The company behind the Safeties Nature Nappy, Ascot-based SeNevens International Ltd, has announced plans to raise $2.2 million in an initial public offer to help fund future product development, marketing, purchase of equipment and working capital.
The company behind the Safeties Nature Nappy, Ascot-based SeNevens International Ltd, has announced plans to raise $2.2 million in an initial public offer to help fund future product development, marketing, purchase of equipment and working capital.
SeNevens, which will issue 11.2 million shares at 20 cents each to raise the money, owns intellectual property and patents to a fully biodegradable composite made of natural and reconstructed fibres.
In an announcement, the company said it had independent market research showing that the use of the composite in its Safeties Nature Nappy made their product the only fully biodegradeable disposable currently on the international market.
SeNevens plans to extend its range to wipes, incontinence and sanitary products.
The offer is not underwritten, though the company will accept oversubscriptions of up to 5 million shaes at 20 cents each, raising an additonal $1 million.
The company is chaired by its founder, and inventor of the technology, Charishma Seneviratne. She is joined on the board by executive director Thilak Seneviratne, and non-executive directors Neal Milsom and Cathryn Curtin. Simon Robertson will serve as company secretary.
SeNevens has retained RSM Bird Cameron Partners as auditor and RSM Bird Cameron Corporate Pty Ltd as investigating accountant, with legal advice being provided by Steinepreis Paganin.
The offer, which opened yesterday, is expected to close on November 22.
The full text of a company announcement 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.