Ascot-based SeNevens International Ltd, the company behind the Safeties Nature Nappy, has revealed that it is the subject of an Australian Competition and Consumer Commission investigation.
Ascot-based SeNevens International Ltd, the company behind the Safeties Nature Nappy, has revealed that it is the subject of an Australian Competition and Consumer Commission investigation.
The issue emerged when SeNevens issued a supplementary prospectus for its $2.2 million float which it said had been delayed for a week.
A SeNevens spokesperson could not elaborate significantly on the nature of the ACCC's inquiry, adding only that the watchdog had sought historical marketing information and claims about biodegradability relating to a complaint emanating from Tasmania.
The spokeperson said SeNeven was unaware of the nature of any complaint that might have been made or identity of any complainant.
In its original prospectus SeNevens also revealed litigation with a former, unnamed CEO who had claimed one year's fee amounting to $263,780 over a terminated consulting agreement.
The company is seeking up to $5 million to market and develop its environmentally-friendly nappies and other non-woven products.
The full text of a previous company announcement relating to the IPO is pasted below
SeNevens International Ltd. has lodged a prospectus with the Australian Securities and Investments Commission for an initial public offer of securities on Friday 13 October 2007.
SeNevens has developed a fully biodegradable, fabric based disposable nappy with additional comfort and health benefits. Independent market research has confirmed this nappy appears to be the only fully biodegradable disposable currently on the international market.
Charishma Seneviratne, Executive Chairperson and inventor explained, "This is a significant industry development as traditional disposable nappies can take between 300- 500 years to biodegrade; thus every conventional disposable manufactured still partially exists."
Other Facts about disposable nappies:
- International sales for disposable nappies reached approximately $23 billion in 2006.
- It is estimated that babies using disposables will wear around 8000 nappies before they are potty trained.
- 95% of Australian parents use disposable nappies.
- In Australia 2.2 million disposable nappies are used every day.
"Significant debate regarding the environmental consequences of disposable nappies has surrounded this industry from its inception in the mid 20th century. A growing awareness of environmental issues is fuelling change in consumer behaviour and government policy. Innovations that attempt to address these environmental concerns will undoubtedly become increasingly popular," Ms Seneviratne said.
The Safeties Nature Nappy is currently selling in Australia and will be available in New Zealand in November.
The purpose of this offer is to take SeNevens to the next level by providing funds for the Company to accelerate commercialisation and distribution of the Safeties Nature Nappy and subsequent products lines.
To register your interest in receiving a copy of the SeNevens Prospectus please email info@senevens.com.au or visit www.senevens.com.au
