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Investment Highlights
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Established debt fund seeking investors for secure funding
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DIT AgTech is paying BBSY + margin of 8.4%, currently equal to 12.68%pa
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Proven market with almost 150 dosing units installed and generating revenue
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Significant low-hanging fruit for rapid scale-up with potential for A$4M Monthly Recurring Revenue (MRR)
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Potential for carbon credit creation and international expansion with patents in multiple countries
Company Overview
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Proprietary technology
Automates livestock supplementation to drive efficiency in extensive agriculture, with potential to generate carbon credits by delivering and measuring intake of methane-reducers
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Generating recurring revenue
Through supplement subscriptions and hardware-as-a-service (HaaS) with potential to capitalise on carbon credit generation
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Remotely operational systems
Tracking cattle location and supplement intake in real-time
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Strong proprietary IP
With granted patents in Australia and fully certify and enforceable
DIT AgTech is seeking debt funding by establishing a debt fund that will issue unsecured loan notes to investors, the proceeds of which will be lent by the debt fund on a secured basis to DIT AgTech.
The initial funds raised will be used to fund the manufacture of uDOSE systems for large-scale corporate customers in northern Australia under DIT Agtech’s HaaS Enterprise Plan.
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What are they doing
Providing essential nutrients to livestock in a sustainable, efficient and cost-effective way through direct injection of supplements into livestock drinking water via on-farm existing water infrastructure
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Unlocking the potential of data for our farmers
uDOSE systems connect via satellite to a central database and dashboard that allows real-time tracking of herd location and supplement intake
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Already proven market and concept
Almost 150 dosing units installed (with 200 more in the pipeline) across the biggest commercial cattle stations in QLD and NT, with the capacity to dose over 100,000 cattle/day. Customer retention rate is 100%
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Significant low hanging fruit for rapid scale-up
Our current customers pipeline have c.1.4M head of cattle across their properties. So far, we have rolled out dosers to supplement over 100,000 head, giving us currently over $300,000 in MRR. A full rollout to just our current customers would mean upwards of $4M in MRR, and that would represent only 3% of the total addressable market in Australia alone.
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Carbon upside
Ideally positioned to deliver methane reducing supplements, automate the carbon accounting process, and generate carbon credits, thus generating additional revenue for both cattle farmers and DIT AgTech, a project is under registration with Verra for the VM41 method.
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Protected IP
Patents filed, granted and certified locally and granted internationally for the delivery of our unique supplement and methane additive formulations via livestock water, as well as using an electronic proportional dosing unit to administer methane reducing additives to claim carbon credits.
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Potential for overseas expansion
Patents filed and granted in the USA, Brazil, Canada, and NZ, which together have an addressable market of 300M head of cattle, with the opportunity for exponential annual revenue opportunity for DIT Agtech even before accounting for the carbon credit potential.
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Subscription service & HaaS models
The supplement subscriptions and HaaS models create "sticky" customers by lowering entry costs to their services and technology that generate immediate results and are unmatched by competitor offerings.
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Industry ripe for disruption
The industry has been using lick blocks for generations. Lick blocks are labour intensive to distribute, prone to getting washed away in rain, and offer no way to control or monitor consumption. Providing supplements through livestock drinking water ensures each animal gets the correct dosage at the right time.
Products & Services
TECHNOLOGY PORTFOLIO & TELEMETRY SOLUTIONS
Cultivating tomorrow’s agriculture with adaptive tech
uDOSE
A proportional dosing system that can automatically and seamlessly deliver any of our proprietary water-soluble supplements from our comprehensive product range to livestock grazing on pasture.
uDOSE is Australia’s only proportional dosing dispenser able to safely deliver urea into livestock drinking water.
uHUB
A cloud-based platform that draws real-time data from remote monitoring systems on each uDOSE unit, allowing farmers to monitor livestock watering points, feeding devices, or other sites from their mobile device or computer.
Our telemetry is developed in-house by our Townsville-based team of software engineers.
Supplement & Nutrition Portfolio
uPRO BLUE
Australia’s first methane-reducing supplement deliverable via livestock drinking water.
uPRO ORANGE
The most cost-effective supplement for protein-deficient seasons on the market.
uPRO GREEN
Combats phosphorus deficiency during the wet or growing seasons in northern Australia.*
uPRO SOUTHERN
Supplements the major macro and micronutrient requirements of grazing ruminants specific to southern Australia.
uTRACE
Contains all the major trace elements required for healthy growth of cattle, sheep, and goats.
uCALM Range
Designed to boost animal welfare, reduce stress, and keep animals from losing weight during weaning and transport.
uTETANY
Magnesium-rich formula to prevent grass tetany, which remains one of the leading causes of death for adult beef cows in South-eastern Australia. It occurs when there is not enough magnesium in the blood.
* Phosphorus is critical in livestock diets, however up to 80% of northern Australian pastures don’t contain enough of it to sustain the healthy development of cattle.
Transaction Overview
DIT AgTech is seeking debt funding by establishing a debt fund, “AgFIN Loan Fund”, which will issue unsecured loan notes to investors, the proceeds of which will be lent by the debt fund on a secured basis to DIT AgTech (“Offer”). An independent third-party corporate trustee, AMAL Trustees, a subsidiary of AMAL Trustees Limited, has been appointed as the trustee to the AgFIN Loan Fund.
The AgFIN Loan Fund will lend the funds it receives from investors to DIT AgTech for capital investment in new assets. The AgFIN Loan Fund will not undertake any activities other than issuing loan notes to investors and lending funds to DIT AgTech.
The initial funds raised will be used to fund the manufacture of dosing units (uDOSE) for large-scale corporate customers in Northern Australia under DIT AgTech’s HaaS Enterprise Plan.
Under this plan, uDOSE systems and supplement tanks are installed on the customer’s operation free of charge.DIT AgTech maintains the systems and manages the re-fill of supplement tanks. The customer pays per liter of supplement used. This model is one-of-a-kind in the livestock supplement industry and has allowed DIT AgTech to solve the labor-intensity and skills-shortage challenges of supplementing livestock in extensive agriculture while providing DIT AgTech with a source of recurring revenue.
The Offer is only open to sophisticated and professional investors, or wholesale clients (as each of those terms is defined in the Corporations Act).
Use Of Funds:
For the rollout of DIT AgTech HAAS (Hardware as a Service) dosing units into the Company’s Enterprise offering.
- The company has current orders for more than 100 dosing units, which have been built and will be installed by mid-2023. Additionally, on the DIT AgTech Enterprise plan, there are 148 dosing units currently generating revenue.
- $6,000 per dosing unit will be lent from the Investment Fund to DIT AgTech Limited to build dosing units destined for installation on large-scale corporate livestock properties under DIT AgTech Enterprise plan to meet current orders. The retail value of the dosing units is $12,000 and equates to a 50% Loan-to-Value Ratio (LVR).
- The dosing units come with 5000 litre supplement tanks at installation. These are filled every 30-120 days depending on the number of livestock being
supplemented. - The first $1.5M will enable the manufacture, delivery, and installation of 200 dosers, which will facilitate the sale of 1M litres of supplements to generate in excess of $3M of recurring revenue.
Team
- Management
- Directors
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Mark Peart
Team Leader
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Vivienne McCollum
Innovations Lead
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Mark Peart
CEO
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Quentin Kennedy
Chairman
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John Diddams
Non-Executive Director
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Paul Bennett
Non-Executive Director
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Vivienne McCollum
Company Secretary
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+61 2 9993 4475