$2m convertible note facility and operational update On 30...

$2m convertible note facility and operational update

On 30 March, Invigor Group Limited (IVO) announced the launch of Shopping Ninja which IVO claims is “Australia’s first independent consumer price comparison browser plug-in”. On 8 April, IVO announced a $2m convertible note facility and operational update:

IVO has reached an agreement with Marcel Equity Pty Ltd, an entity controlled by the company’s Executive Chairman Mr Gary Cohen, whereby Marcel Equity or its nominees will subscribe for up to $2.0m of redeemable unlisted convertible notes;

The proposed Facility will replace an existing interim loan facility between the Company and Marcel Equity for up to $1.5m;

The 22,222,222 Convertible Notes may be converted into Shares at the Conversion Price of $0.09 per Share;

Marcel Equity will receive a fee of $100,000 cash in consideration for the funding contemplated by this Term Sheet payable within two months;

Interest will accrue at the Interest Rate of 8.0% per annum on the Principal Amount outstanding for each Convertible Note, which will accrue on a daily basis and be payable quarterly in arrears;

The Facility, together with additional cash amounts expected to be received over the next six months, will result in IVO having over $4.0m of available cash to fund the continued implementation of its business plan;

Since launching Shopping Ninja last week IVO has had already seen very good take up, with to date nearly 400 downloads and over 2,000 website visits; and

IVO has been engaging with a number of key suppliers of hardware and infrastructure to accelerate the potential rollout of Insights Visitor, the Company’s mobile analytics technology platform - whilst these discussions are ongoing, IVO is confident that it will reach agreement with a number of these parties which will result in them becoming major channel partners to the market.

Earnings changes:

The proposed facility takes the fully diluted share capital from 299.0m shares to 321.2m shares, a dilution of 7.4%.

More importantly, the facility removes the threat of any equity issue at depressed prices.

We are retaining our 12-month price target of A$0.14/sh and our BUY recommendation. The price target is underpinned by our DDM valuation.


Company Data Number of shares 228M
Market capitalisation $18M
Free Float (%) 0.0
12 month high/low $0.12/$0.03
Average monthly turnover $0M
% S&P/ASX 200 n/a
% All Ordinaries n/a
DDM Ranking #25/500
ESG Score (Ranking) n/a
GICS Industry Group Media

Earnings Summary (AUD) Year end December 2014A 2015F 2016F 2017F Revenue ($M) 1.2 10.5 12.3 13.5 EBITDA ($M) -3.1 2.6 3.2 3.5 Reported NPAT ($M) -4.1 2.6 3.2 3.5 Adjusted NPAT ($M) -4.1 2.6 3.2 3.5 Adjusted EPS (¢ - FD) -1.3 0.8 1.0 1.1 Adjusted EPS growth (%) nm nm 22.3 8.3 Adjusted P/E (x) nm 9.5 7.8 7.2 Dividend (¢/sh) 0.0 0.0 0.0 0.5 Gross yield (%) 0.0 0.0 0.0 9.9 Net yield (%) 0.0 0.0 0.0 7.0


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