TechInvest Magazine - September 2021

ADVERTISING FEATURE • EDITION 3 • JULY - SEPTEMBER 2021

INSIDE THIS ISSUE

HOW LUXURY ESCAPES TACKLED COVID PAGE 4

GENETIC SIGNATURES DETECTING NEW GROWTH OPPORTUNITIES PAGE 6

OPIN MAKING LIFE SAVING INFORMATION EASIER TO FIND PAGE 8

WHAT’S HOT IN TECH PAGE 32

NOTHING SMALL ABOUT MEDICINAL CANNABIS COMPANY LITTLE GREEN PHARMA PAGE 1 A

Digital edition available at TechInvest.online

TECHINVEST JULY - SEPTEMBER 2021

TABLE OF CONTENTS 14 Shekel Positioned For Growth In A Post-COVID Retail World 15 Scantech Creating Customer-Centric Experiences With Digital Identity Verification 16 Nanoveu’s Nanoshield Proving To Be Simply Brilliant 18 Vmoto’s “Smart” Electric Mopeds A Game-Changer For The Urban Delivery Sector 19 SaaS to Engage The Customer 20 WeMoney Providing AI-Driven Financial Confidence Cover Page Image: Fleta Solomon, Managing Director of Little Green Pharma (Credit: Raw Image)

01 Nothing Small About Medicinal Cannabis Company Little Green Pharma 04 How Luxury Escapes Tackled COVID While Other Travel Platforms Took Flight

21 4DMedical – Providing Unprecedented Insights Into Lung Diseases 22 How Tech-Led Customer Experience Is Driving Business Transformation 23 The Rising Tide In Payments Is Driving Growth At Change Financial 24 Zooming In On Better Quality Tracking 25 Cutting Edge

06 Genetic Signatures: Australia’s Rapid Growth Diagnostics Company

26 A Happy Home For Innovation

08 Opin Making Life Saving Information Easier To Find

27 A Happy Home For Innovation

26 A Great eCommerce Investment Opportunity

10 Where Tailwinds Converge

28 The Three Reasons Why People Don't Engage With Laywers

11 For A Life Free Of Pain

29 Start Ups And Best New Ideas

12 Memphasys Taking On One Of Humanity’s Most Pressing Issues

32 What’s Hot In Tech

TechInvest Magazine is published independently for executives in the technology and biomedical sectors.

Publisher Chapter One Advisors Consulting Publisher David Tasker dtasker@chapteroneadvisors.com.au Consulting Editor Colin Hay chay@chapteroneadvisors.com.au Design/Production Egg Design Journalists/Contributors Colin Hay, Tim Boreham, Karolis Rosickas, John Burgess, Fiona Burke, Kaleigh Kingstone, Dr Andrew Mouchacca, Ben Shapiro, Tom Russell, Jui Bei Liu, Luke Housgo and Bianca Dowdell-Munro Digital Edition Digital edition in partnership with Metrix Publishing Publishing office 68 Milligan St, Perth, Western Australia Australia 6000 Tel: +61 433 112 936

Disclaimer Chapter One has taken care to collect and publish this information in good faith but makes no warranties or representations as to the accuracy of any facts or representations and has relied upon information provided to it in doing so.

Chapter One does not accept any responsibility for the accuracy of any facts or representations published, or for any opinions expressed.

Chapter One is not a financial adviser, and nothing within the publication is financial or other advice whatsoever.

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CHECK OUT PAGES 18 AND 32 FOR FURTHER INFORMATION

To be featured in the next edition, contact David Tasker: dtasker@chapteroneadvisors.com.au

Subject to any terms implied or expressed by the law, Chapter One does not accept any responsibility for any reliance, loss, damage, cost or expense incurred by any reliance upon this information or anything published by Chapter One herein, or by acting upon it or for any error, omission or misrepresentation conveyed. The information published is general only and does not take into account any individual objectives of investors.

Front Page image provided by Little Green Pharma.

This publication has been produced independently of the Australian Financial Review newsroom.

COMPANIES IN FOCUS

NOTHING SMALL ABOUT MEDICINAL CANNABIS COMPANY

LITTLE GREEN PHARMA

BY TIM BOREHAM LITTLE GREEN PHARMA’S DANISH FORAY WINS DEEP POCKETED LOCAL SUPPORT.

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he history of corporate acquisitions shows they fail just as much as they succeed. But in the case of the ASX-listed medicinal cannabis play Little Green Pharma, its recent Danish pick-up falls into the ‘no brainer’ category.

Big-hitting investors agree, including Australia’s richest woman Gina Rinehart.

A cultivator and manufacturer of medical grade cannabis oils and flowers, the Perth-based Little Green Pharma always knew that its future lay in exporting its product, notably to receptive European markets.

To do this, Little Green Pharma intended to expand its existing facility in an undisclosed location in Western Australia’s southwest, at a cost of around $8 million.

Thanks to a Danish employee, management became aware that Canadian cannabis giant Canopy Growth Corporation intended to close its facility, which is state-of-theart but only running at 25 per cent capacity.

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TECHINVEST JULY - SEPTEMBER 2021

“If this ordering profile continues, this would represent an annualised run rate of $10 million by the end of the year with that client alone.”

Canopy Growth had been pivoting to the booming Canadian and US recreational cannabis markets, using the Danish plant as a source of internal supply rather than a maker of finished medicinal product.

“This Danish purchase offers rapid market penetration,” she says. “We could have expanded our own facility over two years or we could have bought an existing facility with existing licensing, permitting and staff ready to go.”

Little Green Pharma swooped and acquired the operation (in the Odense region) for $C20 million (A$21m), with half payable now and half due in 12 months.

The existing Danish facility has capacity of more than 20 tonnes of raw material (biomass), which easily eclipses Little Green Pharma’s WA capacity of three tonnes.

For Little Green Pharma Managing Director Fleta Solomon, the deal shows that it’s not just Princess Mary who found her perfect match in Denmark.

Solomon says expanding the WA facility to equivalent capacity would have cost around $2.7 million per tonne – and taken at least two years.

“It was the easiest decision and the most incredible opportunity,” she says. “It fits like a glove; you couldn’t get a better match.”

The Danish capacity is costing $1 million per tonne. The purchase price also compares with the $100 million (in Capex and Opex) Canopy Growth spent on the facility and the likely replacement cost of around $70m.

The company-transforming purchase was accompanied by a $27 million placement, cornerstoned by Rinehart’s Hancock Prospecting to the tune of $15m.

An existing Little Green Pharma holder along with Pratt family’s Thorney Investments, Hancock Prospecting now accounts for more than 11 per cent of the register but has not sought board representation.

Solomon says while the company’s cannabis oils and flowers have treated many patients locally, the company had a “laser focus” on growing commercial sales in overseas markets.

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Little Green Pharma has built its local profile with its range of oils and flowers that conform to Good Manufacturing Practice (GMP).

Attaining this status is not a tick-the-box exercise, but a prolonged and exacting process.

Because of this, Little Green Pharma is one of only a handful of so-called ASX-listed ‘pot stocks’ with meaningful export revenues.

COMPANIES IN FOCUS

But the truth about cannabis oils and flowers is that they are generic assets and difficult to protect. Thus, they are always prone to emerging competition.

In the March 2021 quarter, Little Green Pharma generated $2.46 million of revenue, flat on the previous quarter. However Australian revenue gained 29 per cent to $2.33m.

As well as striving to provide reliable assured product, Little Green Pharma is working on technology based on more effective delivery of the active ingredients, such as the psychoactive component tetrahydrocannabinol (THC).

Since then, German distribution partner DEMECAN has ordered cannabis flower worth about $5.7 million of revenue.

“The research front is really important,” Solomon says. “This is the long term game plan and it’s what the investors really want to see.”

“If this ordering profile continues, this would represent an annualised run rate of $10 million by the end of the year with that client alone,” Solomon says.

Little Green Pharma’s efforts include a collaboration with Curtin University’s licensed laboratories, focusing on alternative drug delivery using less medication for a better result.

When the Danish purchase is bedded down Little Green Pharma expects to derive revenue not only from its branded products, but also ‘white labelled’ finished product and raw biomass (bulk flower) for other parties.

“In the case of pain, there’s the need for a slow-release mechanism so patients don’t have to get up at night,” Solomon says.

The company plans to scale Danish plant capacity to up to 50 per cent in the near future, depending on market demand.

"The idea is that in the future, we ideally have a patent-protected registered product ahead of applying to the Therapeutic Goods Administration (TGA) for approval."

“We are pretty confident about getting to where we need to be for the facility to be making money, but of course this will depend on the product mix being sold,” Solomon says.

Meanwhile, Little Green Pharma is supporting a recently launched study into the quality of life of patients with chronic conditions receiving medicinal cannabis.

Ahead of listing in February last year Little Green Pharma raised $10 million and then passed the hat for $27 million in February this year – an offer with bids over $100m.

Called the QUality of life Evaluation STudy (QUEST Initiative), the University of Sydney-conducted study is one of the world’s biggest of its ilk. Under the terms of the collaboration, Little Green Pharma supports the recruitment of doctor prescribers and exclusively provides the medicine at a cost of $150 per bottle.

The latest raising – also for $27 million - was struck at 60 cents per share, a modest 7.7 per cent discount to the pre-placement price of 65c.

Since its inception in 2018, Little Green Pharma has sold more than 60,000 units, generally 50 millilitre bottles with varying THC levels and cannabidiol (CBD) formulations.

Locally, Little Green Pharma products have been used by 12,000 patients, a large per cent of what’s a fledgling market governed by rigorous access rules.

Despite Little Green Pharma’s shares on issue surging more than three-fold as a result of the raisings, the stock has gained around 70 per cent since listing.

“We have had nothing but fantastic feedback and the market really believes in where we are heading,” Solomon says.

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HOW LUXURY ESCAPES

TACKLED COVID WHILE OTHER TRAVEL PLATFORMS TOOK FLIGHT

BY TIM BOREHAM IN HIS PROGRESSION FROM STUDENT ENTREPRENEUR TO FOUNDER OF ONE OF THE WORLD’S FASTEST GROWING ONLINE TRAVEL COMPANIES, 41 YEAR OLD MELBURNIAN ADAM SCHWAB, PICTURED BELOW, HAS TACKLED PLENTY OF BUSINESS CHALLENGES INCLUDING TAPPING

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CAPITAL BEFORE THE TERM ‘ANGEL INVESTOR’ WAS COINED.

trained lawyer, Schwab took a methodical approach to assessing business risks. But as he discovered last year, nothing could prepare him for the one-in-100 year pandemic that sucked the momentum out of the business he co-founded, Luxury Escapes.

Pre-COVID, Luxury Escapes turned over close to A$500 million and serviced 500,000 customers. In 2017 the Australian Financial Review dubbed the enterprise Australia’s fastest growing company.

“COVID was certainly an interesting period,” Schwab says with palpable understatement. “Suddenly our revenue went not just to zero but negative, because we were crediting and refunding literally hundreds of thousands of bookings basically overnight.”

In entrepreneurialism, in adversity also lies comfort and hope.

After some rapid fire cost cutting including executive pay cuts and directors taking no fees, management used the pandemic to ponder the company’s underlying business structure.

Co-founded with former Caulfield Grammar class mate Jeremy Same in 2013, Luxury Escapes deployed the ‘flash sale’ model of offering select, deeply discounted packages to luxury hotels over a limited period.

The ‘flop and drop’ deals to places such as Bali, Dubai and the Maldives resonated with travellers, as evidenced by Luxury Escapes’ industry leading customer satisfaction ratings.

With the pandemic curtailing sales, the business quickly moved to creating a curated marketplace offering – think Booking.com with a small selection of the best hotels in every desired destination.

The thinking was simple: building a marketplace allowed the business to not only keep all of its team employed while other travel companies were slashing staff, but actually grow staff numbers to build out the technology.

“Instead of being a limited site with 40 products we will have 10,000 highly curated products relevant to four or five star travellers,” Schwab says.

With the country’s drawbridges retracted, Australians are not free to roam to their favorite playground, Bali - or anywhere else for that matter.

Despite that, Luxury Escapes’ revenues (before credits and refunds) came close to hitting pre-COVID levels in May, before slowing again as nationwide lockdowns and border closures struck once more.

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COMPANIES IN FOCUS

“We are the only travel business in the world that has increased our staff,” Schwab says. “Even the great travel businesses like Airbnb and bookings.com have smashed their staff by upwards of 50 per cent.”

One reason for the company’s resilience was its business in the US, where borders never closed even at the peak of the crisis.

The obscure travel bubble between New Zealand and the Cook Islands was also surprisingly helpful in maintaining patronage.

Crucially, most customers were happy to accept vouchers for future travel rather than demand refunds (which were given, when warranted).

“That’s because Luxury Escapes has a unique offering, you can’t get it anywhere else,” Schwab says.

“The vast majority of our customers had a great experience and our Net Promoter Score [the standard measure of customer satisfaction] has rebounded from 65 back to 72.”

Schwab’s entrepreneurial flair came to the fore at Caulfield Grammar, where he sold crib notes for less attentive VCE students.

He enrolled in Monash University’s law and commerce degree, where he replicated the model for his fellow scholars. He even convinced the law school bookshop to stock his CDs before an unsympathetic dean of the faculty banned the arrangement.

Schwab went on to a mergers and acquisitions role at Freehills (now Herbert Smith Freehills) before he and Same spotted an opportunity with renting furnished inner city apartments to welloff backpackers.

The venture morphed into Living Corporate Apartments with an emphasis on more reliable and long-term corporate rentals.

“We are the only travel business in the world that has increased our staff.

Even the great travel businesses like Airbnb and bookings. com have smashed their staff by upwards of 50 per cent.”

He says founders of successful, consumer-facing online businesses do not have to be a tech ‘geek’ as such.

Rather, they have to know how to understand customers and manage products, whilst being a jack-of-all-trades. “Neither of us are coders or engineers but we have always been able to do specs [specifications] and manage a product from concept to release.”

The duo dabbled in buying and selling apartments in a booming property market an ended up with a $1 million profit.

Schwab meanwhile has kept his finger in numerous entrepreneurial pies, including as chairman of online art marketplace Bluethumb. com.au and beauty bookings marketplace Bookwell.

Modest even back then, these proceeds underpinned the seeding of Zoupon, which became Deals.com.au, in 2011. The venture unashamedly drew inspiration from US startup Groupon, which had hit $1 billion in revenues but had not yet entered the Australian market.

He is a board member of Private Media, the brainchild of veteran newspaper editor Eric Beecher. He writes for the company’s irreverent Crikey website, opining on topics such as the need to disband Fortress Australia and the imperative to get serious about vaccinations.

“Venture capitalism didn’t exist back then,” Schwab recalls. “We were our own funders. We didn’t buy a house or car and invested in ourselves.”

Schwab has been a director of the Myeloma Foundation since 2010.

The duo quickly learnt that the small business providers to the platform were enthusiastic, but were more focused on making an extra buck out of the customers rather than building an enduring clientele.

They quickly realised that travel was more appealing because the size of the transaction was bigger. What’s more, hotels really care about their brands and ensuring their guests have an amazing experience, so filling the remaining rooms with a fixed cost base is a classic win-win.

“Hotels with smart revenue managers can make millions of dollars from Luxury Escapes and we are integral to many of their marketing plans,” Schwab says.

Rounding out the busy C.V., Schwab authored the authoritative tome to the 1980s: Pigs at the Trough: Lessons from Australia’s Decade of Corporate Greed.

But his core focus will remain on Luxury Escapes as his most successful venture sails through the unchartered post-pandemic waters.

“COVID proved we are an incredibly resilient business,” he says.

“We were able to invest heavily in the product we wouldn’t have done otherwise.

“We’re super confident in 12 months we will have an unbelievable product that customers will completely love and we will be a much better business having survived the pandemic.”

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GENETIC SIGNATURES: AUSTRALIA’S RAPID GROWTH DIAGNOSTICS COMPANY

BY COLIN HAY GENETIC SIGNATURES’ GROWTH STRATEGY IS ABOUT BUILDING ITS CUSTOMER NUMBERS, THE RANGE OF ITS PROPRIETARY TESTS FOR COVID-19 AND A RANGE OF VIRAL, PROTOZOAN, FUNGAL AND BACTERIAL INFECTIONS.

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Genetics Signatures (ASX:GSS) is continuing to develop its unique, rapid and adaptable 3base EasyScreen™ technology to help tackle global health challenges. Its customers can confidently and quickly test for up to 20 possible causes of infection from the same patient sample.

Its novel technology is expanding into profitable new markets.

For example, Genetic Signatures has this year registered a 3base test for sexually transmitted infections in Europe, which can detect 10 common STIs, and has commenced the clinical studies needed to register enteric protozoan testing in the US.

COMPANIES IN FOCUS

By the end of March total sales had already doubled FY2020 sales, with profit of A$4.5m in the first half of FY2021 and positive cash flow.

One of the company’s value inflection points last year was after it rapidly developed a reliable SARS-CoV-2 test, selling its kits into US, European and Australian markets.

“Our tests are now in use every day in Australia, Europe, the US and parts of Africa,” says CEO John Melki. “Capital raised at the end of 2019 enabled Genetic Signatures to take products developed in Australia into Europe and the US, which make up more than 70% of growing molecular diagnostic markets.”

Genetic Signatures’ 3base technology enables hospitals and laboratories to rapidly and accurately screen for the genetic information of a wide range of infectious pathogens. Its 3base process helps to overcome the genetic variations and mutations often seen in microorganisms. The 3base process can detect the most common genetic mutations that other technologies cannot.

“We are not an overnight success,” CEO John Melki explains.

“Genetic Signatures is 20 years old this year and we have been developing our 3base technology for a decade. We were able to rapidly develop SARS-CoV-2 screening based on our existing capability to accurately screen seasonal coronaviruses.

“3base technology has striking benefits over traditional 4 base genetic screening. Melki notes, “3base technology is less likely to be impacted by mutations. As we’ve demonstrated with SARSCoV-2, we are better able to detect groups or subclasses of organisms, or variants that come up over time.”

Moreover, Genetic Signatures’ technology provides ‘syndromic’ diagnostic testing that can identify the specific pathogens (including bacteria, protozoa and viruses) that together can cause a range of symptoms, enabling effective treatment.

For example, gastroenteritis, which remains a leading cause of death worldwide especially for children, can cause varied symptoms of cramping, diarrhoea and vomiting. Genetic Signatures’ technology simultaneously tests for 20 pathogens that can cause gastroenteritis.

Genetic Signatures also has a test kit for antibiotic resistant bacteria – aka superbugs – a growing global challenge. “This can become a major tool for pathologists as we are able to identify how to manage bacterial infections with some antibiotics becoming ineffective,” says Melki.

“We have a range of new kits coming through our development channels including for tropical diseases, meningitis, measles/ mumps/rubella and tick borne infections. While infectious diseases will always be a key part of our market, we are also working in other areas to see where 3base is applicable such as in cancer diagnostics and epigenetics.”

While Genetic Signatures' diagnostic kits can be used on most commercially available instruments, the company has already developed customised instruments that optimise 3base™ technology, and is currently developing its own 'Sample to Result' diagnostic instrument “We have quadrupled the number of instruments we have in the field and plan to leverage these placements,” says Melki.

COVID has played an important role in taking Genetic Signatures’ technology to the world. The 3base EasyScreen technology is successfully providing rapid, targeted results to patients in high throughput environments. With substantial on-going demand for COVID testing, sale of newly registered STI kits and a strong pipeline of new products and technologies, Genetic Signatures is emerging as one of Australia’s biotech success stories.

"The 3base process can detect common mutations that other technologies cannot.”

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TECHINVEST JULY - SEPTEMBER 2021

OPIN

MAKING LIFE SAVING INFORMATION EASIER TO FIND

BY COLIN HAY WITHIN MINUTES OF HER FRIEND’S STAGE IV MELANOMA DIAGNOSIS, MICHELLE GALLAHER, OPYL CEO, HAD INITIATED A DISCUSSION ABOUT PARTICIPATION IN RELEVANT CLINICAL TRIALS. SITTING WITH HER FRIEND IN FRONT OF THE ONCOLOGIST, SHE KNEW THAT ACCESSING THE NEW ORAL IMMUNOTHERAPY DRUGS BEING USED IN CASES LIKE THESE OFFERED THE BEST CHANCE OF SURVIVAL.

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he seed of a solution started forming in Gallaher’s mind for a more patient-centric solution that could connect participant and researcher. Fast forward five years to the launch of the patient-led global clinical trial recruitment site Opin in May 2021.

The first of two artificial intelligence healthcare platforms to be commercialised by the company, Opin is a website in which patients can search, be matched to, and access every clinical trial and research study registered with any government regulator anywhere in the world, free of charge. The platform allows

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patients to create a profile, indicate a disease or disorder they are interested in and the AI does all the work, delivering trials and studies that are open and looking for participants.

Opyl’s chief executive has a history with clinical trials, other than navigating the complex system for her friend. Gallaher serves as a non-executive director on the board of Cancer Trials Australia, and Praxis Australia, and for six years served as the head of the Victorian peak body for biotechnology, advocating for the large local clinical trials sector.

COMPANIES IN FOCUS

“My friend and I had an uncommon advantage, we worked in the health industry. Both of us had deep professional networks and knowledge of how the trials system worked. We knew trials would provide access to emerging medicines and diagnostics, free of charge, and would deliver best standard of care,” said Gallaher.

“We knew exactly who to call and how to get in. Very few people have the knowledge and networks that we have.”

Over the past two years, Gallaher has transformed Opyl into a revenue generating business with two AI-powered digital health platform opportunities to commercialise, both designed to improve the efficiency of clinical trials and save biopharma and medtech companies hundreds of millions of dollars.

According to a recent MTP Connect report over 80% of clinical trials fail to recruit participants on time or on budget. Two of the key drivers for the failure of clinical trials is ineffective recruitment, and poor trial design that doesn’t give the device or drug the best chance of successfully demonstrating its value.

“Clinical trial inefficiencies are costing billions of dollars in wasted research expenditure each year, and that is totally unacceptable and preventable,” said Gallaher. “The bottle neck is usually doctors, whom for whatever reason don’t refer or discuss trials with patients, and the general lack of clinical trial awareness amongst the population. But COVID-19 has changed that, as the public’s understanding of clinical trials has skyrocketed.” Opyl’s timing in launching Opin is undoubtedly an advantage.

The Institute for Safe Medication Practices released a 2020 study estimating the median cost of a clinical trial at A$25m, a pivotal trial at A$64m and a Phase III trial at A$340m. Recruitment makes up a 11-33% of clinical trial budgets. The study declared the most significant factor influencing the cost of trials was the number of participants required to demonstrate the effectiveness of the drug or device and efficiencies associated with timely and accurate recruitment of participants. This is where Opin delivers value for patients and researchers.

Opin is delivering revenue for Opyl in three ways. Research organisations pay to unlock consented patient data, where a patient has indicated an interest in a trial. Additionally, research organisations can pay to have a trial featured on the Opin platform with a precision marketing campaign on social media. The third revenue opportunity will be realised over time as more patients sign into the platform, providing a resource for trials to search for matched motivated patients.

The first and most lucrative and near-term revenue opportunity is to secure research customers willing to pay for trials to be featured on Opin and within weeks of its launch Opin had its first paying customers.

Research organisations will pay a considerable amount for qualified and motivated patients. Rates can vary from A$165 for healthy volunteers through to A$10,000 per recruited patient depending on the complexity of the trial and challenge in finding the right patients. Not all trails are equal. When only 2-5% of Australian patients with cancer participate in a clinical trial, there is a large market opportunity.

The team at Opyl have been delivering participants to clinical trials for over four years via a consulting model. “It was obvious that we couldn’t scale a consulting model,” said Gallaher. “We developed a novel social media recruitment methodology but we needed to create an enterprise platform model to achieve scale.” Enter www. opin.ai.

The Opin business model relies upon leveraging social media channels, delivering click-through opportunities for patients and carers to learn about clinical trials and to access them easily, accurately and securely. The long-term goal is to amass a huge dataset of registered participants on the platform that can be mined for matches to new trials.

“Our advantage over other similar clinical trial recruitment platforms is that our offering is a global dataset of every registered trial set leveraged by our team’s experience and skill with precision social media healthcare marketing,” said Gallaher.

The core of the team at Opyl are healthcare social media content creation and engagement experts and all have a science or clinical background.

Partnering and developing global strategic alliances will be key to Opyl unlocking revenue and the depth and breadth of Gallaher’s biopharmaceutical network will play a lead role in achieving this objective. Notably, Opyl recently added Dr Megan Robertson to its board, a recognised leader and advocate in the Australian clinical trials sector.

With the first of Opyl’s two AI platforms now addressing the A$59bn global clinical trials sector in which approximately 30,000 new clinical trials and studies are opened each year, the market opportunity is large.

“We knew exactly who to call and how to get in. Very few people have the knowledge and networks that we have.”

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WHERE TAILWINDS

CONVERGE

BY COLIN HAY

SOME PROMISING GROWTH VENTURES EVOLVING OUT OF A FIRST-CLASS ENGINEERING SERVICES BOUTIQUE IS A COMPELLING PROSPECT, SAYS RYAN ARMSTRONG FROM TAYLOR COLLISON.

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he veteran stock analyst names Synertec Corporation Ltd (ASX: SOP) as an investment with that unique claim. He outlines the reason why the engineering tech development firm’s ESG-focused technology is positioned to benefit from a number of structural tailwinds.

WHAT PRODUCTS ARE IN THE WORKS FOR SYNERTEC? Synertec is developing industrial technology in the energy sector where it has extensive experience supporting the leading oil and gas producers, including Chevron, Shell and Santos.

The company’s commercialisation pipeline includes two marketready products with other investments expected to follow.

Its marine Custody Transfer System (CTS) technology is a critical component for liquified natural gas (LNG) producers and vessel operators in the rapidly expanding market for the floating storage, transportation and trade in condensates.

The IP-protected technology provides real-time volume and composition data when LNG is transferred between a buyer and seller. It is based on Synertec’s larger land-based system, which is already in use at tier-1 LNG facilities including Gorgon and Wheatstone.

Demand for the high-value specialised transfer systems is benefiting from the rising demand for liquified natural gas as a transition fuel for companies and economies reducing their carbon footprint.

Synertec’s marine-based CTS is also meeting a growing market in the global shipping industry. Changes to international marine emissions regulations is driving a switch from other more carbonintense marine fuels to LNG, as shown by BHP’s move to natural gas-powered iron ore bulk carriers locked in at the end of last year.

Certification of Synertec’s technology with the leading independent maritime certification body, DNV, is in progress. The company has already partnered with a major European vessel owner and operator to deploy its CTS. Synertec’s second lead product is similarly well-positioned as ESG factors feature more heavily in industry and capital markets and natural gas demand rises in substitute for higher-emitting alternatives.

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Composite Dry Powder (CDP) is a product that transforms oil and gas drilling sludge into a non-toxic, high-strength construction material. The product minimises the processing and storage burden for energy producers from drilling mud and wastewater, providing a low-cost and sustainable solution for oil and gas producers.

Synertec is now undertaking commercial trials in Australia after recently-completed lab tests here validated the positive results delivered by its technology partner, Sichuan GreenTech Environmental Co. Synertec recently announced that CDP would be introduced via trials with multiple major Chinese state-owned enterprise customers following the success of GreenTech’s commercial trials.

WHAT SEPARATES SYNERTEC FROM OTHER LISTED PLAYERS WITH EARLY-STAGE TECHNOLOGY? Synertec stands out as a growth company because its products are positioned at the cross section of the once-in-a-generation capital expenditure boom as well as the long-term decarbonisation and ESG trends.

Much like its technology development activities, Synertec’s engineering services business also harnesses the tailwinds brought about by the major structural shifts unfolding globally.

The multi-disciplinary engineering firm serves organisations in critical infrastructure and pharmaceuticals—industries at the centre of unprecedented investment following the pandemic.

Pfizer, CSL and UGL are among the customers it has supported in these highly regulated sectors.

HOW IS THE STOCK PLACED GIVEN THE PACE OF GAINS OVER THE LAST YEAR? The stock has posted a remarkable 12 month gain and we believe that momentum is likely to continue. The coming quarters are set to deliver key milestones for its technology business unit, during which time Synertec has indicated the pipeline of work for its engineering practice is also set to benefit.

COMPANIES IN FOCUS

FOR A LIFE FREE OF PAIN

BY KAROLIS ROSICKAS, REGENEUS CHIEF EXECUTIVE OFFICER REGENERATIVE MEDICINE COMPANY REGENEUS IS AT THE FOREFRONT OF PROVIDING A NOVEL, STEM CELL-BASED THERAPY FOR KNEE OSTEOARTHRITIS WHICH AFFLICTS HUNDREDS OF MILLIONS OF PEOPLE WORLDWIDE. THE COMPANY IS POTENTIALLY ONE CLINICAL TRIAL AWAY FROM GENERATING REVENUE FROM ITS LIFE-CHANGING

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TREATMENT IN ITS FIRST TARGETED MARKET: JAPAN.

SX-listed Regeneus (ASX:RGS) is developing ‘next generation’ therapies to manage pain and inflammation.

Around 1.5 billion people globally suffer from pain, and 50 per cent of patients report inadequate relief from existing therapies. Regeneus’ primary focus is on knee osteoarthritis which affects 240 million people worldwide. The market for pain relief in this segment is estimated to grow to US$3.5 billion by 2026. Regeneus’ two proprietary platforms, injectable Progenza™ and topical application Sygenus, are unlike current therapies addressing these markets.

For example, traditional treatments for knee osteoarthritis, such as opioids and surgery, only treat symptoms, are invasive and can have serious side effects. Progenza™ is being developed to provide an alternative treatment for patients, avoiding side effects and promoting tissue repair through its disease modifying properties. Regeneus is now preparing for Phase II trials of Progenza™ in Japan and the US in 2022.

Meanwhile, Sygenus is being developed in partnership with the Australian Department of Defence as an alternative for morphine in the treatment of combat casualties, including treating pain, preventing blistering and accelerating wound healing.

“The ability to treat symptoms of pain, repair tissue and modify disease makes our Progenza™ technology unique,” says Regeneus CEO Karolis Rosickas. “Given our strong IP position, with more than 80 patents, we’re well positioned to deliver market-first treatments with Progenza™ and Sygenus.”

The bioactive secretome of mesenchymal signalling cells (MSCs), also known as stem cells, is the cornerstone of Regeneus’ technology. Progenza™ utilises a combination of MSCs and the secretome, while Sygenus is an MSC secretome-only based product.

MSCs and their bioactive secretome have powerful immunomodulatory effects, communicating with patients’ resident tissue to repair damage and reduce pain and inflammation.

For Progenza™, the bioactive secretome also improves the functionality and viability of the MSCs they are combined with by protecting the cells during manufacture and distribution.

Notably, through its highly scalable manufacturing process, Regeneus can produce millions of doses of MSCs from a single donor, reducing variability and lowering the cost of goods compared to other cell therapies.

In 2020, Regeneus signed a licence and collaboration agreement with Japanese manufacturer Kyocera Corporation to develop and commercialise Progenza™ for the treatment of knee osteoarthritis in Japan. The potential market in Japan is 25 million patients and is worth US$330 million.

As the company prepares for Progenza™’s Phase II trials, Regeneus is getting closer to generating revenue.

Japan’s regulator, the Pharmaceuticals and Medical Devices Agency (PDMA), has an accelerated approval pathway for regenerative medicine therapies, and Regeneus deliberately targeted this jurisdiction so it could get to market faster and deliver value to patients and shareholders sooner.

"In Japan, we are one clinical trial away from selling our Progenza product in the market," says Mr Rosickas. "We expect to be in the market late 2024, early 2025 following successful filing and approval by the regulator."

The company is now exploring co-development and licencing options for Progenza™ outside Japan for knee osteoarthritis and other indications such as neuropathic pain.

“Our progress with both Progenza™ and Sygenus provides confidence that we are on the pathway to success,” says Mr Rosickas.

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TECHINVEST JULY - SEPTEMBER 2021

SHOOTING BLANKS: HOW AN ASX COMPANY AND A LEADING MALE FERTILITY EXPERT ARE FACING ONE OF HUMANITY’S MOST PRESSING ISSUES

BY TIM BOREHAM HUMANITY HAS A PROFOUND DEMOGRAPHIC PROBLEM AND IT’S NOT OVERPOPULATION. ON THE CONTRARY, MEN ARE BECOMING MORE INFERTILE AND THE QUALITY OF THEIR SPERM IS DETERIORATING, LEADING TO HEALTH PROBLEMS.

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ccording to world leading male fertility expert Professor John Aitken, sperm counts have roughly halved over the last 50 years, with an estimated 20 per cent of men infertile.

Poor sperm quality means that 75 per cent of genetic mutations are passed on by the father, rather than the mother.

Distinguished Emeritus Laureate Professor Robert John Aitken

Another startling fact of life is that while males produce 1000 sperm a second, even in healthy males 96 per cent of them have deficiencies such as double heads, short tails or bent necks.

“An old lecturer of mine used to say that if men were bulls, they would be taken out the back and shot,” says Prof. Aitken.

While no-one’s sure of the reason for the reduced collective sperm count, vaunted factors include chemical pollutants and electromagnetic radiation.

Whatever the underlying cause, there’s an urgent imperative to improve the quality of the global sperm pool, or else ageing western countries with declining fertility rates will become even less productive.

A Distinguished Emeritus Laureate Professor who retired from the University of Newcastle in June 2021, Prof. Aitken has been intimately involved in an enhanced technique to select the very best sperm for in vitro fertilisation (IVF) and other artificial insemination (AI) procedures.

As he puts it: “the cells we choose are the best ones in a sea of mediocrity.”

The work is by way of collaboration between the University of Newcastle and the ASX-listed Memphasys, which is on the brink of commercialising its Felix sperm separation device.

A biochemist with a doctorate in wild animal reproduction, Professor Aitken’s migration to Australia was serendipitous.

“I was at the University of Edinburgh and was offered a job at the University of Newcastle and I thought they meant the Newcastle University on Tyne, just up the road,” he says.

“It was quite a shock when they said they would fly me over to have a look.”

He had a look anyway, if only because the 1997 visit coincided with the Australia-West Indies Test match at the SCG. He saw Australia win the match, but did not pull stumps and head home.

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COMPANIES IN FOCUS

The Felix device evolved from Prof Aitken’s knowledge of the ASX-listed Gradipore, which was developing a device to separate molecules on the basis of size and electrical charge.

On the testing side the idea is that after ‘covering’ a mare, a stallion will have his residual sperm assayed to test if it likely to result in a pregnancy.

In a ‘light bulb’ moment, Prof. Aitken pondered whether the sperm could be separated using that technique; given healthy sperm have a strong negative charge.

Artificially inseminating thoroughbreds is illegal, but there’s strong demand for other equine sectors such as polo ponies and the harness racing industry, which is so short of runners it has resorted to importing them.

The most common sperm separation technique – discontinuous density gradient centrifugation – risks accentuating such cell damage because of the powerful centrifugal forces involved.

Another method, swim-up can also be deleterious (as its name implies, swim-up selects the sperm most capable of busting out of the seminal plasma and making their long journey up the fallopian tube).

“Our process does not involve chemicals or shearing forces,” Prof. Aitken says. “It’s also very quick.”

Gradipore morphed into NuSep and then into Memphasys.

The clinical testing of a predecessor prototype device centred on studies at Sydney’s Westmead Hospital. This prototype device proved at least as effective as conventional methods, as measured by pregnancy rates.

A small study sample meant the company could not claim the device was more effective. But it can safely assert that the Felix device method takes six minutes, compared with almost one hour for the centrifuge technique.

The commercialisation push had a setback in March, when an engineering flaw in the Felix device was identified.

This required further verification and validation testing to ensure the units would pass all quality control and assurance tests. The verification leg has been completed with the validation expected to be finished in the current quarter.

Work is also underway on developing semen transportation methods that don’t involve freezing and then thawing the samples, which reduces sperm fertility.

Research house GrandView Research expects the global animal AI market to be worth $US2.5 billion by 2026.

The animal potential is not lost on Perth horse breeder Bob Peters, the company’s biggest shareholder who last month contributed $1.65 million to a $3 million capital raising (by way of convertible notes).

Back on the human side, the company cites an addressable market of 1.2 million fresh IVF cycles by 2026, compared with 450,000 in 2018.

In Australia, 5 per cent of babies are conceived artificially while in Denmark the proportion is a world-leading 10 per cent.

“There are now eight million IVF babies globally, but the technology has remained the same since it was introduced in the late 1970s and early 1980s,” Prof. Aitken says.

“Now is a good time for us to revolutionise these technologies.

And while we have had many twists and turns I think we are in the best place we could be.”

The company has also sought counsel from key opinion leaders (fertility experts) across 14 IVF centres in countries including Japan, USA, Germany, New Zealand, Canada and even populous India.

Then there’s potentially an even bigger market in the animal AI and diagnosis market, notably for horses and cattle.

“Now is a good time for us to revolutionise these technologies.

And while we have had many twists and turns I think we are in the best place we could be.”

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TECHINVEST JULY - SEPTEMBER 2021

POSITIONED FOR GROWTH IN A POST-COVID RETAIL WORLD

BY JOHN BURGESS AND FINOLA BURKE

John Burgess and Finola Burke are experienced equities research professionals, each with 20+ years in investment research at the big end of town before joining forces at Research as a Service (RaaS) to focus on microcaps that they believe the market has missed/mispriced. Here they explain why they were attracted to seek out scales manufacturer and retail automation disruptor Shekel Brainweigh (ASX: SBW) as a RaaS research client.

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ailwinds behind Shekel Brainweigh’s (SBW) store automation technology have gathered pace.

Like changes seen across the economy, the wave of digitisation ushered in by the COVID-19 pandemic has accelerated disruptions in retail, such as cashier-less shopping.

Alongside the growth recorded by its established scales and weighing hardware business, SBW’s Retail Innovation Division has used the change in retail conditions to boost its commercialisation pipeline.

This pipeline has been several years in the making, with an estimated US$13m+ invested in R&D since the beginning of 2018.

We see the fruits of this investment coming to the fore in CY21.

The company’s IoT innovations are based on its Product Aware Shelf (PAS) technology, and combines Hitachi LiDAR sensor and loadcell with its artificial intelligence (AI) to drive real-time processing of the in-store experience.

The technology has been adapted for two key formats, an autonomous vending machine which began with the Innovendi, a product with >100 units in the field currently with certification as a Market ready IoT solution by Intel.

More recently the Hubz was launched, a “second generation” smart fridge developed by SBW alongside US refrigeration major Imbera and US-based vending payments software expert Parlevel.

The second format is the “Capsule”, a fully automated mini-store (25-40sqm) suited to 24-hour convenience and/ or stores that can take pressure off peak hour trade. The concept has been trialled and validated by major French retailer Casino Monoprix in Paris late CY20, with further deployments expected over CY21.

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SBW’s Retail Innovation Division is backed by a long-established and profitable industrial business. The scales business traditionally has generated EBIT of US$2.0m and sales of US$1820m. This should be seen as the base from which this business can grow given a restructure and renewed focus on growth under new CEO Nir Leshem, who joined SBW in late CY20. He previously headed up strategy and marketing for a key division of US conglomerate, 3m.

The business is also extending its product mix in response to opportunities that have arisen in its key industries. SBW is building out its self-check-out systems to include a software-as-a-service offering in addition to the scales hardware already sold to clients internationally. SBW has earmarked the second half of 2021 for the product’s launch. Other initiatives earmarked for CY21 include Fast Track, AI software using cameras to better identify products at self-checkout, and Smart carts, shopping carts that don’t require scanning at checkout.

SBW, which listed on the ASX in 2018, recently reported its best Q1 revenue result for the March quarter, up 18 per cent year-onyear to US$4.6 million. With the operating environment favouring the strategic growth initiatives SBW has named as its focus, both its Retail Innovation Division and scales business have a strong footing to deliver on strategy and growth goals.

COMPANIES IN FOCUS

CREATING CUSTOMER-CENTRIC EXPERIENCES WITH DIGITAL IDENTITY VERIFICATION

BY KALEIGH KINGSTONE OVER THE LAST 18 MONTHS, WE HAVE SEEN A RAPID UPTAKE OF DIGITAL TECHNOLOGIES ACROSS OUR SOCIETY. IT HAS HELPED BUSINESSES STAY AFLOAT, GROW AND CONNECT WITH NEW CUSTOMERS IN NEW AND DIFFERENT WAYS.

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s we emerge from the challenges of COVID-19, a thriving digital economy has occurred, and organisations are seeking guidance on how to construct digital customercentric experiences.

With increasing dependency on online services, identity verification should be a focal point for many businesses. As your business grows, so do the risks of online money laundering, fraud and identity theft increase, in addition to the stringent rules surrounding regulations. Sustained by AI-based software, Scantek aids organisations to identify and verify their customers via precise and convenient digital methods.

These methods include optical character recognition (OCR), location data analysis, facial biometrics and liveness checks. This advanced technology is seamlessly embedded in an incredibly user-friendly experience.

As company CEO Ches Rafferty explains, “it’s quite complicated to make something simple and user friendly”.

By incorporating such factors into their identity infrastructure, companies can achieve reduced friction, increased security, and ultimately nurture better customer-centric experiences.

demand for a more convenient way of demonstrating a customer is who they claim to be.

As a result, organisations seek new and improved ways to engage and connect with their customers while maintaining touchless operations. By helping customers assert their identities more conveniently and securely, digitising the process of identity verification can drive organisational efficiencies. Digital Identity Verification can give organisations the power to incorporate services that offer more access and capabilities while reducing exposure to fraud.

“By understanding and planning how to meet these demands, organisations can capture the user from the onboarding process and beyond.”

“By then creating advanced technologies, we are now able to build a product that allows a business to transform their customer experience truly”, Rafferty adds.

Scantek's innovative approach to Identity Verification is built on AI-based software. Pliable to any business level regardless of size, the organisation can access the pre-set level of access in which the business has predetermined.

Often based on the level of due diligence, regulation, and compliance requirements, integrating Scantek into everyday operations is a faultless process. It will accelerate deeper levels of assurance for your customers and deliver control and transparency over what identity-related information to share, with whom to share it, for how long and clarity on knowing who you are dealing with.

Like the software-as-a-service trend, identity-as-a-service or IDaaS has been fuelled by the specific Know Your Customer (KYC) and regulatory frameworks. Technology itself has powered the

“it’s quite complicated to make something simple and user friendly.”

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TECHINVEST JULY - SEPTEMBER 2021

NANOVEU’S NANOSHIELD PROVING TO BE SIMPLY BRILLIANT

BY COLIN HAY SOMETIMES THE MOST BRILLIANT IDEAS CAN ALSO SEEM LIKE THE SIMPLEST. FOR EXAMPLE, NANOVEU LIMITED’S (ASX:NVU) CREATION OF A TECHNOLOGY THAT USES AGE-OLD KNOWLEDGE TO DEVELOP A PRODUCT WHICH CAN BE APPLIED TO VIRTUALLY ANY SURFACE TO PROVIDE LONG TERM PROTECTION AGAINST VIRUSES LIKE COVID-19 IS JUST ONE OF THOSE IDEAS.

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f course, the creation of that technology is not simple, however, it is the use of that technology and the benefits it can provide to our health and our daily lives – which is just brilliant.

How many of you have gone to the shopping centre and stood in a queue while other shoppers wipe down the handle of their trolleys. Have you found yourself wondering is this truly effective?

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Well Nanoveu and its unique Nanoshield technology is moving quickly to help alleviate some of the fears associated with publicly used items.

Nestle Professional (Australia) has already come on board with a solution for its self-service machines, while a major Australian retailer is investigating the potential to use the Nanoshield technology in its shops.

For a technology innovation firm like Nanoveu, this is just the tip of the iceberg in how the company is improving our every day lives.

As Nanoveu Executive Chairman and CEO, Alfred Chong, recently told TechInvest Magazine, the company has been extremely busy this year expanding development opportunities for the Nanoshield technology and opening up new global markets.

“Nanoshield is a market leading antimicrobial technology and we envisage a world where everything will have these solutions integrated into everyday products,” Mr Chong said.

“Nanoshield uses an active ingredient that is safe, effective, and durable. As the new paradigm of living with a pandemic draws out, consumers and businesses are beginning to understand the

COMPANIES IN FOCUS

progression from cleaning and disinfecting, to the use of materials that have residual disinfectant properties, regardless of everyday use.”

Mr Chong says Nanoshield has proven to be one such product and as public health authorities expand on their technical guidelines in this sector, the company is registering a significant demand increase.

Protection Agency (EPA). The agreement allows Nanoveu to sell its Nanoshield product (using CEP) under Cupron’s EPA Registration.

For a growth focussed firm like Nanoveu, the last 12 months have been particularly busy as it moves to adapt its market intelligence and network to supply the world with a unique solution against the SARS CoV 2 virus.

“With that demand, we are constantly looking at how we can incorporate it into uses beyond our films. These may include sprays, wipes and even facemasks and bedlinen.

“Having developed Nanoshield in mid-2020, we have ramped up production in Japan and sought regulatory approval in the main markets of USA, Australia, UK, and home market, Singapore,” Mr Chong said.

“The next steps are new products that have the antimicrobial properties and Nanoshield protection straight from the factory, items such as taps, door handles, vending machines, shopping trolleys, anything that people touch on a regular basis.”

“We recently launched with Nestle's Professional Services’ business with a global agreement to supply protection for its selfserve drinks machines. We see the shift in needs, from just film to a hybrid solution for multiple surfaces and whole facilities.”

The scientifically accepted, patented copper compound Nanoshield technology has already proven successful in being integrated as a protective film on mobile phone and tablet touch screens.

The company has also investigated Original Equipment Manufactuer (OEM) partnerships with global firms specialised in manufacturing of drinks dispensing machines using its active ingredients as a substrate in the mould injection fabrications.

Mr Chong said this new sector of self-disinfectant surfaces that have residual behaviours is still in its early stages and government agencies and healthcare professionals are still looking into the application possibilities.

Mr Chong says technology development focused Nanoveu is continuing to improve its current products and add new ones to its innovative stable.

“Nanoveu’s continued focus is on seeking regulatory approval and independently verified efficacy testing, and this will serve to give it an extended runway as authorities begin to scrutinise the claims being made by some cleansing products,” he said.

Notably, the company recently signed a memorandum of understanding (MoU) for 12-month non-exclusive supply of copper iodide metal powder or "Cupron Enhanced Product” (CEP) for use in Nanoshield antiviral and antimicrobial products sold in the USA. The Nanoshield product is capable of using Cupron’s CEP without affecting efficacy or production profile and importantly, the CEP material is registered under the United States Environmental

“Nanoveu’s continued focus is on seeking regulatory approval and independently verified efficacy testing."

“We are continuing to review the technology as devices evolve.

We also have exciting news on another mobile device screen protector.

“EyeFyx is being developed in partnership with a research agency to allow those suffering from long-sightedness, to read their phones without the need for spectacles.

“This ailment, known as Presbyopia, typically affects those over the age of 40, and it is estimated that up to two billion suffer.”

With such dedication to improving people’s lives and creating unique, much needed products, it is no surprise Nanoveu recently reported a record quarterly revenue increase.

“The increasing sales figures buoy our expectation that Nanoshield will become increasingly relevant for a wide range of customers seeking greater protection and peace-of-mind when operating high-touch surfaces,” Mr Chong said.

The market opportunities are endless.

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TECHINVEST JULY - SEPTEMBER 2021

VMOTO’S “SMART” ELECTRIC MOPEDS

A GAME-CHANGER

FOR THE URBAN DELIVERY SECTOR

BY COLIN HAY WITH ELECTRIFICATION OF THE TRANSPORT INDUSTRY SEEN AS A KEY PART OF THE GLOBAL JOURNEY TO “NET ZERO EMISSIONS” AUSTRALIA’S HOME GROWN AND ONLY ASX- LISTED GLOBAL ELECTRIC MOTORCYCLE & MOPED COMPANY VMOTO (ASX: VMT) COULD NOT BE BETTER PLACED.

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he global explosion in e-mobility sector has witnessed huge growth in sales of “smart” electric motorcycles and mopeds, particularly in Europe.

According to the International Energy Agency (IEA), electric micromobility sales surged in the second-half of 2020, one of the consumer trends that accelerated during the COVID-19 pandemic, further boosted by the construction of bike lanes and other measures to promote e-mobility.

It noted that sales of private e-bikes in the United States more than doubled in 2020, outpacing sales of all bikes which were up an already healthy 65%.

There has also been a particular growth surge in the last mile delivery and ride sharing sector. Think Uber Eats, Doordash, Deliveroo, Menulog, Domino’s, Postal Services. The super hi-tech mopeds of today are seen as the perfect tool – particularly in the current lockdown, stay-at-home, society.

Vmoto spokesperson, Blair Sergeant, says the Australian company is at the forefront of the development of “smart” delivery electric mopeds.

A real first mover, Vmoto produced its first prototype from its own China-based manufacturing base back in 2009 and the company continues to lead the way in new opportunities and designs.

“We see ‘smart’ as being a reference to incredibly clever development of IoT devices installed in the e-mopeds, mobile Apps on everyone’s phone and the creation of software that allows real time communication between the smart e-moped and the user’s phone, making for super efficient business models that also happen to be clean and green with zero emissions,” Mr Sergeant told TechInvest Magazine recently.

Vmoto's E-Max electric delivery moped has already earned a reputation in the international market as a 18

high performance, heavy duty and long distance electric delivery vehicle. It is well suited to various delivery purposes including food delivery, parcel delivery and routine government services including police, patrol duty and general municipal services.

The company has also produced numerous models focused on consumer (B2C) and business (B2B) lines, punctuated by the recent release of the B2B model the E-Max VS2 and Vmoto’s E-Max VS1 also recently received ADR Compliance in Australia.

Quite rightly, Vmoto’s E-Max range of electric mopeds has secured a reputation in the international market as one of the best performing electric two-wheel delivery vehicles available – a real work horse.

Vmoto’s focus on quality and R&D has seen the company rated amongst the Top 1 or 2 electric motorcycle/moped companies in the international markets, especially in Europe.

“We have really set ourselves to be placed at the premium end of the electric motorcycle/moped market, which is reflected in both design and performance of all our products,” Mr Sergeant said.

“We have a clear first mover advantage in a fast-growing global EV market with strong tailwinds.”

Australia’s Vmoto is now at the forefront of this electric revolution and is incredibly well placed to enjoy the benefits of the rapidly growing global market in last mile delivery and ride-sharing mobility, simultaneously making a meaningful contribution to the world’s target of net zero emissions.

To WIN one of 2 VMoto Super SOCO CU-X Scooters (valued @ $4,999 + GST each) tweet a photo of TechInvest Magazine to Twitter & say why you want to win a scooter.

MUST tag in @techinvestmag & @vmotosoco. Winners will be chosen on 31 August 2021 and notified within 24 hours.

COMPANIES IN FOCUS

SAAS TO ENGAGE

THE CUSTOMER

BY COLIN HAY PATRONS SPEND MORE THAN $7 BILLION ANNUALLY AT PUBS, CLUBS, STADIUMS AND OTHER VENUES ACROSS THE WORLD USING DIGITAL PAYMENTS INFRASTRUCTURE THAT HAS BEEN

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PROVIDED BY MSL SOLUTIONS LTD (ASX: MSL).

SL Solutions (ASX:MSL) continues its push into the sports, leisure and hospitality markets with its pointof-sale systems and other digital enterprise services.

leisure and hospitality venues by MSL means the company commands a valuable pool of spending and patron activity data which other point-of-sale (POS) providers cannot access.

This positions MSL to benefit from a rising profile and opportunities that emerge as the Brisbane-headquartered company looks to increase technology spend in its targeted sectors, according to Partner at Aitken Murray Capital Partners, John Murray. The long-time growth investor outlines his thesis for MSL.

This will not only add to the strength of its ability to cross-sell business intelligence and other data-based services, but is a prospective driver of earnings growth that I think is currently underappreciated by the market.

WHAT DO YOU SEE AS THE KEY GROWTH DRIVERS FOR MSL? The owners of leisure and hospitality venues, most notably stadiums, are ramping up their technology spend. The wave of digitisation that was accelerated by the pandemic has now given way to other factors that have perpetuated the trend.

The forced adoption of technology due to public health measures— such as in-seat ordering and contactless payment systems— has educated venue managers and owners about the benefits of digitising their operations and investing in their technology infrastructure.

There is also significant government policy support aimed at boosting capital investment. Around the world investment incentives that are expected to boost economic productivity have been particularly favoured by policy makers, which adds to demand for digital products and services like those provided by MSL. Adding to those structural drivers is the resurgence in business confidence, pent-up demand, as well as the boost to leisure spending from stimulus measures directed at households. As a result, the outlook for business-to-business technology service providers such as MSL is strong.

WHAT OTHER CATALYSTS COULD LIFT MSL’S PERFORMANCE? The commodification of data has created substantial new revenue streams and assets for businesses in the digital economy. Many of those opportunities were not part of a company’s original product suite but went on to become a substantial source of value for shareholders.

Now running into the billions of dollars annually, the growing volume of customer transactional activity facilitated at sports,

HOW IS MSL PLACED TO FUND GROWTH OPPORTUNITIES? After a number of new customer wins and the strategic acquisition of SwiftPOS last year, the company recorded a healthy rise in cash receipts despite the massive disruptions of 2020.

Strong improvements in income also followed a strategic review which saw management cut the group’s expenses and lift its operating margin.

MSL is now [expected to deliver] its fourth consecutive quarter of positive operational cashflow, and that sustained operational cash surplus leaves the group well placed to re-invest in growth and product development.

CAN THE SHARE PRICE MOMENTUM BE SUSTAINED? MSL shares have performed four times better than the ASX’s All Technology index over the last three months after adding more than 20 per cent over that period. Over the last 12 months the company’s shares are up close to 150 per cent.

If it can continue to lift its market share with major sports, leisure and hospitality customers then the stock’s prospects over the medium to long term are really quite positive.

Picking up another 22 venues last quarter through its relationship with ASM Global, one of the world’s leading venue owners and entertainment companies, is a good indication of MSL’s momentum.

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TECHINVEST JULY - SEPTEMBER 2021

WEMONEY PROVIDING AI-DRIVEN

FINANCIAL CONFIDENCE

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BY STAFF WRITER

n 2016, when Dan Jovevski was in the market for a family home, he discovered a problem. Despite 13 years of experience in the finance industry, his own financial affairs were in disarray - he was overpaying on his insurance premiums and unknowingly dishing out hidden fees on almost all of his accounts. He was frustrated by the friction and lack of transparency when it came to managing his finances, and the process of reviewing his finances and switching to better products took him four days and left him exasperated.

Dan realised he was not alone - 57 per cent of Australians also report not feeling financially confident. So he created WeMoney an AI-driven smart financial wellness app that provides customers with a unique, 360-degree view of their financial situation.

Members can discover their net worth, credit score and view a complete summary of all their financial accounts including savings accounts, superannuation, investments and Buy Now Pay Later services. WeMoney’s vision is to create a frictionless experience for its members to manage their money and optimise their finances. The company aims to provide members the opportunity to consolidate and refinance debt with the click of a button and achieve a better interest rate across their credit products.

What sets WeMoney apart is its approach of community and purpose alongside assisting members to manage their money in real time. WeMoney Members are invited to spread positive money ideas, ask questions and learn from other members of the WeMoney community, with content from a range of finance

"WeMoney has sights set beyond Australia as they consider extending into international markets."

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influencers or “finfluencers” such as Tash Invests, Justin Baldori and the Aussie Money Man, Nicholas Muscat.

Since its launch in late September 2020, WeMoney has partnered with a range of lenders such as Athena which is aligned with WeMoney to create the best outcome and revolutionise finances for Australians. Both brands are forthright in wanting to assist their customers to get ahead and make better financial decisions.

WeMoney currently offers members a way to save on their home loans, personal loans, electricity and to undertake debt consolidation. According to WeMoney, Aussies typically significantly overpay for credit products, with 85 per cent overpaying on home loans, and 75 per cent overpaying for personal loan products.

Based on the current growth trajectory and amassing over 100,000 downloads since their public launch, WeMoney has sights set beyond Australia as they consider extending into international markets.

After a successful first round of $2 million capital raising backed by the RAC’s Better Labs and Full Circle, the startup is looking to raise further capital in the first half of the coming financial year.

COMPANIES IN FOCUS

4 DMEDICAL

PROVIDING UNPRECEDENTED INSIGHTS INTO LUNG DISEASES

BY DR ANDREW MOUCHACCA, FLINDERS INVESTMENT PARTNERS Andrew has worked in equity markets since 1999, and together with Richard Macdougall established Flinders Investment Partners in 2015. The core focus of Flinders is investments in Australian listed small companies. His analytical experience has focused on broad industry coverage and the management of small and microcap portfolios. Andrew has a PhD in Engineering Science from the University of Melbourne where he also completed his Bachelor of Engineering Degree in Chemical Engineering. He has also completed a Graduate Diploma in Applied Finance and Investment from the SIA.

THE RAPIDLY SHIFTING FOCUS TO BETTER UNDERSTAND LUNG HEALTH IS DRIVING DEMAND FOR INNOVATIVE MEDICAL TECHNOLOGY. MEDICAL TECHNOLOGY DEVELOPER 4DMEDICAL (ASX: 4DX) IS AT THE FOREFRONT OF THIS SHIFT IN COMMERCIALISING ITS PROPRIETARY XV TECHNOLOGY™, PROVIDING UNPRECEDENTED INSIGHTS INTO LUNG DISEASES. GROUND-BREAKING TECHNOLOGY Despite the challenges of COVID-19 restrictions and the impost on health services last year, 4DX has secured several major milestones, including FDA 510(k) clearance and TGA approval for its respiratory imaging software-as-a-service (SaaS) product, XV Lung Ventilation Analysis Software (XV LVAS™) − a next-generation lung-function diagnostics tool.

XV LVAS completely integrates with existing hospital imaging equipment to acquire cinefluoroscope sequences that are sent to the 4DX cloud for processing. Following processing, clinicians receive a highly visual colour-coded report with the patients’ regional ventilation measured across the entire lung and during all phases of the breath.

RAPIDLY GROWING MARKET 4DX’s opportunity stems from the substantial global lung diagnostic market, estimated to be worth US$31 billion per annum. Compared to existing lung diagnostics, 4DX’s technology is low radiation dose, capital light and easily integrated into clinical systems via a software model. The company’s market opportunity has increased with the prevalence of COVID-19, with more people likely to suffer from long-term lung complications.

COMPELLING PARTNERSHIPS & PATHWAY As demonstrated by previous medical companies, the capacity to partner with globally recognised hospitals and institutions can be a pivotal factor in accelerating penetration of the market. 4DX is looking to capitalise on this effect and has built an extensive program of clinical trials and pilots focused on validating application of its technology to the world’s most prevalent and costly lung diseases.

Focused on penetrating the US market, 4DX has ramped up commercialisation activities through partnerships with Johns Hopkins University, University of Miami, St. Joseph’s Hospital and the Respiratory Compromise Institute.

As it penetrates the market, trials and pilots will act as a springboard for the company. With leading institutions trialling the technology, doctors across the US are gaining familiarity and knowledge of this software and its capabilities. This places 4DX in a strong position in leveraging the support of key opinion leaders in the US. 4DX has also received significant validation locally this year after receiving a grant close to $30 million over five years from the Australian Government’s Medical Research Future Fund (MRFF).

The grant will be used to accelerate development of its XVD Scanner, combining XV Technology software with a dedicated hardware platform.

GOING FORWARD 4DX has had a good start as a listed company, after a strongly supported IPO at $0.73 last year that raised $55.79 million, it is currently trading at ~$1.30/s. Combined with a subsequent capital raising it reported cash on hand of $76.5 million at the end of the March quarter. COVID-19 has been a headwind in terms of delaying the sales effort, particularly in the US, as access to decision makers at hospitals has been restricted. Positively, the situation has been improving in line with the strong vaccination uptake in the US and infection rates dropping, and as such the delayed sales and marketing process should ramp up going forward. This is the basis for increasing returns for investors as the company can now effectively demonstrate the strengths of its technology.

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TECHINVEST JULY - SEPTEMBER 2021

HOW TECH-LED CUSTOMER EXPERIENCE IS DRIVING BUSINESS TRANSFORMATION...

BUT WITH THE RIGHT HUMAN TOUCH

BY BEN SHAPIRO REFLECTING ON MY TIME DEVELOPING COMPANIES IN THE TECH, MARKETING AND CONSULTING SECTORS, I’VE ALWAYS BEEN PASSIONATE ABOUT ENGINEERING A COMPETITIVE EDGE USING TECHNOLOGY. BETTER ENGAGEMENT. MORE GROWTH AND MARKET SHARE.

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ver the past decade the MarTech industry has matured, with more businesses relying on marketing technologies to foster customer connections and competitive advantage. Then came COVID, which shone a brighter light on the value of CX as the brand-customer landscape changed dramatically. MarTech rose up the corporate priority list as businesses accelerated digital experience investments that would have previously taken them years.

So how powerful is CX in driving business growth? Figures show an ‘experience’ focus improves brand awareness (1.6x) and employee satisfaction (1.5x), and almost doubles customer retention, repeat purchase rates, average order values and customer lifetime value. Tech-led CX is now a strategic priority for nearly half (48%) of all businesses, ahead of IT security, compliance and digital transformation.

DEMYSTIFYING THE TECHNOLOGY CX technologies become more complex daily, so a common business challenge becomes understanding the tech and selecting the right tools. When building and maintaining MarTech stacks, a ‘less is more’ approach is best, but it’s important to invest in the right foundations and learn to maximise the tools.

A common industry misconception is that new tools can fix problems, which has fuelled a tech wastage problem with most businesses only utilising 5% of their MarTech capabilities.

The truth is, new tools often create more problems. A more productive approach is to invest in ensuring the organisation’s technical infrastructure supports the growth ambitions. While not outwardly visible, the productivity benefits far outweigh the cost and provide the platform for growth.

LOOKING BEYOND THE TOOLS Effective CX is about more than just the technology, as the human application is just as critical with three fundamentals for success: 1. C Suite involvement: is essential as MarTech and business goals should align. If set by the C-Suite, everyone can work to the business strategy and report directly on how MarTech helps achieve these goals. A simple sentiment, but not commonplace.

2. Hybrid Teaming: this cross-functional approach ensures the marketing and tech teams can collaborate effectively on a common business goal, an approach which can help supercharge MarTech success.

3. Saying No: Traditionally, MarTech agencies take up to nine months to execute CX projects which is too long and costly for businesses. Our 90-day business transformation model is built around being clear on what’s needed to drive outcomes, and saying ‘No’ to anything that doesn’t – a pragmatic approach that works.

The truth is, technology will only get you so far. Businesses also need the right people, processes and operational approach to maximise the technical foundations. When they get this right, they quickly see how powerful CX and MarTech is in driving business transformation.

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Ben Shapiro is the Founder and CEO of Rightscale Group – made up of Triggerfish, one of Australia’s leading CX transformation consultancies and Dataweavers, a next-generation managed MarTech hosting company.

COMPANIES IN FOCUS

CATALYST FOR CHANGE THE RISING TIDE IN PAYMENTS IS DRIVING GROWTH AT CHANGE FINANCIAL

BY TOM RUSSELL Tom Russell is Investment Director at Altor Capital, a boutique alternative asset manager based in Brisbane serving clients in private equity, hedge funds, private credit and real estate.

He has a decade of experience working in the financial markets, private equity and the corporate finance sector. His experience as an investor spans a range of industries with a focus on growth companies in the technology, industrial, energy and resources.

Altor’s Alpha Fund, is a multi-strategy fund that invests in special opportunities outside the ASX300 where there is a significant perceived upside and a clear catalyst for a revaluation. Change Financial is a portfolio company.

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he shifting sands in banking and payments are moving quicker than at any time in the past driving a big opportunity for an emerging ASX fintech leader that has so far kept a low-profile.

The ongoing diversion in trade from in-person to digital channels has surged since the start of 2020.

That has rewarded financial service providers with the ability to serve a client base transacting remotely with merchants or customers located anywhere in the world.

At the same time, the competitive pressures from disruptions in banking have also seen the wave of new entrants and offerings accelerate.

Neo banks, specialist online-only lenders, and buy now, pay later (BNPL) providers are taking advantage of the reduced barriers to entry and rise in eCommerce.

But while consumer-facing fintechs continue to capture attention thanks to their visibility, the business-to-business payments service providers behind them are witnessing a period of unprecedented growth.

Known as banking and payments platforms, these businesses enable access to the capital-intensive infrastructure new entrants need to trade.

This includes functions such as customer on-boarding and know-your-client vetting, as well as the Application Programming Interfaces (API) essential to the sophisticated interconnectivity inherent to financial services.

And while rules vary between jurisdictions, these platforms also provide new entrants with access to the licences, networks and legacy systems of banks. For example, a new brand or fintech built on the technology of a platform provider could launch a product using the deposit-taking license of an established institution.

The massive global payments market continues to attract new entrants who are turning to platform providers for access to technology, network and compliance infrastructure.

It is in this market that Change Financial (ASX:CCA) has built global presence. CCA is one of the only banking and payments platform focused companies on the ASX and boasts a blue-chip client base that includes the major banks and brands globally.

CCA’s payments and card issuing platform currently manages and processes more than 16 million credit, debit and prepaid cards worldwide. Change has more than 125 customers across 36 countries utilising its technology and solutions.

Among the services available on its platform is a BNPL feature, which gives CCA’s customers the ability to offer an instalment payment option under their own brand.

One of the CCA customers using the feature is BDO Unibank, the largest bank in the Philippines, but Change has said it is currently exploring opportunities with multiple other banks and institutions.

With the global tailwinds driving the payments market, CCA is pursuing an ambitious growth plan. The company has been focused on integrating assets acquired from Wirecard’s TransTasman business, which were put on the market after the collapse of the group’s German parent last year.

The deal saw CCA pick up the collection of Wirecard’s regional operations for just NZ$6.8 million, with the majority of customer contracts already confirmed as continuing with CCA. The integration has delivered a competitive suite of features for CCA’s platform, forming a strong foundation for the company to start posting revenue and customer growth milestones that start to grab headlines.

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TECHINVEST JULY - SEPTEMBER 2021

ZOOMING IN ON BETTER QUALITY TRACKING

BY TIM BOREHAM DESPITE ADVANCES SUCH AS GPS TRACKING AND APP-BASED ORDERING, GOODS DELIVERY TOO OFTEN BECOMES A LOTTERY AS TO WHETHER THE ITEM WILL END UP IN MELBOURNE OR MAROOCHYDORE.

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ounded by software developer and ‘techpreneur’ Steve Orenstein in 2014, Zoom2u spotted an opening in a market dominated by Australia Post’s StarTrack, and other giants such as Toll Express.

The proposition was simple: why couldn’t the consumer connect directly with the closest accredited delivery driver, in the same way ride sharing companies facilitate the nearest magic carpet ride home?

In the meantime, Zoom2u has been building market share in a hotly-competed but fast-growing sector valued at A$5-6 billion annually.

Zoom2u is the holding company for two enterprises: its eponymous courier marketplace and its Locate2u business-tobusiness arm, which provides tracking and business optimisation software for other delivery companies.

Launched in 2015, Zoom2u is not a logistics company, but a tech company that connects customers to drivers. Their platform allows a delivery driver to provide their customers with a live tracking link so they know exactly when their driver will arrive.

The customer can connect directly with local drivers in their area for a fast delivery in hours rather than days, while interstate delivery is also available through the national network.

Orenstein says existing “stressors” prevent efficient deliveries. Common problems are customers needing to bend to a courier’s schedule, lack of communication and delayed or missing parcels.

The platform can be used to deliver anything from flowers to pallets of building materials, or sensitive items such as passports and even subpoenas.

The company runs an asset-lite model, continually investing to improve their software to further enhance the experience of connecting customers to drivers, instead of investing heavily in capital assets.

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“Zoom2u enables customers to view the progress of their delivery using real-time tracking technology and provides a direct communication channel between customers and drivers to increase delivery efficiency. The platform also uses proprietary dispatch algorithms to connect customers with the most suitable driver to offer fast and reliable deliveries,” Orenstein says.

Launched last September, Locate2u is pitched at businesses globally with their own drivers. The service allows these businesses to track vehicles in real time, estimate the arrival time for customers and optimise delivery routes.

Prospective Zoom2u drivers must complete a series of steps before they qualify to accept bookings on the marketplace, including a one-on-one phone call, insurance verification and a test booking.

Since launching in 2015, Zoom2u has expanded to over 8000 registered drivers. Over the past six years, these drivers have completed more than two million deliveries to nearly 70,000 customers.

Customers can rate their driver in real time, which allows for instant notification if something has gone wrong. Zoom2u also undergoes regular ‘mystery shopping’ as an added layer of quality control.

Having last raised capital in a funding round in 2019, Zoom2u has embarked on a pre-IPO capital raising, via the issue of $2.5 million of convertible notes.

Investors in Zoom2u include Perennial Value Management and Tony Gandel, who heads Gandel Invest.

Investors will be hoping it's a case of second time lucky for IT whiz and university dropout Orenstein, who previously founded the jobs management business Connect2Field.

In 2013 he sold the business to the New York Stock Exchange listed Fleetmatics for a reported $7 million, with part of the proceeds used to seed Zoom2u.

COMPANIES IN FOCUS

CUTTING EDGE

BY JUN BEI LIU AND LUKE HOUSEGO

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roa Biosurgery (ASX: ARX) is a biotech company with a growth trajectory for the 2022 financial year that distinguishes it from many of its peers.

After receiving FDA approval for its Symphony product last year, ARX is targeting a limited launch for its latest offering later this year before a full launch in 2022.

Following an oversubscribed IPO last year, the New Zealand-based company has expanded its business development organisation and is investing in its manufacturing capacity, providing a strong footing to accelerate sales.

Symphony will lift the total addressable market for the company to more than US$2.5 billion in the US; a big jump from the US$1.5 billion currently in its sights.

The soft tissue regeneration specialist is extending its portfolio of products, which are based on its proprietary extracellular matrix (ECM) technology.

The technology was initially developed by Founder and CEO Dr Brian Ward, who was named as one of the Top 50 healthcare technology CEOs for 2021 by The Healthcare Technology Report.

“Aroa is an exceptional growth story,” said Tribeca Investment Partners Portfolio Manager Jun Bei Liu. “It is at an early commercialisation stage of its product portfolio and has already delivered impressive revenue growth as its products have gained a foothold in the large US market.”

ARX’s primary market is the US where activity is ramping back up as the advanced vaccine rollout erodes COVID-19 disruptions. The positive trading conditions add to the company’s organic growth momentum.

Management recently confirmed that product sales are forecast to rise by between 39%-52% in FY22. That would see ARX generate from NZ$30 million to NZ$33 million in sales this year.

“Aroa trades at a fraction of the valuation of its larger listed peer Polynovo (ASX: PNV), despite having a potentially larger market opportunity and established clinical data,” Ms Liu said.

The company is in the process of bringing an expanded product mix to market which will dramatically increase its addressable market.

In the current financial year, it is the company’s two Myriad products that are expected to support sales.

ARX expects to add hospital and ambulatory surgical centre customers over the year as its increased field sales presence raises awareness of the product.

The company continues to build on the clinical validation it has received to support its marketing efforts. The Myriad Matrix product, expected to underpin near term growth, has been featured in five peer-reviewed publications since the start of FY21.

“Aroa has built solid clinical study evidence to support the efficacy of its products,” Ms Liu said.

ARX is also building its intellectual property portfolio as mediumterm plans for its product pipeline progress.

Last year the company lodged a provisional patent application for a new treatment that addresses two conditions that can develop following surgery, dead space and seroma.

The company’s products have been used in more than four million medical procedures to date but the growth prospects for ARX support a re-rating on capital markets. In the US its market penetration is only at an early stage. The company has regulatory approvals already in place for several new and large markets. It will be a company to watch among Australia’s growth plays.

Jun Bei Liu is a portfolio manager at Tribeca Investment Partners. She has over 19 years of investment experience and currently leads the investment team managing Tribeca’s Alpha Plus Fund, a long/short equities strategy that has consistently outperformed its benchmark, the ASX200 Accumulation Index.

Jun Bei is a CFA charter holder, a member of the Australian Institute of Company Directors and an executive committee member of the Alternative Investment Management Association.

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TECHINVEST JULY - SEPTEMBER 2021

THE AGENCY

A HAPPY HOME FOR INNOVATION

BY STAFF WRITERS INNOVATION IS CRITICAL FOR GROWTH AND ACCORDING TO PAUL NIARDONE, MANAGING DIRECTOR OF ONE OF AUSTRALIA’S FASTEST-GROWING REAL ESTATE SERVICES OUTFITS THE AGENCY GROUP (ASX: AU1), IT SITS AT THE CORE OF THE COMPANY’S BUSINESS MODEL.

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isting on the ASX in 2016 with an office in Perth and ~30 sales agents, The Agency may have lacked scale but it certainly was not short of ambition. As of today, the company boasts an armada of more than 300 agents operating right across the country, particularly in New South Wales high-value eastern suburbs, lower north shore.

The Agency is also home to a management team which includes some of the biggest names in Australian property, having recently recruited Geoff Lucas, the well credentialled former CEO of rival listed real estate firm McGrath Limited.

The key, according to Mr Niardone is the innovation which was built into the heart of The Agency’s model.

“We are fundamentally different from other real estate services companies, which rely on a traditional chain of bricks-and-mortar franchises operating in a fragmented market.

“Franchise offices are capital intensive, bearing additional staffing, service duplication and infrastructure costs. All of these costs eat into the value chain, eventually diluting commissions generated by the agent, and working capital that can be poured back into innovation and marketing.

“What we have done is centralise our administrative operations and support staff, which allows us to not only generate efficiency dividends, for example using our larger scale when organising coordinated marketing campaigns, but also allows us to completely eliminate the middle management layer of franchisees.

“With no franchisees there is a much greater value retention, enabling a higher split of commissions to both agents and the company.

“Effectively, we free up the agents to focus on the job they do best – selling and leasing properties for the benefit of clients - and they are better rewarded for it, incentivising further sales activity.”

The twist on the traditional model has been thoroughly tested and ultimately proven resilient, even against the tumult of COVID-19 in Australia.

Hindered by rolling lockdowns which have at times prevented home inspections, auctions and agents travelling throughout the community, the Group continues to post strong growth.

Despite the uncertainty of the March quarter, The Agency amassed combined group revenues of $15 million, up 39% on the previous corresponding period (with January and February typically considered quieter months in real estate circles).

This robust result was off the back of 1,232 sales during the quarter, with the combined value of these properties tallying approximately $1.2 billion. In the month of March alone, the combined Gross Commission Income (GCI) reached an estimated $9.3 million.

Investors are now keenly eyeing their June quarter of results which will round-out a breakout financial year.

With a strong focus on continued innovation and a buoyant property market, The Agency is poised to continue its momentum into the new financial year.

“We are fundamentally different from other real estate services companies."

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COMPANIES IN FOCUS

HARRIS TECHNOLOGY PRESENTS A GREAT ECOMMERCE INVESTMENT OPPORTUNITY

BY COLIN HAY HARRIS TECHNOLOGY IS RIDING A WAVE OF RECORD SUCCESS ACCELERATED BY THE EFFECTS OF COVID-19 DRIVING DEMAND AND THE COUNTRY'S GROWING ADOPTION OF ONLINE SHOPPING.

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peaking with TechInvest Magazine recently, company CEO, Garrison Huang, said that with a lean and scaleable business model which is accelerating growth, HT8 won’t be considered a small cap stock for much longer.

He said the company’s recent high growth in sales is anticipated to continue as it is driven by current online trends. Its partnership with global online giant Amazon, marketplace focus and planned product and category expansion are also growth initiatives being undertaken.

“We are a pure play online retailer. With no physical shopfronts, HT8 is placed ahead of the curve with it’s online retail model that traditional retailers struggled to adopt when COVID hit.

“Our peers have been slow to react to the retail trends in comparison to HT8 and we see that being a significant advantage for us moving forward.

We are strategically placed in the attractive eCommerce marketspace and we have proven to be a nimble organisation with vast scalability, which is benefitting from a frugal overhead structure,” Mr Huang said.

An example of that nimbleness was highlighted recently when Bitcoin was trading at all-time highs. Due to its long-standing relationships with a network of global vendors, the company was able to secure an impressive supply of high-end graphics cards traditionally used for high-end PC gaming but in this case for powerful computational capability applied to Bitcoin mining.

Mr Huang said this was just another example of how the company has a major advantage through spotting and catching the trend when opportunities present themselves.

Asked about the company’s recent record run of sales and profits, Mr Huang said the company’s relationship with Amazon was obviously a particular driver, but noted the upswing had also been fuelled by the changing nature of the local retail sector.

“The Australian retail landscape is definitely showing an increasing preference towards online platforms, accelerated by the pandemic and very quick delivery times,” Mr Huang said.

"Online marketplaces continue to grow as the convenient alternative to shopping centres, so we look forward to further

growth alongside Amazon Australia which is emerging as one of the national destinations of choice for online shopping,” Mr Huang added.

Mr Huang noted that the latest data from the Australian Bureau of Statistics (ABS) shows that even as Australia largely keeps the virus under control, 40 per cent of Australians were still working from home at least once a week in February 2021, compared to just 24 per cent before March 2020 which attributed to ongoing demand for home office and IT products.

Mr Huang also pointed out that, according to Canada-based eCommerce specialist Shopify, 10 years' worth of eCommerce growth occurred in just 90 days at the height of the pandemic.

Mr Huang said the company has identified a number of growth opportunities and what will be the hot items in the near term.

“We think gaming, small home appliances, home entertainment, refurbished devices and computing will definitely command strong ongoing demand. With regard to the hot items, we are seeing a lot of interest in graphics cards, notebooks, home office kitting and of course gaming in this new stay-at-home lifestyle," he said.

“A significant trend has emerged during the pandemic with a surge in popularity in online gaming. PC gaming has become one of the most popular forms of entertainment worldwide, meaning the demand for top-end gaming products is surging.

"We have noted that gamers are after custom-build PCs, gaming headsets, mouse-and-keyboard setups and more to meet their needs.”

Mr Huang said HT8 is always looking to add quality brands in its selected category markets.

Keeping its eye on the ball at all times, has made this large scale operator - with 30+ years of vendor relationships - a significant player in the Australian online marketplace.

To learn more about new Harris Technology products and learn how to WIN them, go to pages 32-33

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TECHINVEST JULY - SEPTEMBER 2021

THE THREE REASONS WHY PEOPLE DON’T ENGAGE WITH LAWYERS

BY BIANCA DOWDELL-MUNRO LEGALLY YOURS IS AUSTRALIA'S LEADING INDEPENDENT ONLINE LEGAL MARKETPLACE. WE REMOVE THE FEAR, CONFUSION AND DIFFICULTY OF TRYING TO FIND A LAWYER BY MATCHING EVERYDAY AUSTRALIANS AND BUSINESS OWNERS WITH VETTED, EXPERIENCED, PROGRESSIVE LAWYERS WHO OFFER UPFRONT FIXED PRICING.

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t’s estimated that between 70% and 80% of people who have legal needs don’t engage with lawyers. They either choose to seek advice from other professional or personal sources or do nothing.

Shortly after qualifying, she was introduced to ‘billable hours’ – the preferred way for lawyers to charge for their services – but realised this doesn’t give much consideration to providing a holistic professional service.

There are three vital reasons why people don’t engage with a lawyer: people want transparency and a price from lawyers who wouldn’t take advantage of them financially; they want more legal information so they felt educated and empowered; and they want an easy way to find the lawyers who they could build a trusted relationship with and who would understand their needs. Legally Yours addresses all three of these obstacles.

Legally Yours launched in 2014 in order to create positive change.

It was initially a manual matchmaking service and became a fully digital platform in 2018, offering connections to lawyers who provide both personal and business legal services Australia wide.

Legally Yours founder and CEO Karen Finch grew up in awe of her father, an entrepreneur, but was devastated to watch him lose everything when he became involved in a litigation matter. In the hope of trying to prevent other people from suffering this kind of end to their business and livelihood, Karen pursued a career in law.

The platform guarantees connections made between client and lawyer who provide fixed, upfront pricing on their legal services and no bill shock to everyone who uses it. It has been likened to the ‘AirBnB’ of legal marketplaces, and showcases the ‘human’ behind the lawyer through video interviews with every lawyer, which helps build trust and peace of mind from the outset.

In 2019, Bianca Dowdell-Munro became involved with Legally Yours and in 2020 became a co-owner. Bianca’s background and expertise in finance and business has enabled Legally Yours to grow and mature within the rapidly scaling legal marketplace.

Once based only in Victoria, Legally Yours is now national and has connected thousands of clients seeking legal services with trusted lawyers around the country. It has a strong network of partner businesses to deliver support, education and business services to its lawyer members.

Legally Yours is currently investing heavily in technology that will change the way consumers access legal services through instant video. As part of this investment, it is also creating technology for its lawyer community that will allow them to access more clients, community and Continuing Professional Development all in the one place.

The company is continuing to grow its network of lawyers and business partners to ensure it can meet the demands and needs of more people in Australia. They have a vision to take Legally Yours outside the shores of Australia which will require capital raising.

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Karen Finch (R) and Bianca Dowdell-Munro (L).

START UPS AND BEST NEW IDEAS

ROBOT APP HELPS BUILD CHILDREN’S CONFIDENCE

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heorg is a friendly robot app designed to help children improve their resilience, emotional intelligence and wellbeing. Codesigned with kids, educators and health professionals, Gheorg has been designed specially for children and the app delivers long-term positive results through neuroshaping.

Designed for kids seven to 12 years, Gheorg and the friendly characters use the latest therapy to support kids who experience anxiety and feel overwhelmed.

Gheorg empowers kids to improve their emotional intelligence through daily checkins to improve emotional awareness and perform breathing exercises for self regulation.

Gheorg was created by a psychologist with 30 years experience supporting adults and children with their mental health. It was after Dr Louise Metcalf had her own child and spoke with early-childcare educators that she realised how many children are impacted by anxiety. If anxiety goes untreated in children, long-term they can have challenges with learning, friendships and their overall wellbeing. Gheorg makes it fun for kids to learn the skills and knowledge they need to understand their emotions and calm themselves when they’re feeling stressed.

The Gheorg app is available on the Apple App Store and the Google Play Store.

Gheorg also runs school programs around Australia that empower children with skills to improve their mental resilience, emotional awareness and social literacy skills.

LUMIANT LIGHTING UP THE FINANCIAL ADVISORY SECTOR

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uilt for Financial Advisers by Financial Advisers, Lumiant launched in February 2021 to radically transform the financial advice industry by partnering with Advisers to deliver on the promise of advice. Its structured and robust softwaresupported process places client values at the heart of the experience.

Using a unique combination of psychographic and financial data, Lumiant helps Advisers support their clients to live their best lives. Its unique optimisation engine is underpinned by new financial logic and rules that analyse psychological and financial data inputs in a structured and quantitative manner. As a result, the engine allows Advisers to model strategies that empower clients to live a life aligned to their values.

By centring the process on meaningful long-term goals and values, rather than

just numbers and decimal points, it enables advisers to retain clients for life. Lumiant also keeps clients engaged through its Lifebook, which measures, tracks and nudges clients to achieve their financial goals and live their best life.

Furthermore, to help Advisers navigate the increasingly complex regulatory landscape, Lumiant’s processes are compliant by design. Each module has been carefully mapped against the FASEA code of ethics.

It also ensures Advisers can easily adhere to Know Your Customer and Best Interest Duty requirements by letting the client scope their advice.

Since its launch, Lumiant has already seen significant growth, supporting Advisers to deliver values-based advice to more than 1,100 households. This demand has seen the company raise over $2.2 million in its latest Seed Equity Crowdfunding raise.

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TECHINVEST JULY - SEPTEMBER 2021

THERATRAK PLATFORM

TRACKS HOME THERAPY SUPPORT T

heratrak is a digital platform that allows allied health therapists to create, monitor and track custom therapy home programs.

activity library for their participants. The content they create will remain secure in their clinic portal, only visible to clinicians in their organisation.

Therapists can use the mobile app in sessions to create home programmes using the activity database as well as customising the programme with photos and videos of participants from within a session.

The platform makes it easy for therapists to track and monitor home programmes which is especially valuable when working in a multidisciplinary team.

Theratrak has an activity database with over 200 preloaded paediatric and common occupational therapy activities so therapists can start prescribing home programmes straight away.

All therapists can customise Theratrak’s

to make progress together outside of therapy sessions.

Participants have their own logins to the Theratrak app where they can see their home programmes, exercise descriptions and set custom notifications.

Designed by an Occupational Therapist passionate about supporting kids with disabilities in therapy, the platform makes it easier for therapists and participants

THEAIR.WORKS

- DIGITAL TEAMWORK FOR HUMANS W

hile organisations are now settling into an uneasy alliance with digital technologies, Zoom fatigue, tech glitches and an always-on anxiety is limiting team productivity and creativity. Yet projects still need to be delivered, services need to be designed and new products need to be launched.

Designed for kids seven to 12 years, Gheorg and the friendly characters use the latest therapy to support kids who experience anxiety and feel overwhelmed.

With a focus on business and creative outcomes, TheAir.Works acts like a digital Switzerland, connecting businesses with their customers, partners and collaborators. The platform’s design integrates business canvases, innovation templates, whiteboards and shares documents into secure breakout rooms powered by on-demand video

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conferencing. This creates a close to reallife experience for facilitators, consultants, designers and the workshop participants all through a single login.

Operating outside of business firewalls, the platform puts powerful enterprise features in the hands of users who need to get the creative job done.

While the pandemic has created new ways of working, most of these are built on technology aiming to be all things to all people. TheAir.Works, however, focuses only on bringing people together, supporting them with frameworks, experts and coaches - and bringing the technology in underneath.

Virtual conferencing can be an intense experience. And because the focus is so much on the person - their image, their room, their house or workspace - there’s

a level of intimacy that can be distracting.

TheAir.Works doesn’t lock users in the same way. It feels more natural and functions more like a workspace.

START UPS AND BEST NEW IDEAS

ROLL CALL SOLUTIONS P

rotecting the safety of employees and having an effective means of communication during a crisis are paramount to any organisation in these increasingly uncertain times.

A mobile workforce is now a wellestablished practice in many industries and COVID-19 has accelerated this. 62%

of US employees are working from home according to a recent Gallup poll and post COVID this trend is set to continue.

Unfortunately, the reality is that terrorism, riots, COVID-19 outbreaks, bushfires and extreme weather conditions are on the rise. At the same time OH&S Compliance is increasing an organisation’s responsibility for the well-being of its employees regardless of work location. Reputational risk and ethical and social responsibility require organisations to be pro-active and protect themselves and their staff.

Roll Call Solutions was created to fill this need by providing an innovative, functional and easy to use solution for

Emergency Management, Compliance and Communications.

Having worked in large institutions for decades it was clear to the founders, Maureen Baker and Peter Smith, that the current products (if any) being used were not known, adhered to or used by many employees, rendering them ineffective during an actual incident.

With the global Mass Notification Systems market expected to grow from USD $10bn currently to USD $27 bn by 2026 and the broader Global incident and emergency management market forecast to reach US$156bn by 2025, the opportunity for Roll Call is vast.

Having onboarded the AFL and DFAT, Roll Call Solutions is looking to accelerate its growth in both Australia and internationally.

ONEPASSPORT TO A SAFER FUTURE O

nePassport has revolutionised workforce compliance management in regulated industries with mobile workforces. Moving the focus from each organisation to the individual. Saving time and money and lowering risk in key sectors including Health, Aged Care and Education.

OnePassport provides a smartphonebased mobile credential that allows individuals to collect and store their career-related information, have items independently verified and then be able to share that record with multiple third parties concurrently. The system is used to underpin job sharing in community services for the Queensland Government; vaccination rollout and administration in Victorian Public Health, and lowering risk in allowing international students back into Australia.

Launched in mid-2017, OnePassport developed a digital immunisation register as part of the compliance requirements in sectors including Healthcare and Mining. So

they were perfectly positioned to expand when the Covid pandemic happened.

Co-founder and CEO Michael Maher said that they originally copied the WHO’s little yellow immunisation book.

“Until Covid, vaccinations and test results were written by hand by a doctor into this little yellow book. Because of Covid, we quickly moved to SMS responses, then to proof letters from your doctor and now the gold standard is an end to end, chain of custody, verification of your vaccination or test result” Maher said.

The OnePassport app is free for individuals to download and use. Individuals can access third parties to verify information such as qualifications and background checks. OnePassport Comply is a SaaS system for organisations that allows them to manage all of the information shared with them by their workers or members.

CEO, Michael Maher

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TECHINVEST JULY - SEPTEMBER 2021

WHAT'S HOT IN TECH TP-LINK’S AX3600 PROVIDING LIGHTNING SPEEDS

VIGI 3MP TURRET NETWORK CAMERA

TP Link’s AX3600 wireless dual band multigigabit ceiling mount access point is a must have for every modern home.

With 3MP Ultra-High Definition, the VIGI C400 camera comes with 3MP – more than enough pixels to pick up some of the more discrete details.

The AX3600 provides:

Other benefits include:

• U ltra-Fast Wi-Fi 6 Speeds: Simultaneous 1148 Mbps on 2.4 GHz and 2402 Mbps on 5 GHz totals 3550 Mbps Wi-Fi speeds; • High-Density Connectivity: 4× increased capacity to connect more devices simultaneously; • Integrated into Omada SDN: ZeroTouch Provisioning (ZTP), Centralised Cloud Management, and Intelligent Monitoring; • Centralised Management: Cloud access and Omada app for ultra convenience and easy management; and • 2.5G Port: A 2.5 Gbps Ethernet port boosts total internet throughput;

VIGI 3MP OUTDOOR BULLET NETWORK CAMERA The 3MP Ultra-High Definitionn VIGI C300 camera comes with 3MP - more than enough pixels to pick up some of the more discrete details.

Other highlights include: • 4 /6mm Lens: Whether you need a wide angle lens to cover enclosed spaces or a higher millimeter lens for longer distances in open spaces, C300 comes with two different lens versions to better suit your security needs.

• S mart Detection (motion detection, area intrusion, line-crossing, video tampering): Receive notifications and check feeds when someone crosses a boundary, enters an area you've set, or obstructs the camera;

• 2 .8/4mm Lens: Whether you need a wide angle lens to cover enclosed spaces or a higher millimeter lens for longer distances in open spaces, C400 comes with two different lens versions to better suit your security needs.

• S mart Detection (motion detection, area intrusion, line-crossing, video tampering): Receive notifications and check feeds when someone crosses a boundary, enters an area you've set, or obstructs the camera.

• S mart IR: Keeps objects from being under-rendered when far away or overexposed when close to camera at night; and • W DR: Adjusts for lighting contrast to minimise shadowing effects and renders images true to life.

• S mart IR: Keeps objects from being under-rendered when far away or overexposed when close to camera at night; and • N ight Vision: A robust night vision system ensures your camera performs well in low light conditions and records what's happening for future inspection.

OMADA HARDWARE CONTROLLER With centralised management for up to 500 Omada access points, JetStream switches, and SafeStream routers the Omada Hardware Controller brings the new age to your home and business life.

Features include: • Cloud access to manage from anywhere, anytime.

• Locally monitor and manage devices with the ultimate security and stability.

• The Omada app for convenient management.

• I ndustry-leading hardware design with a powerful chipset, durable metal casing, and USB 3.0 port for auto backup; and • B atch management, multi-site management, and remote firmware updates benefit network maintenance.

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WHAT'S HOT IN TECH

VISIT HARRIS TECHNOLOGY FOR FURTHER INFORMATION: WWW.HT.COM.AU OR CALL 1300 13 9999

AX1800 DUAL-BAND WIFI 6 ROUTER The AX1800 Dual-Band WiFi 6 Router offers Next-Gen WiFi 6 Speeds with Optimal WiFi 6 speeds reaching up to 1.8 Gbps (1201 Mbps on the 5 GHz band and 574 Mbps on the 2.4 GHz band) Other highlights include: • 4× More Capacity – OFDMA and MU-MIMO allow simultaneous data transmission to and from several devices, improving overall network efficiency • Broader, Stronger Coverage – 4× multi-directional high-gain antennas with Beamforming boost stable connections throughout your home for strong WiFi signals in every corner • Overall Security Protection – The latest WPA3 provides improved WiFi security; and • Gigabit Wired Connections – Make full use of your internet access and transfer data at dizzying speeds for peak performance

THE HALO S12(3-PACK)

HALO S12(2-PACK)

The AC1200 provides a whole home mesh Wi-Fi system.

• O ne Unified Network – With advanced Mesh Technology, Halo units work together to form a single unified whole-home network with one Wi-Fi name and password.

Highlights include: • One Unified Network – With advanced Mesh Technology, Halo units work together to form a single unified whole-home network with one Wi-Fi name and password.

• Seamless Roaming – Automatically switch between Halos as you move around your home, always getting the best signal to enjoy the fastest connections for all your devices.

• Whole-Home Coverage – Blanket up to 3,500 ft² (320 m²) with high-speed Wi-Fi, eliminating Wi-Fi dead zones at your home; and • Hi-Speed Wi-Fi – Halo S12 provides fast and stable connections with speeds of up to 1,167 Mbps and works with major internet service providers (ISP) and modems.

• S eamless Roaming – Automatically switch between Halos as you move around your home, always getting the best signal to enjoy the fastest connections for all your devices.

• W hole-Home Coverage – Blanket up to 2,800 ft² (260 m²) with high-speed Wi-Fi. • H i-Speed Wi-Fi – Halo S12 provides fast and stable connections with speeds of up to 1,167 Mbps and works with major internet service providers (ISP) and modems.

• U ltra-High Performance – Enjoy lag-free connection and nonstop entertainment on all your devices, at the same time.

WIN ONE OF THESE PRODUCTS TO GO INTO THE DRAW TO WIN ONE OF THE FEATURED PRODUCTS ON THIS PAGE FOLLOW @TECHINVESTMAG ON TWITTER BEFORE 31 AUGUST 2021.

21 WINNERS WILL BE CHOSEN, AT RANDOM, WITH WINNERS NOTIFIED BY 10 SEPTEMBER 2021.

Prizes cannot be exchanged for other items or cash. Sponsored by TP-Link and Mercusys.

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