The Company designs, constructs and commissions low risk & highly reliable modular sewerage and waste water treatment systems, which are remotely monitored in decentralised locations providing over 50 years of service life. The Company has a current project pipeline of $162 million, comprising confirmed contracts and advanced stage contract submissions. The schedule of project design, construction, operation and maintenance of wastewater treatment systems runs over the next ten years to 2025.
Key Points
• Established Environmental Science & Waste Water treatment Company
• $162m Revenue over next 5 years
• $60m NPV Maintenance contracts over 20 years
• Potential Carbon Credit and Water Credit trading Revenue
• $4m Equity & Preference Shares opportunity for sophisticated, active investor

Post construction, the Company is contracted to provide ongoing cleaning and system maintenance for 20 years. FY15 fee’s are $803 per house, per year with cost to deliver service approximately $220 per house (appendix 3 – revenue forecast and NPV of maintenance division).
Systems have high levels of reliability and a lifecycle of 50 years (twice the lifecycle of competitor systems). As performance capabilities ensure compliance with the strictest environmental standards systems are currently being used in national parks and protected island environments
The treated wastewater can be used to irrigate landscaping, parks and gardens as well as the system itself being integrated into any landscaping design. Biomass product post processing can be used for feed lot and organic fertilizers.

There are international opportunities for significant reduction of environmental impact of waste water treatment.

Delays in development approvals, and therefore project commencement, are putting significant stress on working capital. The Company requires $4m in growth capital and active equity to fulfil circa $162m of projects at 26% Gross Profit.
Subsequent ongoing maintenance contracts enjoyed via a private utility structure over the next 20 years give an NPV of over $60m.

Current shareholders have agreed to offer an active investor to acquire 22% of equity via preference shares, structured as:
• $2m equity: Balance sheet to deliver project guarantees, acquire tooling and equipment
• $2m Convertible Note: To secure supplies for projects and forward orders, work force to complete projects, further product development and international expansion.

Use of funds: Repay short term bank debt ($700k) and for working capital to support ongoing business operations including design, construction, operation and maintenance of new and existing systems.

Full Information Memorandum & Financial Model available upon request.

Hayes Knight Corporate Finance
Adam Quinn
[email protected]
+61404644850