Botanic Bioplastics
- Type: Retail
- Total Round Size (min): AUD$50,000
- Total Round Size (max): AUD$1,000,000
- Price per share: AUD$0.1
Botanic Bioplastics
Botanic Bioplastics has created a range of environmentally friendly hemp bioplastic products for governments, businesses and consumers wanting to reduce their environmental impact. The products can be re-used, and after use, will biodegrade in soil or water within 6-12 months.
Bioplastics are not only great for the environment but are functional and strong, unlike other biodegradable products in the space, and are cost-competitive with traditional plastic.
Botanic Bioplastics, are aiming to replace the use of traditional plastic products with their expanding range of hemp-based bioplastic products.
- Fees Paid by Issuer: 6% of funds raised
- Cooling-Off Rights: 5 working days
- Minimum Parcel Size: 250
Terms of Offer
Key Documents
Company Overview
Botanic Bioplastics' objective is to become a significant producer of a wide variety of bioplastic products containing hemp in Australia, the USA and UK, and in Europe and Asia in the future.
Botanic Wellness, the parent company, offloads their hemp biomass to Botanic Bioplastics at no cost, who then turn the material into hemp bioplastic resin, allowing them to manufacture the bioplastic products. These products are then marketed and sold to customers.
Investment Highlights
- Innovative Business Model
The Company’s parent company, Botanic Wellness Limited, cultivates substantial hemp crops, extracts the CBD oil, selling it to wholesale customers and uses it to produce its own range of CBD products.
Botanic Bioplastics receives the waste hemp material from Botanic Wellness Limited, for the manufacturing of its various bioplastic products, at no cost. Botanic Bioplastics then moulds the hemp resin into a wide range of products that are traditionally produced using petroleum-based plastics.
- Commercially Focused and Adaptive
While Botanic Bioplastics is focused on producing a cost-effective range of environmentally friendly and sustainable bioplastic products to replace various traditional plastic products, it also remains extremely commercially focused. Botanic Bioplastics markets and sells its bioplastic products to wholesale and retail customers in Australia, the USA, the UK and in future, Europe.
Botanic Bioplastics will continue to invest and develop its capabilities in various aspects of the hemp bioplastic sectors in areas that it considers will be most immediately valuable and strategic for the future.
- Rapidly Growing Market
Botanic Bioplastics operates in a rapidly growing market driven by the phasing out of many traditional petroleum-based plastic products. There is growing awareness and interest in bioplastic as an environmentally friendly, functional and cost-effective alternative. This is due to the increasing Australian and global awareness of the many benefits of hemp as a sustainable and environmentally friendly material for a large and increasing range of applications.
The initial target markets are Australia, the USA and UK, but it intends to expand into various European and Asian markets, as demand for such products increases and its production capacity expands.
- Strategic Relationships
Botanic Bioplastics has, and is continuing to develop, a range of commercial partnerships with traditional plastic manufacturers for the production and manufacturing of its hemp bioplastic products. As the equipment and personnel required is the same as in traditional plastic manufacturing, Botanic Bioplastics can take advantage of the available excess manufacturing capacity of many existing plastic manufacturers, as demand for the plastic products that they have been producing for decades declines. Similarly, they are establishing relationships with distributors and retailers for bioplastic products.
- Experienced Boards, Management and Executive Team
The Botanic Bioplastics Board and Executive Management team have significant experience in various aspects of the hemp, plastics and bioplastics industries both locally and internationally. They also have considerable experience in developing early-stage companies in new, and rapidly growing sectors and have been involved in listing those companies on the Australian Securities Exchange (ASX), knowledge which will be critical now, and for the future ambitions of Botanic Bioplastic.
Growth Strategy
Botanic Bioplastics plans to expand their hemp processing and manufacturing production capacity in Australia and the US. They will also expand their range of hemp bioplastic products to replace the progressive banning of an increasing number of traditional petroleum based plastic products.
The team will look to bring more of the hemp processing and manufacturing capabilities in house to improve efficiencies and operating margins.
Botanic Bioplastics will look to develop their marketing, sales and distribution capabilities in Australia, the US and Europe for its hemp bioplastic products both for wholesale and retail customers.
Team
For more information see 2.6 in the offer document
Cary Stynes
Cary oversees the day-to-day operations, investment strategy and strategic direction. He is also Executive Chairman of the Company’s parent Company and major shareholder Botanic Wellness Limited.
Graeme Macdonald
Graeme looks after the hemp processing operations once it receives the waste hemp biomass. He established Macdonald AG in 1994 and along with his family has steadily grown the southern NSW farming operations to over 12,000 acres.
Financials
Financials for the 10 months ended 30 June 2023 and the 6 months ended 31 December 2023.
For further detail please see section 2.9 of the Offer Document.
Use of Funds
For further detail please see section 3.2 of the Offer Document.
Key Risks
For further detail please see section 2.8 of the Offer Document.
There is a risk that Botanic Bioplastics may select the wrong growth strategy or poorly execute on it, resulting in reduced revenues, lower margins, delays or cost overruns. Since the bioplastic industry is relatively new this risk is greater than for businesses in more mature and developed industries.
Currently there are no specific licences or permits required to operate hemp bioplastic manufacturing, sales and distribution of the products.
However the loss or change of conditions of any regulatory licences or permits held by the Company's parent company to grow industrial hemp in Australia may adversely impact the Company and its financial performance as it may make the cost of obtaining the necessary hemp to produce and manufacture its products more expensive.
Botanic Bioplastics operates in a very dynamic and fast moving industry that has recently experienced material regulatory and legislative changes in various jurisdictions in relation to the banning or restricting the sale of single use and other plastic products. Given that Federal and state-based legislation in various countries, is still in its relative infancy and developing, there is a risk that the interpretation and implementation of the law in relation to the banning or restricting the use of various types of plastics (including bioplastics) may change which could effect the opportunities open to the business.
The sales potential of Botanic Bioplastics products is still at a relatively early stage. The future demand for their hemp bioplastic products, in existing and likely future markets, is uncertain. There is a risk that there may not be sufficient demand for their hemp bioplastic products in the future or that there may be some restrictions placed on the sale and distribution of certain bioplastic products in certain markets.