The current cash balance is about $8,435,886 after allowing for $400k cash burn 5 weeks Q3 2021 at $80k per week.
Remaining unlisted options to convert = $1,326,369.
Cash balance end Q2 2021 = $6,903,783
Conversion of 64,101,917 unlisted options = $1,923,057
Conversion of 603,044 listed options = $9,045
$8,835,885 less $400k cash burn = $8,435,886If the remaining unlisted options are converted in 2 weeks = $9,602,255 balance incl. allowance for additional $160k cash burn for 2 weeks.
Allowing for $1M cash burn Q3 2021 = $7,835,886 cash balance end Q3 2021 without more unlisted options converted & $9,162,255 if all remaining unlisted options are converted. Ample funds for about 2 years.
There are funds for a major acquisition & today I have been thinking that Kaddy may be a good fit. Kaddy.com expanded into Melbourne in August 2020. They were servicing 300 Sydney venues at the time after 18 months since launching so by now must have around 400 venues as customers in Sydney & Melbourne. In a Shout article in August 2020 it mentions Kaddy.com have 150 suppliers & today on their website it mentions over 250 suppliers = 67% HOH customer growth.
In an effort to attempt to estimate Kaddy.com revenue I have used the $2.6B sales into circa 50,000 venues as mentioned on the Winedepot site.
$2.6B / 50,000 venues = $52k pa average per venue which would be retail sales. So $52k / 3 = $17.3k pa average revenue wholesale per venue @ 200% markup.
Kaddy.com is servicing 400 venues x $17.3k = $6.92M annual revenue x 10% trading fees = circa $692k EBITDA
$6.92M / $45 per case average = 153,777 cases pa x $10 logistics = $1.53M annual revenue x 20% margin = $306k EBITDA
TOTAL REVENUE = $8.45M & $998k EBITDA
If we apply the same WDA acquisition pricing method = approx. $13.5M with $3.38M payable in cash & 202.5M shares @ 5c. May be slightly less shares so DT along with 2 x Kaddy.com founders have equal shareholdings.
What are your thoughts?
https://www.kaddy.com.au/Kaddy expands wholesale platform into Melbourne
26 August, 2020 byAndy Young
Kaddy is expanding its tech-enabled wholesale platform into Victoria, following its successful launch in New South Wales in 2019.
Kaddy, which was founded by Rich Coombes and Mike Abbott (pictured above), simplifies the wholesale business between alcohol suppliers and trade customers and the company says that the current economic climate means Victorian liquor retailers and operators need help adapting their operations, now more than ever.
Over 300 venues in NSW are using Kaddy, which facilitates wholesale transactions with over 150 beer, cider, wine and spirits suppliers.
“Our goal is to represent the best offering in terms of quality, diversity and demand – we’re working very closely with retailers to make their wholesale experience simpler whilst still facilitating direct business with thousands of high quality products,” said Kaddy’s Head of Sales, Jock Kinross.
Since the outbreak of COVID and the changes that has brought across the industry, Kaddy’s platform helps venues to increase efficiencies and simplify dealings with multiple suppliers.
More distribution opportunities, streamlined ordering, as well as guaranteed payment upfront for wholesale transactions are among the reasons why suppliers are signing up to the platform.
Kinross added: “We’ve been going hammer & tong on the tech development over the last few months and the question keeps being asked, when are you coming to Melbourne?
“We’re proud to have so many incredible producers on the Kaddy platform, including several very strong Victorian craft beer brands including Hop Nation, Two Birds, Hawkers, Brick Lane, and Stomping Ground.”
Hop Nation’s National Sales & Export Manager, Michael Chaffe, said the platform has helped his trade customers simplify their ordering experience.
“Kaddy is a convenient and easy to use platform that gives customers access to a fantastic range of Australian made products, and allows them to streamline their ordering from Hop Nation with their orders from other suppliers.”
Kaddy says it will have a dedicated Victorian team in place and any suppliers or retailers in the platform should contactJock Kinross.
(20min delay)