2013
Information Memorandum
Shark Shield Pty Ltd
11/11/2013
IMPORTANT NOTICE
Provision of Information
This Information Memorandum (IM) dated xx October 2013 is issued by SeaChange Technology Holdings Pty
Ltd (“the Company” and/or “’SeaChange” and/or “Sharkshield”) of Unit 7, 1 Winton Road, Joondalup, 6027,
Australia. SeaChange is the sole owner of the business Shark Shield Pty Ltd.
This Information Memorandum is not a product disclosure statement for the purposes of Part 7.9 of the
Corporations Act. The level of disclosure in this Information Memorandum is less than that of a product disclosure
statement, prospectus or similar disclosure document. A copy of this Information Memorandum does not need to
be, and has not been, lodged with ASIC.
The information provided in this memorandum is being delivered to a restricted number of people ("the
Recipient"). By retaining this document, the Recipient acknowledges that they understand and accept the terms
of this notice. If the Recipient does not accept these terms, they must immediately return this document to Shark
Shield Pty Ltd (Shark Shield). The Recipient further acknowledges and understands that in accordance with
Section 708 of the Corporations Act 2001, which any person (s) who elects to invest in Shark Shield, is subject to
exemptions provided in the Act. As a result of the exemption, Shark Shield is not required to provide to the
Recipient a prospectus or other disclosure documents. The information in this Information Memorandum is up to
date at the time of preparation.
Purpose
The purpose of this document is to provide the Recipient with all of the relevant information to make an informed
decision on whether or not to decide to invest in the offer made by Shark Shield. This IM does not purport to
contain all of the information that a prospective investor may require to make an evaluation. Each Recipient
should determine their suitability in investing in Shark Shield, taking into account their personal situations,
financial goals, and after seeking independent professional advice.
This document, the information contained and any other information supplied does not form the basis of any legal
contract or any other legal obligation.
Contents
The material contained within this document is not a promise or representation of the future. Any financial
projections are based on assumptions stated therein and there is a risk that the actual results will differ from the
projections. No assurance or representation is made by any person that any projections will be achieved.
Recipients must therefore make their own investigations and inquiries, regarding assumptions, risks,
uncertainties and contingencies that may impact on the operations of Shark Shield in the future.
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Contents
Investment Overview ........................................................................................................................... 4
1.1
Executive Summary ................................................................................................... 4
1.2
Technology .................................................................................................................. 5
1.3
The triggers for the current opportunity ................................................................... 6
1.4
The Existing Products ................................................................................................ 7
1.5
Future Product (SURF) .............................................................................................. 7
1.6
Historical Revenues ................................................................................................... 9
1.7
Future Revenues and EBIT (Current Products)................................................... 10
1.8
Future Revenues and EBIT (Including Surf Innovation) ..................................... 10
1.9
The Financial Investment and Current Enterprise Value ................................... 11
1.10
Future Enterprise Value........................................................................................... 11
1.11
Federal and State Government Grants ................................................................. 11
1.12
Use of Funds ............................................................................................................. 12
1.13
Voting Rights and Dividend Policy ......................................................................... 12
1.14
Exit Strategy and Potential Purchasers................................................................. 12
1.15
The Investment Structure ........................................................................................ 13
1.16
Assessed Tax Losses .............................................................................................. 13
1.17
Key Risk Mitigating Factors & Operational Improvements ................................. 13
Business Summary ............................................................................................................................ 14
2.1
Introduction ................................................................................................................ 14
2.2
Vision .......................................................................................................................... 14
2.3
Business Strategy..................................................................................................... 14
2.3.1
Horizon 1- Develop Global Distribution ................................................................. 15
2.3.2
Horizon 2 – Develop Marketing Excellence .......................................................... 15
2.3.3
Horizon 3 – Extend Product Applications ............................................................. 15
2.3.4
Strategy House (3 Year Strategic Plan) ................................................................ 15
2.4
Unique Selling Proposition ...................................................................................... 16
2.5
Products & Pricing .................................................................................................... 16
2.6
Personnel, Directors Remuneration & Future Hiring........................................... 16
2.7
Protection of minority shareholders ....................................................................... 17
2.8
Manufacturing ........................................................................................................... 17
2.9
Product Development .............................................................................................. 17
2.10
Target Market ............................................................................................................ 18
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Company Overview ............................................................................................................................ 20
3.1
History of the Business ............................................................................................ 20
3.2
Corporate Structure .................................................................................................. 21
3.3
Competitors ............................................................................................................... 21
Board and Management .................................................................................................................... 22
5.1
Board of Directors..................................................................................................... 22
Financial Forecasts ............................................................................................................................ 23
1.1
Profit & Loss ................................................................................................................ 23
1.2
Cash Flow .................................................................................................................... 24
1.3
Balance Sheet .............................................................................................................. 25
Corporate Directory............................................................................................................................ 26
APPENDIX 1 – Shark Shield FREEDOM7 Overview ................................................................................ 27
HOW IT WORKS........................................................................................................................... 29
USING THE FREEDOM7 ............................................................................................................... 30
APPENDIX 2 – The Kayak Fishing Show Partnership ............................................................................. 31
APPENDIX 3 – Lindsay Lyon Curriculum Vitae....................................................................................... 32
APPENDIX 4 – Amanda Wilson Curriculum Vitae .................................................................................. 35
APPENDIX 5 – Shark Shield Testimonial ................................................................................................ 38
APPENDIX 6 – Patents ........................................................................................................................... 39
APPENDIX 7 – Scientific and Independent Testing ............................................................................... 45
APPENDIX 8 – Tiller Product Development Proposal ............................................................................ 46
Appendix 10 – Surf Innovation - Product Development Plan ............................................................... 59
Appendix 9 – Marketing Plan (detail) ................................................................................................... 60
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Investment Overview
1.1
Executive Summary
Shark Shield is the world’s only scientifically proven and independently tested
electrical shark deterrent designed to reduce the risk of a shark attack. Shark Shield
is used by scuba divers, spearfishes, free-diving, ocean kayak fishermen and surfing.
The Shark Shield range of electrical shark deterrents are the result of over twenty
years of scientific research by some of the world’s leading experts in sharks including
the KwaZulu-Natal Shark Board in South Africa which has resulted in an extensive
portfolio of patents protecting the company product range and markets.
The Shark Shield Company was purchased by the current Directors in July 2012 with
the specific objective of:
1. Replicating the proven Australian product sales and penetration rates into two
targeted USA states, Florida and California; markets four to five times larger than
the Australian market; and
2. Developing and launching a patent pending global surf board shark deterrent
product. Shark Shield is currently achieving sales from an existing surf board
product however it is not considered ideally practical due to the current weight
and length of the drag antenna. The new product will not affect the integrity or
performance of the board; and
3. Exiting the business through a trade sale within thirty six months.
The investment highlights are summarised as follows:

A long established business and products with consistent revenues of
approximately $1m per annum.

The Shark Shield products have historically been poorly marketed. The new
management have proven experience driving global distribution and growth
initiatives.

85% of current sales revenue is from Australian retail dive shops with no USA
retail foot print and no meaningful investment in marketing initiatives over
the past six years.

One of the Directors and new owner is an American and will be relocating to
Florida in January 2013 to execute the US growth strategy.

The owner of scientifically proven technology with an installed base in excess of
25,000 units.

The owner of extensive patent portfolio including wetsuits, surfboards and
beach barriers.

The global forecasted annual product revenue from surfboards is estimated in
excess of $50m per annum.

The well established and respected Sydney based industrial design firm engaged
for the surfboard innovation, Tiller Design is taking an equity stake in Shark
Shield in lieu of a portion of their fees. .

The Patent Application was lodged in May 2012 and the company will be
proceeding to patent application / approval anticipated within 12 months.

Projected EBITDA of $1.8m for FY 2017.

Dividends anticipated to commence FY 15 with a forecasted range returning
between 10% - 20% annual return on investors’ funds
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1.2

Assessed tax losses of approximately $6.3m.

An established business offering investors attractive returns based purely
on the international roll out with proven products however with a
substantial upside with the surf board innovation.
Technology
Predatory sharks have small gel filled sacs knows as the ‘Ampullae of Lorenzini’ on
their snouts. They use these short-range sensors when feeding or searching for food.
Shark Shield is a three-dimensional electrical waveform that creates an unpleasant
sensation impacting the shark’s ‘Ampullae of Lorenzini’.
When the shark comes into proximity of the electrical waveform (a few meters in
diameter) it experiences non-damaging but uncontrollable muscular spasms causing
it to flee the area.
The field is projected from the unit by two electrodes, which create an elliptical field
that surrounds the user. Both electrodes must be immersed in the water for the field
to be created.
The electrode configuration depends on the model of the Shark Shield unit and the
diagram here is a mathematical example provided by the South African National
Space Agency of how the FREEDOM7 electric field would look if you could see it.
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1.3
The triggers for the current opportunity

Increase in shark attacks globally which drives sales and provides Shark
Shield the opportunity to create education and awareness of its technology.

Prior to the new owners acquiring Shark Shield, previous management had
minimal focus on sales and marketing initiatives

Shark Shield’s new owners are very experienced sales and marketing
executives implementing a USA growth strategy; there are more shark attacks
in Florida than the rest of the world combined.

One of the Directors and new owner, Amanda Wilson, is an American and will
be relocating to Florida in January 2013 to execute the US growth strategy.

Australia represents approximately 3% of the global scuba equipment market;
with 85% of current sales revenue from Australia there exists significant global
growth for Shark Shield with the right sales and marketing management in place.

Patent lodged for new surfboard innovation which provides a new
addressable global market estimated to exceed $50M per annum providing a
global marketing event to increase awareness and education of electrical shark
deterrents.

SOURCE: FLORIDA MUSUEM OF NATURAL HISTORY
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1.4
The Existing Products
The three products are as follows:
 Shark Shield FREEDOM7 – is designed for general diving, spearfishing, freediving, ocean kayak fishing and swimming. The majority of the company’s
revenue comes from this product due to its versatility across a range of water
sports.
 Shark Shield SCUBA7 –
is designed for the scientific and technical diving
markets. This is the preferred solution for the military as it a more compact unit.
 Shark Shield SURF7 – is designed for surfing and stand-up paddle boards. The
trailing antenna in these applications does represent some challengers for users,
however the demand for shark deterrent in surfing still generates sales,
demonstrating that the company’s more ergonomic surf innovation solution will
have significant demand.
All products leverage the same technology.
FREEDOM7
1.5
SCUBA7
SURF7
Future Product (SURF)
The current Shark Shield SURF7 (shown above and below) has had low adoption
rates because of the current weight and length of the low drag antenna. In the picture
below you can see the power generator mounted on the grip pad of the surfboard
with the 2.2 meter antenna which would trail behind.
(A). Provided by the South African National Space Agency (SANSA)
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The trailing antenna is extremely effective as an electrical deterrent, however is an
inhibiter to high performance surfing and short board surfing.
The company’s new surfboard patent/ innovation will enable all newly produced
surfboards to be “electrical shark deterrent ready” for less than a $0.20 change to the
existing plug systems with no change to current manufacturing and/or design
processes and most importantly no impact on surf board performance. The low cost
is achieved by changing the plug into an electrical connector, with the electrical
deterrent power generator and accessories sold as an aftermarket solution for
$599.00
An electrical shark deterrent is two separated electrodes with a patented waveform
pulsating between them, with the salt water acting as a medium to connect these
electrodes. The surfboard innovation turns existing surfboard fins (for example
carbon fibre) into the electrodes.
The new surf product uses a small design modification to the current fin plugs
systems found in all surfboards globally. The fin plug system simply become
electrical connectors with the fins (carbon fibre) becoming the electrodes. This
removes the trailing antenna so there is no impact on the surfboards performance.
A new miniaturised and removable power generator is installed in the grip pad kick
area leveraging the existing grip pad designs. The grip pad houses the light weight
power generator and acts as a wiring harness connecting to the fin plug systems on
the top side of the surfboard.
This innovation means every surf break becomes an electrical mine field for
sharks. To extrapolate this further, every coast line with surfers becomes a virtual
electrical barrier to sharks protecting beach goes.
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The product would be distributed through surf retail stores as an aftermarket user
installable product, with the modified fin plug system available through the exiting
plug system providers, specifically Sydney based Fin Control Systems (FCS) and
Futures based in California.
With patents relating to the innovation the company is planning to launch with a
skimming pricing strategy based on current surfboard and accessory pricing.
Indicative Recommended Retail Pricing;

SURF8 RRP $599 (includes fins, grip pad, device, and fin plugs)

Accessories (sold for extra surfboards, new surfboards, lost components)

1.6
o
Fin Set (electrodes) $219
o
Grip Pad (wiring harness and device mount) $79
o
Shark Shield Device (power generator) $399
o
Spare Battery Pack (replacement and spares) $49
o
Fin Plug Set (for new or existing boards) $39
Retail and Wholesale Distribution Channel Margins
o
Wholesale margin 25% on Shark Shield device
o
Retail margin 35% on Shark Shield device
o
Channel margin 50% - 100% on accessories items
Historical Revenues
Revenue (000's)
1108
870
FY08
FY09
996
897
FY10
FY11
1343
901
FY12
FY13
85% of current sales revenue is from Australian retail dive shops, no USA retail foot
print and with no meaningful investment in marketing initiatives over the past six year
period. Increased interest and revenues are now evident from new marketing
initiatives since July 2012. With the new capital available from this raising more
aggressive and high profile marketing initiatives will be implemented as indicated in
the marketing plan.
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1.7
Future Revenues and EBIT (Current Products)
Detailed three year financial projections have been completed with the first years
P&L, cash flows and balance sheets under point 6 of this IM. A summary of forecast
revenues and EBITDA for years 2015 to 2017 are set out below. The projections are
based on historical sales revenues from the existing proven products only and with
gradual penetration into the US markets over the indicated period. No revenue has
been taken into account for the new surfboard product as it is intended the business
will be sold on the commercialisation of this new product.
For the first year the forecast indicates a profit of $224K on revenues of $1.6M. A
break even projection indicates that on the current operating cost structures the
business will break even with sales of approximately $1.0M.
Units
1.8
FY14
FY15
FY16
FY17
TOTAL
TOTAL
TOTAL
TOTAL
3,254
4,760
8,391
13,967
Revenue
1,617,899
2,221,595
4,035,798
5,157,832
TOTAL REVENUE
1,617,899
2,221,595
4,035,798
5,157,832
Less:Total Cost of Sales
746,229
978,326
1,718,907
2,180,706
GROSS MARGIN
871,670
1,243,268
2,316,891
2,977,126
OPERATING EXPENSES
687,076
718,293
935,134
1,119,076
EBITDA
224,594
524,975
1,381,757
1,858,050
Future Revenues and EBIT (Including Surf Innovation)
The forecast below takes into account modest sales of new surfboard product
planned for release in December 2014, thus providing six months of revenue in FY15
and full years going forward, excludes new product launch marketing expenses.
FY14
FY15
TOTAL
TOTAL
FY16
FY17
3,254
1,617,899
1,617,899
7,460
3,416,345
3,416,345
TOTAL
15,071
6,991,698
6,991,698
TOTAL
22,959
9,136,792
9,136,792
Less:Total Cost of Sales
746,229
1,529,126
3,081,627
4,015,074
GROSS MARGIN
871,670
1,887,218
3,910,071
5,121,718
OPERATING EXPENSES
687,076
718,293
935,134
1,119,076
EBITDA
183,328
1,168,925
2,974,937
4,002,642
Units
Revenue
TOTAL REVENUE
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1.9
The Financial Investment and Current Enterprise Value
The company is offering a 30% equity share for an investment of up-to $750,000
(minimum investments of $30K) which will fund working capital, specifically to grow
inventory and drive demand in the US market.
The pre-money enterprise value of $1.75M is based on approximately 1.5x the
consistent historical Australian revenues. The multiple of 1.5 of historical Australian
revenues represents the opportunity value of the USA market, along with the new
surfboard innovation and other yet to be licensed or commercialised patents such as
electrical deterrent wetsuit patent (see appendix).
Forecasts provided in this document estimating a trade sale exit valuation only
include revenues of current existing products, the surfing innovation and other
market opportunities are excluded from the growth strategy / forecast.
1.10 Future Enterprise Value
The Directors have adopted a logical approach in considering the future value of the
company and the valuation approach considers two alternatives:
1. The first alternative is the more conservative approach which assumes the
primary and immediate strategy of expanding the proven current products into the
US market ONLY. Based on financial forecasts the EBIT for FY17 is $1.8m. For a
business of this size and with its unique patented products and geographical
diversification it would be reasonable to assume a business multiple of five times
EBIT. This would value the business at approximately $10m in 2017.
2. The second alternative is to assume that the alternative above occurs and the
surfboard innovation/product is successfully commercialised during the three year
period. The additional enterprise value of this new product line is too subjective to
even try to estimate however with the global surf board industry estimated with
revenues of $50m the potential new business is substantial. The Directors
estimate conservatively that they will achieve a minimum of 10% of the market
and with 30% and more not being unachievable. The value of the surf board
business is estimated to well exceed the enterprise value estimate above.
It needs to be emphasised that the second alternative is the goal of Shark
Shield and has the potential to offer substantial returns to all stakeholders.
1.11 Federal and State Government Grants
Shark Shield is applying for a Western Australian State based Grant for Shark
Mitigation Research. The Grant is for $300,000 over a three year period. The Grant
Review Committee indicated a positive response to a previous Shark Shield
submission presented in August 2012 and has encouraged a re-submission this year
following initial positive research results conducted on Shark Shield products by the
UWA. Funds from this grant will be used to prototype and test the performance of the
new surfboard fin innovation.
In addition to the above State Government Grant application, the company has also
successfully applied for the Export Development Grant (EMDG) during FY12 and
received $29,000 and expects to receive a further $40,000 through the R&D Tax
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CONFIDENTIAL IM
benefit program. To complete the commercialisation of the surf board innovation the
company will apply for the Federal Government Commercialisation Australia Grant
program which provides 50% of the funding for commercialisation of new innovations
with the Shark Shield 50% funding coming from profits.
No reliance or financial benefit has been included in the cash flows for the
grant funding.
1.12 Use of Funds
Funds will be used to:
 Increase education, awareness and demand of Shark Shield;
o Expansion of marketing of existing products to the Australian market and
commence marketing initiatives to the US market.
o Develop the surfboard innovation and creating hype around the brand
and broad education of electrical shark deterrents
 Facilitate moving manufacturing to China with Eagle Kingdom Technology
Holdings;
o Increasing gross margins from 45% to 56% in Yr1, improving again in Yr2
o Improve product reliability
 Increase inventory holding
o The company will be outsourcing US warehousing to Shipwire.com
o The company will be leveraging Trade Finance for inventory
1.13 Voting Rights and Dividend Policy
Subject to any rights or restrictions for the time being attached to any class or classes
of shares at meetings of Members or classes of Members, each Member is entitled to
vote in person or by proxy or by attorney. At the issue time of this document there
exists only one class of share.
It is the Board’s intention to pay dividends out of future profits. Based on the financial
forecasts the board expects the first dividend to be paid at the conclusion of FY15
with a forecasted dividend range returning between a 10% - 20% annual return on
investors’ funds.
In ascertaining the profit of the Company no recoupment of any trading or capital loss
incurred in previous financial years need be provided for. Before recommending any
dividend the Board may set aside out of the profits of the Company such sums as the
Board thinks proper as reserves. Such reserves are in the discretion of the Board and
may be applied for any purpose to which the profits of the Company may be properly
applied, for example to develop and commercialise the surf innovation.
Detailed Voting rights and Dividend Policy are outlined in the Company Constitution
and a copy of this is available on request.
1.14 Exit Strategy and Potential Purchasers
There are a number of purchasers that would be interested in the completed
business such as:


Scuba diving manufacturing companies;
Surf board manufacturers – would offer a point of difference to their products
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

International surf clothing companies – the focus on a shark deterrent product
coupled with the preservation of the shark could offer a whole new marketing
initiative; and
Institutional and private equity investment businesses – for example
Macquarie Bank previously purchased Fin Control Systems (FCS) for
reportedly $70M. The potential exponential returns of Shark Shield would
certainly be of appeal to FCS.
1.15 The Investment Structure
The investment opportunity is to acquire 30% of the ordinary shares on issue in
SeaChange Technology Holdings Pty Ltd. SeaChange Technology Holdings Pty Ltd
holds 100% equity in Shark Shield Pty Ltd. The shares will have equal rights to
existing shares. The Constitution of SeaChange Technology Holdings Pty Ltd is
available for inspection.
1.16 Assessed Tax Losses
SeaChange Technology Holdings has approximately $6.3m in assessed tax losses.
Based on the projected earnings over the next three years it is not envisaged that the
company will be required to pay any company taxes for this investment term.
1.17 Key Risk Mitigating Factors & Operational Improvements












Shark Shield is an existing business with proven products and historical sales.
The technology is tried and tested. The technology and products have also
achieved many awards and is recognised by respected marine biologists.
The Shark Shield asset has historically been poorly managed with no competent
management in place for over four years.
New integrated ecommerce system for retailers and online ordering fully
operational and integrated into new cloud based accounting system, Saasu.
New website NETO with online store launched including multi-currency
USA store with segment marketing approach.
Full off-shore manufacturing transfer to be completed by Oct 2013.
Cancelled un-profitable distributors in USA & South Africa.
Social media marketing program including Facebook, Twitter and Google+
implemented including participation in online dive, surf and spearfishing forums
and blogs
Full suite of channel retail online sales tools and images now available for
international partners
New branding and segment based marketing material created, including
banners, posters for channel and customer profiles
Public Relation campaign launched to drive education and awareness through
article publication
Attended world’s largest dive show DEMA in Las Vegas in November 2012 and
recruited over 20 USA resellers
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
Commenced sponsorship with Jim Sammons from the Kayak Fishing Show which
is broadcast into more than 40 million homes and has 10 million paid
subscribers.
Business Summary
2.1
Introduction
Shark Shield is the world’s only scientifically proven and independently tested
electrical shark deterrent designed to reduce the risk of a shark attack. Shark Shield
is a personal safety device which provides peace of mind to enjoy free-diving,
spearfishing, scuba diving, ocean kayak fishing and surfing while supporting the
conservation of sharks.
The company has also successfully solved the challenge of providing an electrical
shark deterrent in every surfboard, possibly one of the biggest patent innovations in
surfing since the Simon Anderson thruster and, more recently, removable fins.
Shark Shields new surfboard patent/ innovation enables all currently produced
surfboards to be “electrical shark deterrent ready” for less than a $0.20 change to the
existing plug systems with no change to current manufacturing and/or design
processes and most importantly no impact on surf board performance.
2.2
Vision
Our vision is that people utilising Shark Shield products become substantially less
fearful of shark attacks. As a result everyone utilising the Shark Shield products can
confidently and safely enjoy exploring the world’s oceans.
2.3
Business Strategy
The management team has a proven track record executing on business plans to
grow businesses internationally. In the case of Shark Shield the company has an
installed base of existing products with proven market acceptance, so the growth
strategy is focused on increasing market penetration of the existing products into
current markets, and utilising the excitement of the surf innovation to increase market
education and awareness of the electrical shark deterrent category.
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2.3.1 Horizon 1- Develop Global Distribution




Study the current channels for best practices
Define a global channel management plan
Recruit new channel partners with a strong focus on Florida & California
Move product manufacturing to lower cost base
2.3.2 Horizon 2 – Develop Marketing Excellence






Define very specific end user segments
Create focused segment based marketing campaigns
Increase social media and direct marketing
Improved marketing research and analysis
Significantly improve brand reputation through Brand.com
Use surf innovation to create global education and awareness
2.3.3 Horizon 3 – Extend Product Applications


Develop and commercialise the surfboard innovation
Create a fully integrated product family with high margin accessories
2.3.4 Strategy House (3 Year Strategic Plan)
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2.4
Unique Selling Proposition
The Shark Shield is the world’s only scientifically proven and independently tested
electrical shark deterrent designed to reduce the risk of an unwanted shark
encounter. Shark Shield is a personal safety device that provides peace of mind to
enjoy free-diving, spearfishing, scuba diving, kayak fishing and surfing while
supporting the conservation of sharks.
2.5
Products & Pricing



Part Number
Product 1 – FREEDOM7 for general diving, spearfishing, free-diving and ocean
kayak fishing
Product 2 – SCUBA7 for scientific and sports diving
Product 3 – SURF7 for surfing and stand-up paddle boards
Description
RRP (USD)
RRP (AUD)
CORE PRODUCTS
DU1000
Shark Shield SCUBA7
GU1000
Shark Shield FREEDOM7
SU1000
Shark Shield SURF7
$699.00
$649.00
$599.00
$749.00
$679.00
$649.00
GGOGS GM AU$ GM US$
$189.00 74.77% 72.96%
$189.00 72.16% 70.88%
$189.00 70.88% 68.45%
ACCESSORIES
SU1800
SU1801
SU1802
SU1804
SU1400
SU1614
SU1806
$44.95
$249.00
$44.95
$49.95
$49.95
$34.95
$39.95
$44.95
$249.00
$44.95
$49.95
$49.95
$34.95
$39.95
$6.00
$146.46
$7.25
$18.20
$15.16
$6.93
$5.50
2.6
Shark Shield Carry Bag - Soft
Shark Shield Carry Case - Deluxe
Shark Shield Carry Case - Charger
Shark Shield Carry Case - Hard
Shark Shield Surfboard Mounting Kit
Shark Shield Shark Shield Charger - Universal Plug
Shark Shield Test Unit
86.65%
41.18%
83.87%
63.56%
69.65%
80.17%
86.23%
86.65%
41.18%
83.87%
63.56%
69.65%
80.17%
86.23%
Personnel, Directors Remuneration & Future Hiring
Since acquiring the business in July 2012 the Directors have removed all previous
staff from the company when the manufacturing and sales operation in South
Australia was closed. The outsourcing of the manufacturing overseas to Eagle
Kingdom Technologies lowered the staffing requirements by three heads, and the full
automation of the accounting, ordering and shipping system lowered the front and
back office staffing requirements. As it is intended to continue to outsource the
manufacture and distribution of product it is not envisaged that personnel will
increase substantially.
The company has only two full time employees who are the Directors. Each Director
is on an annual salary of $135,000 each. The only other employee of the company is
a part time contract Manufacturing Manager on an annual salary of $24,000.
Management have forecasted to hire one office administration staff member for
Australia in late Q2 FY14 with a fourth full time head count joining the business in Q1
FY15. Given achievement of forecasts during FY15 management expect to add an
additional Retail Channel Manager in both Australia and the USA mid-way through
FY15.
16
CONFIDENTIAL IM
2.7
Protection of minority shareholders
Due to the investors being a minority shareholder and with the two Directors being
majority shareholders, the Directors are prepared to cap annual salary increases at
15% pa compounded. Increases will only be granted if the business is meeting
projections set out by the Board.
The Directors are prepared to benefit from the business more from dividend
distributions which will be of equal benefit to all shareholders. All other employees will
be on market related remuneration packages and which will be reviewed annually.
It is also envisaged that a Shareholders Agreement may be required to manage the
arrangement between the shareholders, and the company already has a wellstructured Company Constitution that represents all shareholders interests.
2.8
Manufacturing
Shark Shield has outsourced manufacturing to a leading supplier with which the
management have been dealing with for over ten years, Eagle Kingdom
Technologies (EKT) based in Hong Kong.
With more than 5m products produced such as set top boxes built and shipped for
their customers, EKT is the leading global design centre from which Shark Shield can
leverage volume manufacturing capability and pricing. With a “best of class”
approach based on Asian “know how” and western management, EKT has an
international management and engineering team of 120 based in Shenzhen China.
This design team is well regarded in Asia in terms of skills, experience and
technology. EKT has developed a plethora of STB products from basic single tuner
MPEG2 products to quad tuner, dual SATA, HD PVRs and has worked with all major
CAs and middleware solutions, many through a direct license. EKT focuses on
designs for Tier 1 companies and has completed more than 60 ODM designs to date
for well know brand names. Their customers have shipped more 5 million units based
on their designs.
2.9
Product Development
To maintain low fixed costs, the company is entering into a contract with an
Australian leading “turn key product development” company, Tiller Design, to develop
the surf innovation and its integrated product family of high margin accessories to
market.
The Directors have partnered with Tiller Design previously to successfully design and
commercialise products for global markets.
Tiller Design is a Sydney based industrial design consultancy, founded by Robert
Tiller expressly to deliver turnkey product design and development solutions to
business, please refer the appendix 9 for the detailed Tiller development proposal.
17
CONFIDENTIAL IM
Tiller works closely with clients to understand business and customer needs, create
emotive, appealing, ergonomically sound products that align with the clients brand
and engage the end user. They are unique in their ability to match creativity and
practical industrial design solutions with professional project management, quality
control and engineering. This combination of dynamic, award winning, design with a
robust quality process delivers compelling products that supports the Shark Shield
product development strategy.
Tiller Design consultancy delivers a full service design, development & manufacturing
expertise, a centralised process structure, an exceptional team of experts, and a
fixed price offering. These deliverables combine to provide Shark Shield with one of
the world’s most diligent design and development processes; resulting in products
that will truly engage our customers.
2.10 Target Market
Shark attacks have steadily increased over the past ten years as more people take
up ocean water sports, and at the same time the desire to offer conservation and
protection to sharks as their populations dwindle significantly has increased
exponentially, in some cases such as Tiger Sharks the population is estimated to
have declined by up to 97%. This unique combination of events represents a
significant global opportunity for Shark Shield’s electrical shark deterrents.
The company has an installed base of over 25,000+ units sold in to Australia with
scuba divers and spearfishing the main users, followed by surfing and the rapidly
growing ocean kayak fishing as the key growth segment internationally. However the
addressable market for Shark Shield is considerably larger than the current focused
segments as shown below;
 Divers
 Surfers
 Snorkelers
 Swimmers
 Kayakers
 Windsurfers
 Beaches (through
electronic barriers)
 Paddle boarders
 Boating activities such as
fishing & swimming
 Military personnel, equipment &
installations, plus covert applications
 Commercial fishing &
trawling nets
 Spear fishers
 Jet-skis
 Marine aquaculture installations
 Life vests and life rafts for cruise
liners, military applications and
pleasure boats
The focused target market for Shark Shield is active ocean sports goers with the
world’s largest dive certification organisation, PADI issuing nearly one million new
certifications annually; this excludes the growing free-diving / spearfishing segment.
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CONFIDENTIAL IM
Given the installed base in Australia and the overseas market size of South Africa,
California, Florida and Hawaii these represent a growth opportunity for the company
of over 100,000+ units with a comparable penetration rate over a similar period.
Scuba diving has been the company’s traditional segment, however the key growth
segments for current product are spearfishing (in particular free diving) and ocean
kayak fishing, both these segments are growing rapidly.
Note that all of the company’s target markets have well defined routes to market and
marketing communication channels.
The target market for the new Shark Shield is surfboard riders with the International
Surfing Association estimating the total number of surfer’s world wide at 23 million.
The dominate geographical regions for surfing products are the Australia, USA,
South Africa and Japan with growing emerging markets such as South America. The
demographic for surfers is very wide with both young and old surfers sharing the
wave
The Surfing Manufactures Association estimates that the global surf hardware market
which consists of surf board grip pads, fins, leg ropes and other related accessories
is estimated at $1.4B in revenue. With an estimated one million surfboards sold
annual the company forecasts that the surfing segment represents first year product
revenues in excess of $5m with forward three year forecasts of annual revenues in
excess of $50M. Installed base numbers are difficult to calculate but are estimated at
$10m units.
For the surf innovation it is highly desirable to partner with Sydney based Fin Control
Systems (FCS) and Futures based in California as routes to market for the surf
innovation fin plug systems, these two companies have direct channel access to
global surfboard shapers.
19
CONFIDENTIAL IM
Company Overview
This raising follows the successful acquisition of the business by the current owners
in July 2012 and lodgement of the new surfboard design patent. The business has
been acquired to build and exit through a trade sale within a three year window,
through the new surf product and increasing international distribution for current dive
products in South Africa, California, Florida and Hawaii; there are more shark attacks
in California & Florida than in the entire world combined. However 85% of current
Shark Shield sales are in Australia.
The Managing Director Amanda Wilson a US citizen will be investing significant time
in Florida to drive the company’s US market and channel expansion; note the
population of Florida and California combined is approximately three times greater
than the total population of Australia.
The new owners forecast the trade sale within three years to deliver high single digit
multiple returns on investment and the introduction of a patent pending surfboard
innovation expected to deliver double digit multiple returns in 2015/16. The
company’s new surfboard patent/ innovation enables all currently produced
surfboards to be “electrical shark deterrent ready” for less than $2.00 with no change
to current manufacturing and/or design processes and no impact on surf board
performance. We estimate that the aftermarket for this new product and its
accessories in the surf segment would generate annual revenues >$50m.
Over the past ten years the company has invested over $7M in product development
with the balance sheet showing a shareholder equity of $1.525M and retained
earnings of (-$6.064M) in tax losses to carry forward. In FY12 the company
generated revenues of $1.343M with an operating profit of $231,261
Since the acquisition the company’s new management has significantly cut costs and
improved all aspect of operational procedures including the implementation of a cloud
based accounting system, online channel ordering, refreshed the brand, introduced
all new marketing collateral, new advertising campaigns, launched new online
store/website, implemented social media marketing, cancellation un-profitable
distributors, closed the Adelaide manufacturing facility and begun moving
manufacturing off-shore. These identified and implemented savings are expected to
exceed $200,000 by FY14.
3.1
History of the Business
In the early 1990s the Natal Sharks Board of South Africa (NSB), one of the world's
leading authorities on sharks, developed a particular electrical waveform, which
successfully deterred sharks. Extensive tests, involving independent scientists, were
carried out to prove the effectiveness of the technology. In 1995 the NSB patented
this invention, which was then incorporated into a shark deterrent called Shark POD,
produced by an NSB joint venture company, Shark Deterrent Technology Pty Ltd
(SDT), formerly known as POD Holdings Pty Ltd.
The Shark POD was large, expensive and difficult to use. Although it did not gain
widespread acceptance it proved extremely effective and gained a loyal following
amongst commercial divers, with whom it has proved itself in practice for over eight
years.
20
CONFIDENTIAL IM
NSB and SDT are hereafter referred to throughout as one entity – NSB.
SeaChange was established in 1999 to develop and produce a modern range of
recreational and commercial electronic shark deterrents having a number of different
market applications, based on the unique POD patented waveform technology.
SeaChange also lodged a number of application patents to product its development
and markets.
In January 2000 SeaChange acquired a world exclusive license from NSB to utilise
its core electrical waveform. The licence is in force until 2015 when it is renewable in
five-year stages, at the election of both parties.
The new Shark Shield™ although based on the original Shark POD concept, is much
cheaper, smaller and more energy efficient than the original South African product.
Production of the Shark POD ceased when Shark Shield was launched in March
2002. Shark Shield launched the current range of products in 2007.
The business was acquired by the current owners in July 2012.
3.2
Corporate Structure
SeaChange Technology Holdings Pty Ltd is the parent company and owns all
intellectual property and tooling. SeaChange Technology Holdings Pty Ltd has a
wholly owned operating subsidiary, Shark Shield Pty Ltd, which employs all
management and staff, carries out all R&D under contract to SeaChange Technology
Holdings Pty Ltd, contracts out manufacturing and distributes and markets the
products. Throughout this document “Shark Shield” refers to the SeaChange
“Group”.
3.3
Competitors
There is only one competitive product currently on the market and Shark
Shield’s technology outperforms this competitors. The Shark Shield product is
the only scientific and independently tested product on the market.
Competitor 1 – Electronic Shark Defense Systems (ESDS)



Market Share
o <5%
Strengths
o Small light weight easy to wear
Weaknesses
o Does not work and is ineffective against sharks
o Electrodes too small and not enough power
o Untested by manufacturer against white sharks or any large sharks
o Reported to the ACCC over false product claims
21
CONFIDENTIAL IM
Board and Management
LINDSAY LYON, EXECUTIVE CHAIRMAN
Previously CEO of Mobilarm Limited taking the business as a fledging start-up
growing international revenues to $5.5m and an ASX listing in 2010 (ASX:MBO).
Founder, Chairman & CEO of Datacatch Pty Ltd, an offline software storage
company. CEO & Co-founder of Opdicom Pty Ltd an international hardware storage
peripheral business grown to $4.4m in sales, Asia Pacific consulting Partner at Siebel
Systems on sales and channel strategies for companies such as IBM and CISCO,
and 13 years with Hewlett-Packard responsible for the Australian Commercial
Business and Channels. Lindsay holds a Masters of Marketing from Melbourne
University, a Diploma in Electronic Engineering, INSEAD Executive Management
Program in France.
AMANDA WILSON, MANAGING DIRECTOR
As the former Marketing Manager at Mobilarm, Amanda led all strategic planning and
marketing / sales management. With over 12 years of experience in worldwide
product marketing and sales management, Amanda has held various positions in
marketing, product management and engineering with Emerson Process
Management located in Minnesota USA. Amanda holds a Bachelor’s degree in
Mechanical Engineering from Iowa State University and an MBA from the University
of St. Thomas.
5.1
Board of Directors
The current Shark Shield board is made up of the two above executive directors and
major shareholders. It is the intention to expand the board to include either a new
major shareholder or a new independent Chairman representing all shareholders.
Board selection is all circumstances will be based on the additional value the
individual brings and cultural compatibility with the existing team. The company has
identified an independent Chairman, Richard Allen with extensive board experience,
Richard is currently on the board of (ASX:TOX)
22
CONFIDENTIAL IM
Financial Forecasts
1.1
Profit & Loss
Profit & loss
Australia
USA
Total Sales
Cost of Sales
KawZulu Royalty
Gross Profit
GP %
August
52,575
5,522
58,096
25,083
2,905
30,109
51.83%
September
52,575
5,522
58,096
25,083
2,905
30,109
51.83%
Other Income
Overheads
Personnel
Marketing
Freight
Invoice Factoring
Travel
Occupancy
Administration
Total Overheads
EBITDA
Depreciation
Interest - Overdraft
Net Profit Before Tax
October
60,353
6,171
66,524
28,449
3,326
34,749
52.23%
November
82,088
10,799
92,887
38,326
4,644
49,916
53.74%
December
111,480
10,799
122,279
50,581
6,114
65,584
53.63%
January
126,584
12,372
138,956
56,771
6,948
75,237
54.14%
February
129,953
17,634
147,587
60,929
7,379
79,279
53.72%
March
133,133
17,634
150,767
62,315
7,538
80,914
53.67%
April
147,109
20,256
167,364
68,197
8,368
90,799
54.25%
May
164,790
36,962
201,752
82,176
10,088
109,488
54.27%
June
164,790
36,962
201,752
82,176
10,088
109,488
54.27%
July
173,577
38,260
211,837
85,248
10,592
115,997
54.76%
40,000
Total
1,399,007
218,892
1,617,899
665,334
80,895
871,670
53.88%
40,000
28,240
15,082
500
1,577
1,500
2,250
8,453
57,603
35,300
16,322
500
1,577
1,500
2,250
8,453
65,903
28,240
14,382
500
1,811
1,500
2,250
8,453
57,136
28,240
13,642
500
2,463
1,500
2,250
8,453
57,048
35,300
10,289
500
3,344
1,500
2,250
8,453
61,637
28,240
13,242
500
3,798
1,500
2,250
8,453
57,983
28,240
5,362
500
3,899
1,500
2,250
8,453
50,204
35,300
10,249
500
3,994
1,500
2,250
8,453
62,246
28,240
3,282
500
4,413
1,500
2,250
8,453
48,639
28,240
5,662
500
4,944
1,500
2,250
8,453
51,549
35,300
9,449
500
4,944
1,500
2,250
8,453
62,396
28,240
9,082
500
5,207
1,000
2,250
8,453
54,733
367,125
126,045
6,000
41,970
17,500
27,000
101,436
687,076
(27,494)
(35,794)
17,613
(7,132)
3,947
17,255
29,075
18,668
42,161
57,939
47,092
61,265
224,594
500
0
500
0
500
0
500
0
500
0
500
0
500
0
500
0
500
0
500
0
500
0
500
0
6,000
0
(27,994)
(36,294)
17,113
(7,632)
3,447
16,755
28,575
18,168
41,661
57,439
46,592
60,765
218,594
1.2
Cash Flow
Cashflow (incl GST)
Cash inflows:
Existing debtor collections (GST)
Australia - prepay (GST)
Australia - 30 days (GST)
USA - 0 days (no GST)
August
September
October
November
December
January
February
March
April
May
June
July
3,143
43,374
3,143
43,374
14,458
5,522
3,143
49,791
14,458
5,522
67,722
16,597
6,171
91,971
22,574
10,799
104,432
30,657
10,799
107,211
34,811
12,372
109,835
35,737
17,634
121,365
36,612
17,634
135,952
40,455
20,256
135,952
45,317
36,962
143,201
45,317
36,962
90,490
125,344
145,888
154,394
163,206
175,611
196,662
218,231
225,480
160,980
120,735
160,980
120,735
35,300
11,318
550
3,679
1,650
2,475
9,298
3,326
28,240
14,566
550
4,177
1,650
2,475
9,298
4,644
35,300
10,394
550
5,438
1,650
2,475
9,298
8,368
28,240
9,990
550
5,728
1,100
2,475
9,298
10,088
0
Finance drawdowns:
Capital Raising
Overdraft
Other inflows
Total inflows
Cash outflows:
Inventory Purchases
Overheads:
Personnel (no GST)
Marketing (GST)
Freight (GST)
Invoice Factoring (GST)
Travel (GST)
Occupancy (GST)
Administration (GST)
KawZulu Royalty 120 days
750,000
46,517
66,497
6,500
28,240
16,590
550
1,735
1,650
2,475
9,298
120,735
35,300
17,954
550
1,735
1,650
2,475
9,298
GST payable/(receivable)
Income tax payable
Interest expense - overdraft
822,914
28,240
15,820
550
1,992
1,650
2,475
9,298
2,905
3,613
0
0
0
Finance repayments:
Loans
Overdraft
Capex (GST)
Capital Raising Costs(GST)
IP (GST)
Total outflows
28,240
15,006
550
2,709
1,650
2,475
9,298
2,905
120,735
28,240
5,898
550
4,288
1,650
2,475
9,298
6,114
35,300
11,274
550
4,393
1,650
2,475
9,298
6,948
(20,400)
0
0
0
28,240
3,610
550
4,855
1,650
2,475
9,298
7,379
28,240
6,228
550
5,438
1,650
2,475
9,298
7,538
7,221
0
0
0
4,278
0
0
0
144,558
30,000
0
4,000
6,900
77,939
0
4,000
0
72,963
0
0
0
187,278
0
59,500
5,000
157,334
52,000
0
0
280,577
52,000
0
0
217,936
52,000
0
5,000
115,514
27,000
0
0
98,889
27,000
0
0
213,014
27,000
0
5,000
93,418
50,000
0
0
429,012
50,000
0
0
242,482
(31,422)
(6,466)
635,635
(66,844)
(155,233)
(72,048)
38,880
64,317
(37,403)
103,244
(210,781)
(17,002)
Opening cash
(3,500)
(34,922)
(41,388)
594,247
527,404
372,171
300,123
339,002
403,320
365,916
469,160
258,379
Closing cash
(34,922)
(41,388)
594,247
527,404
372,171
300,123
339,002
403,320
365,916
469,160
258,379
241,377
30,000
0
0
30,000
30,000
0
0
30,000
30,000
0
0
30,000
30,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Net inflows/(outflows)
Overdraft
Opening balance
Drawdowns
Repayments
Closing balance
(30,000)
0
1.3
Balance Sheet
Balance sheet
August
September
October
November
December
January
February
March
April
May
June
July
Assets
Cash
Debtors
Inventories (incl deposits)
PP&E & intangibles
Total assets
(34,922)
26,265
279,711
107,887
378,941
(41,388)
23,122
254,628
111,387
347,749
594,247
22,768
346,914
110,887
1,074,816
527,404
33,373
308,588
174,887
1,044,252
372,171
41,456
418,987
226,387
1,059,001
300,123
47,183
482,951
277,887
1,108,143
339,002
53,371
422,022
334,387
1,148,783
403,320
54,246
359,707
360,887
1,178,160
365,916
60,711
412,245
387,387
1,226,259
469,160
82,279
330,069
418,887
1,300,396
258,379
82,279
408,873
468,387
1,217,918
241,377
85,994
444,360
517,887
1,289,618
Liabilities
Creditors
GST
Overdraft
Loans
Total liabilities
113,278
1,494
30,000
424,000
568,772
116,474
3,613
30,000
424,000
574,087
117,228
(8,003)
30,000
424,000
563,225
119,432
(9,346)
0
424,000
534,085
122,831
(21,231)
0
424,000
525,600
125,829
(7,649)
0
424,000
542,180
127,832
(2,672)
0
424,000
549,160
129,177
4,781
0
424,000
557,958
131,002
(4,220)
0
424,000
550,783
134,560
5,892
0
424,000
564,452
137,288
(279)
0
280,001
417,010
138,852
(6,507)
0
280,001
412,346
(189,831)
(226,338)
511,591
510,166
533,401
565,964
599,623
620,202
675,476
735,943
800,908
877,272
Net assets
Corporate Directory
DIRECTORS
EXECUTIVE CHAIRMAN
Lindsay Lyon
MANAGING DIRECTOR
Amanda Wilson
HEAD OFFICE
ACCOUNTANTS
SOLICITORS
Unit 7, 1 Winton Road
Joondalup, WA, 6027
Australia.
DFK PORT ACCOUNTING
Kathal Speance
91 High Street
Freemantale WA 6160
Australia.
+61 8 9430 6333
COWELL CLARK
Richard Beissel
Level 5, 63 Pine Street
Adelaide SA 5000
Australia.
+61 8 8228 1111
PATENTS AND TRADEMARKS
GRIFFITH HACK
Steve Starkie
Level 19,109 St Geroges Terrace
Perth, WA 6000
Australia.
Australia and New Zealand Bank ( ANZ) (AU$)
BANKERS
National Australia Bank ( NAB) (US$)
Malaga, WA
APPENDIX 1 – Shark Shield FREEDOM7 Overview
The Shark Shield FREEDOM7 is the only scientifically proven and independently tested
electrical shark deterrent designed to reduce the risk of an unwanted shark encounter. The
FREEDOM7 is a personal safety device that provides peace of mind to enjoy your free
diving, spearfishing, scuba diving or kayak fishing while supporting the conservation of
sharks.
Shark Shield electrical shark deterrents are the result of over twenty years of scientific
research by some of the world’s leading experts in sharks including the KwaZulu-Natal
Shark Board in South Africa. As a result of continued research and investment, Shark Shield
has over the past ten years successfully been granted numerous application patents relating
to electrical shark deterrents.
All predatory sharks have highly sensitive electrical receptors called the “Ampullae of
Lorenzini” located in their snouts. These tiny gel filled sacs can only sense electrical current
from prey at very close distances, typically less than one meter. As sharks can only sense
electrical currents at very short distances and electrical currents are dispersed rapidly in
water, the myth that sharks can sense electrical current at great distances is not true; as a
result electrical shark deterrents do not attract sharks.
The powerful, but localised electrical field generated by Shark Shield devices cause the
sharks gel filled sacs to spasm and the shark to flee the immediate area. There are no
known long-term adverse effects to the shark and as a result Shark Shield devices support
the conservation of sharks by removing the need for culling or other lethal means of
managing human and shark interactions. Shark Shield devices do not affect other ocean
creatures.
Trusted by thousands of divers around the world, the FREEDOM7 is a must have piece of
safety equipment, just like a seat belt. It is comfortable and lightweight stored in a neoprene
pouch that easily attaches to your ankle, and the low drag antenna trails behind providing
complete freedom to enjoy your free diving, spearfishing, scuba diving or kayak fishing. Our
rechargeable lithium ion battery provides up to seven hours of use, giving you plenty of time
to enjoy your ocean sport with the confidence of knowing you are protected by Shark Shield.
27
The FREEDOM7 is comfortable and lightweight, weighing only 950 grams. It is stored in a
neoprene pouch that easily attaches to your ankle and the low drag antenna trails behind
providing complete freedom to enjoy your free diving, spearfishing, scuba diving or kayak
fishing. For kayak fishing the FREEDOM7 can be placed through the scupper hole or hung
over the side.
Our rechargeable lithium ion battery provides up to seven hours of use, giving you plenty of
time to enjoy your ocean sport with the confidence of knowing you are protected by Shark
Shield.
On/Off Switch
On/Off LED indicator
Velcro pouch
Rugged polyurethane case
Low drag design
trailing antenna 2.2m
28
Battery pack life
Nominal 300 charges
Storage Temperature
Between 0C – 60C (32F – 140F)
Operating Temperature
Between 12C – 40C (53.6F – 104F) Lower temperatures will reduce
the operating time
Dimensions of Main Unit (without Antenna)
80mm L x 140mm W x 35mm H (3.15” x 5.51” x 1.5”)
Maximum Operating Depth
45 meters (148 feet)
Weight (unit only)
335 grams (11.8 oz)
Dry Weight (Complete)
950 grams (2.09lb)
Unit Operating Time
6-7 hours
In water weight (Complete)
69 grams (2.4oz)
Protective Field Strength
>1v/m @ 1m from centre of electrodes
HOW IT WORKS
Predatory sharks have small gel filled sacs
knows as the ‘Ampullae of Lorenzini’ on
their snouts. They use these short-range
sensors when feeding or searching for food.
Shark Shield is a three-dimensional
electrical waveform that creates an
unpleasant sensation impacting the shark’s
‘Ampullae of Lorenzini’. When the shark
comes into proximity of the electrical
waveform (a few meters in diameter) it
experiences
non-damaging
but
uncontrollable muscular spasms causing it
to flee the area.
The field is projected from the unit by two
electrodes, which create an elliptical field
that surrounds the user. Both electrodes
must be immersed in the water for the field
to be created. The electrode configuration
depends on the model of the Shark Shield
unit and the diagram below is a mathematical example of how the FREEDOM7 electric field
would look if you could see it.
29
USING THE FREEDOM7
Before using a Shark Shield device, it is critical to understand the correct antenna and
electrode positioning to ensure the device functions correctly.
The Shark Shield generates its protective electric field by emitting a large pulsed current via
several different antenna and electrode assemblies. This varies depending on the model of
Shark Shield unit purchased. For example, the FREEDOM7 and SURF7 use an antenna that
incorporates a stainless steel braid electrode at the top and bottom ends, whereas the
SCUBA7 uses an ankle antenna that incorporates only one stainless steel braid electrode,
with a separate tank-mounted pad electrode.
The current emitted from the Shark Shield flows between the two electrodes to produce the
protective electric field; therefore, the positioning of the electrodes is critical for the Shark
Shield device to produce an effective protective field, and reduce the risk of muscle
contraction to the user. When using Shark Shield please be aware of the following:
The antenna/electrodes need to be fully submerged for the Shark Shield to function
correctly. The current that flows between the two electrodes uses the path of least
resistance, which is the seawater rather than the user.
Avoid situations where one or both electrodes come out of the water because the Shark
Shield will no longer produce a protective electric field. In addition, the user could
accidentally become the current path between the two electrodes, which may result in mild
to severe, but non-harmful muscle contractions.
The electrodes are a specific surface area and must not be covered with any conductive or
non-conductive material. Avoid using the Shark Shield next to any large metal objects as this
could reduce the size of the protective field.
WARNING
We encourage people to wear Shark Shield when working in or enjoying the ocean to
minimize the risk of shark attacks, but sharks can be dangerous and often unpredictable
creatures. While extensive testing has been done and great care taken to develop and
manufacture the Shark Shield range of products, it is impossible to guarantee that all sharks
will be deterred under all circumstances. Water based activities in the presence of sharks is
inherently dangerous and is not recommended therefore we recommend that if a shark is
sighted that the user leaves the water.
A large pulsing current is emitted from the Shark Shield antenna to produce the protective
electric field. When unintentionally coming near or in contact with the antenna it is possible
that muscle spasms can occur to various degrees and therefore the user may need to make
adjustments to limit contact (for more information refer to FAQ's "will I get an electric shock).
In addition anyone with a pacemaker, are pregnant, or has a health condition that could be
effected by the electric field should not use the device. Such health conditions include heart
disease, a history of heart problems, peripheral vascular decease, and stroke, a history of
fainting or epilepsy, or lung disease.
30
APPENDIX 2 – The Kayak Fishing Show Partnership
This partnership offers Shark Shield the endorsement and promotion of its products by one
of the most respected and recognized kayak anglers in the world – Jim Sammons. This
proposal will significantly increase Shark Shield’s market penetration in North America, and
will demonstrate the functionality of the Shark Shield product to kayak angling enthusiasts
across USA, Canada, and internationally. The partnership delivers an unprecedented media
campaign that will provide Shark Shield major promotion within:
THE WORLD FISHING NETWORK (Television)
The Kayak Fishing Show with Jim Sammons — a 13-episode television series - is broadcast
into more than 40 million homes and has 10 million paid subscribers.
NBC SPORTS (Television)
The Extreme Kayak Fishing Challenge broadcast into 80 million TV Household
YOUTUBE
With over 14,000 subscribers and 10 million views, Kayak Fishing Tales WebTV has the
largest kayak angling presence on YouTube in the industry
FACEBOOK and TWITTER - with over 12,000 Facebook Fans, and 9,000 Twitter followers,
The Kayak Fishing Show is the most active kayak angling community in social media.
2014 SHARK SHIELD OFFICIAL PARTNERSHIP
Shark Shield will be branded and promoted as an official sponsor of The Kayak Fishing
Show on The World Fishing Network, on Extreme Kayak Fishing Challenge on NBC Sports,
and across the popular Kayak Fishing Tales WebTV YouTube, Facebook, and Twitter
channels. Shark Shield will also be given professional photography and rights to leverage
the Jim Sammons name and shows in all marketing material.
31
APPENDIX 3 – Lindsay Lyon Curriculum Vitae
Company:
Mobilarm Limited
Position:
Chief Executive Officer
Duration:
Jul 2007 – Jan 2012
Founded in 2003 Mobilarm is a technology start-up focused on recreational marine safety
products that protect and save lives in man overboard emergencies. On commencement the
company immediately required working capital and an extensive organisational and product
line restructuring. On completion of the restructuring in 2008/09 the company had a new
management team and new product strategy focused into the global commercial offshore
and defence segments, supported by an implementation of Salesforce.com and cloud based
computing infrastructure. The product strategy resulted in major US navy defence
development contract in FY10 opening up a USN & NATO $30M+ market segment.
Completed a number of capital raisings using various financial instruments, including an
Initial Public Offering (IPO) onto the ASX (MBO) in FY10 during the GFC. Improved listed
company corporate governance by recruiting an experienced public company Chairman. In
May 2011 increased Mobilarm’s product category market share to #1, along with increased
global channels and product lines by acquiring the leading European competitor, Marine
Rescue Technologies.
Company:
Datacatch Pty Ltd
Position:
Duration:
Founder and Executive Chairman
Sep 2005 – 2008
Datacatch was a storage software company leveraged from the Opdicom Disc Stakka
business and founded by Lindsay with seed capital raised through angel investors and
personal funds. The company developed an integrated MS Windows media management
solution addressing the market need to catalog, store and search an exponential volume of
removable storage (removable hard drives, optical media & USB key drives). Application
development hurdles resulted in delivery delays and cash issues, this with a faster shift
towards online storage resulted in a board agreement to halt further investment in this
venture.
Company:
Opdicom Pty Ltd, Melbourne
Position:
Duration:
Co-founder, Director and Chief Executive Officer
May 2003 – Aug 2005
Opdicom was started through the acquisition of intellectual property the Receiver Manager of
ProjectLab Pty Ltd. Having identified the competencies to successfully execute on the
business objectives, an exceptional management team was recruited, and with the team,
developed and implemented the strategic business plan with measurable objectives. We
consistently executed on and achieved projected financial expense targets, delivering a
world first “virtually online” optical content management solution (Disc Stakka™) to market
on time and within budget and specification, including securing AUS$15M in funding.
Implemented global OEM distribution strategy for the introduction of the company’s new
product category with the Imation Corporation based out of Minnesota USA, negotiated joint
software development project with Microsoft in Redmond and successfully built out other
vertical market solutions including the implementation of Telstra’s Bigpond Movie’s on-line
32
DVD rental business. Developed and executed global launch PR and retail marketing
campaigns, measuring customer satisfaction and selling the solution in to over eighty
countries within 18 months of launch generating $4.4M revenue in the second year of
operation. At the time of resignation the board was reviewing an exit for the business
through a trade sale to a US private equity firm.
Company:
Melbourne
Global Data Storage, ProjectLab Asia & ProjectLab Europe Pty Ltd,
Position:
Duration:
Chief Executive Officer
May 2002 – March 2003
This business was a turnaround assignment due to very poor single supplier relationship and
required immediate resetting of the boards expectations on company goals. New budgets
where immediately implemented and consequently achieved in line with forecasts,
addressed staff performance issues, developed new distribution strategies including the
execution of retail distribution agreements in Japan and the UK. Developed a new Australian
sales channel through the recruitment of new wholesalers, resellers and retailers. Resolved
supplier issues, worked with investors to resolve working capital funding. Provided CEO
consulting services to supplier and it’s investors during supplier receiver process and then
worked with investors to acquire IP assets of supplier from Receiver Manager to start
Opdicom P/L.
Company:
Siebel Systems, Melbourne
Position:
Duration:
Partner
2001 – May 2002
Delivered sales channel management process and change management consulting to global
IT Company’s operating in Asia Pacific region; including Microsoft, IBM, HP and Cisco.
Services included the facilitation and delivery of Asia Pacific business partner planning
process between IBM/Cisco and HP/Cisco. Provide leadership to the internal Siebel
consulting practice and software licensing sales team on sales and account management
strategies. Developed and implemented change management programs into Microsoft Asian
management to assist with the introduction of new Siebel sales processes. Over achieved
consulting services quota targets resulting in being placed in the top 10 revenue Partners
globally.
Company:
Hewlett-Packard Australia, Melbourne
Position:
Duration:
Australian Sales & Marketing Manager - Commercial
1999 - 2001
Provided strategic direction and leadership as part of the HP’s Australian Executive
Management Team. Responsible for attaining a National quota target across multiple
product lines of >AU$500M in FY00, chartered with integrating all HP commercial small to
mid-market corporate sales functions into one team, including product, end user
engagement and channel management functions. Pro-actively develop marketing plans to
grow channel business whilst implementing forward looking channel strategies and improved
customer services.
33
Company:
Hewlett-Packard Australia, Melbourne
Position:
Duration:
National Sales Manager, Corporate Reseller Channel
1997 - 1999
Manage the Australian Corporate Reseller Channel consistently achieving quota target with
final quota of US$174M in FY99. Built teams through new hires, provided coaching, career
development and education to retain and motivate staff. Develop new sales channels by
product group, Personal Computer Systems, Imaging & Printing and Storage products.
Maintain budgets and manage expenses within operating plan. Pro-actively develop
marketing plans to grow channel business whilst implementing forward looking channel
strategies, improved channel satisfaction and loyalty resulting in Reseller Satisfaction
moving from #6 position to #1 (IDC Australia). Lead the implementation of a National
Executive Sales Management Forum to redefine HP channel engagement and conflict
resolution process, as well as the first Channel CFO Forum to manage credit risks.
Company:
Hewlett-Packard Australia
Position:
Duration:
Marketing Manager, Networking Products
1996 - 97
Achieve country quota of US$7M for networking product range positioning HP as a key
networking vendor from both a channel and customer perspective. Develop channel
strategies to increase market coverage through requiting new channel partners such as
Anixter and Datacraft. The development and implementation of branding and marketing
campaigns to improve brand position of both AdvanceStack and JetDirect Products,
resulting in both products significantly improving market share position with AdvanceStack
brand moved from #8 to #3 in hub ports and JetDirect #1 in market share.
Company:
Position:
Duration:
Hewlett-Packard Australia
Senior Corporate Account Manager
1991 - 96
Responsible for launching of a pilot direct sales Corporate Sales program focused on key
major corporate accounts to sell HP’ s range of computer and imaging solution into major
accounts to compete with Dell’s entry into the market. Appointed Manager of a new
Australian Corporate account Program in 96, won HP High Achiever Award three times and
the internationally prestigious global HP Presidents Club Award in 1993.
34
APPENDIX 4 – Amanda Wilson Curriculum Vitae
Mobilarm, Osborne Park, Western Australia
Global Senior Marketing Manager,
December 2009 – January 2012

Responsible for planning and executing all aspects of the corporate strategic
marketing plan including branding, product management, direct marketing, new
product development, new acquisition integration, public relations and channel
management.

Lead the global annual strategic planning process and drove follow up process to
ensure plan was executed according to schedule which resulted in a 400% increase
in revenue over a 12 month period

Actively participated on the executive management team to drive the business, make
key strategic decisions and develop the overall strategic plan

Integrated a new acquisition into the Mobilarm corporate brand, which included
updating branding, developing new messaging, sales collateral, pricing, updating
product offering and labeling

Streamlined the acquired product offering from a complicated “kit” based ordering
structure to a concise, easy to order, modular structure to improve the customer
experience

Created a new channel partner program. Actively recruited and trained new channel
partners globally that increased our channel partner revenue from less than 10% to
over 30% of sales in an 18 month period

Developed relationships with companies that manufactured complementary safety
equipment to co-promote products

Researched and segmented the market to develop and deliver specific messaging
that best resonated with the customer base. This led to a multimedia integrated
marketing campaign that delivered a 642% ROI

Developed, wrote and implemented a regular customer survey to measure customer
satisfaction and loyalty

Supervised two direct reports
Australian Envelopes, Notting Hill, Victoria
National Marketing & Sales Support Manager.
January 2009 – November 2009

Responsible for planning and executing all aspects of marketing within the
organization, including branding, product management, direct marketing, advertising,
new product development, business development, sales support, training and
strategic planning.
35

Lead the company in a re-branding exercise to update and refresh the corporate
image. Deliverables included updated brand image, logo, tagline, style guide,
product packaging, tradeshow material, promotional goods and sales collateral

Repositioned the entire product range to more effectively serve the market and
improve profitability. Also created value propositions and identified selling points for
each product line.

Actively participated on the management team to drive the business, make key
strategic decisions and develop the overall strategic plan

Segmented the customer base to identify new business opportunities and created a
marketing campaign to more effectively target new and existing customers

Developed and executed Australian Envelopes first customer survey to assess
customer perceptions, evaluate customer satisfaction and loyalty
Emerson Process Management, Rosemount Division. Chanhassen, Minnesota, U.S.A.
Global Marketing Manager, Wireless Product Marketing.
January 2008 – October 2008

Responsible for leading the product marketing group for the industrial wireless
business unit, including developing overall marketing strategy, product management,
coordinating cross-divisional new product launches, creating and leading sales
training, pricing and competitive analysis.

Presented high level sales presentations and seminars on best practices, new
technologies and industry standards to a global customer base

Developed and led a training course globally to educate sales team on how to
consultatively and more effectively sell high value wireless products to end
customers

Developed a customer advisory board to gather customer input to refine and tailor
product messaging to specific customer segments

Supervised a marketing group of four product managers

Emerson Process Management, Rosemount Division. Chanhassen, Minnesota,
U.S.A.

Sales Channel Marketing Manager, America’s Sales & Marketing. July 2004 –
January 2008

Responsible for managing a US$340M pressure product portfolio in North & South
America, including executing overall strategy, new business development, launching
new products, achieving sales goals, managing price, competitive strategies and
training.

Supported a 350 person sales team across North & South America. Responsible for
insuring they followed the sales strategy and met sales targets and KPIs

Lead a product positioning campaign that achieved 6% unit growth (11% revenue
growth) and 9% unit growth (15% revenue growth) in respective years
36

Drove the premier product sales strategy to communicate value and convert
customers to higher tier products, which resulted in 19% unit growth of the premium
product line while obtaining a 30% price premium

Regularly presented to high-level customers across a wide range of industries

Lead and developed a cross product line initiative to “Expand the Sale” by leveraging
our inside sales organization through up-selling and cross-selling. Program included
sales tools, training, metrics and incentives

Developing training material and trained various groups, including new sales hires,
insides sales representatives, technical specialists and field sales on products,
technical capabilities and consultative sales strategies

Supervised one direct report
Emerson Process Management, Rosemount Division. Chanhassen, Minnesota, U.S.A.
Senior Marketing Engineer, Pressure Product Marketing.
anuary 2001 – July 2004

Responsible for the product marketing management of four product lines, which
included strategic pricing, maintaining gross profit margins, new product extensions
and sales channel management.

Developed and executed a business and marketing plan for a new product which
realised a 25% price premium over competitors and became the market leading
product within three years

Responsible for the launch and rollout of three new products which included creating
all marketing collateral, customer value messaging and sales training material

Lead the first cross-divisional industry marketing initiative for the Life Science
industry

Identified and analyzed targets for possible Rosemount acquisition

Determined the customer requirements for new product development by conducting
customer interviews and market research

Researched several markets for new product development opportunities
37
APPENDIX 5 – Shark Shield Testimonial
JON SCHWARTZ - KAYAKER
CARLSBAD, CALIFORNIA, USA
Wednesday, 11th August 2010
“My name is Jon Schwartz. I was out in Honokohau Harbor in Kona kayak fishing
with my wife today. While tying on bait, I heard a splash, and we paddled toward it.
Then a 12-foot tiger shark came up to check us out, it took a look at us and then
started steaming for us.
I just got my Shark Shield the other day and so I didn't think the charge would last the
whole time we were out, so I had it at the ready, not expecting it would come to this. I
had the antenna loosely coiled up in the back, and as it came at us I plopped the
antenna in the water, and reached for the switch. My wife and I were hoping to God it
would work. We didn't know if it would. How would we know, I just read the manual
two nights before in the hotel room. Well I turned it on, and thank God, it acted as if I
annoyed it terribly, and turned tail with a splash and ran off.
I really actually owe my life to this thing; moreover it saved the life of my kid’s mom.
This may sound like it’s too perfect to be true but it's true, I only wish I had it on
video. It’s the best $600 I ever spent!”
ELYSE FRANKCOM - SHARK ATTACK VICTIM
ROCKINGHAM, AUSTRALIA
Wednesday, 17th August 2011
“My name is Elyse Frankcom and I work as a professional snorkelling guide on an
Eco-tour for swimming with wild dolphins.
Safety is a big issue of course as we take many passengers into the ocean! We use
your Shark Shields in regard to deter sharks while working!
I did not have my unit turned on while free diving with dolphins and was recently
attacked by a 3-metre Great White Shark! My first reaction was to punch and then try
pushing the shark away while a very brave passenger pulled the tail! I remembered
my Shark Shield wasn't on so I immediately turned it on and the shark dropped me
and swam away as quick as it came!
I believe that if I didn't turn the Shark Shield on, I would not be alive today! The Shark
Shield saved my life as well as everyone around me in the water. Never again will I
enter the water without my unit turned on!”
For more testimonials please visit http://www.sharkshield.com/view/blogs/
38
APPENDIX 6 – Patents
SeaChange (Shark Shield) has an impressive Intellectual Property Portfolio (see
comprehensive table below). The company owns and has patented the all-important
practical application technology (i.e. all aspects of the product other than the wave form)
which it has developed over the last ten years.
The company also owns patents for the integration of electronic shark deterrents into
wetsuits, marine vessels including surfboards, antenna electrodes and buoys. This is
steadily building a significant level of IP protection for Shark Shield, which will result in Shark
Shield blocking the path for any potential copyists.
In addition to Shark Shield owning the above IP it owns the world exclusive license from
Natal Shark Board (NSB), which remains in force until 2015, with the option to renew at the
election of both parties. Given the extensive application patents now owned the company
does not plan to renew the NSB agreement. The patented waveform invented by South
Africa’s Natal Sharks Board for which Shark Shield has the worldwide exclusive licence,
expires in 2014 so the license is of no future value.
Madderns Ref: Country
27187
South Africa
Case Status
Date Filed Next Renewal:
Granted/Registered 06-May-2003 06-May-2014
Category Description
Expiry Date
Normal via PCT National Phase 06-May-2023
19246
19324
25522
25698
25697
25523
Official No. Title
2004/8981 IMPROVED AQUATIC VESSEL HULL
PROTECTIVE SWIMSUIT INCORPORATING AN
Australia
782226 ELECTRICAL WIRING SYSTEM
Australia
2002317045 SHARK REPELLING DEVICE
Brazil
PI0211668-5 SHARK REPELLING DEVICE
New Zealand
531470 SHARK REPELLING DEVICE
South Africa
2004/1589 SHARK REPELLING DEVICE
United States of America 7270083 SHARK REPELLING DEVICE
Granted/Registered
Granted/Registered
Granted/Registered
Granted/Registered
Granted/Registered
Granted/Registered
Standard
Via PCT National Phase
Normal via PCT National Phase
Normal via PCT National Phase
Normal via PCT National Phase
Normal via PCT National Phase
20-Nov-2021
26-Jul-2022
26-Jul-2022
26-Jul-2022
26-Jul-2022
26-Jul-2023
21002
Australia
2002331448 SHARK REPELLING FIELD GENERATING CORD Granted/Registered 23-Sep-2002 23-Sep-2013
Via PCT National Phase
23-Sep-2022
25839
Brazil
PI0213077-7 SHARK REPELLING FIELD GENERATING CORD Pending
23-Sep-2002 23-Sep-2013
Normal via PCT National Phase 23-Sep-2022
25838
New Zealand
531914
SHARK REPELLING FIELD GENERATING CORD Granted/Registered 23-Sep-2002 23-Sep-2015
Normal via PCT National Phase 23-Sep-2022
25843
South Africa
2004/2624 SHARK REPELLING FIELD GENERATING CORD Granted/Registered 23-Sep-2002 23-Sep-2013
Normal via PCT National Phase 23-Sep-2022
25837
United States of America 7412944
20-Nov-2001 20-Nov-2013
26-Jul-2002 26-Jul-2013
26-Jul-2002 26-Jul-2013
26-Jul-2002 26-Jul-2015
26-Jul-2002 26-Jul-2013
26-Jul-2002 18-Mar-2015
SHARK REPELLING FIELD GENERATING CORD Granted/Registered 23-Sep-2002 19-Feb-2016
Normal via PCT National Phase 23-Sep-2023
39
40
41
42
43
A CHONDRICHTHYAN REPELLING SYSTEM (Surfboard Innovation)
Australian Provisional Patent Application No. 2013901929 in the name of Shark Shield Pty
Ltd
44
APPENDIX 7 – Scientific and Independent Testing
To review the detailed independent scientific research on Shark Shield or download the full
research please visit http://www.sharkshield.com/view/SharkShieldResearch
1. ESTIMATING THE PROBABILITY OF A SHARK ATTACK WHEN USING AN
ELECTRIC REPELLENT C F Smit, Department of Statistics, University of Pretoria,
Pretoria, 0002, South Africa and V Peddemors, Department of Zoology, University of
Durban-Westvill, Durban, 4000 South Africa
Key Findings:


Shark Shield prevented the sharks from feeding off the bait
Probability of an attack was reduced from 0.70 to about 0.08
2. EFFECTS OF THE SHARK SHIELD ELECTRIC DETERRENT ON THE
BEHAVIOUR OF WHITE SHARKS (CARCHARODON CARCHARIAS) C.
Huveneers, P.J. Rogers, J. Semmens, C. Beckmann, A.A. Kock, B. Page & S.D.
Goldsworthy.
Key Findings:



Static Test: the Shark Shield significantly increased the time it took the sharks to take
the bait, >2x
Dynamic Test; with the Shark Shield turned on there were zero breaches, it stopped
and deterred sharks attacking the seal decoy
Shark Shield’s do not attract sharks
45
APPENDIX 8 – Tiller Product Development Proposal
46
47
48
49
50
51
52
53
54
55
56
57
58
Appendix 10 – Surf Innovation - Product Development Plan
Appendix 9 – Marketing Plan (detail)
Advertising
Spearfishing & Diving
Spearing Magazine
Spearfishing Downunder Magazine
Interational Freediver
Hawaiin Skin Diver
Ultimate Spearfishing
California Diving
Scuba Diving
Sport Diver
Deep Worldwide
Sport Diving Magazine
Dive Pacific
Diver Magazine
Dive Log
Spearblog
Spearoblog
SpearBoard
Spearfishing Planet
ScubaBoard
Kayak Fishing
Blade Kayaking
Western Angler
Kayak Angler
Yak Fisher
Kayak Fishing Magazine
$
$
$
$
$
$
1,200
660
$
$
1,420
$
1,000
$
$
$
$
1,200
660
$
$
1,420
1,207
$
1,000
$
660
$
1,320
1,200
660
1,420
1,207
$
$
$
$
1,200
660
1,420
1,207
$
2,000
1,500
$
$
1,400
1,320
$
$
2,000
1,800
$
7,160
$
1,400
1,320
$
$
1,800
$
5,180
$
2,000
$
1,800
$
3,780
$
1,400
$
$
2,000
1,800
$
8,287
1,400
$
1,320
$
1,800
$
3,200
$
Surfing
$
2,720
$
2,420
$
6,827
$
1,400
$
1,320
$
6,487
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,320 $
$
1,800 $
$
$
$
$
$
$
$
$
3,120 $
4,800
3,300
5,680
3,621
1,500
1,000
1,000
5,600
6,600
8,000
10,800
51,901
60
Sponsorship
The Shark Movie
The Hill Family Channel Swim
Murrells Spearfishing Tournament
Blade Kayak
Spearfishing Tournaments
St Pete Open
Alabama Open
US Nationals
Kayak Fishing Tournaments
The Kayak Fishing Show - Jim Sammons
TOTAL
Amanda
Amanda
Amanda
Amanda
$
500
$
$
Amanda
$
2,500
$
2,500 $
$
$
$
$
$
500
7,500
300
300
8,600
$
7,500
7,500 $
-
$
-
$
-
$
-
$
$
$
500
5,000
$
$
500
5,000
$
500
$
500
$
500
$
$
300
5,800
$
$
300
5,800
$
$
300
800
$
$
300
800
$
$
300
800
500
500
-
$
-
$
-
$
500
$
1,000 $
-
$
500
$
500
$
500
$
500
$
500
$
500
$
$
300
800
$
$
300
800
$
$
300
800
$
$
300
800
$
$
300
800
$
$
300
800
$
$
$
$
$
$
$
$
$
$
$
$
PR and Article Placement
500
500
500
10,000
11,500
TOTAL
Article Writing Budget
Brand.com
Wikipeida Page
Press Release Placement
Mark
Trade Shows & Conferences
Owner
$
$
$
6,000
17,500
27,400
TOTAL
USA
DEMA - Orlando, Florida
SCUBA Show - Longbeach CA
The Blue Wild - Ocean Adventure Expo - Florida
iCast - Kayak Fishing Show
$
$
Australia
ODEX - Syndey
OZTek - Dive Conference & Exhibition - Sydney
Mandurah Boat Show
Sydney International Boat Show
Sanctuary Cove International Boat Show
$
1,000
$
1,000
$
$
$
$
6,000
2,000
$
4,000
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
4,000 $
1,000
13,000
6,000
2,000
ROW
Asia Dive Expo (ADEX) - Singapore
Dive China at Guangzhou Dive Show
Thailand Travel & Dive Expo - Bankok, Thailand
Malaysia International Dive Expo (MIDE)
Diving & Resort Travel Expo (DRT) China
London International Dive Show (LIDS)
Birmingham Dive Show (DIVE) at the NEC
$
-
$
-
$
6,000 $
-
$
-
$
2,000 $
-
$
-
$
-
$
-
61
Digital Marketing
Owner
Utilise a CRM Package - NETO
Search Engine Optimisation
Search Engine Marketing - Adwords & YouTube
Social Media - Twitter, Facebook, Blog & Forum Posting
Develop Measurements and KPI's
Electronic Direct Mail
New Template
Channel - regular newsletter communication
Direct Customers
TV/Internet Ad (Luke Tipple)
Amanda
Amanda
Amanda
Heidi
Amanda
Amanda
Jason
Amanda
Amanda
Amanda
Literature & Sales Tools
Owner
Freedom7 Sales Tool
Scuba7 Packaging
Surf7 Packaing
Sales Tool Printing
Kayak Brochure Artwork
Scuba Brochure Artwork
Customer Testimonials
Customer Testimonial Printing
Advertisements
Banners
Decals
Retail Posters Dive and Kayak
Jason
Jason
Jason
Jason
Jason
Jason
Jason
Amanda
Amanda and Jason
Amanda and Jason
Amanda
TOTAL
$
$
490
100
$
$
490
100
$
$
490
100
$
$
490
100
$
$
490
100
$
$
490
100
$
$
490
100
$
$
490
100
$
$
490
100
$
$
490
100
$
$
490
100
$
$
$
72
$
72
$
72
$
72
$
72
$
72
$
72
$
72
$
72
$
72
$
72
$
$
100
$
762
$
662
$
$
500
1,162
$
$
500
1,162
$
$
500
1,162
$
$
500
1,162
$
$
500
1,162
$
$
500
1,162
$
$
500
1,162
$
$
500
1,162
$
$
500
1,162
$
$
$
$
500
500
$
$
$
-
$
490
100
$
$
$
$
$
72 $
$
$
$
$
$
500 $
1,162 $
5,880
1,200
864
100
5,000
13,044
750
750
1,700
3,200
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
$
$
$
$
$
$
$
$
$
$
$
$
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
$
-
$
$
500
500
$
1,000
-
$
$
$
$
$
500
500
500
1,500
$
$
$
$
-
$
$
$
-
$
$
$
4,500
4,500
750
750
1,200
2,700 $
Channel Development
Channel Management & Territory Plan - Travel
Lindsay
-
Product Development & Packaging
Freedom7 Packaging
Surf7 Packaging
Grip Pad & Packaging
Scuba7 Packaging
complete
Jason
Jason
Jason
$
-
$
-
$
$
500
500 $
-
$
-
$
-
$
-
$
-
$
-
$
-
$
Market Research
Market Analysis on Target Segments
Channel Research and Analysis
Research on New Product Development Ideas
Amanda
Amanda
Amanda
Branding
Language Guide
Style Guide
Amanda
Amanda
Completed
Lindsay
Ongoing
Multimedia
YouTube Videos
Terra Australias
$
-
$
-
$
$
3,000
3,000 $
-
$
$
1,500
1,500 $
-
$
-
$
-
$
-
$
-
$
-
$
-
62
TOTALS
####### ####### ####### ####### ####### ####### $ 5,362
####### $ 3,282 $ 5,662 $ 9,449 $ 9,082
$ 126,045