Solagri Energy

By Peter Saunders

PledgeMe.Investment

Technology,



NZ $182,500 pledged


36 people pledged


5 days left


NZ $500,000 minimum target


Min

NZ$500,000

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NZ$2,000,000

36 36% Complete

Pledges will only be confirmed if the target is reached by: 30/09/2021 at 5:00 PM (NZDT)

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About

Solagri Energy

The Opportunity

New Zealand is at the start of an energy transformation as it moves away from fossil fuels toward electricity as the primary source of energy to power the transport and industrial sectors.

The dairy sector, with roughly 11,200 dairy sheds, is a large consumer of electricity in New Zealand. The energy at a dairy shed milks the farm’s cows, cools the milk, heats the water to wash the shed, provides light and in rotary sheds moves the entire herd through the milking process automatically.

Solar generation, energy storage (batteries) and electric vehicles (EVs) will revolutionise our rural economy and electricity system. In particular they will revolutionise dairy farming due to these farms’ enormous reliance on electricity. To maximise gains from these disruptive emerging technologies, Solagri is working to establish a centre of excellence in rural solar and farm battery design. Based in Canterbury, the focus is on the development of robust, flexible systems that suit New Zealand’s rural conditions. To this end, our recent inclusion in the Orion Energy Accelerator will enable us to build on existing relationships, tap into expertise and develop new partnerships and alliances.

Our Solar-As-A-Service Offering to Farmers

The Solagri System is designed to be deployed on a dairy farm as a service with no capital invested by the farmer. The system has the ability to supply all of the dairy shed’s energy requirements under a contract that aims to reduce electricity costs for farmers, increase farm energy resilience, and improve the farm’s sustainability; all while supporting rural electricity networks and NZ’s transformation to a low-carbon economy.

By remaining grid connected, Solagri is able to offer farmers a compelling solar energy service that is competitive with the incumbent government owned generator-retailers (Gentailers).

The benefits to farmers include:

• No capital up front - farming is a capital intensive business. With a Solagri solar array there is no capital outlay required from the farmer. We build and manage the entire solar array and sell the energy generated to the farmer or back to the grid. We also supply any additional energy required by the farm from the grid.

• Strength in numbers – we’re building an electricity buying group that will give farmers real strength in numbers. As Solagri’s customer base grows, our purchasing power in the wholesale energy market will ensure the price farmers pay for electricity derived from the grid remains extremely competitive.

• Competitive pricing - in many cases we can immediately give farmers a better overall deal than they’re currently getting. 

• Price stability - a contract with Solagri will allow the farmer to lock in the price they pay for the electricity generated by the array for 20 years (pegged to CPI). Eliminating their exposure to future price shocks.

• Farm sustainability - farmers tell us solar gets a big tick on their Farm Environment Plan (FEP).


The Team

Our experienced team has a wide range of expertise in electrical engineering with a focus on renewable energy, finance, business development and agri-business. A number of team members are based off-shore, working on significant renewable energy projects in Australia, Brazil and the US.

Through our team we have direct access to some of the worlds leading manufacturers and insight into international trends and policy outcomes. The team includes:

Managing Director

Peter Saunders - Peter is a co-founder of Solagri and runs the business day-to-day. Prior to Solagri, he spent 20+ years working in the wine sector. He has built several award-winning export wine brands and project managed the development of a winery and several vineyards. Peter has recently worked with a number of start-up businesses including Puro NZ, consulting to them on strategy and business development.

Directors

Hamish Hutton - A co-founder of Solagri, Hamish is a leading B2B marketing manager and consultant, with considerable experience in marketing to dairy farmers, Hamish ran the marketing and business development for Fonterra’s launch of the successful MyMilk brand and won recognition as the TVNZ Export Marketer of the year with Tait Electronics.

Luke McDonald - Based in Brisbane, Luke has over 20 years’ experience in the commercial and legal aspects of major solar projects. Luke is a Co-Founder and the CEO of Renewable Energy Partners, an originator and developer of large scale renewable energy projects across wind, solar PV, hydro and storage. Luke is an Alumni Board Member of Bond University Limited, and an advisory board member of a number of start-up energy related businesses.

Daniel Saunders - Dan is a New York based AVP/Partner with Cognizant Technology Solutions. He has an MBA from Melbourne Business School and 25+ years working across a broad range of sectors including commercial forestry, farm forestry investment and management, property development, business strategy consulting and complex program delivery.

Advisors

Frank Geoghegan - Frank is an independent engineering consultant with extensive experience in the Australasian Electricity sector. Formerly with ECNZ and then Contact Energy, more recently Frank has worked on numerous distributed energy projects and consulted to Transpower on their battery strategy. Frank has an electrical engineering degree and an MBA from Deakin University.

Marco Stacke Silva - Originally from Brazil, Marco has a degree in electrical engineering and an MBA from Melbourne University. Marco is a renewable energy expert with 20+ years’ experience offering a unique mix of skills in project finance and development, construction management and the delivery of utility hydro, wind, and solar projects on 3 continents.

Dave Williams - Dave is an advisor to numerous corporates, not-for-profits and academics on solar, battery storage technology and project finance. He has held various senior management roles including Chief Commercial Officer for CalCom Energy, a leading Californian agrisolar specialist. A Sir Edmund Hillary Fellow, Dave has a degree in mechanical engineering from Georgia Institute of Technology.

Tim Saunders - Tim has a wealth of experience in governance, strategy and business development. He has held directorships with a number of Crown owned and listed companies including Contact Energy, Solid Energy and Pyne Gould Corporation. Tim advised NZ Treasury on the reforms of both the Electricity sector and the Dairy sector.

Willy Trolove - Willy is a communications and stakeholder engagement specialist in the infrastructure sector. He has a degree in civil engineering from Canterbury University and has worked on large engineering projects in NZ and the UK. Willy was director of the government research and communications unit for Rt Hon John Key. Most recently he has contracted/consulted to MBIE and Waka Kotahi NZ Transport Agency.


Our Journey So Far

Solagri was founded in 2018 by a diverse group of people with expertise in renewable energy engineering, agriculture, finance, marketing and land development. The team spent three years researching and developing the optimum renewable energy system for New Zealand dairy farms - in terms of performance, durability, cost and ease of construction. 

In early 2020 Solagri received funding assistance from MainPower New Zealand to develop and test an industry-leading distributed energy system for dairy farms. This proof-of-concept (P1) system which is comprised of a 58 kWp solar array coupled to a 120kWh grid connected battery, is operating today on a dairy farm near Rangiora, North Canterbury.

The system is the only array in New Zealand to employ several innovative technologies that make our arrays faster to deploy, more durable and higher performing over the long term. Initial results from P1 have been successful, generating solid, on-target revenues for the business.

Since late 2020, we have been engaging with farmers, selling the concept of capital-free solar as a service. We now have a growing list of enthusiastic soon-to-be customers who have signed heads of agreements with Solagri in anticipation of the successful completion of this capital raise.

 


Exit Strategy

The directors are primarily focussed on building the business. However, potential routes to exit include:

• full or partial in-trade sale to an incumbent energy company.

• stock exchange listing (IPO).

Share Liquidity

The directors are considering different share registry options for the company with the aim of enabling shareholder liquidity in the future.

 


A Note from PledgeMe

We have completed Veda checks on the company, Solagri Holdings Limited, and their Directors, as well as Google and Insolvency checks. One Director, Peter Saunders, has been noted to have one default on his credit report. There were no other adverse findings. 


Updates 7

One Week Left to Pledge

23/09/2021 at 4:11 PM

Thank you to everyone who has pledged so far. We still have a way to go and only one week left to get there.
We really believe that it is important to get distributed energy out to the rural networks. It will strengthen their resilience and free up energy that can be diverted to charge EV’s. If you’re still mulling it over, your investment in Solagri will go a long way to help us do that.
Solagri is currently the only company in New Zealand that is offering farmers solar-as a service, a capital free solar energy system that will, in time, incorporate a large battery and EV charging facility.
We are ready to sign up hundreds of dairy farms and quickly become one of New Zealand’s most innovative rural energy retailers, focused on one of its most reliably profitable economic sectors. By attaining first mover advantage, Solagri will be in a strong position to build a highly profitable and sustainable energy business for our shareholders.

Solagri Plans to Connect 1500 Dairy Farms to the National Grid in the Next Five Years

09/09/2021 at 2:54 PM

If you have a National Business Review subscription, or would like to, we have a great article about how we're planning to connect 1,500 dairy farms to the national grid over the next five years.

https://www.nbr.co.nz/story/solagri-energy-seeking-4m-bring-solar-dairy-farmsPeter Saunders

You need to pledge to see this update.

Campaign extension

31/08/2021 at 5:40 PM

Hi Solagri friends and followers,

Firstly, a massive thanks to all those who have pledged so far. We really appreciate all of your pledges and support!

We’re a quarter of our way to the target and have decided that, due to the extenuating circumstances caused by lockdown, we’ll take the opportunity offered by PledgeMe to extend our campaign out to the 30th of September. This allows all of those still contemplating an investment in Solagri Energy to think about it a bit more before they jump in and make the pledge. And it allows those of you that have already made a pledge to tell a few more of your friends about us and what we’re doing.

An investment in Solagri is an investment in New Zealand’s most innovative rural electricity retailer. However, one of the big benefits to what we're about is freeing up electricity for use in the towns and cities, and helping reduce the likelihood of future blackouts like the one in the Waikato a few weeks ago.

Thanks again for all of your support. You’ll be hearing more from us soon.

Cheers, Peter

Solagri blog post - The big disconnect

31/08/2021 at 2:36 PM

Hi there friends of Solagri,

Here's a blog post that explains some of the value Solagri systems bring to the rural electricity networks. At a time when we need more generation Solagri's solution is certainly a step in the right direction....

https://www.solagri.energy/blog/the-big-disconnect

You need to pledge to see this update.

Solagri Energy is part of the solution to the current electricity crisis

10/08/2021 at 4:24 PM

The past 24 hours have been pretty interesting in NZ's electricity markets. The blackouts, coupled with record spot prices, have exposed both NZ's lack of generation and the vulnerabilities of any industry that relies on affordable electricity and highlights how relevant Solagri's business model is.

    Details

    Offer Details

    Current Valuation 13,174,269
    Raise Minimum 500,000
    Raise Maximum 2,000,000
    Share Price 1.00
    Minimum Pledge 2,000.00
    Maximum Shares Offered 2,000,000
    Explanation of valuation:

    Due to the steep growth curve of the company and the lack of forecast debt, an EBITDA multiple is not an appropriate method of valuation at this stage in the company’s lifecycle. However, there are numerous valuation methodologies that give an indication as to the approximate value of Solagri:

    Using a Revenue Multiple is a commonly used method to value private start-up companies, particularly in a crowdfunding context, and a multiple of four to 5 times revenue in the third year of operation is commonly used. Research by Deloitte in 2017 showed that revenue multiples in the renewable energy sector in 2016 averaged 6.3 in Europe and 4.8 globally. On these multiples, Solagri Holdings could be valued at between $31,973,879 and $41,965,716.

    Projected revenues in 2024 (FY3) are $6,661,225. Using a conservative multiplier of 2 gives Solagri Holdings a value of $13,322,450. To align with the number of shares on issue, a pre-raise value of $13,174,269 has been used giving a share value of $1.

    Financial Summary

    Prev Year Current Year Est. FY 2023 Est. FY 2024
    Revenue NZ $0 NZ $835,200 NZ $2,795,859 NZ $6,661,225
    Operating Expenses NZ $0 NZ $199,620 NZ $300,247 NZ $378,590
    EBITDA NZ $0 NZ $39,821 NZ $517,351 NZ $953,415
    Net Profit NZ $0 NZ $7,123 NZ $347,597 NZ $932,482

    Company Details

    Company Name: Solagri Holdings Limited

    Company Number: 6624473

    Company Documents

    Solagri-Investor-Memorandum_final.pdf

    (application/pdf, 3.57 MB, uploaded 01 August 2021)

    Constitution_of_Solagri_Holdings_Limited.pdf

    (application/pdf, 365 KB, uploaded 01 August 2021)

    Company_Extract_Solagri_Holdings_Ltd.pdf

    (application/pdf, 1.07 MB, uploaded 04 July 2021)

    Certificate_of_Incorporation_Solagri_Holdings_Ltd.pdf

    (application/pdf, 589 KB, uploaded 04 July 2021)

    Director Details

    Name Role Profile URL Invested?
    Hamish Hutton Director https://www.linkedin.com/in/hamish-hutton-59b1582/
    Luke McDonald Director https://www.linkedin.com/in/luke-mcdonald-25269810a/
    Peter Saunders Director https://www.linkedin.com/in/peter-saunders-aa713a31/?originalSubdomain=nz
    Daniel Saunders Director http://www.linkedin.com/in/daniel-saunders-32156a/

    Questions 5

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


    Hi Guys, I notice there are 2 classes of shares. I'm sure the smaller shareholders would like their equity holding to have votes attached, just like the big boys. The share-market has many minority holders, who can vote at meetings. Is there any reason why the Investor/class B holders have diminished rights as compared to larger holders? Also if you list on the NZX, will investor shares have full rights?

    Posted on 04-08-2021 by Maurice Greenough

    Hi Maurice,
    thanks for the question. The use of this type of nominee structure is common in early stage equity capital raises and particularly in crowdfunding, recent examples include Puro and UI Charging and there are plenty of others.
    In the event that Solagri Energy was listed on the NZX in the future, the directors would most likely propose the investor shares were given voting rights, requiring a shareholder’s resolution be passed at that time.
    Cheers, Peter

    Answered on 06-08-2021 by Peter Saunders


    Hi, if this was an opportunity to invest in your operating company, Solagri Holdings, I would invest. However, this appears to be a passive investment opportunity in the solar panels - is that right?

    Posted on 21-08-2021 by Dave Johnston

    Hi Dave,
    Good news, the investment opportunity is in the energy business - Solagri Holdings Limited.
    Solagri Holdings will use most (about 80%) of the equity raised from this round to build the first 20 systems and get the asset partnership (SAP) going.
    Future funding of the asset partnership will come predominantly from institutional investors.
    I hope that clarifies things for you.
    Cheers, Peter

    Answered on 21-08-2021 by Peter Saunders


    Hi Peter, on that basis, I’ll invest. It would be great to see Solagri using some bank debt to accelerate expansion. Dave

    Posted on 22-08-2021 by Dave Johnston

    Hi Dave,
    firstly, thanks for the investment and support.
    I include banks in the 'institutions' that are likely to invest. We have been in discussion with a number of different types of investor and expect there will be a range once the partnership is up and running. There may also be room for private investors looking for long term, fixed return investment opportunities.
    Cheers, Peter

    Answered on 22-08-2021 by Peter Saunders


    In the "INVESTMENT MEMORANDUM" you state "The system is the only array in New Zealand to employ several innovative technologies that make our arrays faster to deploy, more durable and higher performing over the long term." What are the "several innovative technologies", there is no mention of them other that the solar racking doesn't require pole driving?

    Also mention under the R&D section regarding battery deployment that it would "offer the scope to provide lucrative services to bolster the local grid". What are these lucrative services and are they included in the financial picture or just indicating further possibility of income?

    How do you aim to do better than the current average buyback rate for power of about 8.0c/ kWh?

    Posted on 31-08-2021 by Steve

    Hi Steve,

    great questions...

    While our racking system is pretty innovative on it's own, we're also using the latest bi-facial panes on the market and are involved in several trials of new communications equipment that will improve our efficiency and responsiveness.

    The services to the grid include demand management as well as voltage and frequency support. they are not included in the cashflows.

    This year we have been selling directly into the grid, and in several months averaged around 26c per kWh sold on the wholesale market. However, that's not normal because this has been a low-lake year. We are looking at options to contract some of our surplus energy and batteries will open up our options significantly in the future.

    Cheers, Peter

    Answered on 03-09-2021 by Peter Saunders


    You mention "a growing list of enthusiastic soon-to-be customers". Can you please provide numbers? Or at least a better indication of how many?

    Posted on 09-09-2021 by Tim Charlesworth

    Hi Tim,

    There is a lot of interest among farmers in what we are offering, particularly given the uncertainties of the power supply over the past month.

    To give you an idea, we have had a further 45 expressions of interest in the past 5 weeks on our website from farmers interested in having a Solagri system installed on their farm.

    Cheers, Peer

    Answered on 10-09-2021 by Peter Saunders

    Pledgers 36

    Malcolm Harbrow
    2021-08-10 18:05:10 +1200
    Graeme John Legg
    2021-08-10 16:38:10 +1200
    Luke McDonald
    2021-08-10 14:40:49 +1200
    Jeff Annan
    2021-08-09 21:11:53 +1200
    Alistair Ford
    2021-08-05 11:20:31 +1200
    Carol Gallagher
    2021-08-04 09:42:20 +1200

    Solagri Energy

    The Opportunity

    New Zealand is at the start of an energy transformation as it moves away from fossil fuels toward electricity as the primary source of energy to power the transport and industrial sectors.

    The dairy sector, with roughly 11,200 dairy sheds, is a large consumer of electricity in New Zealand. The energy at a dairy shed milks the farm’s cows, cools the milk, heats the water to wash the shed, provides light and in rotary sheds moves the entire herd through the milking process automatically.

    Solar generation, energy storage (batteries) and electric vehicles (EVs) will revolutionise our rural economy and electricity system. In particular they will revolutionise dairy farming due to these farms’ enormous reliance on electricity. To maximise gains from these disruptive emerging technologies, Solagri is working to establish a centre of excellence in rural solar and farm battery design. Based in Canterbury, the focus is on the development of robust, flexible systems that suit New Zealand’s rural conditions. To this end, our recent inclusion in the Orion Energy Accelerator will enable us to build on existing relationships, tap into expertise and develop new partnerships and alliances.

    Our Solar-As-A-Service Offering to Farmers

    The Solagri System is designed to be deployed on a dairy farm as a service with no capital invested by the farmer. The system has the ability to supply all of the dairy shed’s energy requirements under a contract that aims to reduce electricity costs for farmers, increase farm energy resilience, and improve the farm’s sustainability; all while supporting rural electricity networks and NZ’s transformation to a low-carbon economy.

    By remaining grid connected, Solagri is able to offer farmers a compelling solar energy service that is competitive with the incumbent government owned generator-retailers (Gentailers).

    The benefits to farmers include:

    • No capital up front - farming is a capital intensive business. With a Solagri solar array there is no capital outlay required from the farmer. We build and manage the entire solar array and sell the energy generated to the farmer or back to the grid. We also supply any additional energy required by the farm from the grid.

    • Strength in numbers – we’re building an electricity buying group that will give farmers real strength in numbers. As Solagri’s customer base grows, our purchasing power in the wholesale energy market will ensure the price farmers pay for electricity derived from the grid remains extremely competitive.

    • Competitive pricing - in many cases we can immediately give farmers a better overall deal than they’re currently getting. 

    • Price stability - a contract with Solagri will allow the farmer to lock in the price they pay for the electricity generated by the array for 20 years (pegged to CPI). Eliminating their exposure to future price shocks.

    • Farm sustainability - farmers tell us solar gets a big tick on their Farm Environment Plan (FEP).


    The Team

    Our experienced team has a wide range of expertise in electrical engineering with a focus on renewable energy, finance, business development and agri-business. A number of team members are based off-shore, working on significant renewable energy projects in Australia, Brazil and the US.

    Through our team we have direct access to some of the worlds leading manufacturers and insight into international trends and policy outcomes. The team includes:

    Managing Director

    Peter Saunders - Peter is a co-founder of Solagri and runs the business day-to-day. Prior to Solagri, he spent 20+ years working in the wine sector. He has built several award-winning export wine brands and project managed the development of a winery and several vineyards. Peter has recently worked with a number of start-up businesses including Puro NZ, consulting to them on strategy and business development.

    Directors

    Hamish Hutton - A co-founder of Solagri, Hamish is a leading B2B marketing manager and consultant, with considerable experience in marketing to dairy farmers, Hamish ran the marketing and business development for Fonterra’s launch of the successful MyMilk brand and won recognition as the TVNZ Export Marketer of the year with Tait Electronics.

    Luke McDonald - Based in Brisbane, Luke has over 20 years’ experience in the commercial and legal aspects of major solar projects. Luke is a Co-Founder and the CEO of Renewable Energy Partners, an originator and developer of large scale renewable energy projects across wind, solar PV, hydro and storage. Luke is an Alumni Board Member of Bond University Limited, and an advisory board member of a number of start-up energy related businesses.

    Daniel Saunders - Dan is a New York based AVP/Partner with Cognizant Technology Solutions. He has an MBA from Melbourne Business School and 25+ years working across a broad range of sectors including commercial forestry, farm forestry investment and management, property development, business strategy consulting and complex program delivery.

    Advisors

    Frank Geoghegan - Frank is an independent engineering consultant with extensive experience in the Australasian Electricity sector. Formerly with ECNZ and then Contact Energy, more recently Frank has worked on numerous distributed energy projects and consulted to Transpower on their battery strategy. Frank has an electrical engineering degree and an MBA from Deakin University.

    Marco Stacke Silva - Originally from Brazil, Marco has a degree in electrical engineering and an MBA from Melbourne University. Marco is a renewable energy expert with 20+ years’ experience offering a unique mix of skills in project finance and development, construction management and the delivery of utility hydro, wind, and solar projects on 3 continents.

    Dave Williams - Dave is an advisor to numerous corporates, not-for-profits and academics on solar, battery storage technology and project finance. He has held various senior management roles including Chief Commercial Officer for CalCom Energy, a leading Californian agrisolar specialist. A Sir Edmund Hillary Fellow, Dave has a degree in mechanical engineering from Georgia Institute of Technology.

    Tim Saunders - Tim has a wealth of experience in governance, strategy and business development. He has held directorships with a number of Crown owned and listed companies including Contact Energy, Solid Energy and Pyne Gould Corporation. Tim advised NZ Treasury on the reforms of both the Electricity sector and the Dairy sector.

    Willy Trolove - Willy is a communications and stakeholder engagement specialist in the infrastructure sector. He has a degree in civil engineering from Canterbury University and has worked on large engineering projects in NZ and the UK. Willy was director of the government research and communications unit for Rt Hon John Key. Most recently he has contracted/consulted to MBIE and Waka Kotahi NZ Transport Agency.


    Our Journey So Far

    Solagri was founded in 2018 by a diverse group of people with expertise in renewable energy engineering, agriculture, finance, marketing and land development. The team spent three years researching and developing the optimum renewable energy system for New Zealand dairy farms - in terms of performance, durability, cost and ease of construction. 

    In early 2020 Solagri received funding assistance from MainPower New Zealand to develop and test an industry-leading distributed energy system for dairy farms. This proof-of-concept (P1) system which is comprised of a 58 kWp solar array coupled to a 120kWh grid connected battery, is operating today on a dairy farm near Rangiora, North Canterbury.

    The system is the only array in New Zealand to employ several innovative technologies that make our arrays faster to deploy, more durable and higher performing over the long term. Initial results from P1 have been successful, generating solid, on-target revenues for the business.

    Since late 2020, we have been engaging with farmers, selling the concept of capital-free solar as a service. We now have a growing list of enthusiastic soon-to-be customers who have signed heads of agreements with Solagri in anticipation of the successful completion of this capital raise.

     


    Exit Strategy

    The directors are primarily focussed on building the business. However, potential routes to exit include:

    • full or partial in-trade sale to an incumbent energy company.

    • stock exchange listing (IPO).

    Share Liquidity

    The directors are considering different share registry options for the company with the aim of enabling shareholder liquidity in the future.

     


    A Note from PledgeMe

    We have completed Veda checks on the company, Solagri Holdings Limited, and their Directors, as well as Google and Insolvency checks. One Director, Peter Saunders, has been noted to have one default on his credit report. There were no other adverse findings. 


    One Week Left to Pledge

    23/09/2021 at 4:11 PM

    Thank you to everyone who has pledged so far. We still have a way to go and only one week left to get there.
    We really believe that it is important to get distributed energy out to the rural networks. It will strengthen their resilience and free up energy that can be diverted to charge EV’s. If you’re still mulling it over, your investment in Solagri will go a long way to help us do that.
    Solagri is currently the only company in New Zealand that is offering farmers solar-as a service, a capital free solar energy system that will, in time, incorporate a large battery and EV charging facility.
    We are ready to sign up hundreds of dairy farms and quickly become one of New Zealand’s most innovative rural energy retailers, focused on one of its most reliably profitable economic sectors. By attaining first mover advantage, Solagri will be in a strong position to build a highly profitable and sustainable energy business for our shareholders.

    Solagri Plans to Connect 1500 Dairy Farms to the National Grid in the Next Five Years

    09/09/2021 at 2:54 PM

    If you have a National Business Review subscription, or would like to, we have a great article about how we're planning to connect 1,500 dairy farms to the national grid over the next five years.

    https://www.nbr.co.nz/story/solagri-energy-seeking-4m-bring-solar-dairy-farmsPeter Saunders

    You need to pledge to see this update.

    Campaign extension

    31/08/2021 at 5:40 PM

    Hi Solagri friends and followers,

    Firstly, a massive thanks to all those who have pledged so far. We really appreciate all of your pledges and support!

    We’re a quarter of our way to the target and have decided that, due to the extenuating circumstances caused by lockdown, we’ll take the opportunity offered by PledgeMe to extend our campaign out to the 30th of September. This allows all of those still contemplating an investment in Solagri Energy to think about it a bit more before they jump in and make the pledge. And it allows those of you that have already made a pledge to tell a few more of your friends about us and what we’re doing.

    An investment in Solagri is an investment in New Zealand’s most innovative rural electricity retailer. However, one of the big benefits to what we're about is freeing up electricity for use in the towns and cities, and helping reduce the likelihood of future blackouts like the one in the Waikato a few weeks ago.

    Thanks again for all of your support. You’ll be hearing more from us soon.

    Cheers, Peter

    Solagri blog post - The big disconnect

    31/08/2021 at 2:36 PM

    Hi there friends of Solagri,

    Here's a blog post that explains some of the value Solagri systems bring to the rural electricity networks. At a time when we need more generation Solagri's solution is certainly a step in the right direction....

    https://www.solagri.energy/blog/the-big-disconnect

    You need to pledge to see this update.

    Solagri Energy is part of the solution to the current electricity crisis

    10/08/2021 at 4:24 PM

    The past 24 hours have been pretty interesting in NZ's electricity markets. The blackouts, coupled with record spot prices, have exposed both NZ's lack of generation and the vulnerabilities of any industry that relies on affordable electricity and highlights how relevant Solagri's business model is.

      Offer Details

      Current Valuation 13,174,269
      Raise Minimum 500,000
      Raise Maximum 2,000,000
      Share Price 1.00
      Minimum Pledge 2,000.00
      Maximum Shares Offered 2,000,000
      Explanation of valuation:

      Due to the steep growth curve of the company and the lack of forecast debt, an EBITDA multiple is not an appropriate method of valuation at this stage in the company’s lifecycle. However, there are numerous valuation methodologies that give an indication as to the approximate value of Solagri:

      Using a Revenue Multiple is a commonly used method to value private start-up companies, particularly in a crowdfunding context, and a multiple of four to 5 times revenue in the third year of operation is commonly used. Research by Deloitte in 2017 showed that revenue multiples in the renewable energy sector in 2016 averaged 6.3 in Europe and 4.8 globally. On these multiples, Solagri Holdings could be valued at between $31,973,879 and $41,965,716.

      Projected revenues in 2024 (FY3) are $6,661,225. Using a conservative multiplier of 2 gives Solagri Holdings a value of $13,322,450. To align with the number of shares on issue, a pre-raise value of $13,174,269 has been used giving a share value of $1.

      Financial Summary

      Prev Year Current Year Est. FY 2023 Est. FY 2024
      Revenue NZ $0 NZ $835,200 NZ $2,795,859 NZ $6,661,225
      Operating Expenses NZ $0 NZ $199,620 NZ $300,247 NZ $378,590
      EBITDA NZ $0 NZ $39,821 NZ $517,351 NZ $953,415
      Net Profit NZ $0 NZ $7,123 NZ $347,597 NZ $932,482

      Company Details

      Company Name: Solagri Holdings Limited

      Company Number: 6624473

      Company Documents

      Solagri-Investor-Memorandum_final.pdf

      (application/pdf, 3.57 MB, uploaded 01 August 2021)

      Constitution_of_Solagri_Holdings_Limited.pdf

      (application/pdf, 365 KB, uploaded 01 August 2021)

      Company_Extract_Solagri_Holdings_Ltd.pdf

      (application/pdf, 1.07 MB, uploaded 04 July 2021)

      Certificate_of_Incorporation_Solagri_Holdings_Ltd.pdf

      (application/pdf, 589 KB, uploaded 04 July 2021)

      Director Details

      Name Role Profile URL Invested?
      Hamish Hutton Director https://www.linkedin.com/in/hamish-hutton-59b1582/
      Luke McDonald Director https://www.linkedin.com/in/luke-mcdonald-25269810a/
      Peter Saunders Director https://www.linkedin.com/in/peter-saunders-aa713a31/?originalSubdomain=nz
      Daniel Saunders Director http://www.linkedin.com/in/daniel-saunders-32156a/

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


      Hi Guys, I notice there are 2 classes of shares. I'm sure the smaller shareholders would like their equity holding to have votes attached, just like the big boys. The share-market has many minority holders, who can vote at meetings. Is there any reason why the Investor/class B holders have diminished rights as compared to larger holders? Also if you list on the NZX, will investor shares have full rights?

      Posted on 04-08-2021 by Maurice Greenough

      Hi Maurice,
      thanks for the question. The use of this type of nominee structure is common in early stage equity capital raises and particularly in crowdfunding, recent examples include Puro and UI Charging and there are plenty of others.
      In the event that Solagri Energy was listed on the NZX in the future, the directors would most likely propose the investor shares were given voting rights, requiring a shareholder’s resolution be passed at that time.
      Cheers, Peter

      Answered on 06-08-2021 by Peter Saunders


      Hi, if this was an opportunity to invest in your operating company, Solagri Holdings, I would invest. However, this appears to be a passive investment opportunity in the solar panels - is that right?

      Posted on 21-08-2021 by Dave Johnston

      Hi Dave,
      Good news, the investment opportunity is in the energy business - Solagri Holdings Limited.
      Solagri Holdings will use most (about 80%) of the equity raised from this round to build the first 20 systems and get the asset partnership (SAP) going.
      Future funding of the asset partnership will come predominantly from institutional investors.
      I hope that clarifies things for you.
      Cheers, Peter

      Answered on 21-08-2021 by Peter Saunders


      Hi Peter, on that basis, I’ll invest. It would be great to see Solagri using some bank debt to accelerate expansion. Dave

      Posted on 22-08-2021 by Dave Johnston

      Hi Dave,
      firstly, thanks for the investment and support.
      I include banks in the 'institutions' that are likely to invest. We have been in discussion with a number of different types of investor and expect there will be a range once the partnership is up and running. There may also be room for private investors looking for long term, fixed return investment opportunities.
      Cheers, Peter

      Answered on 22-08-2021 by Peter Saunders


      In the "INVESTMENT MEMORANDUM" you state "The system is the only array in New Zealand to employ several innovative technologies that make our arrays faster to deploy, more durable and higher performing over the long term." What are the "several innovative technologies", there is no mention of them other that the solar racking doesn't require pole driving?

      Also mention under the R&D section regarding battery deployment that it would "offer the scope to provide lucrative services to bolster the local grid". What are these lucrative services and are they included in the financial picture or just indicating further possibility of income?

      How do you aim to do better than the current average buyback rate for power of about 8.0c/ kWh?

      Posted on 31-08-2021 by Steve

      Hi Steve,

      great questions...

      While our racking system is pretty innovative on it's own, we're also using the latest bi-facial panes on the market and are involved in several trials of new communications equipment that will improve our efficiency and responsiveness.

      The services to the grid include demand management as well as voltage and frequency support. they are not included in the cashflows.

      This year we have been selling directly into the grid, and in several months averaged around 26c per kWh sold on the wholesale market. However, that's not normal because this has been a low-lake year. We are looking at options to contract some of our surplus energy and batteries will open up our options significantly in the future.

      Cheers, Peter

      Answered on 03-09-2021 by Peter Saunders


      You mention "a growing list of enthusiastic soon-to-be customers". Can you please provide numbers? Or at least a better indication of how many?

      Posted on 09-09-2021 by Tim Charlesworth

      Hi Tim,

      There is a lot of interest among farmers in what we are offering, particularly given the uncertainties of the power supply over the past month.

      To give you an idea, we have had a further 45 expressions of interest in the past 5 weeks on our website from farmers interested in having a Solagri system installed on their farm.

      Cheers, Peer

      Answered on 10-09-2021 by Peter Saunders

      Malcolm Harbrow
      2021-08-10 18:05:10 +1200
      Graeme John Legg
      2021-08-10 16:38:10 +1200
      Luke McDonald
      2021-08-10 14:40:49 +1200
      Jeff Annan
      2021-08-09 21:11:53 +1200
      Alistair Ford
      2021-08-05 11:20:31 +1200
      Carol Gallagher
      2021-08-04 09:42:20 +1200
      Equity Offer

      From NZ $500,000 for 3.7%

      Up to NZ $2,000,000 for 13.2%

      Share Offer

      Up to 2,000,000 Shares

      at NZ $1.00 per Share

      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.