As we count down to closing the October 2018 Retail Offer we bring you three pieces of news:
1: Our investor net asset value per share has increased
We held our quarterly Board meeting on Friday, and I’m very happy to announce the new September quarter-end valuation:
Total Assets: $42.4 million (up from $40.6 million in the PDS)
Investor net asset value: $21.93 per share (up from $21.22 in the PDS)
We valued the assets for the October 2018 Retail Offer using the data we had to hand in late September, generally company data from the end of August, but sometimes from earlier in the year.
After we received and processed the company results for the end of September it was clear that the results of three companies were materially better (we also received information about a transaction) and would likely need to be revalued. The Board reviewed and revalued those companies. We did suspect this would happen as the Board performed the valuation for the PDS in September, and so the Retail Offer was priced with this in mind.
Obviously the iNAV/Share at the end of September of $21.93 per share represents a good premium over the Offer price of $21.50 per share, and it is good to see the iNAV/share moving upwards.
The offer closes on Wednesday at 5pm, so now is a good time to invest.
Invest online at punakaikifund.co.nz/investnow
Alternatively, download the Product Disclosure Statement and apply using the application form at the back.
2: We have confirmed venues for Wellington (Monday) and Christchurch presentations
We are holding Punakaiki Fund briefing sessions in Wellington today and Christchurch on Wednesday. Please RSVP below, or just come along. Feel free to bring anyone with you – the more the better.
Wellington Investor Session – Today
We will hold a session in Wellington at:
4:30pm, Monday 12 November, 2018
NZX, Level 1, 11 Cable Street
Yes I would attend the investor session today in Wellington
Christchurch Investor Session
We will hold an investor session in Christchurch at:
2:30pm, Wednesday 14 November, 2018
Wynn Williams, 467 Hereford Street
Yes I will attend the investor session in Christchurch
3: We have announced the Melon Health investment details.
We are very happy to share the news about Melon Health, where we are leading a $3.3 million investment round, with investment by K1W1 and Impact Enterprise Fund. After the deal concludes (and part of the investment is conditional upon funding from the October 2018 Retail Offer), we will own over 30% of Melon.
The press release is below.
Melon Health Press Release
WELLINGTON, 7 November 2018
Melon Health, New Zealand’s leading digital health platform for the prevention and management of chronic conditions, announced today a Series B investment of $3.3 million led by technology growth investor Punakaiki Fund Limited (PFL). PFL has committed $2.0 million, with additional funds coming from existing investor K1W1 and new fund Impact Enterprise Fund (IEF).The financing will be used to fuel Melon’s continued US expansion and for further investment in its proprietary technology platform.
Punakaiki Fund will hold a 32% share of Melon Health after the round is completed, including commitments made subject to the progress of PFL’s current public offer.
“As cornerstone investors, we see enormous potential for Melon Health to extend their platform’s demonstrated capability to change lives and save costs to even more providers and hundreds of thousands of patients.” Said Lance Wiggs, founder of Punakaiki Fund. “This funding round is vital in helping Melon deliver on their commitments to their clients in the USA.”
Melon Health is the first investment of the Impact Enterprise Fund.
“Melon has developed a leadership position in the New Zealand market and is poised for significant growth in the USA by leveraging recently landed contracts with flagship customers such as New York-based Oscar Health” said IEF Investment Manager, Chris Simcock. “What the team have achieved in terms of patient outcomes and people’s ability to self-manage their health – all through a digital platform – is hugely impressive, and we’re excited to be working together to create a global market leader. Melon is a great example of the type of founder-led, purpose-driven business that we like to invest in.”
“As an investor in New Zealand companies whose focus is making a positive social impact while generating a return, IEF is an ideal partner to assist us to continue to scale our business globally” said Siobhan Bulfin, CEO of Melon.
With IEF joining existing investors Punakaiki Fund and K1W1, Bulfin says “We’re excited to have partners on board that provide us not only capital, but also vast experience in our market vertical and strategic input.”
Melon’s platform enables patients to self-manage their health, resulting in reduced utilisation of the healthcare system, driving significant cost savings. “In the USA, where the focus has shifted to value-based care, healthcare systems can share in the cost savings. Solutions that focus on keeping patients away from the hospital and well are in urgent need. With four years of evidence behind us, that is our target market” Bulfin says.
Over the last year Melon has signed Australia’s fourth largest health insurer, nib, along with Georgia Physicians Accountable Care (the largest physician owned accountable care organization in the US) and Oscar Health as customers. In New Zealand, they have signed additional contracts with primary health organisations and district health boards and have demonstrated that the platform can deliver healthcare cost savings of up to and over 75%, while also achieving superior health outcomes for patients.
“It’s difficult to get health economic data in NZ, but what we do know is Melon has successfully helped prevent over 60% of patients on it’s pre-diabetes program, going on to develop type-2 diabetes or cardiovascular disease – which saves the healthcare system around $7,500 per patient per year.” Says Lance Wiggs
Incorporated in the USA in 2013, Melon Health’s USA subsidiary was one of three companies selected by the Mayo Clinic in 2015 as an innovation partner. Later that year, Melon won the US National Award for Social Innovation using Mobile Technology.
Melon’s digital health platform enables insurers, healthcare providers and employers to prescribe curated digital health solutions to their end consumers at relevant touch points in their health journey, and in turn, receive actionable data to deliver value-based care. Their cloud-based mobile platform integrates and aggregates devices, wearables, content and social engagement to deliver personalised health management programs for consumers.
Melon’s clinically-validated mobile interventions combine peer support (connecting members with others on a similar journey), health coaching via video, audio or live chat, remote monitoring and decision support, and behavior change modification, translating into a net healthcare cost savings of $3,500 per person (source. NZ Treasury Tool).
About Punakaiki Fund
Punakaiki Fund Limited makes long-term investments into high-growth, revenue-generating New Zealand companies. The fund holds $41 million of assets and has investments in 20 portfolio companies. Punakaiki Fund has an active Public Offer, and the product disclosure statement is available here: punakaikifund.co.nz/PDS
K One W One Limited is an investment company owned by Sir Stephen Tindall. It and its subsidiaries have invested over a total of $100M Seed and Venture Capital into a large number of start-up and early stage businesses from biotech, environmental technology, high tech, software and other high export potential businesses. The aim is, either directly or as a “fund of funds” to assist young entrepreneurs to grow New Zealand as a leader in the “knowledge economy” and to help create a culture of making New Zealand “cash flow positive” in international goods and services trade.
About Impact Enterprise Fund
Impact Enterprise Fund is New Zealand’s first domestic focused impact investment fund. The fund provides growth capital to businesses who deliver social and/or environmental impact, alongside attractive financial returns.
This fund has two primary objectives: delivering market-rate financial returns, and delivering tangible societal and environmental outcomes.
The Retail Offer closes on Wednesday. Please get in touch by phone or email if I can answer any questions.