Medical Kiwi for Wholesale Investors

By Medical Kiwi

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Medical Kiwi for Wholesale Investors

This campaign page is for wholesale investors (please find the definition below). If you're not a wholesale investor and arrived on this campaign page unintentionally please register your interest for future public equity crowdfunding rounds here

 

Definition of Wholesale Investor

A wholesale investor can be defined as people who meets any one of these 5 criterion:

  1.  are an investment business, in that their principal business involves investing in financial products, acting as an underwriter, providing financial advisory services, providing broking services or trading financial products;
  2. have, during the previous two year period, owned a portfolio of, or carried out transactions to acquire financial products of a value of at least $1 million;
  3. have, in the previous two years, materially participated in the investment decisions made by an investment business;
  4. have, or any entities controlled by them, have, as at the last day of the two most recently completed financial years, net assets or total consolidated turnover exceeding $5 million;
  5. are "eligible investors", and have certified that they have previous experience in acquiring or disposing of financial products that allows them to assess:
  • the merits of the transaction;
  • their own information needs in relation to the transaction;
  • the adequacy of the information provided, that they understand the consequences of so certifying, and the grounds for this certification; or
  • an authorised financial adviser, a chartered accountant, or a lawyer signs a written confirmation of the certification. 

 


We are focused on being part of the way the world delivers its healthcare by taking an innovative, science-based approach to developing and delivering cannabinoid products for those who need them the most.

 


From the Founder


More and more people are realising the benefits of plant-based remedies and alternative therapies. And their experiences are supported by a growing library of medical research which continues to identify the therapeutic benefits and pharmaceutical uses of medicinal cannabis and cannabidiol (CBD) for a range of ailments and conditions.

Like you, we’ve been watching with interest as countries around the world open up access to medicinal cannabis and CBD products. We’ve read the research, talked with start-up companies and listened to the amazing stories from those using these products about the positive impact it has had on their lives.

The potential of the medicinal cannabis and CBD wellness industry is shown in the rapid growth and scale achieved by businesses in countries to have already legalised the cultivation, production and use of these products. And as scientists learn more the demand is increasing. Globally, the medicinal cannabis industry is forecast to be worth USD $150 billion by 2025. (Grand View Research, 2018)

We believe that medicinal cannabis and CBD are part of a long-overdue health and wellbeing revolution that could replace so many other pharmaceuticals and benefit millions of people. We’re excited about the opportunity to bring these products to market in New Zealand.

Medical Kiwi is in a unique position as one of a few licenced New Zealand companies poised to create value and carve out a significant share of this emerging and exciting global industry.

We’re ready! Since 2018 we have:

• built a strong health-based, scientific and business savvy team

• developed a clear plan for product development, distribution, and research

• successfully raised our initial seed fund capital

• signed partnership agreements with global industry-leading companies, including pre-selling our entire first two years production worth $90 million to Hektares, a global player in the medicinal cannabis industry

• secured a greenfield site for our state-of-the-art facility in Nelson, and secured a 20-year lease for our initial factory in Christchurch

• been granted a licence to cultivate from the Ministry of Health with further licences pending

You’ll see throughout this document we talk a lot about providing certainty - certainty about our plans, about this investment opportunity and about the regulations that will govern the industry in New Zealand. We have chosen to take a conservative approach and wait until we have a complete picture of what New Zealand’s medicinal cannabis industry could look like before taking our investment opportunity to the market. We believe the timing is now right.

The future is exciting and you can be a part of it. We know that many Kiwis want to help Kiwis have greater access to safe, consistent, affordable, high-quality medicinal cannabis and CBD wellness products. The time to participate in the opportunity that Medical Kiwi represents is now.


Aldo Miccio

Co-Founder and Chairman

New Zealand is adding its name to the growing list of countries changing legislation to enable access to high-quality, affordable medicinal cannabis and CBD products and we think that’s exciting!

Until recently, cannabis has been a globally prohibited substance. Many people are unaware of the medicinal properties of cannabis and those who want to use it for medicinal purposes can face crippling costs and a severely restricted and unreliable supply. Scientists believe the bioactive constituents in cannabis can provide a range of physical and psychological health benefits. Medicinal cannabis products are in demand in countries that have already legalised the cultivation, production and use of full-spectrum medicinal cannabis products and CBD, and as scientists learn more about the therapeutic benefits and pharmaceutical uses, demand is increasing.

In December 2018 New Zealand’s Government passed legislation intended to improve access to medicinal cannabis and CBD products. The Medicinal Cannabis Scheme enables domestic cultivation and manufacture of medicinal cannabis products, and enables the setting of minimum quality standards for products and all stages of production. The regulations that govern the Scheme were announced by the Ministry of Health in December 2019. From 1 April 2020 New Zealand companies can now grow cannabis for the purposes of making medicine. They are also permitted to produce and distribute that medicine.

The products will still need to be prescribed by a doctor, and can only be bought directly from a medical practitioner or pharmacy. It’s encouraging that licences to cultivate, manufacture and supply medicinal cannabis products will be affordable which will help New Zealand businesses compete well with overseas providers.

Alongside the legislative change, New Zealand society’s attitudes towards medicinal cannabis are also evolving. A poll commissioned by the New Zealand Drug Foundation in 2018 found that 87% of New Zealanders support medicinal cannabis for the treatment of pain and 89% support the use of medicinal cannabis as terminal pain relief.

A major opportunity now exists for companies to leverage New Zealand’s provenance, reputation for innovation and areas of competitive advantage to cultivate, produce and sell medicinal cannabis and CBD products domestically and globally.

And Medical Kiwi is positioning itself to manufacture and supply high-quality medicinal cannabis and CBD products for both the local and international markets once the licenses are granted.

 


Size of the market

250,000 New Zealand  casual cannabis users, 25,000 New Zealand  pallative care users, Globally $150 billion  by 2025

The global industry is poised to grow by USD $22.33bn during 2020-2024 at a compound annual growth rate of over 24%. The New Zealand Ministry for Business Innovation and Employment (MBIE) forecasts the domestic medicinal cannabis market to reach $320-$500m within 10 years, and $250m worth of exports. The broader cannabis health product segment could represent a $1b market opportunity per annum in New Zealand.

The New Zealand Ministry of Health estimates that more than 250,000 casual cannabis users use it for medicinal purposes. There are also approximately 25,000 New Zealanders that need or could benefit from the introduction of medicinal cannabis products for palliative care each year (Business Wire, 2018).

The global cannabis market is estimated to be valued at USD $150 billion by 2025 (Grand View Research, April 2018).

 


Our innovative plans to cultivate change 

New Zealand’s Medicinal Cannabis Scheme has been operational since 1 April 2020 which allows for the local cultivation and manufacturing of medicinal cannabis products that will potentially help ease the pain of thousands of people.

This sentiment is at the heart of our innovative plans to cultivate change. We have a clear philosophy to realise the local and global opportunities for high-quality, safe and consistent medicinal cannabis and CBD products to bring about real change in people’s lives and health outcomes.

Learn more about our innovative plans to cultivate change in our Information Memorandum:

 


Advancing the industry through research 

We’re committed to an ongoing programme of advanced research and technology to support the development of our unique, safe, high-quality Medical Kiwi medicinal cannabis products. We plan to adopt relevant global technological advancements and work with industry leaders in research and development which will allow us to be agile in our response to market needs with the goal of setting an elevated benchmark as innovators and leaders in the industry.

Our research schedule consists of:

• International collaboration into the effects of the bioactive components contained in cannabis

• Research into the effects of growing conditions, especially light, on cannabinoid and other active ingredient outcomes, in a replicable way

• Develop, or contribute to, certification of standardisation of the beneficial bioactive properties of cannabis extracts

• Establishing protectable intellectual property

 

 


Cultivating consistency and certainty 

We have an uncompromising commitment to consistency and certainty. We aim to achieve this by breeding and growing cannabis strains of the highest quality in our state-of-the-art facility with indoor production processes, and partnering with global industry-leading companies that have the same commitment.

Our state-of-the-art indoor medicinal cannabis research, cultivation and processing facility will be based in Nelson. We have secured an eight-hectare greenfield site in Brightwater which is strategically located for operational logistics and product distribution. Plans for an 8,000-10,000 m2, two-story building have been developed. The facility will be built by a developer with Medical Kiwi leasing it at market rates. Due to Covid-19 delays, we now expect to start building this facility in the next 12-18 months.

Meanwhile, to become operational sooner, we have secured a lease on a building in Christchurch that is already fit for purpose and can comply with the strict New Zealand and international Medicinal Cannabis licensing conditions. We will operate solely from this facility until our Nelson site is ready.

Sustainability and environmental responsibilities were central to the development of our building plans which include extensive solar power, energy-efficient initiatives and sustainable considerations in all aspects of its ongoing operations, such as waste disposal. It is envisaged that early engineering will maximise energy efficiency so that the entire building and growing system’s electricity can be powered by a one-megawatt solar power energy system. The facility will also incorporate sophisticated security systems, world-class growing room-specific apparatus such as climate control, irrigation, lighting and extraction system.

When in full production, estimated to be early 2024, our Nelson facility is designed to produce 30,000 - 35,000 kg of dried product per annum, with a value today of $100 - $110 million. Our Christchurch facility will be equipped to produce 6,000 - 10,000 kg of dried product, valued today at $18 - $30 million per annum.

We believe our facilities and the products we create will have significant economic benefits for the Nelson Tasman and Christchurch regions, and for New Zealand, and we expect to employ 190 staff when in full production.

Learn more about our facilities in our Information Memorandum:

 


Manufacturing and distributing unique products 

With an emerging industry, it is important that advances are aligned with customer segments and demands. Our marketing insights will inform our cultivation, manufacturing and distribution decisions. We aim to create fit-for-purpose, verified and credible medicinal cannabis and wellbeing products utilising innovative science and technology. By partnering with Empirical Labs, a world leader in formulation and enhanced delivery methods, we believe we can get proven medicinal and wellness cannabis products to both the domestic and global market quicker.

Our exclusive distribution agreements with Vitality CBD and Liberty Herbal Technologies mean we’re well positioned to be one of the first to market with high-quality, innovative products. It also means we could establish distribution networks that we can use for our own unique Medical Kiwi produced products.

Learn more about our facilities in our Information Memorandum:

 


We’re a team committed to scientific, health-based success 

We have a strong health-based, scientific and business savvy team-leading Medical Kiwi’s exciting future. Our team of professionals in medicine, biochemistry, governance, investment and sales oversee Medical Kiwi’s operations.

We’re confident their specialist knowledge, skills and proven corporate governance put Medical Kiwi in a position to achieve our goals and begin generating revenue from early 2021.


Aldo Miccio
Director and Chairman

Aldo has had an extensive international career in senior management and governance as well being a past Mayor of Nelson. His broad experience, spanning 27 years, includes executive chairmanships and directorships in industries ranging from property, retail, agriculture and FMCG to public and state services. With an entrepreneurial spirit and strong commercial background, his expertise includes strategic planning, product management and design, and sales and marketing. The opportunity to enhance community wellbeing and enable changes in people’s lives and health outcomes was a key driver for him co-founding Medical Kiwi.


Peter Win
Director (Operations)

Peter has considerable breadth and depth of business experience, with a passion for pioneering new industries. He has worked in some of the most technically advanced industries, reaching senior levels of management in large-scale international energy projects and the marine engineering industry. Peter’s motivation for co-founding Medical Kiwi was a strong belief in the potential of medicinal cannabis to improve social wellbeing and provide health benefits for the wider community after experiencing how the industry had helped build better communities overseas.


Dr David Porter
MBChB, FRACP
Director (Medical)

David is a Consultant Rheumatologist with 27 years’ experience in the medical field. Porter Rheumatology, David’s practice in Nelson, provides specialist medical and nursing care to people with auto-immune and inflammatory disorders, as well as fibromyalgia patients. David is committed to finding more effective, accessible and affordable ways to manage his patients’ pain. David joined Medical Kiwi because he’s passionate about providing the highest quality medicinal cannabis products at the best possible price point.

“I’ve been prescribing CBD for my fibromyalgia patients since it became legal 2 years ago. Conventional pharmaceuticals tend to be ineffective at treating this condition and commonly cause debilitating side effects like drowsiness or mental fogginess. In stark contrast, CBD has proven to be head and shoulders above other treatments in terms of its lack of side effects, most importantly, but also the very considerable benefits to sleep, relaxation and pain relief. It is by far the most beneficial treatment I’ve used for these patients.”


Dr Michael Packer
PhD (Biochemistry, Cell Biology), MSc (Marine Science), BSc (Biochemistry)
Director (Science and Research)

Michael is a biochemist and natural products biotechnologist with a career spanning 28 years and an extensive track record of scientific research. Algae farming methods for carbon recycling/capture, biofuel production, bio-based materials and for healthy food ingredients, bioactives, nutraceuticals and cosmetic ingredients has formed the basis of his research and professional specialty. His work involves using custom-built bespoke photobioreactors which enable algal growth under controlled conditions. He is excited to bring his knowledge and expertise to Medical Kiwi to help guide rigorous evidence-based development of natural products to benefit human health.


Bruce Whall
CA, B.Comm (UNSW), FAICD
CFO

Bruce is an experienced senior finance and business executive with wide-ranging management experience and a clear understanding of the mechanics of business. With a career spanning 40 years, Bruce has extensive competency across strategic business planning, mergers and acquisitions, finance, accounting, taxation, working capital management, treasury and operations.


Nic Kidson
GM Sales & Marketing

Nic has a sales, marketing and business background that spans more than 20 years across a range of industries, including New Zealand’s niche seafood and wine industries. She brings a wealth of knowledge and diverse practical business application, as well as a passion for health, wellbeing and the environment. Nic is excited about what medical cannabis can do for people and wants to be a part of all the good that it can do for New Zealanders.


Learn more about our team and our partners in our Information Memorandum:

 


Share Offer 

Medical Kiwi is seeking to raise $3 million of investment capital in support of our business strategy.

Current shares on issue

In order to successfully market Medical Kiwi we have used an integrated channel network of trusted partners, including online platforms, private equity funding, and now crowdfunding specialists.

The company was formed with 30,000,000 shares. An additional 2,560,000 shares were issued in the seed funding round. There are now 3,000,000 shares on offer through our crowdfunding investor and wholesale investor raise which will bring the company to a total of 35,560,000 shares. Convertible notes have also been issued in receipt of loans, with the option of converting to shares within the next ten years. Should the option to convert be fully taken up, 3,257,700 shares would be issued.

There are two types of shares on offer: Class B Investor shares and Class A Ordinary shares (more detail below). Class A Ordinary shares shall have the same rights attaching to them as the existing shareholders in the company including the right to vote at shareholders meetings.

Class A Ordinary Shares shall have voting rights attaching to them enabling these shareholders to vote at shareholders meetings.

The minimum holding for Ordinary Shares has been set at 40,000 shares. Wholesale investors must submit a completed certificate confirming the applicant’s status as a wholesale investor as defined in clause 3 of Schedule 1 of the Financial Markets Conduct Act 2013. A copy is available on request. Class A shares will be capped at no more than 50 shareholders.

Class B Investor Shares shall carry non-voting rights at a shareholders meeting. The maximum any one investor can invest via the crowdfunding campaign is $200,000.00 (equivalent to 10% of the maximum capital raising).

 


Financial projections

The financial projections for Medical Kiwi have been based on research from Canada, the United States and Australia while taking into account our local legislation and environment. Some of this information is a combination of data from companies that are currently producing medicinal cannabis products as well as anecdotal information.

Strong growth is expected as regulation takes hold, the industry becomes more established, new market segments emerge and facilities are expanded. Financials are based on a three-way cash- flow forecasting model, incorporating full profit and loss and balance sheet forecasts.

 

Read our financial assumptions and balance sheet in our Information Memorandum: 

 

 


Risks and Mitigation

A flooded market with increased competition
We believe our points of difference will set us apart from the competition. These include being one of the first companies to bring products to the market now that the Medicinal Cannabis Scheme is operational, and establish brand presence. Our operations will aim to cover the full process from cultivation to the production of rapidly evolving consumer products. We believe our seed-to-sale vertical integration approach will set us apart from other companies in New Zealand who might focus solely on cultivation or research.


Unforeseen circumstances delay the build of the facility, research and product development
We have consulted extensively with design experts in relation to the layout and design of our state-of-the-art facility. In the unlikely event of further delays, our planning ensures we can continue to operate out of our Christchurch factory while building work is being completed.


Our Christchurch factory is not ready on time
If the ontime completion of the Christchurch facility in October 2020 was delayed, it would affect the timing of the first cultivation cycle, and could affect sales revenue and license approval timing. Our team and processes will attempt to mitigate this risk.


Our Hektares deal falling through or not being delivered in full
We have spent significant time on this deal. We currently have an MOU and a supply agreement in place with Hektares, and once our facility is complete in Christchurch we will be formulating an order and delivery schedule from January onwards. As noted in the risk above, our timelines could be delayed. There is also a possibility that in Year 2 of our agreement we will not be able to fulfill the full order as noted in our financial assumptions, but we are evaluating different ways as our plans rollout of meeting their current demand (and that of other potential buyers).


Failure to raise capital
If we are unable to raise the minimum $500,000 sought, we will seek further funding from private investors.


Working Capital/Cashflow
Our financial forecasting shows that we have adequate working capital.


Market price of raw materials reduces
We will aim to produce value-adding high-grade medical cannabis products as a point of difference.


Failure of crops
Our crops will be grown indoors in a safe, controlled environment. We will rotate and segment our growing areas. Both of these approaches will minimise the risk of damage to crops.


Challenges with distribution of imported and our own products
We have successfully established distribution and uptake agreements with international companies with Memorandum of Understandings in place and additional agreements currently under discussion. Our strategy to import and distribute our partners’ products is designed to have a two-fold advantage: 1. It would create short-term and ongoing cash flow for the business. 2. It would establish distribution networks that could be utilised once Medical Kiwi production is established.

 

 

 


A Note from PledgeMe

We have completed a Veda check on the company and its Directors, as well as Google checks. One Director, Peter Win, had two bank defaults on his credit report from a previous relationship that he is disputing. There were no other adverse findings. The Directors have also all passed police vetting and responsible person's tests as part of the cannabis research license approval.

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Details

Offer Details

Current Valuation 32,560,000
Raise Minimum 5,000
Raise Maximum 1,000,000
Share Price 1.00
Maximum Shares Offered 1,000,000
Explanation of valuation:

Our offer reflects a valuation undertaken by financial advisors and has been based on international market research from Canada, Australia and the United States of America.

This includes anecdotal information as well as data from companies currently producing medicinal cannabis products. It is important to acknowledge that, as this is a new and emerging industry both globally and in New Zealand, it is difficult to perform a comparative analysis.

We have valued Medical Kiwi and the company shares at a pre-raise valuation of $32,560,000.

The valuation we believe is conservative, with Medical Kiwi adopting lower profitability and revenue formulas than what is generally accepted in the industry. We have discounted valuation multipliers of net profit after tax to a factor of approximately 2.75 based on NPAT of $11,880,022 by the end of 2021, to give us our valuation of $32,560,000. This is of course backed against sales agreements in place and assumptions as outlined in earlier sections.

The valuation we have undertaken can be compared to other similar companies in the industry. The table in our Information Memorandum reflects three cannabis companies with a presence in New Zealand and Australia, and how their respective actual retained earnings (losses) compare with market capitalisation on their respective stock exchanges.

Financial Summary

Prev Year Current Year Est. FY 2022 Est. FY 2023
Revenue NZ $0 NZ $0 NZ $23,582,667 NZ $36,486,833
Operating Expenses NZ $575,247 NZ $484,573 NZ $4,710,601 NZ $6,774,931
EBITDA -NZ $575,247 -NZ $484,573 NZ $16,338,816 NZ $24,631,502
Net Profit -NZ $575,774 -NZ $584,922 NZ $11,880,022 NZ $17,537,783

Company Details

Company Name: Medical Kiwi Limited

Company Number: 7135337

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

Company Documents

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

Director Details

Name Role Profile URL Invested?
Aldo Miccio Director and Chairman https://au.linkedin.com/in/aldomiccio
Peter Win Director (Operations) https://nz.linkedin.com/in/peter-win
Dr. David Porter Director (Medical) https://nz.linkedin.com/in/david-porter-nz
Dr. Michael Packer Director (Science and Research) https://nz.linkedin.com/in/mike-packer

Questions 2

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Hi, so I was told my address couldn't be verified so emailed 2 types of proof of address that was 2 days ago and I havent heard back. Can someone please tell me why.
Thanks Rachelle

Posted on 02-09-2020 by Rachelle&Chris Deeprose

Hi Rachelle, thanks for your question. We have had a lot of responses and we are working our way through the AML processing to verify investors. You should hear from the team within the next few days.
Much appreciated,
Claire (and PledgeMe team)

Answered on 02-09-2020 by Medical Kiwi


What are the sales channels for the Hektares? they seem to be light on substance, and only seem to have a not very special deal with CDA clinics in Australia.

Posted on 04-09-2020 by Shane Le Brun

Hi Shane
Hektares sales channels are through medicinal cannabis manufacturers and wholesalers as well as some prescription clinics. These clients are a combination of entities that they have existing strategic relationships with, as well as clients of entities that they have the strategic relationships with, across North America, Europe and Asia. Aldo is arranging calls with potential wholesale investors, so would be happy to call you too? Please feel free to email me directly: [email protected] Regards Nic

Answered on 07-09-2020 by Medical Kiwi

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Followers of Medical Kiwi for Wholesale Investors

Medical Kiwi for Wholesale Investors

This campaign page is for wholesale investors (please find the definition below). If you're not a wholesale investor and arrived on this campaign page unintentionally please register your interest for future public equity crowdfunding rounds here

 

Definition of Wholesale Investor

A wholesale investor can be defined as people who meets any one of these 5 criterion:

  1.  are an investment business, in that their principal business involves investing in financial products, acting as an underwriter, providing financial advisory services, providing broking services or trading financial products;
  2. have, during the previous two year period, owned a portfolio of, or carried out transactions to acquire financial products of a value of at least $1 million;
  3. have, in the previous two years, materially participated in the investment decisions made by an investment business;
  4. have, or any entities controlled by them, have, as at the last day of the two most recently completed financial years, net assets or total consolidated turnover exceeding $5 million;
  5. are "eligible investors", and have certified that they have previous experience in acquiring or disposing of financial products that allows them to assess:
  • the merits of the transaction;
  • their own information needs in relation to the transaction;
  • the adequacy of the information provided, that they understand the consequences of so certifying, and the grounds for this certification; or
  • an authorised financial adviser, a chartered accountant, or a lawyer signs a written confirmation of the certification. 

 


We are focused on being part of the way the world delivers its healthcare by taking an innovative, science-based approach to developing and delivering cannabinoid products for those who need them the most.

 


From the Founder


More and more people are realising the benefits of plant-based remedies and alternative therapies. And their experiences are supported by a growing library of medical research which continues to identify the therapeutic benefits and pharmaceutical uses of medicinal cannabis and cannabidiol (CBD) for a range of ailments and conditions.

Like you, we’ve been watching with interest as countries around the world open up access to medicinal cannabis and CBD products. We’ve read the research, talked with start-up companies and listened to the amazing stories from those using these products about the positive impact it has had on their lives.

The potential of the medicinal cannabis and CBD wellness industry is shown in the rapid growth and scale achieved by businesses in countries to have already legalised the cultivation, production and use of these products. And as scientists learn more the demand is increasing. Globally, the medicinal cannabis industry is forecast to be worth USD $150 billion by 2025. (Grand View Research, 2018)

We believe that medicinal cannabis and CBD are part of a long-overdue health and wellbeing revolution that could replace so many other pharmaceuticals and benefit millions of people. We’re excited about the opportunity to bring these products to market in New Zealand.

Medical Kiwi is in a unique position as one of a few licenced New Zealand companies poised to create value and carve out a significant share of this emerging and exciting global industry.

We’re ready! Since 2018 we have:

• built a strong health-based, scientific and business savvy team

• developed a clear plan for product development, distribution, and research

• successfully raised our initial seed fund capital

• signed partnership agreements with global industry-leading companies, including pre-selling our entire first two years production worth $90 million to Hektares, a global player in the medicinal cannabis industry

• secured a greenfield site for our state-of-the-art facility in Nelson, and secured a 20-year lease for our initial factory in Christchurch

• been granted a licence to cultivate from the Ministry of Health with further licences pending

You’ll see throughout this document we talk a lot about providing certainty - certainty about our plans, about this investment opportunity and about the regulations that will govern the industry in New Zealand. We have chosen to take a conservative approach and wait until we have a complete picture of what New Zealand’s medicinal cannabis industry could look like before taking our investment opportunity to the market. We believe the timing is now right.

The future is exciting and you can be a part of it. We know that many Kiwis want to help Kiwis have greater access to safe, consistent, affordable, high-quality medicinal cannabis and CBD wellness products. The time to participate in the opportunity that Medical Kiwi represents is now.


Aldo Miccio

Co-Founder and Chairman

New Zealand is adding its name to the growing list of countries changing legislation to enable access to high-quality, affordable medicinal cannabis and CBD products and we think that’s exciting!

Until recently, cannabis has been a globally prohibited substance. Many people are unaware of the medicinal properties of cannabis and those who want to use it for medicinal purposes can face crippling costs and a severely restricted and unreliable supply. Scientists believe the bioactive constituents in cannabis can provide a range of physical and psychological health benefits. Medicinal cannabis products are in demand in countries that have already legalised the cultivation, production and use of full-spectrum medicinal cannabis products and CBD, and as scientists learn more about the therapeutic benefits and pharmaceutical uses, demand is increasing.

In December 2018 New Zealand’s Government passed legislation intended to improve access to medicinal cannabis and CBD products. The Medicinal Cannabis Scheme enables domestic cultivation and manufacture of medicinal cannabis products, and enables the setting of minimum quality standards for products and all stages of production. The regulations that govern the Scheme were announced by the Ministry of Health in December 2019. From 1 April 2020 New Zealand companies can now grow cannabis for the purposes of making medicine. They are also permitted to produce and distribute that medicine.

The products will still need to be prescribed by a doctor, and can only be bought directly from a medical practitioner or pharmacy. It’s encouraging that licences to cultivate, manufacture and supply medicinal cannabis products will be affordable which will help New Zealand businesses compete well with overseas providers.

Alongside the legislative change, New Zealand society’s attitudes towards medicinal cannabis are also evolving. A poll commissioned by the New Zealand Drug Foundation in 2018 found that 87% of New Zealanders support medicinal cannabis for the treatment of pain and 89% support the use of medicinal cannabis as terminal pain relief.

A major opportunity now exists for companies to leverage New Zealand’s provenance, reputation for innovation and areas of competitive advantage to cultivate, produce and sell medicinal cannabis and CBD products domestically and globally.

And Medical Kiwi is positioning itself to manufacture and supply high-quality medicinal cannabis and CBD products for both the local and international markets once the licenses are granted.

 


Size of the market

250,000 New Zealand  casual cannabis users, 25,000 New Zealand  pallative care users, Globally $150 billion  by 2025

The global industry is poised to grow by USD $22.33bn during 2020-2024 at a compound annual growth rate of over 24%. The New Zealand Ministry for Business Innovation and Employment (MBIE) forecasts the domestic medicinal cannabis market to reach $320-$500m within 10 years, and $250m worth of exports. The broader cannabis health product segment could represent a $1b market opportunity per annum in New Zealand.

The New Zealand Ministry of Health estimates that more than 250,000 casual cannabis users use it for medicinal purposes. There are also approximately 25,000 New Zealanders that need or could benefit from the introduction of medicinal cannabis products for palliative care each year (Business Wire, 2018).

The global cannabis market is estimated to be valued at USD $150 billion by 2025 (Grand View Research, April 2018).

 


Our innovative plans to cultivate change 

New Zealand’s Medicinal Cannabis Scheme has been operational since 1 April 2020 which allows for the local cultivation and manufacturing of medicinal cannabis products that will potentially help ease the pain of thousands of people.

This sentiment is at the heart of our innovative plans to cultivate change. We have a clear philosophy to realise the local and global opportunities for high-quality, safe and consistent medicinal cannabis and CBD products to bring about real change in people’s lives and health outcomes.

Learn more about our innovative plans to cultivate change in our Information Memorandum:

 


Advancing the industry through research 

We’re committed to an ongoing programme of advanced research and technology to support the development of our unique, safe, high-quality Medical Kiwi medicinal cannabis products. We plan to adopt relevant global technological advancements and work with industry leaders in research and development which will allow us to be agile in our response to market needs with the goal of setting an elevated benchmark as innovators and leaders in the industry.

Our research schedule consists of:

• International collaboration into the effects of the bioactive components contained in cannabis

• Research into the effects of growing conditions, especially light, on cannabinoid and other active ingredient outcomes, in a replicable way

• Develop, or contribute to, certification of standardisation of the beneficial bioactive properties of cannabis extracts

• Establishing protectable intellectual property

 

 


Cultivating consistency and certainty 

We have an uncompromising commitment to consistency and certainty. We aim to achieve this by breeding and growing cannabis strains of the highest quality in our state-of-the-art facility with indoor production processes, and partnering with global industry-leading companies that have the same commitment.

Our state-of-the-art indoor medicinal cannabis research, cultivation and processing facility will be based in Nelson. We have secured an eight-hectare greenfield site in Brightwater which is strategically located for operational logistics and product distribution. Plans for an 8,000-10,000 m2, two-story building have been developed. The facility will be built by a developer with Medical Kiwi leasing it at market rates. Due to Covid-19 delays, we now expect to start building this facility in the next 12-18 months.

Meanwhile, to become operational sooner, we have secured a lease on a building in Christchurch that is already fit for purpose and can comply with the strict New Zealand and international Medicinal Cannabis licensing conditions. We will operate solely from this facility until our Nelson site is ready.

Sustainability and environmental responsibilities were central to the development of our building plans which include extensive solar power, energy-efficient initiatives and sustainable considerations in all aspects of its ongoing operations, such as waste disposal. It is envisaged that early engineering will maximise energy efficiency so that the entire building and growing system’s electricity can be powered by a one-megawatt solar power energy system. The facility will also incorporate sophisticated security systems, world-class growing room-specific apparatus such as climate control, irrigation, lighting and extraction system.

When in full production, estimated to be early 2024, our Nelson facility is designed to produce 30,000 - 35,000 kg of dried product per annum, with a value today of $100 - $110 million. Our Christchurch facility will be equipped to produce 6,000 - 10,000 kg of dried product, valued today at $18 - $30 million per annum.

We believe our facilities and the products we create will have significant economic benefits for the Nelson Tasman and Christchurch regions, and for New Zealand, and we expect to employ 190 staff when in full production.

Learn more about our facilities in our Information Memorandum:

 


Manufacturing and distributing unique products 

With an emerging industry, it is important that advances are aligned with customer segments and demands. Our marketing insights will inform our cultivation, manufacturing and distribution decisions. We aim to create fit-for-purpose, verified and credible medicinal cannabis and wellbeing products utilising innovative science and technology. By partnering with Empirical Labs, a world leader in formulation and enhanced delivery methods, we believe we can get proven medicinal and wellness cannabis products to both the domestic and global market quicker.

Our exclusive distribution agreements with Vitality CBD and Liberty Herbal Technologies mean we’re well positioned to be one of the first to market with high-quality, innovative products. It also means we could establish distribution networks that we can use for our own unique Medical Kiwi produced products.

Learn more about our facilities in our Information Memorandum:

 


We’re a team committed to scientific, health-based success 

We have a strong health-based, scientific and business savvy team-leading Medical Kiwi’s exciting future. Our team of professionals in medicine, biochemistry, governance, investment and sales oversee Medical Kiwi’s operations.

We’re confident their specialist knowledge, skills and proven corporate governance put Medical Kiwi in a position to achieve our goals and begin generating revenue from early 2021.


Aldo Miccio
Director and Chairman

Aldo has had an extensive international career in senior management and governance as well being a past Mayor of Nelson. His broad experience, spanning 27 years, includes executive chairmanships and directorships in industries ranging from property, retail, agriculture and FMCG to public and state services. With an entrepreneurial spirit and strong commercial background, his expertise includes strategic planning, product management and design, and sales and marketing. The opportunity to enhance community wellbeing and enable changes in people’s lives and health outcomes was a key driver for him co-founding Medical Kiwi.


Peter Win
Director (Operations)

Peter has considerable breadth and depth of business experience, with a passion for pioneering new industries. He has worked in some of the most technically advanced industries, reaching senior levels of management in large-scale international energy projects and the marine engineering industry. Peter’s motivation for co-founding Medical Kiwi was a strong belief in the potential of medicinal cannabis to improve social wellbeing and provide health benefits for the wider community after experiencing how the industry had helped build better communities overseas.


Dr David Porter
MBChB, FRACP
Director (Medical)

David is a Consultant Rheumatologist with 27 years’ experience in the medical field. Porter Rheumatology, David’s practice in Nelson, provides specialist medical and nursing care to people with auto-immune and inflammatory disorders, as well as fibromyalgia patients. David is committed to finding more effective, accessible and affordable ways to manage his patients’ pain. David joined Medical Kiwi because he’s passionate about providing the highest quality medicinal cannabis products at the best possible price point.

“I’ve been prescribing CBD for my fibromyalgia patients since it became legal 2 years ago. Conventional pharmaceuticals tend to be ineffective at treating this condition and commonly cause debilitating side effects like drowsiness or mental fogginess. In stark contrast, CBD has proven to be head and shoulders above other treatments in terms of its lack of side effects, most importantly, but also the very considerable benefits to sleep, relaxation and pain relief. It is by far the most beneficial treatment I’ve used for these patients.”


Dr Michael Packer
PhD (Biochemistry, Cell Biology), MSc (Marine Science), BSc (Biochemistry)
Director (Science and Research)

Michael is a biochemist and natural products biotechnologist with a career spanning 28 years and an extensive track record of scientific research. Algae farming methods for carbon recycling/capture, biofuel production, bio-based materials and for healthy food ingredients, bioactives, nutraceuticals and cosmetic ingredients has formed the basis of his research and professional specialty. His work involves using custom-built bespoke photobioreactors which enable algal growth under controlled conditions. He is excited to bring his knowledge and expertise to Medical Kiwi to help guide rigorous evidence-based development of natural products to benefit human health.


Bruce Whall
CA, B.Comm (UNSW), FAICD
CFO

Bruce is an experienced senior finance and business executive with wide-ranging management experience and a clear understanding of the mechanics of business. With a career spanning 40 years, Bruce has extensive competency across strategic business planning, mergers and acquisitions, finance, accounting, taxation, working capital management, treasury and operations.


Nic Kidson
GM Sales & Marketing

Nic has a sales, marketing and business background that spans more than 20 years across a range of industries, including New Zealand’s niche seafood and wine industries. She brings a wealth of knowledge and diverse practical business application, as well as a passion for health, wellbeing and the environment. Nic is excited about what medical cannabis can do for people and wants to be a part of all the good that it can do for New Zealanders.


Learn more about our team and our partners in our Information Memorandum:

 


Share Offer 

Medical Kiwi is seeking to raise $3 million of investment capital in support of our business strategy.

Current shares on issue

In order to successfully market Medical Kiwi we have used an integrated channel network of trusted partners, including online platforms, private equity funding, and now crowdfunding specialists.

The company was formed with 30,000,000 shares. An additional 2,560,000 shares were issued in the seed funding round. There are now 3,000,000 shares on offer through our crowdfunding investor and wholesale investor raise which will bring the company to a total of 35,560,000 shares. Convertible notes have also been issued in receipt of loans, with the option of converting to shares within the next ten years. Should the option to convert be fully taken up, 3,257,700 shares would be issued.

There are two types of shares on offer: Class B Investor shares and Class A Ordinary shares (more detail below). Class A Ordinary shares shall have the same rights attaching to them as the existing shareholders in the company including the right to vote at shareholders meetings.

Class A Ordinary Shares shall have voting rights attaching to them enabling these shareholders to vote at shareholders meetings.

The minimum holding for Ordinary Shares has been set at 40,000 shares. Wholesale investors must submit a completed certificate confirming the applicant’s status as a wholesale investor as defined in clause 3 of Schedule 1 of the Financial Markets Conduct Act 2013. A copy is available on request. Class A shares will be capped at no more than 50 shareholders.

Class B Investor Shares shall carry non-voting rights at a shareholders meeting. The maximum any one investor can invest via the crowdfunding campaign is $200,000.00 (equivalent to 10% of the maximum capital raising).

 


Financial projections

The financial projections for Medical Kiwi have been based on research from Canada, the United States and Australia while taking into account our local legislation and environment. Some of this information is a combination of data from companies that are currently producing medicinal cannabis products as well as anecdotal information.

Strong growth is expected as regulation takes hold, the industry becomes more established, new market segments emerge and facilities are expanded. Financials are based on a three-way cash- flow forecasting model, incorporating full profit and loss and balance sheet forecasts.

 

Read our financial assumptions and balance sheet in our Information Memorandum: 

 

 


Risks and Mitigation

A flooded market with increased competition
We believe our points of difference will set us apart from the competition. These include being one of the first companies to bring products to the market now that the Medicinal Cannabis Scheme is operational, and establish brand presence. Our operations will aim to cover the full process from cultivation to the production of rapidly evolving consumer products. We believe our seed-to-sale vertical integration approach will set us apart from other companies in New Zealand who might focus solely on cultivation or research.


Unforeseen circumstances delay the build of the facility, research and product development
We have consulted extensively with design experts in relation to the layout and design of our state-of-the-art facility. In the unlikely event of further delays, our planning ensures we can continue to operate out of our Christchurch factory while building work is being completed.


Our Christchurch factory is not ready on time
If the ontime completion of the Christchurch facility in October 2020 was delayed, it would affect the timing of the first cultivation cycle, and could affect sales revenue and license approval timing. Our team and processes will attempt to mitigate this risk.


Our Hektares deal falling through or not being delivered in full
We have spent significant time on this deal. We currently have an MOU and a supply agreement in place with Hektares, and once our facility is complete in Christchurch we will be formulating an order and delivery schedule from January onwards. As noted in the risk above, our timelines could be delayed. There is also a possibility that in Year 2 of our agreement we will not be able to fulfill the full order as noted in our financial assumptions, but we are evaluating different ways as our plans rollout of meeting their current demand (and that of other potential buyers).


Failure to raise capital
If we are unable to raise the minimum $500,000 sought, we will seek further funding from private investors.


Working Capital/Cashflow
Our financial forecasting shows that we have adequate working capital.


Market price of raw materials reduces
We will aim to produce value-adding high-grade medical cannabis products as a point of difference.


Failure of crops
Our crops will be grown indoors in a safe, controlled environment. We will rotate and segment our growing areas. Both of these approaches will minimise the risk of damage to crops.


Challenges with distribution of imported and our own products
We have successfully established distribution and uptake agreements with international companies with Memorandum of Understandings in place and additional agreements currently under discussion. Our strategy to import and distribute our partners’ products is designed to have a two-fold advantage: 1. It would create short-term and ongoing cash flow for the business. 2. It would establish distribution networks that could be utilised once Medical Kiwi production is established.

 

 

 


A Note from PledgeMe

We have completed a Veda check on the company and its Directors, as well as Google checks. One Director, Peter Win, had two bank defaults on his credit report from a previous relationship that he is disputing. There were no other adverse findings. The Directors have also all passed police vetting and responsible person's tests as part of the cannabis research license approval.

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Offer Details

Current Valuation 32,560,000
Raise Minimum 5,000
Raise Maximum 1,000,000
Share Price 1.00
Maximum Shares Offered 1,000,000
Explanation of valuation:

Our offer reflects a valuation undertaken by financial advisors and has been based on international market research from Canada, Australia and the United States of America.

This includes anecdotal information as well as data from companies currently producing medicinal cannabis products. It is important to acknowledge that, as this is a new and emerging industry both globally and in New Zealand, it is difficult to perform a comparative analysis.

We have valued Medical Kiwi and the company shares at a pre-raise valuation of $32,560,000.

The valuation we believe is conservative, with Medical Kiwi adopting lower profitability and revenue formulas than what is generally accepted in the industry. We have discounted valuation multipliers of net profit after tax to a factor of approximately 2.75 based on NPAT of $11,880,022 by the end of 2021, to give us our valuation of $32,560,000. This is of course backed against sales agreements in place and assumptions as outlined in earlier sections.

The valuation we have undertaken can be compared to other similar companies in the industry. The table in our Information Memorandum reflects three cannabis companies with a presence in New Zealand and Australia, and how their respective actual retained earnings (losses) compare with market capitalisation on their respective stock exchanges.

Financial Summary

Prev Year Current Year Est. FY 2022 Est. FY 2023
Revenue NZ $0 NZ $0 NZ $23,582,667 NZ $36,486,833
Operating Expenses NZ $575,247 NZ $484,573 NZ $4,710,601 NZ $6,774,931
EBITDA -NZ $575,247 -NZ $484,573 NZ $16,338,816 NZ $24,631,502
Net Profit -NZ $575,774 -NZ $584,922 NZ $11,880,022 NZ $17,537,783

Company Details

Company Name: Medical Kiwi Limited

Company Number: 7135337

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Company Documents

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

Director Details

Name Role Profile URL Invested?
Aldo Miccio Director and Chairman https://au.linkedin.com/in/aldomiccio
Peter Win Director (Operations) https://nz.linkedin.com/in/peter-win
Dr. David Porter Director (Medical) https://nz.linkedin.com/in/david-porter-nz
Dr. Michael Packer Director (Science and Research) https://nz.linkedin.com/in/mike-packer

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


Hi, so I was told my address couldn't be verified so emailed 2 types of proof of address that was 2 days ago and I havent heard back. Can someone please tell me why.
Thanks Rachelle

Posted on 02-09-2020 by Rachelle&Chris Deeprose

Hi Rachelle, thanks for your question. We have had a lot of responses and we are working our way through the AML processing to verify investors. You should hear from the team within the next few days.
Much appreciated,
Claire (and PledgeMe team)

Answered on 02-09-2020 by Medical Kiwi


What are the sales channels for the Hektares? they seem to be light on substance, and only seem to have a not very special deal with CDA clinics in Australia.

Posted on 04-09-2020 by Shane Le Brun

Hi Shane
Hektares sales channels are through medicinal cannabis manufacturers and wholesalers as well as some prescription clinics. These clients are a combination of entities that they have existing strategic relationships with, as well as clients of entities that they have the strategic relationships with, across North America, Europe and Asia. Aldo is arranging calls with potential wholesale investors, so would be happy to call you too? Please feel free to email me directly: [email protected] Regards Nic

Answered on 07-09-2020 by Medical Kiwi

Followers of Medical Kiwi for Wholesale Investors

Nikki Braniff-Jones
2020-09-16 19:25:03 +1200
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2020-09-15 21:07:08 +1200

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2020-09-14 16:31:07 +1200
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2020-09-14 10:07:19 +1200
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2020-09-11 09:41:19 +1200

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2020-09-02 11:51:38 +1200
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2020-08-26 16:42:36 +1200
This campaign was successful and got its funding on 17/09/2020 at 8:00 PM.

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Investor Perks

BUDDING INVESTOR

NZ $5,000.00+

B Class Investor Shares. Invite to our Annual General Meeting, hosted by our Directors and wider team, with refreshments provided. Option to have your name displayed at our facility. A private tour of our facility.

FLOWERING INVESTOR

NZ $40,000.00+

A Class Ordinary Shares. Invite to our Annual General Meeting, hosted by our Directors and wider team, with refreshments provided. Option to have your name displayed at our facility. A private tour of our facility. Voting rights.

Warning statement about equity crowdfunding

Equity crowdfunding is risky.

Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative and carries high risks.

You may lose your entire investment, and must be in a position to bear this risk without undue hardship.

New Zealand 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 offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.

Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.