THE PASSIONATE INVESTOR
Seeking Profitable Investment In Inventions For A Better W orld
September 9, 2016
Jenny Prabhu & Gerald Stanley, OzEquities
Points to Ponder
ADVERTISING AND THE MANIPULATION OF DESIRE?
(an
on-the-whole
light
hearted look at us as prey to
the ads)
*One philosopher likens us
to fish in a barrel - prey to
advertising
and
without
resistance.
*Others assure us that
advertising has nothing to
do with over consumption.
Advertising is ubiquitous. If we
think of advertising as mainly
the annoying interruption to
our TV viewing, or the
annoying pop up of unwanted
ads on our computer screens
or mobiles, this is in fact only
a fraction of the advertising
that every one of us in a
developed country, and many developing ones, is exposed to every day.
Advertising is much more pervasive than the pushed-at-you ads we are aware of - and in many ways - including
triggering our desire to be "the firstest with the bestest" in every sphere of material life - create the norms of
modern society.
While some cities are banning billboard ads, cities eye the revenue
from billboard advertisers - as well as their providing extra income to
most public and private facilities - and they are unlikely to disappear to
any large extent.
In This Issue
Points to Ponder
*Photoshopped images of impossibly beautiful women set every
teenage girl's heart yearning to be like them - and a good many grown
women who should know better - fodder for the beauty machine from
cosmetics to plastic surgeons to endless diets.
*Young men - and the not so youthful - with hair in pony tails are
everywhere and beards are everywhere. Young men and their
girlfriends are often indistinguishable.
*The heavily tattoed are everywhere - no longer the preserve of Maoris
and seamen - also now including women (admirable devotion to the
Unisex creed).
Advertising and the
Manipulation of Desire?
News from everywhere
Snippets
Featuring Companies
Department 13
Genetic Signatures
Updater Inc.
Updates to Prior Issues
THE PASSIONATE INVESTOR
Seeking Profitable Investment In Inventions For A Better World
Points to Ponder
ADVERTISING AND THE MANIPULATION OF DESIRE?
*Sports programs are part funded by gaming ads embedded in their content - a message that betting is part of
sport - at viewing times when children are watching.
*The latest iPhone/ 'recreational drone'/smart watch/luxury car is a "must have" for those who can't - as well as
those who can - afford it.
Noise canceling gold plated headphones costs
$5,499.98
The Verge
By Vlad Savov, Sep 2 2016
(excerpts)
Grateful thanks to Reader who contributed
Sony’s new Signature audio series consists of the goldplated NW-WM1Z Walkman, which weighs in at 455g
(1lb) and $3,200, the $2,300 MDR-Z1R closed-back
headphones, and a desktop headphone amp whose price
I haven’t even dared to look up. First impressions? The
portable media player barely qualifies to be called
portable. This new 256GB Walkman glints beautifully
under IFA’s bright lights, and its hefty case is machined to
a perfect finish, but its weight is overwhelming. I
simultaneously love it for its looks and hate it for its impracticality. Typical Sony, then!
The headphones are a merciful 385g (14oz) and sit very lightly on the head. Their comfort is irreproachable, but
I’m a bit more dubious about the need for a four-stranded Kimber Kable to hook Sony’s two new products
together. Don’t get me wrong, I’m a fan of the sheer excess on display here, but that’s the sort of thing that
wears off rather quickly, leaving people with a setup that’s bulky, heavy, and not nearly mobile enough to be
shown off to the maximum number of people. ..
..Getting Sony’s solid-copper, gold-plated Walkman along with its partnering headphones is a rather opulent
approach to obtaining a matched set of audio gear. It’s the sort of thing you’d probably dedicate a room — or at
least a corner — of your house to. Listening to it would be a ceremony. The UI lag (yes, the Android-based
software is slow) would be like waiting for a fine wine to mature..."
Is There Such A Thing As Too Much Advertising?
Forbes Magazine, Sep 26 2011
By Steve Olenski, Contributor
.. Just finished reading a fantastic article by Adam Swann called Suffering: The New Ad Medium...
We humans cannot go anywhere – in our homes, at the ballgame, getting gas, idling behind a bus at a red
light, and on and on and on. Hell, even going to a bathroom in a restaurant is not safe. We simply cannot go
anywhere without seeing some marketing or advertising message… or so it seems.
So then I asked myself, ‘Is there such a thing as too much advertising?’
Now, seeing how I make my living in the world of advertising, some may think it blasphemous for me to even
Page 2
THE PASSIONATE INVESTOR
Seeking Profitable Investment In Inventions For A Better World
Points to Ponder
ADVERTISING AND THE MANIPULATION OF DESIRE?
consider such a proposition. I am surely not suggesting we do away with ALL advertising and marketing.
Heavens no… there is surely a need to advertise and market a given product, service or ware, especially when
we’re talking about something that could positively impact people’s lives, or the launch of a new brand or
product or something along those lines. I happen to love advertising… love it. Love the process of creating and
conceptualizing. And I love when an ad campaign resonates with people, strikes a nerve and yes… makes
money for clients which in turn makes money for their agencies.
Yes kids, it’s all about the money. Always has been… Always will be… But of course you already knew that.
However, it’s not just the making of money, money, money, it’s about the spending of it, as well. After all to
make money, one must spend it, remember? Having said that, I can tell you that according to Kantar Media,
total advertising expenditures in the first six months of 2011 came in at $71.5 billion.
$71.5 billion… let that sink in for a minute or two.
With so many advertisers spending so much money to advertise and market their message across so many
mediums and platforms to so many people, will we one day get to that point? Will we all one day collectively say
‘enough is enough?’
I surely hope not for as I mentioned previously I love advertising and I think it plays a very important role in the
consumer ecosystem.
Advertising is everywhere, and often we are not aware that we are being harpooned!
Advertising disguised as "advertorials" are often assume to be unbiased media reports.
Sometimes caled "sponsored links" they are written to mimic the style of the editorial content of the magazine/
newspaper/online report.
"Native display ads"
BUSINESS INSIDER (in a foreword to an offer of a $495 report on the subject) said, "Native-display ads,
including social native and native ads in-feed on publisher websites, will make up the bulk of native ad revenue
from 2016-2021. Native display ad revenue in the US will rise at a five-year compound annual growth rate
(CAGR) of 17% during this time period to eclipse $36 billion. The rise of native video ads, particularly on social
platforms, will be one of the main drivers of this growth.
"By 2021, native display ad revenue in the US, which includes native in-feed ads on publisher properties and
social platforms, will make up 74% of total US display ad revenue, up from a 56% share in 2016, according to
new BI Intelligence estimates based off historical data from the Interactive Advertising Bureau (IAB) and PwC,
as well as IHS. The rapid uptick in native's share of display ad revenue can largely be attributed to the
dominance of social platforms like Facebook and Twitter — which were early champions of native and rely
almost entirely on native formats — as well as the introduction of new programmatic technologies that are
making it easier for publishers and advertisers to scale native campaigns.
"In this report we break out native ads into three categories: social native, native-style display, and sponsored
content (also referred to as premium native)... ad frequency and scalability issues.
Page 3
THE PASSIONATE INVESTOR
Seeking Profitable Investment In Inventions For A Better World
Points to Ponder
ADVERTISING AND THE MANIPULATION OF DESIRE?
The classic example is the first ad David Ogilvy (who founded one of the greatest advertising agencies in the
world), wrote as head of his own agency:
David Ogilvy’s Guinness ad
Others:
An Advertorial is also often a video ..
Then there is:
"Affiliate Advertising": This is when you are "mined" by a site you visit including your various accounts eg for
telephone, gas, electricity, pet products, homewares, travel agent - that for a small reward deliver you up to
other sites in which, given the extensive data they have about you, you are likely to be interested.
From Wikipedia, "Affiliate marketing overlaps with other Internet marketing methods to some degree, because
affiliates often use regular advertising methods. Those methods include organic search engine optimization
(SEO), paid search engine marketing (PPC - Pay Per Click), e-mail marketing, content marketing and in some
sense display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as
publishing reviews of products or services offered by a partner.
"Affiliate marketing is commonly confused with referral marketing, as both forms of marketing use third parties to
drive sales to the retailer. However, both are distinct forms of marketing and the main difference between them
is that affiliate marketing relies purely on financial motivations to drive sales while referral marketing relies on
trust and personal relationships to drive sales”.
Business Insider's "The Affiliate Marketing Report (on offer for $495) foreword said, "Affiliate marketing now
drives as many e-commerce orders in the US as email. Both channels currently account for 16% of US ecommerce orders, according to marketing firm Custora. This makes affiliate marketing one of the four largest
sources of e-commerce orders, outperforming social commerce and display advertising.
"Meanwhile publishers still generate the bulk of their revenue from advertising, but affiliate marketing is growing
faster, per our sources. In an effort to balance editorial integrity and revenue needs, publishers are taking a
more native approach to affiliate marketing by embedding product links within organic content and it seems to
be working. Approximately 15% of the digital media industry's revenue now comes from affiliate marketing"
(Business Insider also offers a similar report on E-commerce fraud, a rising cost to merchants).
Page 4
THE PASSIONATE INVESTOR
Seeking Profitable Investment In Inventions For A Better World
News From Everywhere
Bubble-like "Memzyme" increases speed and
efficiency of carbon capture
New Atlas, Sep 4, By Michael Irving (excerpts)
Scientists have developed a thin, bubble-like
membrane which could help filter CO2 out of flue gas
The researchers, from Sandia National Laboratories
and the University of New Mexico, call their creation
a CO2 Memzyme – a membrane full of enzymes.
With a liquid layer 10 times thinner than a soap
bubble. CO2 diffuses through this membrane and is
captured and dissolved, while allowing nitrogen and
oxygen to pass through. Bubbles are notoriously
fragile, though, so to prevent breaks or leakage, the
team bolstered theirs with a silica-based support of nanopores, made up of a relatively thick layer that repels
water, and a thin layer that attracts it.
Enzymes were added to the liquid layer to help speed up the C02 dissolution process. The team used carbonic
anhydrase, an enzyme found in human muscles, blood and lungs that helps the body process and remove
carbon dioxide, and found that it increased the rate that the CO2 dissolved by a factor of 10 million. With the
nanopores forming an unusual environment for the enzymes, the researchers ran molecular simulations to figure
out how the carbonic anhydrase was behaving in the cramped conditions and see how they might improve its
performance.
Altogether, the team claims their design is 10 to 100 times more selective for CO2 over nitrogen in passing flue
gas than existing carbon capture membranes, and it performs 100 times faster. At the other end, the CO2 that's
produced is 99 percent pure, which can be used in a variety of ways, like manufacturing concrete or producing
biofuel from bacteria and algae.
The team received a patent for the Memzyme technology earlier this year and, although it's still early days, say it
could be the first to meet the Department of Energy's national clean energy goal of having technology that can
capture 90 percent of carbon emissions at a cost of US$40 per ton by 2025.
Source: Sandia Laboratory
DroneSeed's drones would rapidly reforest
logged lands
New Atlas Sep 5, by John Anderson (excerpts)
(picture does not relate to this report, DroneSeed is
still in pilot mode).
DroneSeed's drones would rapidly reforest logged
lands by planting seeds, spraying for invasive
species, and monitoring the tree growth process.
One billion trees could be planted each year.
Planting trees in remote forest locations is a slow,
laborious process that still relies on humans with
shovels to do all the work. DroneSeed, a company
based in the Pacific Northwest, wants to drastically modernize that process by employing squadrons of drones
to plant seeds, spray for invasive species, and monitor the tree growth process. In the case of timber companies
that work about 7 million acres in Washington, the state requires successful reforestation of 190 healthy trees
planted per acre within three years after harvest. Otherwise, a forest can take 100 to 300 years to rebuild
naturally to its previous state, where mature, towering trees like Douglas fir are dominant.
Page 5
THE PASSIONATE INVESTOR
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News From Everywhere
.. Loaded with a batch of seeds, the drones would then fly to specified sites and fire a seed into the ground at a
rate of 350 feet per second (384 km/h) using compressed air. According to the company, a drone could plant up
to 800 seeds per hour, compared to 800 seeds a human can plant in a day, covering an acre (0.4 ha) of forest in
1.5 hours on a full battery charge.
The company is currently going through a permission process to be able to apply herbicides, and hopes to be up
and operating sometime in the coming months.
Australia's New England Uni SMART FARM
From Cosmos, Sep 4
(Reprint) (excerpts)
At the University of New England’s 2,900-hectare
Sustainable
Manageable
Accessible
Rural
Technologies Farm, or “SMART Farm”, high-tech
sensors track soil moisture at hundreds of locations,
plane-mounted infrared cameras measure the health
of crops and radio transmitters in livestock ear tags
track and monitor sheep.
All sensors and trackers connect wirelessly to
researchers’ tablets and smartphones.
In the past six months, UNE researchers also have
come up with a new tool for farmers. They’ve
produced the world’s first livestock yield maps, which
show precisely which grazing areas lead to the
biggest weight gains in sheep. These maps could help farmers improve grazing efficiency in open paddocks,
which is now only about 30%.
But Australia currently lags the world in Agricultural innovation ..
A major report just out by Startup Australia, KPMG, Queensland Government and the Commonwealth Bank
finds the US leads the world in the global AgTech market, followed by Israel, the UK, Canada, New Zealand,
India and China in that order.
Australian agricultural productivity growth rate at 1.4% is below the world average of 1.7%.
The report includes ABS statistics that reveal the agriculture, forestry and fishing sectors have the lowest
proportion of “innovative-active” businesses in Australia.
Australia also ranks as the country with the lowest level of research industry invention collaboration in the
OECD.
Meanwhile the global private sector AgTech industry is estimated to grow to $US189 billion between 2013 and
2022. Global venture capital in AgTech is worth US1.5 billion and growing rapidly.
Agriculture is forecast to become Australia’s next $100 billion industry by 2030.
China, US ratify Paris Climate Treaty ..
.. but G20 Leaders baulk at ending fossil fuel subsidies
From ReNew Economy, Sep 6, by Giles Parkinson
The International Energy Agency estimates that countries spent $US493 billion on consumption subsidies for
fossil fuels in 2014, while the UK’s Overseas Development Institute suggests G20 countries alone devoted an
additional $US450 billion to producer supports that year.
Page 6
THE PASSIONATE INVESTOR
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News From Everywhere
Throw in the unpaid environmental and climate impacts, and the International Monetary Fund puts total annual
subsidies for fossil fuels at more than $5 trillion.
Last week, the Bloomberg Editorial Board said fossil fuel subsidies were the dumbest policy they could find in
the world, saying that the “ridiculous” outlays would be economically wasteful even if they didn’t also harm the
environment.
“They fuel corruption, discourage efficient use of energy and promote needlessly capital-intensive industries,”
the Bloomberg team wrote. “They sustain unviable fossil-fuel producers, hold back innovation, and encourage
countries to build uneconomic pipelines and coal-fired power plants.
“Last and most important, if governments are to have any hope of meeting their ambitious climate targets, they
need to stop paying people to use and produce fossil fuels.”
.. (Australia, for instance, rejects the claims by NGOs and others that it has $7 billion a year in fossil fuel
subsidies).and to set strict timelines for eliminating them.
The G20 didn’t set targets, despite the call being echoed by 200 civil society groups, and multi-national insurers
with $1.2 trillion in assets, led by Aviva, who called on the G20 leaders to “kick away the carbon crutches” and
end fossil fuel subsidies by 2020.
..One significant step was the progress towards “green finance” and China’s initiatives, in particular, to create a
“green financing system” that drew attention and applause.
Unprecedent step of public dissent in Australia's Climate Change body
ABC News, September 5
The Government's main climate change advisory body has split, with two board members calling for tougher
action to reduce emissions.
Last week, the Climate Change Authority published a report calling for the Government to introduce an
emissions trading scheme.
But two of the authority's board members, climate scientist David Karoly and economist Clive Hamilton, have
since issued a dissenting minority report calling for stronger measures to reduce emissions.
Professor Karoly said the recommendations in the majority report were inadequate.
"The target that is being used is the current Government targets, which are only 26 to 28 per cent emission
reductions by 2030, but in fact that means that Australia would not be contributing its fair share to global action,"
he said.
"Australia is the highest per capita emitter of greenhouse gases of all countries in the world.
"Therefore Australia should be doing more, because it is contributing more to climate change growth, to global
warming around the world."
Prof Karoly is the only climate scientist on the body at present.
Eastern Gorillas on critically endangered list
ABC News Sep 5
Gorilla mother Kumili holds her baby
Eastern gorillas are critically endangered from effects of war, hunting and
migration The world's largest gorillas have been pushed to the brink of
extinction by a surge of illegal hunting in the Democratic Republic of Congo,
and are now critically endangered.
The eastern gorillas, also known as Gorilla beringei, are the largest great apes
in the world. But with just 5,000 left on Earth, they now face the risk of
disappearing completely, officials said at the International Union for
Conservation of Nature (IUCN) global conference in Honolulu.
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THE PASSIONATE INVESTOR
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Points to Ponder
Four out of six of the Earth's great apes are now critically endangered, "only one step away from going extinct,"
including the eastern gorilla, western gorilla, Bornean orangutan and Sumatran orangutan, said the IUCN's
latest update to its Red List.
'Rent-a-panda' program saves giant pandas
ABC News Sep 5
Decades of conservation work in China have paid
off for the giant panda, whose status has been
changed from "endangered" to "vulnerable" due to a
population rebound.
The latest estimates by the IUCN show a population
of 1,864 adult giant pandas. Although exact
numbers are not available, adding cubs to the
projection would mean about 2,060 pandas exist
today, said the IUCN.
The cornerstones of the Chinese effort to bring back
its fuzzy, black and white national icon have
included an intense effort to replant bamboo forests,
which provide food and shelter for the bears.
Through its "rent-a-panda" captive breeding program, China has also loaned some bears to zoos abroad in
exchange for cash, and re-invested that money in conservation efforts.
However, the IUCN warned the good news for pandas could be short-lived.
A warming planet, driven by fossil fuel burning, is predicted to wipe out more than one third of the panda's
bamboo habitat in the next 80 years.
Sustainable farming reaping benefits
for women in the Cameroon
DW News, Sep 4
Improved soil management practices and
better farming habits are putting smiles
on the faces of women in Bafut, a
community located about 400 kilometers
(240 miles) from Cameroon's capital
Yaounde.
These innovations all fall within the field
of
"permaculture,"
a
system
of
sustainable agriculture and design
principles aimed at creating a more
ecological
relationship
with
the
environment.
The innovation was brought to the women by Joshua Kankonko, who grew up in the area. Kankonko is the
developer behind an eco-village built using only local materials. Farmers in the village have implemented
permaculture practices aimed to benefit residents through better management of soil and environmental
resources. Simple practices such as composting and erosion control are helping to increase yields.
Page 8
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News From Everywhere
Cure for Alzheimer's?
DW News, August 31
New Alzheimer's therapy slows memory loss,
reverses plaque build-up in brain
A promising new Alzheimer's therapy appears to
reduce the characteristic plaque build-up in the
brains of Alzheimer's patients and to slow the rate of
mental decline accompanying the disease.
In a study involving 165 Alzheimer's patients, half
were given a placebo and the other half a monthly
injection of an antibody called aducanumab.
Over the course of one year, the injected antibody
caused the plaque to retreat and, crucially, slowed
the cognitive degeneration that accompanies Alzheimer's disease. The antibodies work by selectively targeting a
protein in the brain called amyloid-β (Aβ) - a neurotoxic plaque - and then binding with the protein and reducing
the forms of it that are soluble and insoluble (like the fibers).
The new therapy was developed by researchers in the US and Switzerland and the results published in the
science journal "Nature" on Wednesday (31.08.2016).
DW spoke to Alzheimer's expert Dr. Christian Haass of the German Center for Neurodegenerative Diseases
(DZNE), who was not involved in the study, to put its importance into context.
DW: Are the results really "unprecedented," as the researchers say?
Dr. Christian Haass: In previous studies using similar approaches and similar antibodies, people were able to
remove plaques - but it never resulted in a reduction of the memory loss. Or stabilization of the memory. So the
big difference in this study is that the prevention, or reduction, of the amyloid plaque formation was strongly
correlated with a stabilization of memory. And that's of course the major thing that you want. It's not enough to
remove plaque. You need to stabilize memory.
So is this... it? Is this the cure for Alzheimer's?
It's a major, major, major advance in the field. It shows clearly that an anti-amyloid therapy can work and
stabilize memory. As for a "breakthrough"... it may be too early. The study was small. But definitely, for the AD
field [Alzheimer's/dementia], and for the patients, this is the first time that there's at least some beneficial effect
on memory. That has never been found before, never ever.
Nature Scientific Journal - Gehirn-Bilder Alzheimer
Snippets
Seera Holdings Ltd - Seera Pty Ltd, founded in 2013 as an Australian subsidiary of UK company Seera
Holdings Ltd, plans to list on the ASX next year.
The company's cloud based product is a people management platform, which generates a customers' job ads,
then tracks the performance of an employee once they are hired. It is also working on a so-called machine
learning component that will help its software identify the best candidates among applicants.
Some of Seera's major clients include DHL, Rabobank, the New Zealand government and a major ASX-listed
business.
Page 9
THE PASSIONATE INVESTOR
Seeking Profitable Investment In Inventions For A Better World
Companies Featured
THREE WORLD LEADING AUSTRALIAN COMPANIES
D13 International Ltd
D13: US BASED, ASX LISTED COMPANY WITH WORLD LEADING PATENTED TECHNOLOGY FOR
DEFENCE AND HOMELAND SECURITY DETECTS, REDIRECTS AND CAN SAFELY LAND MALICIOUS OR
NUISANCE DRONES - FIRST COMMERCIAL PRODUCT IN DECEMBER THIS YEAR. HIGHLY
CREDENTIALLED BOARD
D13
International
Ltd, listing in the
shell
of
Kunene
Resources Ltd on
January 13 2016, is
a drone defense,
cyber security and
RF (radio frequency)
software
communications and
networking
R&D
company based in
Virginia,
USA,
founded in 2010 by a
group
of
former
military
operators,
scientists,
and
engineers.
D13's Mesmer technology for drone control has 10 granted patents and 14 patent applications pending in the
fields of communication, networking, wireless technologies, security, and more, including Drone defense, Local
area and wide area cellular communications and networking, Enhanced data bandwidth for all digital
communications, Cyber security for mobile devices, Sophisticated RF technology applications (Radiometrics).
D13 already has built a working prototype of the Mesmer drone mitigation system.
As drones - mainly COTS (Commercial Off The Shelf) drones become ever more sophisticated and their usage
increases - and are undoubtedly of great value with huge savings in costs, time, money (plus eliminating the
danger of human intervention in many situations - eg mapping territories, surveillance, dropping supplies to the
stranded whether in mishaps or behind battle lines) there is also the increasing threat drones pose to peace and
security - whether dropping dope or weapons into prison yards, or dropping bombs indiscriminately on civilians
gathered in entertainment venues, wedding parties or sports events - or in illicit survey of military installations.
*The potential drone defense market is expected to be worth around $1.14B by 2022 (D13 prospectus).
D13's Mesmer System
D13 is developing a Radio Frequency based commercial counter drone platform that can automatically detect
drones and stop, redirect or safely land them - the Mesmer system.
The Mesmer system can create Geo Fences around secret installations that will detect and redirect a drone.
Mesmer detects, identifies, tracks and mitigates hostile and nuisance drones within the national security and
Page 10
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Companies Featured
D13 International Ltd (cont’d)
public safety community. It is primarily a software solution that scales and adapts to different needs and
integrates with existing hardware installations.
Mesmer can be operated below 1 Watt and within the US regulatory (FCC) constraints. Mesmer uses novel
methods to enable the detection and mitigation of radio controlled devices (e.g. drones or unmanned vehicles).
In contrast to other systems, Mesmer does not employ kinetic attacks or jamming. Mesmer is a software
platform that operates as a stand-alone system or alternatively on top of existing hardware solutions. Mesmer
provides automated detection and finessed mitigation strategies that can be selected to function autonomously
or with an operator in the loop. Mesmer’s detection stage occurs using cognitive techniques for blind signal
detection and characterization to determine the existence of threats. Mesmer's response stage is based on a
technique known as “protocol manipulation”. Protocol manipulation uses signal features and metadata to select
and apply strategies in order to curtail threats.
The Mesmer platform offers significant benefits over standard electronic mitigation approaches. One reason is
protocol manipulation does not attempt to overpower signals like jammers. As such protocol manipulation is
inherently low-power and has low interference with existing signals in the environment. Mesmer can be operated
below 1 Watt and within the US regulatory (FCC) constraints. Furthermore, Mesmer is primarily a software
defined solution that easily scales and adapts to different needs and integrates with existing hardware
installations, enabling quick deployment for a wide range of CONOPS.
*D13's first commercial product is expected to be delivered in December this year.
It is already seeing strong demand from governments, security and military agencies and infrastructure
organisations.
*D13 is demonstrating its Mesmer counter drone system to defence organisations in the US and Australasia.
*Because of the credentials of its directors, D13 is accepted by national security
organisations.
*D13's subscription based model offers income certainty and predictability.
Partnerships and distributors
*D13 on August 8 announced it has joined the EDGE Innovation Network, a collaborative open environment
initiative enabling industry and academia with government input to work together and enhance the delivery cycle
of new technologies and innovative capabilities to military personnel, law enforcement and first responders.
There are 18 EDGE Innovation Centers worldwide and over 500 EDGE members.
*On July 19 D13 announced it has appointed Phoenix Group as its Latin American distributor for Mesmer. The
Phoenix Group provides security to transportation companies including the prevention of piracy, stowaways,
terrorism, narcotics smuggling and other services.
*On March 29 D13 announced it has been selected to work with Parsons to present solutions in Networking
Research Fields to US Navy Research Lab.
On June 6 D13 announced it has teamed with Parsons on a 5 year multiple award indefinite delivery/indefinite
quantity contract by the Naval Research Laboratory Information Technology Division to provide R&D and other
engineering support to the NRL-LTD.
*Also on March 29 D13 announced it has created a strategic relationship with Booz Allen Hamilton. Booz Allen
will be a preferred systems integrator for D13 Counter UAV technology for US Defense opportunities. The firms
will jointly identify opportunities.
D13 has agreed to market Booz Allen as a qualified systems integrator for its technologies.
*D13 on February 4 2016 announced the appointment of IMSL, as leading provider of Threat Intelligence
Analysis under its ICARUS program as its regional distributor in the UK and Europe. IMSL has been servicing
Page 11
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Companies Featured
D13 International Ltd (cont’d)
the UK and European Defence and Security market since 2010.
*On January 20 D13 announced the appointment of EPE, the leading Australasian provider of Counter Threat
EOD and Electronic Countermeasure equipment, as its regional distribution partner in Australia and New
Zealand.
Target customers
National Defense and Homeland Security
Commercial Property and High Traffic Shopping Venues.
National Security Events, Stadium Events and Theme Parks.
Government Facility (Prison Systems, National Capitol Region)
Critical Infrastructure, Utilities, Reservoirs, Public Works
Public Safety Protection Aviation, Marine, Border
Presentations and awards
*D13 presented to military leaders from Australia and New Zealand on 5th and 7th September at the Australian
Future Land Forces Conference in Adelaide on the subject of MESMER Cognitive Counter-UAS Machine
Learning Based Detection, Identification, Tracking and Mitigation of Autonomous Systems. The presentation will
cover strategies to defeat weaponised and modified drones used by terrorists, narcotics traffickers and those
seeking to breach prison security to deliver contraband. Topics will include Emerging Threats and The Battle
Field of Tomorrow.
*On September 2 D13 announced it has successfully conducted two recent demonstrations for senior personnel
representing US government agencies; the MITRE CUAS Challenge at Marine Corps Base Quantico and the US
Defense Department’s premier counter drone exercise Black Dart, held at the Counter Drone Test range at Elgin
Air Force Base in Florida.
*D13 was selected by MITRE as one of eight finalists (of 42 applicants) to showcase Mesmer at the MITRE UAS
Challenge competition in August at Quantico, VA.
*Department 13 was named best RF defense methodology by Frost and Sullivan
The competition
While other technologies exist, including shooting down the drones or jamming - all of which result in the drone
crashing to the ground - Mesmer retains control of the drone, enabling safe landing .
.
WHAT THE BROKERS SAY
In a 25 page research report dated March 31 DJ Carmichael placed a "speculative buy" on the stock. The
broker said the basis for its recommendation included the proliferation of COTs drones and the growing need to
detect and mitigate against them that gives D13 a huge addressable market in all sectors including multiple
geographies.
The broker says there are currently five COTS drone manufacturers making up around 85% of the market
Page 12
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Companies Featured
D13 International Ltd (cont’d)
Financials
Directors
Mr Jonathan Hunter, Executive Chairman and Chief Executive Officer
Mr Hunter is a former advisor to the US National Academy of Science on defense technology. Mr Hunter has
more than 25 years’ experience in leadership positions within the US Military and US Government Advisory
Committees. As a principal for D13, he is responsible for growing and managing all US strategic relationships,
including supporting, assisting, and advising the company's path to market and growth within the areas of the
three levels of government.
Mr Hunter holds a Bachelor of Science majoring in Criminal Justice and an MBA (Technology Management
Program).
Dr Kathleen Kiernan, US Executive Director – Government Relations
Dr Kathleen Kiernan is the founder and CEO of Kiernan Group Holdings, Inc. a global consulting firm
Page 13
THE PASSIONATE INVESTOR
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Companies Featured
D13 International Ltd (cont’d)
Directors (cont’d)
specializing in law enforcement, defense, and intelligence industries with specialized support to federal and civil
clients in the areas of strategy, policy, tactics, and training. Dr Kiernan is a 29-year veteran of Federal Law
Enforcement. She has previously served as the Assistant Director for the Office of Strategic Intelligence and
Information for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Member of the Army Science
Board, and a Member of the Air Force Strategic Studies Board
Dr Kiernan is an appointed member to IBM Network Science Research Center (NSRC), collaboration between
the Sensemaking Fellowship (formerly based at the MIT International Development Initiative) Swansea
University's Network/Relationship Science Analytics PhD Program as well as its NSRC, and scholars from
academic institutions, such as MIT and Harvard.
Dr Kiernan is also a member of the AFCEA Executive Committee (Class of 2015), and the AFCEA Intelligence
and Homeland Security Committees.
Dr Kiernan was the recipient of the US National Women of Influence Public Sector award in 2010.
Dr Kiernan completed her Doctorate in Education at Northern Illinois University, and her Master of Science in
Strategic Intelligence at the Joint Military Intelligence College in Washington, DC. She also holds a Master of
Arts in International Transactions from George Mason University Homeland Security Policy Institute, and she is
a faculty member at The Johns Hopkins University and at the Naval Postgraduate School Center for Homeland
Defense and Security.
Mr Gavin Rezos, Non-Executive Director
Mr Rezos is a principal of Viaticus Capital LLC, a firm which specializes in structuring and arranging public and
private funding for growth businesses in the technology sector. Viaticus has offices in London, Washington and
Perth, utilizes an international network of investors and advisors for cross border transactions.
Mr Rezos is Executive Chairman of Alexium International Group Limited, an ASX (ASX:AJX) OTC QX (US)
listed technology company commercializing patented environmentally friendly flame retardants to the US
Defense sector and commercial markets, with an operational business based in Greer, South Carolina, US. Mr
Rezos is a Non-Executive Director of Iluka Resources Limited (an ASX top 100 company). Mr Rezos is a NonExecutive Director of Metalysis PLC, a Cambridge University spin out company with a patented metals
processing technology in which Iluka is a major investor, appointed March 2014.
Mr Rezos has degrees in law and arts, and he has previously worked as a solicitor in Australia and the UK, and
was a former Investment Banking Director of HSBC with regional roles in HSBC in London, Sydney and Dubai.
Mr Al Teller, US Executive Director – Commercial
Mr Teller is the former Chairman and CEO of the MCA Music Entertainment Group (now Universal) and the
former President of Columbia Records and CBS Records (now Sony). Mr Teller served as the music industry’s
representative on the National Information Infrastructure Advisory Council created by US President Bill Clinton to
develop public policy regarding the Internet. He currently serves on the Board of Directors of INgrooves, an
Internet digital distribution company and consults various organizations on Internet strategy.
After MCA, Teller led two venture capital-funded businesses, Atomic Pop LLC and Red Ant Entertainment, both
widely regarded as innovative milestones in the growth of the digital distribution of music through the Internet.
Mr Teller graduated from Columbia University with a BS in Electronics Engineering and an MS in Operations
Research and went on to earn an MBA from Harvard Business School.
Page 14
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Companies Featured
D13 International Ltd (cont’d)
Directors (cont’d)
Mr Philip George, Non-Executive Director
Mr George has experience as a managing director and operations manager with a strong background in cyber
security and IT networking. He has previously worked as a general manager, technical director, global IT
manager, team lead, and IT Manager. For the last eleven years, Mr George primarily serviced the Finance, Oil &
Gas, Start-up & Mining and Petrochemical industries. Mr George is the former Operations Manager for Uber
Australia.
Mr George is the founder of NURV Consulting which delivers custom cloud based solutions to small & medium
businesses. Over six years after establishing NURV Consulting, Mr George established and maintained
wholesale and supplier relationships with Australian and international solutions providers to deliver premium end
customer solutions.
Company secretary: Kevin Kye
Substantial Shareholders
Jonathan Hunter 9.63%
Robi Sen 9.63%
Roger Davies 7.41%
Paul McCarthy 7.22%
Gavin Rezos 5.54% .
Page 15
THE PASSIONATE INVESTOR
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Companies Featured
Genetic Signatures Ltd
GSS: DISEASE DIAGNOSTIC BREAKTHROUGH COMPANY LAUNCHES GLOBAL SALES DRIVE WITH
$14M RAISING. TGA AND CE MARK APPROVED PATENTED 3BASE TECHNOLOGY TEST KITS ENABLE
FAST, HIGH VOLUME REAL TIME DETECTION OF INFECTIOUS DISEASES, ENABLING SAME DAY
TREATMENT TO BEGIN. SALES RISE SHARPLY AS HOSPITALS IN AUSTRALIA, EUROPE, USA AND
CANADA SEIZE THE ADVANTAGE. FDA SUBMISSION IN PROGRESS. HIGHLY CREDENTIALLED
BOARD. IN A $US54.6 BLN MARKET AND GROWING
Genetic Signatures Ltd, founded in 2001 by Dr
Geoffrey Grigg (previously Chief of Division,
Molecular Biology, CSIRO), listed on April 1, 2015
following an issue of 18.757 million shares at 40c
each. GSS is currently completing a capital raising of
$14m via the issue of 29.8m shares at 47 cents to
institutional and sophisticated investors both
domestic and offshore.
GSS has developed and commercialised a range of
molecular diagnostics (MDx) products based on its
proprietary platform technology, 3Base. GSS
operates in the global in-vitro diagnostics industry,
with its patented EasyScreen™ test kits enabling the
rapid detection and treatment of multiple infectious
diseases via a single test. The company has a broad
overarching patent protecting the 3Base technology
platform, expiring in 2024 and another more specific
patent protecting the use of 3Base in each of the
company's general pathology products, expiring in
2031.
Globally, pathology laboratories are moving from
traditional diagnostic methods, such as petri dish
specimen detection, to molecular diagnostics
methods mainly due to the improvements in speed
and accuracy.
At the time of ASX listing the company's EasyScreen™ product range was already in use by major hospitals and
pathology groups in Australia for the detection of infectious diseases that can cause gastroenteritis, Norovirus
and C.difficile.
The company plans to launch additional products for the detection of pathogens associated with respiratory
diseases, atypical Pneumonia, sexual health infections, MRSA, meningitis, an antibiotic resistance panel
including extended spectrum beta-lactamase (ESBL) and carbapenemase producing organisms (CPO) and a
Flavivirus assay (including Zika, Dengue, Yellow Fever, etc), tuberculosis and meningitis.
The respiratory, atypical Pneumonia and sexual health MRSA products are in Beta testing, the sexual health
infections, antibiotic resistance, Flavivirus tuberculosis and meningitis products are at earlier stages of
development.
Page 16
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Companies Featured
Genetic Signatures Ltd (cont’d)
Estimated growth of global IVD market
Kalorama, a division of Market Research, estimated sales in the global IVD market were $US54.6 billion in 2013
and estimates that these will grow at an annual compound growth rate of 4% from 2013 to 2018 to reach $US65
billion in 2018.
GSS adds in its prospectus, "Kalorama has not estimated MDx sales in Australia, however based on an
Australian Government report on IVD devices Genetic Signatures has conservatively estimated the market will
reach approximately $US85 million by 2017 in Australia".
(From GSS' prospectus)
Kalorama March 4 2016 report:
(excerpts)
In a report titled, “Five IVD Market Trends to Watch for in 2016,” Kalorama published its picks for the top five
trends in IVD testing for 2016.
Expect More Acquisitions from Heavyweights: Kalorama’s experts point out that the increasing complexity of
in vitro diagnostics is one powerful force encouraging IVD companies into acquisitions, partnership deals, and
distributor agreements as a way to bring together all the technology parts they need to compete - expected to
continue to increase in 2016 as companies scramble to obtain all the technology and resources needed to
achieve their goals.
Pragmatic Personalized Medicine: Pharmacogenomics (PGx) studies how an individual’s genetic makeup
affects how they react to certain medications. Kalorama notes that there are currently more than 50 PGx test
products in development or already on the market. Tests for infectious and hereditary diseases should continue
to improve, as well as further advancements in oncology. Government projects from 2015, such as the Precision
Medicine Initiative Cohort Program should also improve the dynamics of PGx testing.
The Service Industry Is Here to Stay: “The test service model has become a major route for highly
sophisticated and specialized molecular tests,” wrote the authors of the Kalorama report. “At one time, the most
successful molecular test services offered cancer diagnostics using in situ hybridization (ISH), sequencing and
polymerase chain reaction (PCR) analysis of biopsied tissue.” The authors went on to say, “The service model
for molecular tests has been adopted by private reference labs, large hospitals and company-owned test
services. The company-owned test service business model is primarily a phenomenon of the U.S. There is a
long history for the commercialization of highly specific assays as test services.”
Emerging Disease Threats: International travel, trade, and climate change are contributing factors in the
emergence of diseases in developed countries that were typically found only in the tropics or the developing
world. The recent Ebola risk made the American public more aware of a pandemic disease threat. Infectious
diseases like malaria, Chagas Disease, and Dengue Fever can now appear anywhere on the planet, infecting
humans, animals, and insects. These types of diseases can be difficult to prevent and control, making their
existence a public health concern for the world’s population.
Near-Patient Molecular: Kalorama predicts that, in 2016 and beyond, development of products in point-of-care
(POC) molecular diagnostics will be swift and continuous. Such POC and near-patient molecular test products,
particularly for infectious disease, “allow providers to initiate care during the same visit or day,” noted Kalorama
in its story.
Page 17
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Companies Featured
Genetic Signatures Ltd (cont’d)
July 8 2016 report on GSS in genomeweb, a US publication
By Madeleine Johnson (excerpts)
"The core technology underlying Genetic Signatures' products is a nucleic acid amplification strategy called
3base.
"We change the four letter alphabet to a three letter alphabet" CEO John Melki said. This is accomplished with
standard bisulfite treatment of the sort typically used in epigenetic analyses, converting cytosines to thymines.
The firm's CSO Douglas Millar was one of the original developers of the bisulfite method published about 25
years ago.
"Using bisulfite-converted DNA for PCR-based diagnostics is unique to Genetic Signatures. .. "It gives us a
number of advantages in real time PCR assays that we design" Melki said, “Namely reducing complexity
between subtypes or strains, making them more similar to each other without compromising specificity"...
"The firm's line of assays, called EasyScreen, uses the 3Base method. The menu currently includes tests for
enteric gastroenteritis bacteria, viruses and protozoa. A number of the test kits are approved by the Therapeutic
Goods Administration .. and are CE-IVD marked, and the firm is also selling into Canada at this time, Melki said.
"In terms of the US, Genetic Signatures is planning to pursue FDA approval, but has not yet determined which
test it will submit first ..The firm's kit to detect protozoa that was recently evaluated in collaboration with UCLA is
one possibility, as it detects a number of species that aren't easily detected by traditional methods and there
may be a market need for additional targets, Melki noted. The kit as it is currently commercially available in
Australia and Europe detects five targets — Cryptosporidium spp., Giardia intestinalis, Dientamoeba fragilis,
Entamoeba histolytica, and Blastocystis hominis from stool samples".
In June of this year, GSS launched a range of Analyte Specific Reagents (ARS) in the US which do not require
FDA approval. US Laboratories regulated by the Clinical Laboratory Improvement Act (CLIA) may purchase and
use ASRs as building blocks to develop and validate proprietary tests for the diagnosis of infectious diseases.
These laboratory-developed tests are commonly used in the US market and are offered in up to 11,000 CLIA
certified laboratories. The kit as it is currently commercially available in Australia and Europe detects five targets
- Cryptosporidum spp, Giardia intestinalis, Dientamoeba fragilis, Entamoeba histolytica and Blastocystis hominis
from stool samples.
The tests are compatible with 384-well plates with full coverage of up to 24 targets still allowing up to 48 patient
specimens to be processed per plate.
On June 24 2016 GSS announced that the University of California, Los Angeles has notified the company that a
recent GSS product evaluation was successful and showed improved pathogen detection compared to
traditional methods.
Genetic Signatures has consulted with leading experts to develop an assay that identifies Blastocytsis Spp and
Dientamoeba fragilis, both of which are potentially clinically significant pathogens. Based on advice from their
panel of experts, Genetic Signatures will soon expand their assay to identify two Microsporidia, Enterocytozoon
bieneusi and Encephalitozoon intestinalis. Inclusion of these pathogens will provide clinicians with valuable
information to select a course of treatment and improve patient outcomes.
Genetic Signatures now looks forward to developing the process with UCLA that will see GSS products adopted
into routine use. “We are very pleased with our study results and look forward to working with Genetic
Signatures to focus on the best technologies to enhance patient care,” said Romney Humphries, PhD D
(ABMM), Section Chief, Clinical Microbiology UCLA. “We will soon be sharing our results in upcoming
publications highlighting the infections that can be missed with traditional methods”
Page 18
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Companies Featured
Genetic Signatures Ltd (cont’d)
WHAT THE BROKERS SAY
Lodge Partners, the broker to the issue, in an August 2015 report said, "We continue to see Genetic Signatures
as significantly undervalued. Buy recommendation and a new price target of 88c instituted”
Financials
.
Directors
Dr Nick Samaras, Ph.D. MBA, FAIM, FAICD. Non-Executive Chairman
Dr Samaras has had over 25 years business experience in the global Life Sciences industry and is a recognised
and respected industry expert. He has held a number of senior executive level positions in management,
marketing, sales, and research and development. His roles have included appointments as Managing Director of
Applied Biosystems Pty Ltd (now part of Thermo Fisher), and senior roles with Perkin Elmer and AMRAD
Corporation (now part of CSL).
Page 19
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Companies Featured
Genetic Signatures Ltd (cont’d)
Directors (cont’d)
Dr Samaras is an experienced executive, non-executive and Board Chairman, having served on the boards of
several biotechnology companies including one that was ASX- listed. For the past 10 years Dr Samaras has
focused his efforts on enabling a number of US biotechnology companies by facilitating their international market
expansion and structured development of commercial revenue channels outside of their traditional onshore
markets. Nick holds a BSc with Honors in Pathology and Immunology from Monash University, and a Ph.D. in
Medical Biology from the Department of Medicine at The University of Melbourne. He also holds postgraduate
business qualifications which include an MBA from the School of Management at RMIT University, and is a
Fellow of the Australian Institute of Company Directors and the Australian Institute of Management.
John Melki, Ph.D. Director and Chief Executive Officer
Dr Melki has led the commercialisation efforts of Genetic Signatures as Chief Executive Officer since 2011. Dr
Melki originally joined Genetic Signatures in 2003 where he was responsible for leading the commercialisation of
2 research products (worldwide) and 5 diagnostic products (locally and Europe) in the role of Senior Principal
Research Scientist. He has authored 20 peer-reviewed articles and is listed as an inventor on 8 patent
applications. Dr Melki received his BSc from the University of New South Wales and his Ph.D. from the
University of Sydney, where his thesis was awarded the Peter Bancroft Prize from the Medical School. His
primary research focus for the last 20 years has been in the sodium bisulphite conversion of DNA which is at the
core of Genetic Signatures’ technology.
Mike Aicher, BSc, MBA. Executive Director – U.S. Operations
Mr Aicher has over 30 years of industry experience, and was CEO and founder of National Genetics Institute
(NGI) and was acquired by Laboratory Corporation of America, Inc. (LabCorp) in 2000.
More recently, Mr. Aicher led LabCorp’s Western Division and was previously responsible for the Company’s
Esoteric Business Units, which generated more than $1 billion in annual revenue. Prior to NGI, Mr. Aicher
served in a number of executive leadership roles at Central Diagnostics Laboratory.
He currently serves as a director on the boards of Ariosa Diagnostics, Inc. and Omicia, Inc. He is certified by the
University of California at Berkeley as a Global Biotechnology Executive and is a recipient of Ernst & Young’s
“Entrepreneur of the Year” award for emerging technologies. Mr Aicher received a B.S. in Business
Administration from the University of Redlands and an M.B.A. in Economics from Columbus University.
Phillip Isaacs, MSc, JP. Non-Executive Director
Mr Isaacs holds an MSc in Biochemistry from the University of Sydney. He has worked as a Clinical Biochemist
with the Commonwealth Department of Health and in commercial diagnostics as Managing Director of the
Australian subsidiary of Technicon Equipment (the manufacturer of the first AutoAnalyzer using continuous flow
analysis for the estimation of biochemicals in the bloodstream). He commenced the operation of Beckman
Instruments in Australia and worked as Managing Director and Area Director for the Asia-Pacific region, being
responsible for both the Diagnostic and Life Science equipment markets. He was Vice President of the Asia
Pacific Cytyc Corporation which developed and sells the ThinPrep Pap Test and was responsible for the
development of the Company in Asia Pacific. He was also the Founding Chairman of the Australian Proteome
Analysis Facility (APAF) in Sydney.
Tony Radford, Ph.D. AO. Non-Executive Director
Dr Radford has extensive experience in the biotechnology industry and has held executive roles in the
management of commercial research and development in the medical field. Dr Radford gained a Ph.D. from La
Page 20
THE PASSIONATE INVESTOR
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Companies Featured
Genetic Signatures Ltd (cont’d)
Directors (cont’d)
Trobe University and was a member of the CSIRO team that invented the QuantiFERON method for Cellular
Immune-based diagnostics. He later joined AMRAD in pharmaceutical research and was Head of Development
in 2000 when he left to co- found the diagnostic company Cellestis Limited, which listed on the ASX in 2001.
Establishing offices and operations in the USA, Europe and Japan, Cellestis developed QuantiFERON –TB
Gold, the worldwide benchmark for diagnosis of tuberculosis infection. Dr Radford was CEO of Cellestis from
founding until its acquisition by QIAGEN NV in 2011 for approximately $400 million.
Principals Advisors
Sir Gregory Winter, CB, FRS, Hon FRCP, Hon FTSE. Special Advisor
Sir Gregory Winter is a pioneer of therapeutic monoclonal antibodies. He invented techniques to both humanise
and later to fully-humanise antibodies for therapeutic uses.
Dr Jim Peacock, AC, FAA, FRS, FTSE, FAIAST. Special Advisor
Jim Peacock is the former Chief Scientist of Australia and a past President of the Australian Academy of
Science. He was Chief of CSIRO Plant Industry 1978-2003.
Prof. William Rawlinson, AM, MBBS, Ph.D., FRACP, FRCPA. Clinical Advisor Professor William Rawlinson is
Director of the Virology Division, SEALS Microbiology at Prince of Wales Hospital, Sydney.
Christopher M Abbott, Ph.D. (Hon), AM, FCA. Founder and Chairman Emeritus Christopher Abbott has had an
extensive and successful career in investment and venture capital. From 1967 to 1976, he was an Executive
Director with the Rothschild- affiliated Merchant Bank in Australia, and from 1976 to 1989 he was an external
Director of a number of public companies. During this period he founded Maple-Brown Abbott Limited, an
investment firm now managing $10 billion in securities. Mr Abbott also co-founded Peplin Limited (acquired by
LEO Pharma A/S in 2009), a biotechnology business focused on inventing innovative dermatology products.
Since 1985, he has been an early investor in many Australian biotechnology start-ups.
Management Team
John Melki PhD: Chief Executive Officer and Director
Doug Millar PhD: Chief Scientific Officer
The Genetic Signatures Scientific program is led by Dr. Doug Millar, who joined the company in 2001. Dr Millar
holds a PhD in Molecular Genetics from the University of London and is one of the pioneers of the bisulphite
genomic sequencing protocol. Dr. Millar is the key inventor on over 30 patents or pending patent applications
held by the company and has authored 23 peer reviewed scientific papers in the field of molecular biology and
sodium bisulfite conversion of DNA, and has presented at more than 20 international and national scientific
meetings.
Dr Millar was invited to attend the prestigious MRC Laboratory of Molecular Biology in Cambridge UK by Sir
Gregory Winter for a sabbatical in 2009 where he worked with Dr Philipp Holliger on directed enzyme evolution.
Substantial Shareholders
Asia Union Investment Pty Ltd 50.6% Directors Management and Advisors 9%
Page 21
THE PASSIONATE INVESTOR
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Companies Featured
Updater Ltd
UPD: US BASED AND ASX LISTED UNIQUE TECHNOLOGY SERVICE PROVIDER UPDATER LTD's RAPID
INCREASE IN MARKET SHARE IS TESTIMONY TO THE VALUE OF ITS SERVICES TO HOUSEHOLDS
CHANGING THEIR PLACE OF
RESIDENCE IN THE US.
REAL ESTATE BROKERS, OTHER
ORGANISATIONS PAY TO AVAIL OF THE UPDATER SERVICES WHICH ARE FREE TO THE
HOUSEHOLDER. MARKET SHARE UP 90% IN HALF YEAR
Updater Ltd, founded in 2010 in the US,
headquartered in New York City, listed in
Australia on December 7, 2015 following an
issue of 20 c each (25 CDI's equivalent to
one $A5 share).
US mover statistics
The company said in its prospectus that in
the US there are approximately 17 million
households that move each year - and
Updater so far is the first in the US to offer a
comprehensive service.
Updater in its prospectus says according to a
recent US Census Bureau report, 33% of US
households plan to move in the next 5 years,
while 35% of Americans have moved at
some point in the previous years. Persons in the US move, on average. 11.7 times in their lifetime. Young adults
move at the highest rate, moving about 9 times by the age of 45 when on average a person will move
approximately 3 more times.
Approximately 48% of all moves occur for housing related reasons, approximately 30% for family related
reasons and approximately 19% for job related reasons.
The average household spends about $US9,000 on a broad array of goods and services when they move, both
in leaving and spending at the new home.
New services changed or acquired include water, internet, cable television, electricity satellite television, home
phone, gas and homeowner or renter insurance.
The most popular month for Movers is June, with approximately 11% of all moves. The next most popular is
August, with 10% of all moves.
US businesses spend billions of dollars each year on retention and acquisition marketing campaigns targeting
Movers.
Updater has seen its market share rise 90% in the year since listing - testimony to the value of its services to
real estate brokers seeking to retain the movers' business after they change their place of residence.
At the time of listing Updater had 2% of the US market, by the end of the first year UPD had 2.56%. By March
2016 it had reached 3.76%, up almost 90% from the time of the IPO in December 2015.
Updater plans to launch its Business Products in 2017 with many businesses having pre-registered for the
products. Updater expects its Business products will help Businesses communicate with Movers at the right
time, which should unlock a "very substantial revenue opportunity" for UPD, UPD's founder and CEO David
Greenberg said in the foreword to the annual report.
*UPD charges real estate companies subscription fees for the Real Estate Products, and provides the Mover
Page 22
THE PASSIONATE INVESTOR
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Companies Featured
Updater Ltd (cont’d)
Product free to Movers.
*Both the Mover Product and Real Estate Products are web based with user friendly interfaces for mobile
products.
At the time of listing nearly 500,000 movers in the US had used its Mover product. UPD has signed partnerships
with more than 300 Real Estate Companies of whom 225 already use the Real Estate Products, in 46 US states.
Updater's existing products including the Mover Product, the Real Estate Products and the Integration Platform.
Internal business operations are built to handle significant increases in volume.
There are competing products that offer some, but not the complete portfolio of products offered by UPD:
Eg (from the prospectus)
*Movers can forward their mail via the US Postal Service Form 3575 and third party websites offer the service
generally for a fee.
*Other businesses help movers compare and sign up for home services including TV, internet, phone, utilities,
home security and various bundled packages, usually charged by the businesses to the home service providers.
*Many offer various deals and coupons for products, and search engines can help movers identify products and
services related to the move.
UPD plans to double the size of its engineering team to support new and deeper software integrations, add self
service options for its partners to further increase scalability and add new features to its Real Estate Products to
provide further value to its partners
WHAT THE BROKERS SAY
Independent US based global investment bank Moelis & Co, joint lead manager to the float of Updater along
with Euroz, in an August 2 report said, "BUY maintained, with a 81Ac share price target. We are increasingly
confident about UPD's value proposition given accelerated market share and pilot program goals. .."
The broker said the core drivers of UPD's value are: 1) US mover market penetration and 2)Annual access fee
paid by corporate partners, driven by the ROI to retain/acquire customers using UPD's platform".
The broker said in the report "insurance and utilities sectors are grappling with declining retention rates in the
face of increasing market spend .. We have increased our assumed average price paid per corporate partner
from $US250,000 a year to $US500,000 per year. We believe this remains conservative .. We note that UPD's
value proposition to corporate partners increases as more consumers and corporate partners within a vertical,
join the platform
Financials
Page 23
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Companies Featured
Updater Ltd (cont’d)
Financials (cont’d)
Directors
David Greenberg, Founder and Chief Executive Officer / Executive Director
David is responsible for driving the vision and execution of the Company’s business plan. David built and
launched Updater out of his own frustrations with moving, recognizing that there had to be a better way to
organise and complete all moving-related tasks. Prior to launching Updater, David practiced corporate law at
Cravath, Swaine & Moore LLP. David holds a Juris Doctor from Cornell Law School and a Bachelor of Arts from
the University of Pennsylvania. Other current directorships of listed companies: None
Former directorships of listed companies in last three years: None
Ryan Hubbard, Chief Technology Officer / Executive Director
Ryan oversees technical strategy for the Company and drives all engineering initiatives. Ryan joined the Board
in 2014. Ryan has over 15 years experience in the technology and software engineering industry. Prior to joining
the Company, Ryan served as Partner and CTO of YellowHammer, a multi-award-winning performance trading
platform that was ranked #37 on the Inc. 5000 Fastest Growing Companies list in 2013. Prior to YellowHammer,
Ryan was Co-Founder and CTO of eVariant, a market leader in healthcare CRM/PRM software to manage
interactions across both digital and direct channels. Ryan holds a Bachelor of Computer Science and
Engineering from the University of Connecticut. Other current directorships of listed companies: None Former
directorships of listed companies in the last three years: None
Grant Schaffer, Non-Executive Director
Grant was the lead seed investor in the Company and has been on the Board since 2011. Grant is an active
technology investor in both Australia and the United States. Grant previously held a range of senior positions
within London-based investment bank Evolution Securities (since sold to Investec plc), and Ernst & Young in
Australia. Grant is a chartered accountant, holds a Bachelor of Arts and a Bachelor of Commerce degree from
the University of Western Australia, is a Member of the Australian Institute of Company Directors and completed
Page 24
THE PASSIONATE INVESTOR
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Companies Featured
Updater Ltd (cont’d)
the Owner/President Management Program at Harvard Business School.
Current directorships of listed companies: None
Former directorships of listed companies in last three years: None
Antony Catalano, Non-Executive Director Appointed 15 December 2015
Antony has been the CEO of Domain Group since November 2013. The value of Domain, Fairfax Media’s (ASX:
FXJ) most significant asset, has grown to well over one billion dollars under his leadership. Antony established
Metro Media Publishing (MMP) in 2009, Victoria’s fastest growing media business, which publishes a suite of
glossy magazines that reach more than one million homes throughout Melbourne. Antony also pioneered the
highly-effective agent equity model, which underpinned MMP’s extraordinary success in digital and print
publishing, and this model has been rolled out nationally by Domain Group. Antony is a recognized thought
leader in the real estate technology industry. Current directorships of listed companies: Real Estate Investor
Group Limited Former directorships of listed companies in last three years: None
Scott Mison, Company Secretary Appointed 20 October 2015
Scott has over 16 years experience in finance and corporate compliance within Australia, the UK, Central Asia
and the United States. Scott holds a Bachelor of Business degree, is a Member of the Institute of Chartered
Accountants and a Member of the Governance Institute of Australia. Scott is also a Board Member of
Wheelchair Sports WA Inc., a not-for-profit organisation. Current directorships of listed companies: 1-Page
Limited and Jupiter Energy Limited. Former directorships of listed companies in last three years: None
Raj Doshi, Senior Vice President of Sales, appointed on April 20 2016.
Raj Doshi left Google after 3 years leading Google's strategy and operations advertising sales organisation to
join Updater. He had previously worked at McKinsey & Company for eight years. Raj also served as an Adjunct
Professor at the University of Virginia's McIntire School of Commerce from 2010-2013 and continues to guest
lecture at universities across the US.
Substantial Shareholders
David Greenberg 28.5%
Ryan Hubbard 10.2%
Grant Schaffer 7.3%
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THE PASSIONATE INVESTOR
Seeking Profitable Investment In Inventions For A Better World
Updates / Responses for companies featured in TPI
BPS: $100 Mln business finance facility partnership with GetCapital
BPS Financial Ltd on September 8 announced a new business finance product to support and enable its current
and future merchants via a new partnership agreement with Get Capital Pty Ltd, that will make available a range
of finance products to its 36,000 merchants through its business networks including Bartercard Group,
Entertainment Publications and Bucqi. TPI report of July 22. BPS was trading at $1.03. BPS recently traded at
94c.
CYP: FUJIFILM of Japan expected to sign company making agreement by year end
Cynata Therapeutics Ltd on September 5 announced a term sheet has been executed with FUJIFILM
corporation of Japan for the development and commercialisation of certain Cynata technology, including
Cynata's lead induced pluripotent stem cell (iPSC) derived therapeutic mesenchymal stem cell (MSC) product,
CYP-001. Cynata expects a definitive agreement to be finalised in the fourth quarter of 2016. Under a definitive
agreement Cynata will grant FUJIFILM an option to an exclusive worldwide licence to sell Cynata's lead MSC
product for the prevention and treatment of graft-vs-host disease as well as (a) an option to negotiate a licence
for manufacturing those products and (b) certain rights to Cynata's proprietary Cymerus technology for the
prevention and treatment of other diseases.
FUJIFILM under a definitive agreement will also acquire Cynata shares to the value of $US3 million to be priced
at a 35% premium to the six month VWAP as at September 2 along with certain upfront and milestone payments
and a royalty on end product sales. Separately Cynata announced the termination of agreement with Regience
KK that it has decided not to accept an investment in Cynata by Regience. TPI report of May 13. CYP was
trading at 37.5c. CYP recently traded at 45.5c
FBR: Maiden order received for Hadrian X to build 10 Brick Homes
Fastbrick Robotics Ltd on September 6 announced the company has signed a framework agreement with Perth
based builder Archistruct Builders & Designers to build the world's first3D printed brick homes using FBR's
Hadrian X Commercial prototype. Each house will have a minimum floor plan of 180 sq m, consisting of at least
three bedrooms and two bathrooms. The 10 homes will be built following completion of the Hadrian X prototype
build.
TPI issue of Jan 20, FBR was pre float. FBR recently traded at 5.8c.
FFT: Secures two important new perimeter security contracts
Future Fibre Ltd announced on September 5 it has secured two important new perimeter security contracts
valued at over $A900,000. The CEO Rob Broomfield said in the report over the last six months FFT has
experienced increasing interest from the US utilities sector for its perimeter security applications.TPI report of
June 10, FFT was trading at 58c. FFT recently traded at 25c.
KYK: Kyckr completes Phase 1 of corporate identity blockchain service
Kyckr announced on September 7 it has completed phase one in the development of its corporate identity
blockchain service. This is being built using the Credits blockchain platform, that was recently awarded the first
UK Government G-Cloud framework agreement for the supply of blockchain platform-as-a-service on the Digital
marketplace. The Credits platform is also used by the Isle of Man government. .. "Our corporate identity
blockchain solution .. uniqueness stems from the same day, direct links to corporate identity sources, including
over 150 business registers around the world” the company said in its report.
TPI issue of August 19, pre float. KYK recently traded at 17.5c.
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THE PASSIONATE INVESTOR
Seeking Profitable Investment In Inventions For A Better World
Updates / Responses for companies featured in TPI
MXC: Collaboration agreement with Epilepsy Action Australia
MGC Pharmaceuticals Ltd on September 1 announced it has signed a Collaboration agreement with Epilepsy
Action Australia, to improve health outcomes for people suffering from epilepsy. The agreement enhances the
company's management expertise in epilepsy.
TPI issue of May 27. MXC was trading at 5c. MXC recently traded at 4.1c
TFC: New 5yr agreement worth $A50 mln/harvests majority sol forward to 2021
TFS Corporation announced on September 2 it has signed a five year agreement to supply its premium Indian
sandalwood oil to US-based Young Living, the largest essential oil company in the world. Under the five year
agreement, TFS will supply Young Living with Indian sandalwood oil at $US4,500 per kg plus fixed annual
increases of 2.5% per annum. The total contract value is approximately $A50 million and the first shipment of oil
is expected in October 2016 with monthly supplies to follow.
Managing director Frank Wilson said in the report, TFS now has multiple supply contracts in place with global
customers for both wood and oil products, with the vast majority of harvests now forward sold through to 2021.
TPI report dated May 27. TFC was trading at $1.52. TFC recently traded at $1.52.5
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