Heyrex - NXT listing

[mondograss]

One for the animal lovers amongst us (Roger), Heyrex have emailed their Snowball Effect investors to announce they're going for an NXT listing in June. They're raising a bit of new capital in advance of the listing, but the subscription is only open to existing shareholders.
http://www.heyrex.com

[Harvey Specter]

Interesting - it will be the first NZ crowdfunder to list I think. Is the current round at an uplift to the previous round, or is it a pro-rata rights issue type thing?

[mondograss]

Interesting - it will be the first NZ crowdfunder to list I think. Is the current round at an uplift to the previous round, or is it a pro-rata rights issue type thing?

It's an uplift to the previous round, they need a minimum $10m market cap to list on the NXT and so they're saying they need a minimum of $3m to progress (they'd like to raise $5m). They also appear to be keen to avoid the broker and PR costs associated with an IPO which I can understand for a small, early stage company.

[mondograss]

Is saw something similar on the TV show Dragons Den the other week.

http://www.pitpatpet.com/

https://www.youtube.com/watch?v=Thsv5jCnmU0

Yes, that's essentially a fitbit for dogs. HeyRex included it in their list of competitors but say it doesn't have the academic validation, the treatment monitoring capability or the battery life to really compete with their product set (which is much more heavily focused on the vetinary sector). HeyRex also has the advantage of the Torus bowl system which can automatically add supplements\medication to the water etc, and that's probably where they'll make a lot of money by providing the supplement formulas. So there's a good system of ongoing revenue potentially there if they can really get market penetration.

[Balance]

NXT listing?

No care and no responsibility. Complete waste of time.

[Harvey Specter]

It's an uplift to the previous round, they need a minimum $10m market cap to list on the NXT and so they're saying they need a minimum of $3m to progress (they'd like to raise $5m). They also appear to be keen to avoid the broker and PR costs associated with an IPO which I can understand for a small, early stage company.They are trying to raise $3-5m just from existing investors? Seems like a big ask.

The Snowball effect round looked like it gave them a post money valuation of over $12m so the market cap shouldn't be an issue if they are raising on a higher multiple.

Good luck to them. I hope they raise the cash so they can just do a compliance listing, without needing to pay for brokers for a full IPO.

[Harvey Specter]

NXT listing?

No care and no responsibility. Complete waste of time.Yes, but gives shareholders liquidity which is more than they had with the crowdfund raise. It would be good to see the NXT working as it was meant to and be a stepping stone for private growth companies onto the main board.

I have invested in a few crowdfund raises so it would be good to see this exit avenue open up.

[Balance]

Yes, but gives shareholders liquidity which is more than they had with the crowdfund raise. It would be good to see the NXT working as it was meant to and be a stepping stone for private growth companies onto the main board.

I have invested in a few crowdfund raises so it would be good to see this exit avenue open up.

NXT liquidity?

Almost non existent.

Perception of NZAX (and NZX) is already bad enough from an investors' protection point of view!

No self-respecting company and its Board should contemplate listing in the NXT.

[Harvey Specter]

[/QUOTE]I agree it isn't working as it should and that is a shame. It basically means there are no options to list if you are under $50m(?) market cap.

ASX you say? see next comment:


Any decent company thinking about listing should head straight over to the ASX.Like Martin Jetpack and Powerhouse Ventures? That must be why GeoOp is looking to make the move.

Have any actually done this successfully?

[Baa_Baa]

Agreed.

The NXT has been a complete failure. It needs to be shut down.

Any decent company thinking about listing should head straight over to the ASX.

NXT might be a good way to raise the capital Heyrex require. It depends on how they go about the listing, but the NXT seems a poor option for investor visibility or liquidity.

Would Heyrex have any chance of meeting the ASX minimum listing requirements and ongoing compliance costs? http://www.asx.com.au/listings/listing-with-asx/listing-requirements.htm

[Harvey Specter]

They only got 70 shareholders from the crowdfunding so unlikely they would meet the 300 shareholder criteria. Note that criteria is one reason why Lance keeps doing offers on Snowball effect for the Punakaiki fund as it is a good way to increase the number of un-affiliated investors.

[Beagle]

Chances of getting bitten on this one would have any cleaver hound very scared, especially after copping a bit of a mauling from that flea ridden Comvita mutt last week
http://www.bing.com/videos/search?q=scared+beagle&&view=detail&mid=6FE65412FBC3623D520A6FE65412FBC3623D520A&FORM=VRDGAR

[mondograss]

In the letter to shareholders it mentions taking on a cornerstone shareholder so I expect they're looking to that avenue to raise a good chunk of the money. They do say that if they do take on a cornerstone shareholder they will consider their views prior to listing, so it might be that the NXT listing would not go ahead if they were against it or perhaps preferred to push for an ASX listing instead.

[Harvey Specter]

In the letter to shareholders it mentions taking on a cornerstone shareholder so I expect they're looking to that avenue to raise a good chunk of the money. They do say that if they do take on a cornerstone shareholder they will consider their views prior to listing, so it might be that the NXT listing would not go ahead if they were against it or perhaps preferred to push for an ASX listing instead.If they do get a cornerstone shareholder, you will know if they are a good one by whether the NXT listing goes ahead.

Ideally, they would get someone like Movac.