TO PARTICIPATE IN RENEWABLE ENERGY, PLUMBING SERVICES AND EMMISSIONS TRADING MARKETS – IPO OFFER CLOSES 21ST JANUARY 2008
It is now widely accepted that human activity is a major cause of climate change, with increasing levels of greenhouse gases (GHGs) found in the atmosphere.
As a result, governments worldwide are building on the frameworks first outlined in the Kyoto Protocol and establishing carbon emission and renewable energy commodities markets.
The impact of these new markets will be far-reaching and is creating a new environmental services and commodities industry.
New industries are emerging to support the changing environmental landscape, with businesses participating at various points in the value chain, from the manufacture of renewable energy products to broking houses facilitating carbon trading.
Green Invest saw the need to act locally, while at the same time establishing a global reach. Recognising this, Green Invest has invested in an initial portfolio of businesses in environmental services and energy and environmental commodities broking.
Green Invest’s two initial portfolio businesses are Next generation Energy Solutions Pty Ltd ( Nextgen) and Green Plumbers Global Corporation Limited ( Green Plumbers). These two businesses are leading participants in their respective markets.
Nextgen is a leading Australian energy and environmental commodity broker with a complementary market advisory business.
Green Plumbers is a leading Australian plumbing licensee network focused on the national distribution and installation of environmentally friendly plumbing products and green audits.
Whilst both businesses are locally focused, they have international reach.
Nextgen is well positioned to take advantage of the emerging regional environmental commodities market.
Green Plumbers is already in the process of expanding its licensing network to the USA. This is the profitable and sustainable platform from which Green Invest will grow.
Green Invest will be one of the first ASX listed vehicles to allow investors the opportunity to actively participate at an early stage in what will be an exciting and rewarding industry.
The intention is to make Green Invest a market leading, profitable investor in sustainable businesses.
Increasingly, Governments, both domestically and internationally, are implementing mandatory CO2 emissions reductions programs enforced via various policy tools for non-compliance, including taxation and penalties, in order to achieve permanent emissions reductions,
Many countries, including Australia, have developed measures within their economies to stimulate renewable energy generation. These programs require power suppliers (wholesale distributors and retailers) to source a specified percentage of their power generation from renewable energy sources.
An additional unregulated market for voluntary carbon offsets has also arisen, resulting from the desire of companies to voluntarily reduce their net carbon emissions, as well as to soften the impact of any increased regulation in the future.
Further, some companies are now including “shadow carbon costs” when considering future projects/investments.
According to a recent report from the World Bank, Australia is the ninth largest contributor to increased global carbon emissions. There is still a degree of uncertainty surrounding Australia’s proposed response to this high level of emissions with the Australian federal Government and various State Governments each developing different mechanisms and instruments to promote the increased sourcing and development of renewable energy. Additionally, the NSW Government has introduced a carbon emissions scheme.
Green Invest’s corporate strategy involves integrating and expanding its existing portfolio of businesses and making selective investments in complementary businesses in the environmental services and commodities industry.
The Company’s vision is to own and develop Australia’s leading, integrated, environmental services and commodities group.
To fulfill these growth aspirations, Green Invest plans to quickly expand beyond its current businesses to add environmental commodities aggregation and asset management capabilities.
Green Invest’s Board has adopted an investment charter that provides guidelines for future acquisitions and investments. In order to meet these guidelines, any potential investments must demonstrate identifiable intellectual property or a clear competitive advantage in the environmental services and commodities industry and add additional or synergistic capability to the Green Invest portfolio.
Green Invest is also committed to becoming a signatory to the United Nations PRI, which provides a framework for considering the ESG issues during investment decision making and ownership practices.
Green Invest is a Pooled Development Fund and a concessional company income tax rate is applied to Green Invest profits. No taxable gains (income or capital) are payable by investors on profit realized from the sale of shares in Green Invest. No tax is paid by investors on distributed unfranked dividends from Green Invest.
The Company is offering a minimum of 3 million Shares, which is underwritten, and a maximum of 5 million Shares at an Offer price of $1 per share.
The purpose of the Offer is to raise funds for:
- Working capital for Green Plumbers to fund its organic expansion, including the establishment of new premises, employment of new staff and increased marketing and promotional activities.
- Working capital for Nextgen to fund its organic expansion including the building of a trading platform, establishment of an asset management division and the employment of new staff.
- Costs associated with future strategic investments including advisory and integration expenses and other acquisition related costs.
Raising only the minimum amount ($3 million) under this Offer will provide adequate capital for Green Invest to meet its stated objectives. Any capital raised in excess of this and up to the maximum amount ($5 million) will leave Green Invest in a more advantageous position to react to future development opportunities.
In the event the Directors identify a suitable investment opportunity in the future, Green Invest may be able to raise capital through the issue of additional Shares to fund such an investment.
The CEO of Green Invest, Mr. Ken Edwards, told the Australian Investor the company was looking at several additional investment opportunities.
“We are fairly particular about our investments, and companies have to meet our strict criteria.
“We feel it is too risky to invest into single technology companies, and I believe Carbon has the potential to become the largest world-wide commodity.
“We had a good feel for the timing of this IPO, and Rudd appears to have a mandate for climate control.
“The world is now taking Australia more seriously on emissions and climate control, and we will soon see much of the solar technology developed in this country, but utilized overseas, returning here.
“In all probability, we will expand Green Plumbers to New Zealand and the Asia –Pacific region.
“This company has enormous potential and we are in on the ground floor, and we are well positioned to react quickly when the appropriate emissions tracking systems have been settled,” Mr. Edwards explained.
IPO OFFER CLOSES 21ST JANUARY 2008
Source: http://www.australianinvestor.com.au/magazine.asp?id=2652 viewed on Thursday 3/1/08, 4:58pm EST