re: share placement - 2c - copy report AFT Corporation LtdA.C.N....

re: share placement - 2c - copy report AFT Corporation Ltd
A.C.N. 004 701 062
GPO Box 249
Brisbane QLD
4001 Australia
Within Australia
Tel: 1300 763 148
Fax: 1300 763 149
Outside Australia
Tel: +617 5471 1633
Fax: +617 5471 1655
21 October 2005
AFT Placement Successfully Completed today
On 17th October last the directors negotiated through Licenced Brokers a placement of
75 million shares @ 2 cents each ( being at a 20% discount to market) to raise $1,500,000.
The offer was limited to “Experienced Investors” pursuant to S708(10) of the
Corporations Law.
Use of Funds
Making the short step to a Tipping Point for sustained growth
AFT’s new Microgenix Global Division is activated for rapid growth and is building
momentum towards scalable & repeatable sales. Products, channels and markets will
produce future sustained revenue and earnings growth, so additional working capital is
required for:
a) Financing the Health Care Initiative marketing campaign
b) Supporting co-marketing efforts with OEM partners in Europe
c) Product inventory & distribution
d) The move to full manufacturing capacity in China and to establish distribution
channels in Asia and then North America.
AFT CEO Jeff Dalco said “ Since assuming full control of the Microgenix business in July of
this year, AFT has moved swiftly to put in place a management team with the skills and
experience necessary to building a sustainable business based on the commercialisation of
the Microgenix air sterilisation technology.
The additional funds secured through this placement will enable the new team to maintain
this momentum and convert this activity into sustainable revenue and earnings growth.”
Briefing on recent developments Microgenix Global division
Microgenix-Global Management Team
Our new Team has the sales & marketing and manufacturing experience to drive the
business
Jim Palmer, Robert Greenfield, Jeremy Brown and Neil Bourne have moved rapidly to
clean-up outstanding issues and move Microgenix from its technology & market trial
phase into its business growth phase.
AFT Corporation Ltd
A.C.N. 004 701 062
GPO Box 249
Brisbane QLD
4001 Australia
Within Australia
Tel: 1300 763 148
Fax: 1300 763 149
Outside Australia
Tel: +617 5471 1633
Fax: +617 5471 1655
Products
We now have real products available for sale
Until recently Microgenix was attempting to sell its technology in a broad range of
products; these early designs successfully met the needs of a few early-adopter
customers but proved impractical to manufacture in commercially viable cost and
numbers.
We have now focused the Microgenix model range to our two most marketable products
the MM100 portable unit and the Personal Unit.
These products are ready for sale, with manufacturing capacity in place:
✔ Initial supply is secured through commercial arrangements with the Melbournebased
contract manufacturer Form2000. Production runs will commence on
November 1st to coincide with the launch of our HealthCare Initiative.(see below)
✔ Long-term high-volume supply is in the process of being secured through
arrangement with China-based contract manufacturers
Independent Advisory Panel
We are currently recruiting eminent and respected independent scientific advisors and
public health experts to an advisory panel that will monitor and help us focus our efforts
to best effect. We expect to raise awareness of our solution in the public-health debate
and to navigate the regulatory & political landscape to where Microgenix indoor airborne
pathogen control systems become a natural part of any balanced public-health infection
control program.
OEM Deals
We are extending our market reach by working with OEM Partners to put “Microgenix
Inside”
Over the course of the last month, we have interviewed a number of potential OEM
partners to take us into two major segments of the European market.
✔ China – our new team has extensive experience in establishing manufacturing
and distribution operations in PRC. We expect to move to the production phase
early in the New Year. These arrangements will provide the capacity to enable
us to be able respond in the event of a major demand such as a bird flu
outbreak.
Prospective European OEM partners have multi-million dollar revenue potential for AFT.
The potential business opportunity inside the PRC is huge. The threat of Avian Flu and
SARS has resulted in a renewed interest in the Microgenix solution and the team will be
drawing upon past experience in unlocking this unique market.
AFT Corporation Ltd
A.C.N. 004 701 062
GPO Box 249
Brisbane QLD
4001 Australia
Within Australia
Tel: 1300 763 148
Fax: 1300 763 149
Outside Australia
Tel: +617 5471 1633
Fax: +617 5471 1655
Marketing
We are focusing our marketing efforts on the Microgenix Healthcare Initiative
We are devoting all our marketing efforts to establishing Microgenix as an integral part
of a comprehensive public-health response to air-borne infection control. There is much
media attention on the risks of the next flu pandemic that in turn has resulted in strong
interest in our products from individual consumers and prospective distributors.
Until recently Microgenix lacked the organisational and manufacturing capacity to
effectively respond to this demand. Since AFT acquired the technology in its entirety we
have brought to bear the necessary resources enabling Microgenix to offer real solutions
both directly to hospitals and offices and also through distribution partners.
Microgenix products have proven to significantly reduce the risk of infection from airborne
pathogens in indoor environments. Unlike vaccination, the action of our
technology is not dependent on specific characteristics of a given strain or mutation.
We have tested extensively against a wide range of representative pathogen types
including many flu viruses. We are confident in our ability to play a positive role in
managing the emergent pandemic threats posed by organisms such as SARS & Avian
Flu.
In November we launch our Healthcare Initiative simultaneously both here and in the
UK. This project will involve Microgenix units being strategically deployed in selected
hospitals, emergency rooms and waiting rooms.
Further information:
What is the need for Microgenix technology?
Airborne microbes affect products, processes and people in dozens of industries and hundreds of
applications. They impose significant costs and cause widespread human suffering. Until now, methods of
control have been inefficient or expensive, relying mainly on filters. Filters do not kill airborne microbes, and
even the most advanced miss some of the smallest (and most lethal) viruses.
Jim Palmer - Director of Commercialisation
(M) 0416 12 44 11
(E) [email protected]
Jeff Dalco - Managing Director
(M) 0407 304 050
(E) [email protected]
AFT Corporation Ltd
A.C.N. 004 701 062
GPO Box 249
Brisbane QLD
4001 Australia
Within Australia
Tel: 1300 763 148
Fax: 1300 763 149
Outside Australia
Tel: +617 5471 1633
Fax: +617 5471 1655
What does Microgenix technology offer?
AFT’s Microgenix next generation air sterilization technology solves the problem by efficiently killing all
classes of airborne microbes. It uses a two-stage process to kill up to 100% of the bacteria, fungi and
viruses in the air on each pass through the system. It has even been challenged with Anthrax and Smallpox
surrogates and proven effective. The technology can cut costs and increase security in industries ranging
from healthcare and food processing to airlines and defence. Production units incorporating the technology
are now available for industrial, commercial and personal applications.
AFT Corporation background.
AFT was created from the reconstruction and recapitalisation of the ASX-listed Voicenet, in July 2002. In
September 2002, the company purchased a 50% interest in Microgenix air sterilization technology. In
January 2005, AFT entered into a contract to purchase the outstanding 50%. This deal was completed in
June 2005.
AFT is now focused on commercialising the Microgenix technology. It will do so by licensing the technology
to large-scale organisations with strengths in sales and distribution. AFT will also market its own brand of air
sterilization units for industrial, commercial and personal use.
www.aftcorp.net & www.microgenix-global.com