 at 4:37pm
20/07/2020 at 4:22pm
"Good Luck"
20/07/2020 at 4:15pm
20/07/2020 at 3:44pm
"It’s all happening now "
20/07/2020 at 3:34pm
20/07/2020 at 3:34pm
20/07/2020 at 3:22pm
20/07/2020 at 3:12pm
Followers 27
Followers of GPSOS Limited
GPSOS Limited
Letter from our Founder
Dear reader,
All of this started, because my wife Bronwyn got cancer, and my best friend lost his wife.
As a security guard, I’ve had my share of scary situations, but when Bronwyn got cancer, that was the scariest time of my life.
When Bronwyn was finishing chemotherapy, it was freeing. Bronwyn’s best friend (the wife of my best friend) was planning a trip to reward us for when the treatment would have finished. One night, her best friend was using her laptop to plan the trip that we were going to do. Unfortunately, she went to sleep and never woke up.
Shortly after that, my best friend’s father had a stroke. He had a medical pendant but because of the stroke he was unable to activate it and unfortunately, he didn’t survive.
With 40 years’ experience in the security industry, I thought there has to be better technology, there has got to be something better that we can use to help people like my friend and his family.
Our pendants are a totally mobile GPS tracking, two-way talking unit. When someone is in trouble and they need help, they simply push the button and a call comes into our monitoring center, which is monitored 24 hours a day. The beauty of our technology is that we have two-way talk. We’re talking to them about what’s going on, plus we have the GPS technology. We know where they are, which means we know exactly what’s going on with them and can be there for them, get people to them quickly, comfort them, and to help them stress less.
We run an Alzheimer’s or dementia programme that knows when one of our customers leave their property, and with their permission we can live track them and find them. Without this technology, it can take hours to find them - if ever.
This is not a medical device. This is a safety device to allow people to live more freely. Our whole programme has been developed to keep people in their homes and communities safer and for longer with greater independence. That’s been the dream and the more we build this technology, the more we’re going to better help people, and that for me is the most important thing.
It’s not just our customers that we support, we also support our nationwide team and local community of Whanganui.
We’ve worked with Workbridge, an organisation that supports people with disabilities into paid employment, to bring 27 of our 32 team members into the business, who have faced some of the issues our customers have faced. It means we know the stress our customers face intimately, and are here to help.
We’ve spent almost four years building our technology and customer service; now we need the final funds to secure contracts and get to cash flow break even.
Please invest in a company that cares about people, regional employment, and the community. We can do this together.
Cheers,
Mark
Our Background
Mark is passionate about people living more independently and being free to enjoy their lives, their way.
We know we are all 25 in our minds, it’s just our bodies that have changed a little. The thought of not having choices in our lives because our physical bodies don’t work the way we (or society) may want, should not be a barrier to most things in life.
That’s why Mark has created a business to help older and disabled people which is staffed by older and at-risk people and owned by older and at-risk people. Using his mum as inspiration, he has designed and built pendants and watches that give users greater freedom in their lives.
GPSOS’s value proposition goes beyond the capabilities of its products. It is inherent in the response teams, the pro-active outreach service and in the fact that many who work at GPSOS are experiencing what our customers experience. All of this is delivered from the perspective of almost 50 years’ experience in emergency and security response, call centre operations and a strong commitment to all New Zealanders’ wellbeing.
The Company’s technology and service package is at the front end of the market. No other current provider can match GPSOS’s offering in New Zealand:
- The functions, connectivity and other features of both the pendant and the watch
- The service offering
- The ease of use of the products and services
- The pricing and back-up offering (12-month full replacement warranty).
GPSOS is committed to leading the development of this technology and creating a family values based service offering, which means we lead with love and are there to serve our customers.
Market Opportunity
GPSOS is focused on three key markets:
1) The young person aged 25 or under, with a disability.
They are thinking of moving out of home and need some additional confidence to ensure they feel safe and confident doing this.
2) The older person aged over 70, who desires a little more safety when they are out and about.
Knowing that someone is there 24/7 is important when you either live alone or no longer feel 100% comfortable living your life the way you want.
3) Sons and daughters aged 40 to 65, who have a Mum or Dad who have early stage dementia or Alzheimer’s.
They want to help, but can’t always be there. As long as Mum and Dad are wearing the GPSOS product, we can find them in seconds.
The market for personal safety devices and responsive monitoring has changed globally. People want to talk to real people and GPSOS has real people, many with lived experience, that monitor our products and the people that use them.
GPSOS has based its strategy on three key factors that are affecting the industry in NZ and around the western world.
Structural shift in population: Over the next 15 years, a net 40,000 people per year will turn 65 in New Zealand. By 2034, numbers of people aged over 65 will have doubled to over 1.2 million and 180,000 people will be over the age of 85.
Cost-effective technology: Technology has improved significantly from what is currently offered in the market. GPSOS has created products that are low cost, multi-functional and ahead of the market. GPSOS has excellent research and development partners who continue to adapt and grow these products with GPSOS to ensure it stays ahead of the competition.
For example, GPSOS received feedback on its version seven watch that it was too big and too bulky. In early June, GPSOS will release its version eight watch that offers its customers greater comfort and ease of use. The response to the limited number of these watches that are available currently has been fantastic.
The market for this technology is expanding at a significant rate: Not only is the aged care market expanding, the technology has multiple additional uses, including for New Zealanders with access needs (disabilities), lone worker safety, bullied school children, among other uses.
There are many people in New Zealand that may need GPSOS to support them, with one in four New Zealanders (1.2 million people) having permanent access needs or disabilities.
There are also 17,000 registered security guard lone workers, service station workers on over 5,400 sites, over 10,000 lone DHB workers, over 723,000 people over the age of 65 and there were 213,000 claims for ACC patients recovering at home in 2017.
Why we’re crowdfunding
There are so many people that love GPSOS and have been asking if they can invest, but couldn’t as the amount required to invest was too high. We want to make it possible for anyone to own a piece of the company that serves them and their community.
This way, they can invest, have a pendant and help others to enjoy the peace of mind that GPSOS provides.
Strategic Growth
We have created a strategy to address the needs of our customers with the aim to be:
1. New Zealand’s leading provider of independence and safety products focussed on competing with affordability.
2. Creating a competitive service that puts our customers at the centre, with a diverse workforce that understands the needs of the customers we are serving.
For the next 12 months, we will focus on two overlapping key markets:
1. Welfare and health of the older person – those seeking greater independence and for the families of those with Dementia or Alzheimer’s.
2. Welfare and health of those with access needs - from very young to older, these needs are widespread across New Zealand and we employ people who understand these needs and seek to show we care and want to help.
In our forecast we are aiming for 12,000 pendants and watches (net) to be sold within three years. Through our business strategy we have more ambitious plans in place and will aim for significantly higher sales within three years than the stated forecast.
We will aim to create new markets for our products and services.
Use of Capital
Software
Our software works well currently and has all the functionality we require. Completing a software upgrade will provide additional functionality that will future proof the business into 2021 and beyond.
Marketing
This is critical to GPSOS becoming well known across the country, our marketing strategy will be overseen by well credentialed parties who have run campaigns of this nature in the past with great success both in NZ and the UK.
Working Capital
Keeping the business operating on a weekly basis while we build our customers is crucial to the success of GPSOS. This is paying for our team members, rent and incidentals associated with keeping the business operating. This could include paying down some of the existing debt to non shareholders to a maximum of $50,000.
Stock
This provides us with stock to fulfill orders for the pendants and watches as they arise. The supply of stock from China is still able to be fulfilled through DHL (during COVID-19) and the quality remains excellent.
Privacy Legal Review
We have existing privacy policies in place. However, we wish to collect qualitative data from our interactions with our customers. In order to support better allocation of resources, we want to share this information in an aggregated way with government entities and relevant organisations to ensure better outcomes for our customers and New Zealand in general.
To do this, we need to ensure that people’s privacy is protected, so we need to employ the best lawyers.
Share Offer
We are issuing up to 120,000 shares at $4.17 per share. This will represent 24% of the company. We are offering a minimum of 29,977 shares (for the offer to go live) and up to a maximum of 120,000 shares. The minimum goal is $125,000 with a minimum pledge of $95.91 for 23 shares.
Capitalisation Table Pre and Post Raise
Types of Shares on Offer
* Unless you invest $50,000 or more then these shares are considered wholesale voting shares
The Crowdfunding Investor shares (folk usually call them “investor shares” or “B-class shares”) are non-voting but will have the following rights:
Non-voting shares do not give the holder the right to vote at meetings of shareholders. In very limited circumstances (to ensure the shareholder’s core rights are protected) each non-voting share gives the holder the right to one vote. This only occurs where there is a proposal or resolution that will affect the rights attached to the Investor Shares, to put the company into liquidation and/or for the disposal of the whole, or a material part, of the property, business and undertaking of GPSOS Limited.
Non-voting shares will give the holders the right to an equal share in dividends and other distributions made by GPSOS Limited (subject to the rights of any other class of share) and the right to an equal share in the distribution of surplus assets of GPSOS Limited. However, investor shareholders have no rights to vote on removal or appointment of directors.
The A Shares are voting shares and have full voting rights attached. You can read more about the rights attached to ordinary and non-voting shares in our Constitution.
Our Financials
You can view our full forecasted financials and current balance sheet in our Information Memorandum. Please note, that we only officially launched 31 July 2019. We have provided forecasts for the calendar year rather than financial year.
Who we are
Mark Simmonds (Founder and CEO)
Key responsibilities: Product development; Technology & monitoring design; Quality & Accreditation Mark has worked in and run his own businesses in the NZ security industry for over 40 years. During this time Mark brought home detention technology to NZ; he’s been injured in the line of duty numerous times. In his time in the industry, Mark has established 10 Monitoring Stations and run award-winning call centres. He is NZQA accredited as a skills workplace assessor and still provides training for the security industry. Mark is a committed regional player and was a Ministerial Appointment to the Regional Advisory Committee for UCOL; which he chaired for 5 years. Mark chairs Mainstreet Whanganui and was President of the Chamber of Commerce for 5 years. He has been a Justice of the Peace for the last 20 years and a member of the New Zealand Security Association (NZSA) and American Security Association (ASAS) for 20 years. Mark is passionate and committed to GPSOS and helping as many people as possible to live more independent lives, like his mum wanted. Mark and his wife Bronwyn live in the 106 year old Heritage House in Whanganui, which is a beautiful heritage building and function centre.
Scott Lee (COO)
Key Roles: Strategic planning; Business development; Finance; Sales & marketing Scott has been in the finance industry for over 25 years, working for investment banks, private equity firms and for eight years with the ANZ including as Regional Manager for Commercial and Agri in Manawatu/Whanganui. Scott is adept at business and financial planning and is committed to ensuring GPSOS is successful in this rapid growth period. Scott has helped to grow numerous businesses including Radius Health Care, Jade Software and Rodney Wayne. A well-connected and pro-active networker, Scott uses his relationship management skills to open doors and build trust and confidence in the product, people and support packages. When Scott is not working he is spending time with his 9 year old son, surfing or you can often find him in a cafe talking to someone.
Levi Irving (Monitoring Station Manager)
Key Roles: Operational Centre Management; HR & Training Management Levi’s engaging and diplomatic manner coupled with practical management experience ensures she is the perfect person to lead and inspire our team of front-line call centre operatives. Levi worked for Whanganui Security for five years, ultimately managing the emergency response centre. Levi has also worked at UCOL, and brings her experience of the training and education sector to this role. Levi has two beautiful children who she loves and adores. Levi whakapapas to a number of different Iwi and including locally in Whanganui to Ngati Apa, Nga Rauru ( Patea) and Nga Puhi up north
Our Advisory Board
Elaine Reilly (Governance Expert and Chief Question Asker) - Palmerston North
A flexible practitioner with excellent leadership skills and a creative flair for generating governance and management solutions, Elaine is an assured and credible communicator in a diverse range of working environments, from ministerial level to individual business owners/managers. Key skills include strategic thinking, governance, people engagement and alignment, project planning and performance delivery. In 2018, after 12 month's development, she launched CLAN, a development programme for women where cohorts of women meet regularly to pursue their professional and personal development. Elaine lives with her husband and has two amazing children now pursuing their own careers. Elaine loves getting out with friends and family to enjoy good food, wine and great chat.
James Igglesden (Sales expert and successful entrepreneur) - Melbourne
James has successfully grown sales in a number of businesses including Triodent, a dental supply company built in NZ that grew between 2002 and 2014 when it was eventually sold to US multinational Dentsply Sirona. While James was Marketing Director the company grew from 10 to 100 people and grew sales by 300% in a twelve month period. James is currently focused on launching an innovative dental product in Australia and helps run several family businesses in consumer-facing online retail. James believes in establishing value at every opportunity in the pipeline and educating sales people and the customer alike to maximise value. He has a passion for pricing and crafting good product stories which empower sales people and win customers. James lives in Melbourne with his wife and three sons and loves to cook for family and friends whether it be a simple pasta dish or an Indian curry prepared from scratch.
Grace Stratton (Disabled Entrepreneur)
At just 20, Grace is leading a revolution to destigmatise disabilities and the deficit thinking society has. Grace is the founder of All is for All, a communications, talent and media agency working to change the way businesses (including Estee Lauder, Suncorp, The Warehouse Group and others) approach disability and accessibility. Grace was the only New Zealander other than Jacinda Ardern to be named on InStyle’s Badass 50 ‘women changing the world’ and her work saw disabled models included in fashion week for the first time, she’s also received an award for Innovation from the NZ government. Grace is working for a major marketing firm in Auckland while finishing a double degree at AUT University.
Our wider team
We have a staff of 33 that do inbound and outbound calling. We have 14 at our Head Office in Whanganui in the inbound monitoring centre and 19 doing outbound sales calls based largely in the regions. We intend to grow our team over the coming years by up to 200 as needs require. Half of our sales team have not worked for a number of years or this is their first job and we are proud to be able to train them, to build their confidence and help them to achieve life goals.
Risks and Mitigation
Equity Market Risk
Prospective subscribers should recognise that the price of the Company’s Shares may fall, as well as rise. The priceat which the Company’s Shareholders are able to sell their Shares may be less than the price they have paid for them or the Shareholder may be unable to sell his/her/its Shares at all due to market volatility or because there is no market at all and no exit mechanism, or for other reasons. There are no current plans to list the Company’s shares, which would make the tradability much easier. Many factors may affect the price of the Shares which are outlined in our IM.
Liquidation
If the Company is placed in liquidation, the residual value of assets may not be enough for Shareholders to recover the full value of their original investment. In liquidation, claims by secured creditors and other creditors will rank ahead of claims of Shareholders. Shareholders will rank equally with one another. If the Company becomes insolvent, Shareholders have no additional liability to the Company or to any person whatsoever.
Shareholders should be aware that there is no guarantee that they will receive returns of their investment.
Operational Risks
Operational risk may arise from inadequate or failed internal processes, people and systems employed by the Company and could expose the Company to potential financial or reputational damage.
Market Risks
Confidence could fail either in the economy in general or the finance sector in particular. This could occur as a result of the failure of a market participant, a recession, an event of terrorism or otherwise, in New Zealand or overseas.
Regulatory Risks
There could be substantial changes in laws and governmental policies affecting the Company’s business. The commercial impacts of law changes are often not apparent for some time after their introduction.
Environmental Risks
Natural and other disasters such as floods and earthquakes, and the failure of essential utilities, could impact directly or indirectly on the Company’s business.
Although the Company has in place risk strategies which recognise most of these risks where possible, the Company cannot give any guarantee or assurance that these strategies will remove the risks. Given that the Company is seeking to build a new business, it is impossible to offset all the risks.
Board Performance
There is a risk that the performance of the Board does not meet the required standards either individually or collectively. The Board is aware of its responsibilities and the requirements of New Zealand companies and securities law in relation to good governance and will continue to develop its code of governance.
Forward-Looking Statements
Certain statements in this IM constitute forward-looking information. The accuracy of such forward-looking information may be affected by known and unknown risks, uncertainties and other factors which may cause
the actual results, performance and achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information included in this IM. Such factors include, among other things, general economic and business conditions.
Given these uncertainties, prospective subscribers are cautioned not to place undue reliance on the forward- looking information contained in this IM. In addition, under no circumstances should the inclusion of such forward-looking information in this IM be regarded as a representation or warranty by the Company or any other person that anything predicted in any such forward- looking statements will be achieved.
To the extent permitted by law, the Company disclaims any responsibility to update any of the risk factors outlined above or publicly announce the result of any revisions to any of the forward-looking information contained in this IM.
Competition
The elderly safety care sector has several incumbent competitor businesses in New Zealand. The operating and financial performance of the Company will be influenced by the progress made in this area of technology, by the Company and by other competitors in the market, in the next years. There is always the risk of unknown competitors who may enter the sector or other technologies that might disrupt the market.
Licencing Arrangements
The Company has entered into design and technology licence agreements with key parties offshore. GPSOS undertakes research and development activities and seeks to protect any intellectual property that is of value to the Company’s business generated from those development and research.
The Company has and will continue to seek to contractually protect its position including the exclusive right to its territories. However, the Company has some exposure under these arrangements.
Supply Chain Risk
The Company contracts production out of China. There remains a supply-line risk of not being able to access products if China’s borders are closed or there are issues with transport/logistics in importing the stock to New Zealand. The Company has some mitigation strategies for this risk. It currently has access to approx. 1,000 products sitting in storage in China which can be deployed quickly.
Economic Risk
The operating and financial performance of the Company will be influenced by economic and business conditions affecting the New Zealand and world economies. A Shareholder may sell his, her or its interest in the Shares to another person (subject to any relevant restrictions), however the Shares are not presently intended to be listed on the any stock exchange and there is currently no established market for the Shares which means that the risk to Shareholders of unfavourable changes to economic and business conditions is heightened.
Delay in Returns
No dividends are expected to be paid to Shareholders for at least three (3) years.
Key Personnel
In such a small company key personnel are very important. GPSOS is materially reliant on its small Executive staff.
Additional funding will seek to mitigate some of this risk by engaging more people.
Note from PledgeMe
PledgeMe is licensed and regulated by the Financial Markets Authority, and the share offer made by GPSOS Limited will only be available for acceptance through the PledgeMe website. We have completed an Equifax check on the Company and its Director, as well as a Google check. There were no adverse findings.
Another big sales week - and a big pledges week! We’re making some changes to the campaign
19/07/2020 at 5:38 PM
Well that was another big week for GPSOS, which is exciting!
One of NZ’s progressive DHBs hosted GPSOS this week, alongside a large health care business that agreed to start a trial with 20 GPSOS pendants - 6 for staff and 14 for clients. Watch this space, this trial is an important one for GPSOS and we know it can help with the changing face of healthcare in NZ.
GPSOS’s Te Pouhono a Iwi continues to create magic with hui’s around the country helping to create awareness among Aotearoa’s Māori community. These hui’s include the Kaunihera kaumatua at Nga Tangata Tiaki, writing an article for Age Concern Whanganui and Te Oranganui who they are visiting next week and an impromptu presentation at Whanganui DHB to assist whanau.
https://www.facebook.com/photo?fbid=3310520775666392&set=a.484732841578547
The kaumatua we are engaging with and have signed up recently really believe in GPSOS, so highly that they have taken it upon themselves and given themselves their own title as ambassadors and advocates to promote GPSOS and its devices and bring awareness to those who may benefit from GPSOS.
You may have also noticed some updates to our website that is providing more information about why we are here and who we are here for. These updates include incorporating Te Pouhono a Iwi and Te Ao Maori to ensure when someone visits us online they can see what we are about.
This week we sold another 50+ pendants including the first trucking company (30 pendants) which is keeping us on track for the significant growth we have being experiencing. This keeps GPSOS on track for achieving its 2020 growth targets.
GPSOS has been introduced to another large DHB’s Geriatrician doctors who have a number of dementia patients they would like to see working with our products. We have meetings with them in early August.
We have been nominated for the Attitude Awards and talked to Attitude TV this week who seemed genuinely interested in what we were doing.
On a personal note, Mark’s wife had a need to set off her pendant this week. Mark was away in Wellington and Bronwyn fell down the stairs and broke her shoulder. She pressed the button on her GPSOS and within minutes the ambulance were there, who commented positively about Bronwyn still talking to the GPSOS customer care team through the pendant as they arrived.
We are grateful that Bronwyn is comfortable and recovering restfully now. Thank you to the GPSOS customer care team for your support.
In terms of the capital raising, you may have seen the recent pledges of $500 and $10,000 and there is a further substantial pledge to follow. We appreciate each pledge, thank you.
Due to some discussions that are occurring with some large potential investors who could invest over $200,000, we have decided to make some changes to the PledgeMe campaign. This means the following:
The minimum we are seeking is $125,000;
The valuation has been lowered from $2.4m to $2.0m and this applies to all pledges, existing and new. This means existing pledgers will receive more shares for your pledge.
We will hit the minimum by 8pm tomorrow night when this closes, so if you have been thinking about pledging and not done so, please get in and make your pledge. I would not want you to miss out on being able to invest in our company.
We have a Facebook Live tonight at 7.30pm and if you have any questions, please jump on the GPSOS Facebook page and we can answer these tonight.
Talk soon
Mark and Scott
100% growth & ten more days
10/07/2020 at 6:17 PM
We would like to give you a further update as to how GPSOS is tracking as a business and what we are doing next.
Firstly, we are approaching having 400 pendants in the market. This represents growth of 100% in the last 6 weeks and we are not slowing down!
Second, we were on Maori TV this morning, the article and video (there was a delay on the Skype FYI) can be found here:
This was exciting as it links closely to our strategy of supporting older people and disabled people across New Zealand.
Thirdly, we found out today that GPSOS will be featured as a product that can be used to help with Alzheimers and Dementia patients on the LandSARS - www.wandersearchnz.org.nz website. This will help drive awareness in a core market for GPSOS.
Finally, we appreciate the pledges to invest that have been made to date and are very grateful! As we have progressed with this crowdfunding round we have learned a lot about what this involves. We believe we are close to achieving the momentum required to complete the first stage of our capital raise.
We are currently talking to large organisations in NZ and one offshore party about investing into GPSOS and believe that with a smaller crowdfunding raise - around the $150,000 to $200,000 mark, this could support us getting to a large one off strategic investor becoming a shareholder as well.
Therefore we have decided to extend the crowdfunding capital raise until Monday 20 July as we see this momentum building and we want to ensure we can give an update next week as to what we think could be achieved with the larger investors. As we discuss this option further we may choose to lower the crowdfunding minimum to ensure we are prudent with the shares we release at this early stage.
We look forward to keeping you updated further as we progress through next week.
Have a fabulous weekend.
Scott and Mark
Two more days to go!
08/07/2020 at 1:37 PM
We are really excited this week and here’s why:
In the last two days we have sold 67 pendants. This is the equivalent of over $20,000 per annum in new revenue and means 67 people are safer than they were at the weekend. We are very excited at the rapid growth that is happening. We are 7 days into July and have already sold two-thirds of what we did in all of June!
Not only that, the majority of these sales are with organisations or groups that will need a lot more of our pendants and monitoring in the future!!
As an example, twenty of these were sold to our local Kaumatua, who think our products are amazing and this was facilitated by our amazing Maori sales team - Pou Hono a Iwi (connectors to the people). We had a hui Monday to discuss what we can do across New Zealand for the Kaumatua and matua and this is already showing fabulous results with Maori radio network interviews booked, hui to speak at and many other opportunities. This is a group of seven amazing Maori women who are excited about what they do and working hard.
We have also started to work with the Indian and Asian communities and are linking through our existing contacts to make this possible. These communities usually don’t put their older people into care, so the opportunity to have greater peace of mind is uplifting.
We featured on The Cafe TV show this morning, where Scott was interviewed by Mel Homer and we showed how the GPSOS pendant worked. You can see the clip of the interview here:
https://www.facebook.com/watch/?v=318428172517684
Mel asked about the Crowdfunding we are doing through PledgeMe as well and we were able to share this with the Cafe audience. What we couldn’t share was that we now have two large organisations looking to invest into GPSOS. While we can’t tell you who they are, they are important to the New Zealand health sector and a tie up with either one would be incredibly lucrative for both parties.
We look forward to giving you more information about this when you are a shareholder. There are two days to go until the crowdfunding is completed, so if you have not yet invested, please support us and go and pledge and share with your friends and family asking them to invest alongside you, because then you can all follow GPSOS’s progress together.
Thank you so much for your support,
Mark and Scott
We’re almost 20% funded!
02/07/2020 at 5:59 PM
We are so excited. Things are picking up on the campaign, with almost $40,000 pledged now. Thank you to everyone who has pledged so far.
We’re also getting some great coverage. If you’re online tonight we will be doing an interview with Manaaki on IGTV at 8:30pm. Here’s the link to follow if you want to watch: https://instagram.com/wearemanaaki
We are also going to be on The Cafe TV Show next Wednesday (8 July), about 9.30am on TV3. Scott just finished filming this with Mel Homer (the presenter) today and it went well.
On the sales front, we’re going really well, to the point that might even run out of pendants soon. This is both a good and a bad thing! We love that we are getting the demand growth, the bad thing is potentially missing out on sales.
We believe that an investment into GPSOS will ensure we keep up this growth and maintain the great interest in what we are doing. Particularly after the $25,000 pledge last night and a commitment to share this with their crowd.
If you haven’t shared our campaign yet, we would love it if you could. We truly believe that this campaign is amazing and what we can achieve for our customers, staff and shareholders is significant!
We can’t wait to grow this business further with you.
Cheers,
Mark and Scott
We’re growing - but need a bit more time
26/06/2020 at 3:58 PM
Over the last few weeks we’ve been really busy in the GPSOS office.
We’ve trained 24 new contractors to sell GPSOS pendants, who are showing their support for our mission proudly on social media - including the great engagement on our Facebook Live earlier this week. You can watch Scott being interviewed by Anna from PledgeMe about the company, and our current equity campaign, here: https://www.facebook.com/GPSOSNZ/videos/2376426482666516
We’ve been growing not only our team, but also our sales.
Since we launched in August 2019, we have sold 300 pendants. 100 of those were in the last month alone. That means our pendant sales have increased 50% in one month on the total sold in the previous 11 months. Based on the growth we have in front of us we expect to grow by 500% to 700% by October 2020, which would put us on track to deliver to our forecast but we still need the investment to be able to deliver that growth.
We’ve been progressing not only our direct sales, but also our connections to large organisations. Six new sizeable organisations have confirmed contracts with us in locations around Aotearoa ranging from Christchurch, Tauranga, Huntly and Auckland including a rest home, two lone worker contracts and a Maori health organisation. These were between 4 and 16 pendant contracts and are expected to grow and gives us an introductions into their wider networks.
Our Iwi focussed new business team will be established and operating next week. This means that GPSOS will engage with Kaumatua, Maori health organisations and other Maori or Iwi based enterprises to support their communities to live more confident lives as well. We believe this is a big point of difference between us and the existing medical alarm providers.
We’ve been so busy growing the business, that we feel like we need a bit more time to get this equity crowdfunding campaign across the line. That’s why we’re extending our deadline two weeks to close on Friday, 10 July at 8pm.
If you have any questions about our plans, or our company, please feel free to ask them on our campaign page or email Scott direct on [email protected]. He's also doing a Facebook Live tonight at 7pm if you'd like to tune in - just head on to our Facebook page: https://www.facebook.com/GPSOSNZ
Thanks again to everyone who has supported our company to get to this point. We can’t wait to see what we achieve together. If you haven’t pledged yet, here’s the link: https://pledgeme.co.nz/investments/406-gpsos-limited
Cheers,
Mark and Scott
We've made our own pledge
15/06/2020 at 8:44 AM
We are celebrating the first week of our equity crowdfunding campaign and to celebrate we’ve decided to make a pledge of our own - for investments over $1,000, we will gift a pendant to someone in need. We think that’s a win/win/win - you are pledging to get shares in our company, we are getting the investment we need to grow, and someone in the community that needs this support will be able to get a pendant for free.
Thank you so much, to all of you who have pledged so far as it really means a lot to us and to those that we help on a daily basis! We’d like to ask that if you can, please share our campaign page with your own crowds; together, we can do so much more good work in our communities around New Zealand and want to continue to grow our company by doing good and doing well.
Everyone here at GPSOS is focussed on our future, and expanding our social impact for our customers - whether they’re seeking more independence, or a greater sense of safety that allows them to live their lives to the fullest extent possible.
We’ve had a great week on the business front - with some larger organisations moving through the final steps of purchasing our products. This could mean that your communities become safer, the team we work with become busier and GPSOS gets that little bit bigger.
We look forward to including you in our hardworking and caring team - let’s do this!
Mark and Scott
Offer Details
| Current Valuation | 2,000,000 |
| Raise Minimum | 125,000 |
| Raise Maximum | 500,400 |
| Share Price | 4.17 |
| Minimum Pledge | 95.91 |
| Maximum Shares Offered | 120,000 |
Explanation of valuation:
A discounted Cash Flow with a 20% WACC with a value of $1.9m and EBIT multiples of 3 x year 3 EBIT earnings ($880k) equates to $2.64m.
The board decided that $2 million valued GPSOS for further upside in this capital raising.
Financial Summary
| Prev Year | Current Year | Est. FY 2025 | Est. FY 2026 | |
|---|---|---|---|---|
| Revenue | NZ $ | NZ $1,058,570 | NZ $3,505,320 | NZ $6,534,120 |
| Operating Expenses | NZ $ | NZ $2,090,103 | NZ $3,318,054 | NZ $4,919,206 |
| EBITDA | NZ $ | -NZ $1,031,533 | NZ $187,266 | NZ $1,614,914 |
| Net Profit | NZ $ | -NZ $1,521,057 | -NZ $179,877 | NZ $880,628 |
Company Details
Company Name: GPSOS Limited
Company Number: 7222153
Company Documents
Director Details
| Name | Role | Profile URL | Invested? |
|---|---|---|---|
| Mark Simmonds | Founder and CEO | https://bit.ly/3dqYBgz | ✔ |
The memorandum talks about “number 8 wire” and “design and build”, so can you provide some more background on the design and ownership of the technology? I’m not sure specifically what to ask (is it IP?), but I guess I’m wondering if there are competing products out there that one of the other organisations you mention might opt to bring to NZ to compete?
Posted on 08-06-2020 by Philip RoyThanks for the question Phillip, apologies for taking so long to answer this.
The design of the technology was created by Mark, the CEO. He knew what he wanted to create, but could not find the right product in the market. He worked with a Chinese assembler/manufacturer to pull together the parts he had found around the world, assemble this and create the software so it suited his needs - Mark helps write the software for new protocols we build into the product. We didn't have the cash to pay for the tooling and other requirements at the time, so they paid for it and we took the New Zealand rights to the technology.
There are competing products of sorts, there is a write up in the information memorandum. Other organisations may bring new products in, but the beauty of Mark is he is constantly developing, so what ever someone else brings out, Mark expects to be one step ahead. In the last 3 months, Mark has added functionality to the pendant such as non movement, which is really beneficial to older people in case of being very sick and not being able to get up or in the unfortunate case of someone passing away we can find this out very quickly. By the time we get to the end of this year, we will have version 15 of the pendant, which has some exciting features to be added that Mark is working on now. We are at version 12 now.
We believe in constant and never ending improvement and Mark is dedicated to staying ahead of the competition.
Answered on 26-06-2020 by Scott Lee
Followers of GPSOS Limited
22/07/2020 at 2:56pm
20/07/2020 at 7:54pm
20/07/2020 at 7:49pm
20/07/2020 at 7:34pm
"Thank you Mark, Scott and team. Amazing people, amazing product. This has such a huge impact on so many lives! :)"
20/07/2020 at 7:21pm
20/07/2020 at 7:20pm
20/07/2020 at 6:54pm
20/07/2020 at 6:49pm
20/07/2020 at 6:49pm
"Good luck on this venture!"
20/07/2020 at 6:46pm
20/07/2020 at 6:45pm
"All the best of luck in your new venture, I appreciate our very own homeland security systems keeping others safe Maori Queen Aotearoa"
20/07/2020 at 6:34pm
20/07/2020 at 6:18pm
"Good luck Mark and Bronwyn"
20/07/2020 at 6:07pm
20/07/2020 at 5:47pm
20/07/2020 at 5:29pm
20/07/2020 at 5:24pm
20/07/2020 at 5:14pm
"Great work!!"
20/07/2020 at 5:04pm
20/07/2020 at 5:02pm
20/07/2020 at 4:55pm
20/07/2020 at 4:50pm
"good work hope we get there never give up"
20/07/2020 at 4:37pm
20/07/2020 at 4:22pm
"Good Luck"
20/07/2020 at 4:15pm
20/07/2020 at 3:44pm
"It’s all happening now "
20/07/2020 at 3:34pm
20/07/2020 at 3:34pm
20/07/2020 at 3:22pm
20/07/2020 at 3:12pm
I want to embed this investment somewhere