Martin Jetpack. Maybe an IPO in the offing

[Nevl]

One of the sad realities of the NZ capital markets is that the VC market (which was just developing 6-8 years ago) is now extremely limited - there might be 2 funds right now but no more - and if you want anything more than say $3m you are outside their league. So early stage companies with needs for $10m plus either have to sell out to foreign interests, with usual conditions attached - like moving most of the company to that investors location - or they have to chance their arm with a public listing to remain local. If we had more IPO's we would all get used to it - the brokers and the investors. Maybe it takes a Jetpack to tip the balance.

NZ companies also tend to try to get by on peanuts. Look at IPO's in the states for the Solar industry. They go to market and ask for $500mill US. Here we have WDT trying to do it on less than $40 Mill over 10 years. Its crazy. Its also part of the reason that so many companies fail. They do not get capitalized enough at the start and spend the next 4 years trying to raise more cash through capital raising that hurt the initial shareholders.

Hopefully that fact that the Jetpack already has a $12mill production deal and hopefully can develop a drone style Jet Pack for military S&R. That could give it a nice base for sales means $20 Mil might be enough But I would ask for $40mill and then settle for less if the full amount was not raised. I am sure there would be ways to structure the IPO so that any unsold shares are held in reserve to be issued later if possible or have an extra pot of shares above the 20mill if over subscribed.

One thing I have noticed is that most NZ IPO's always need twice as much as they ask for.

I am still keen as I think it has real potential.

[Nevl]

Ok have being doing some thinking. Martin Jetpack to Helicopters is like scooter to Motorbikes. They both have times when one is more suitable that the other

Helicopters are very expensive and costly to run. They are expensive to train in and great for a huge number of situations

Maybe the Jetpack will fit in where a Helicopter would be nice but is not used because of cost. The helicopter industry sells about 6000 per year. The Jetpack would I feel be able to a small slice of that market at one end and create a whole new niche for cheaper personal aircraft. Look at the amount of people that use microlights. The jet pack has the advantage of being VTOL so no need for runways and is at a pretty affordable price. They use Helicopters in Aussie for rounding up sheep and cattle on the big stations. A jet pack makes much more sense as it does for the high country here in NZ and with Canada and the US. Use in Land surveys and mining not to mention anywhere where personal must move around large areas with little infrastructure. After all a jetpack will never have to worry about terrain . There is a market for these, the size is something else but 200 or 300 per year is not out of the question excluding military use.

[CJ]

One of the sad realities of the NZ capital markets is that the VC market (which was just developing 6-8 years ago) is now extremely limited

and add to that the NZX is really only suitable for established companies.

Very limiting but a sad reality. My opinion is they will be wasting money trying to IPO as it wont be successful.

[Rocketman]

and add to that the NZX is really only suitable for established companies.

Very limiting but a sad reality. My opinion is they will be wasting money trying to IPO as it wont be successful.

New Zealanders trade (emotionally and culturally) off our No 8 wire stories, and the inovation of Bill Hamilton and Bill Gallager and the like, but shy away from supporting the same with capital - does that make us hypocrites?

[Lizard]

Some light weekend reading:

http://longorshortcapital.com/important-caveats.htm

http://www.digitaltrends.com/lifesty...o-take-flight/

[ratkin]

Its all very well bemoaning the lack of risk on the NZX , however the reality that most of these ventures do fail , or even if they do succeed they are so watered down by all the extra shares issued at a later date (and cheaper) that the IPO shareholders still lose out.

Can someone name the risky success stories from the nzx? I can only think of 42 below, and that wasnt in the same league of risk as roger ramjet

[Dr_Who]

Me think this one belongs in the VC market.

[upside_umop]

Its all very well bemoaning the lack of risk on the NZX , however the reality that most of these ventures do fail , or even if they do succeed they are so watered down by all the extra shares issued at a later date (and cheaper) that the IPO shareholders still lose out.

Can someone name the risky success stories from the nzx? I can only think of 42 below, and that wasnt in the same league of risk as roger ramjet

Some would say DIL was a risky IPO and a success. However, they're still below IPO.

FTB didn't provide returns for the IPO holders that originally invested i.e. 15% annualised for that risk was pretty low....it was more of a chance to let the founders liquidate...and who wouldn't?

I would say the most comparable listing to Martin currently would be Sealegs. They both target a similar type of market, and it is yet to proven (the last time I looked). McKee-Wright hyped that one up to the maximum.....

I tend to agree that this is more of a hobby for someone trying to make something cool. For it to really work it would need to be part of a bigger picture enterprise where synergies and economies of scale could exist...

[Rocketman]

Me think this one belongs in the VC market.

So the owners should give up on NZ for capital (because there is no VC market here) and head offshore - another technology company lost to NZ? I think NZ investors should be given a chance to support NZ companies - and if they don't want to show support then none can complain when the company moves and takes its jobs and profits offshore.

[CJ]

So the owners should give up on NZ for capital (because there is no VC market here) and head offshore - another technology company lost to NZ? I think NZ investors should be given a chance to support NZ companies - and if they don't want to show support then none can complain when the company moves and takes its jobs and profits offshore.

I dont thing thak is the way it should be, just that I am being realistic in the current market.

It is the same for most NZ Tech companies - they end up getting money from the US as they get better deals there.