By the time Friday afternoon comes around I\u2019m usually fused \u2013 unpleasantly \u2013 to the keyboard.<\/p>\n
Pleased to say, that routine ended abruptly when Reach Markets<\/a> invited me to their investor lunch.<\/p>\n And so it was with some excitement and little trepidation I found myself upstairs at an invitation-only lunch in a splendidly boutique hotel housed in an 1890s steel plant, thwack in the center<\/a> of Sydney.<\/p>\n I wasn\u2019t alone.<\/p>\n Joining me at The Establishment for insane canap\u00e9s and all sorts of quality drinks was the most eclectic gang of CEOs, entrepreneurs, wholesale, sophisticated \u2013 and unsophisticated \u2013 investors from what\u2019s actually an absurdly fabulous network of like-minded obsessives.<\/p>\n I\u2019m enjoying myself. The room is tight with people I\u2019ve been trying to suck secrets out of for the best part of a decade.<\/p>\n I was surrounded by fascinating business with Foot-in-the-Elevator investment theses \u2013 laid out in glorious detail. And their various plans for what seemed to us as imminent global domination.<\/p>\n I\u2019d almost forgotten what a joy it is to watch seed companies looking for a little water and sunlight in a room full of cashed up investors. And I was reminded of the wonderful breadth and technicolour of Aussie investors.<\/p>\n Between entr\u00e9e and dessert, we did Artificial Intelligence, Renewables, Medtech, Tech Tech and Critical Minerals. Huge digital presso\u2019s, lots of oohs and aahs. Bootleg data, unpublished and off-the-record nuggets of info I can\u2019t really talk about. And Great Scott: The food and drink.<\/p>\n \u00a0<\/p>\n VP Minerals, meldCX, the Mine Discovery Fund are presenting. There were others and it\u2019d be remiss not to mention \u2013 aged care tech company CarePage<\/strong>, health and wellness distributor Wellnex Life (ASX:WNX)<\/strong><\/a> and Indonesian gold\/copper explorer Far East Gold (ASX:FEG)<\/strong><\/a> along them.<\/p>\n Nor the Q&A with Alta Global Group<\/strong> founder and CEO Nick Langton, whose vision is to piggyback the global Mixed Martial Arts (MMA) global entertainment thing into a fitness and lifestyle brand and participation platform.<\/p>\n \u201cThe sector is poised for incredible growth as interest in MMA at the mass entertainment level surges globally,\u201d Langton says.<\/p>\n Alta just bought fitness app Steppen. They now have their heads firmly down on madly cutting customer acquisition costs. Setting the stage \u2013 Langton reckons \u2013 \u2018for a tech-driven revolution enabling MMA gyms, coaches, and participants to foster deeper connections.\u2019<\/p>\n Steppen is a former Apple Top 5 App with a 500k download history and a loyal youth demographic. All part of Alta\u2019s ambitious plan \u2018to advance its technology capabilities and better serve the vast global martial arts and combat sports sector.\u2019<\/p>\n \u00a0<\/p>\n Graham Howard gets the ball rolling with: \u201cI like to say \u2013 you\u2019re on the ground floor entering the elevator<\/em> on this project.\u201d<\/p>\n First up, the elephant in the room \u2013 VP Minerals was spun out of rare earths explorer VHM (ASX:VHM)<\/strong><\/a> They are backed by the Perth billionaire and human mineral compass Chris Ellison. In fact, the very first question flung in the direction of VP, was why Ellis was involved with a north-west Victorian focused mine explorer-developer with a portfolio of (admittedly high-value) rare earth element (REE) and mineral sand prospects.<\/p>\n The answer to which Howard replied \u2013 Ellison\u2019s eye for returns is simple \u2013 he\u2019s a deliberate, long-term strategic investor.<\/p>\n VP Minerals\u2019 tenements in Victoria\u2019s Murray Basin are surrounded by several rare earth mineral sands projects such as Iluka\u2019s Balranald and Wimmera, WIM\u2019s Avonbank and VHM\u2019s Goschen projects.<\/p>\n The VP team originally focused on making the company the next success story in Victoria\u2019s rich gold history, but pivoted when they also found high-grade, near surface targets of rare earth minerals, zircon and titania. Graham believes this could put VPM among the lowest cost deposits in the district.<\/p>\n Ellison has assembled a board of mining executives, including some of his top lieutenants with experience from the likes of MinRes and Newcrest to bring VP to fruition.<\/p>\n \u00a0<\/p>\n That\u2019s why Albo\u2019s in Washington right now.<\/p>\n And why he\u2019ll be in Beijing in about 8 days time \u2013 rare earth elements are top of every global government\u2019s \u2018Critical Minerals\u2019 list.\u00a0 Howard is sitting on a giant, (truly giant) shallow, home-grown, world-beating pile of the hitherto China-controlled elements absolutely essential to modern technologies, economies and national security.<\/p>\n China enjoys a high degree of control over the rare earth market and pricing \u2013 and Beijing has lately proven itself a big fan of using economic leverage to get what it wants \u2013 disruption has been a tool of diplomacy under President Xi Jinping.<\/p>\n One of the big reasons Western nations are keen to invest in resources in other jurisdictions, Howard says is the absolute importance of building downstream processing \u2013 and eventually \u2013 a whole supply chain which is not reliant in anyway on the unreliable battery metals powerhouse that is Xi\u2019s China.<\/p>\n \u00a0<\/p>\n From rare earths to health\u2026. CarePage describe themselves as a market leader in helping Australian families with the critical challenge of finding the right aged care provider.<\/p>\n We all know the Australian aged care sector is ripe for change. It\u2019s large but highly fragmented leading to poor transparency, consistency and consumers in need of advocacy.<\/p>\n The scope of this challenge is sizable and growing, with over 200,000 Australians living in aged care homes and the over-85-year-old cohort set to triple in the next four decades.<\/p>\n CarePage has been using a buy-and-build strategy to own the entire value chain in the large but underserved aged care market \u2013 from initial search through to placement. They already own the top two ranked search websites and boast a media audience of over 3.6 million. CarePage\u2019s recent acquisition gives them access to providers representing over 50% of aged care beds in Australia.<\/p>\n \u00a0<\/p>\n So, the screens, the speakers, the canapes, the companies all set up by Reach Markets, who I haven\u2019t heard of before. I thought, very interesting, and worth a little looksee\u2026.<\/p>\n Their main activity is in connecting investors and investments \u2013 usually (not always), very early stage local businesses with more than a hint of the multi-bag.<\/p>\n On the investor-side there\u2019s been a constant flow of surprisingly (even if you know and love small caps) unexpected and diverse deals on the hook.<\/p>\n On the company-side, from what I can tell, they\u2019re like embedded management consultants. Providing the corporate advice, the strategic direction as well as all the talent, tools of the trade access to capital, liquidity, networks and even the reputation these kind of companies need to get what they want.<\/p>\n And Reach make everything happen in-house. They\u2019ve got the bankers, the networks, analysts, comms, processes, technology\u2026 yeah. The tech is a big part of their pitch.<\/p>\n Basically, what may\u2019ve started as corporate advisory firm somewhere out of Melbourne \u2013 raising equity, hybrid and debt capital for such listed and unlisted Aussie companies, (typically with a market cap between $10m and $300m) is morphing into a simpler but far broader idea \u2013 I don\u2019t know what you\u2019d call it \u2013 not 360 degree \u2013 it seems more\u2026 more spherical<\/em>.<\/p>\n Anyway \u2013 from my seat they do everything, up and downstream of the deal.<\/p>\n And apparently, since the idea first struck \u2013 about a year before the global pandemic did \u2013 Reach Markets pumped out 80+ investment rounds\/capital raises. And standing by for the largesse has been some 185,000+ \u201cself-directed private investors, focusing on fast-growing globally significant businesses.\u201d<\/p>\n That\u2019s according to the MD and Founder Patrick Nelson, who it seems didn\u2019t leave much behind when he ditched \u2018a successful stock broking, corporate finance, funds management and trading education business\u2019 to start Reach in 2018.<\/p>\n \u201cUsing technology to reduce a company\u2019s cost associated with attracting and engaging with investors and raising capital; while helping to improve the quality of investors\u2019 decisions and their access to opportunities.\u201d<\/p>\n Nelson is a pretty fascinating guy. Actually, the entire Reach executive team<\/a> is a good read \u2013 tight, with all the deal disciplines covered.<\/p>\n In hot demand for a chat from the lunchers was David Sellars, who heads up their Equity Capital Markets team and has been with Reach from the start. This man\u2019s network is no joke and he seems to play a major role in connecting investors with the deals that Reach is getting out.<\/p>\n I had the pleasure of arriving with Exec Director Christian Riedel \u2013 not everyday you get to bump into a graduate from the exclusive University of St Gallen in Switzerland.<\/p>\n As we rode up together, he laid out the Reach grande strategy elevator-style: \u201cEverything we do is centered around making it easy for companies and investors to connect with each other.\u201d<\/p>\n \u00a0<\/p>\n The main<\/em> takeaway is just this \u2013 there\u2019s nothing<\/em> like the face-to-face. Investor, start-up or punter.<\/p>\n Glad-handing, getting to look a company, an idea or as person in the eye \u2013 and up and down \u2013 is good. And fun.<\/p>\n And incomparably valuable.<\/p>\n \u00a0<\/p>\n This article was developed in collaboration with Reach Markets, a Stockhead advertiser at the time of publishing. <\/em><\/p>\n This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.<\/em><\/p>\n <\/span><\/p>\n The post Deals Within Reach: From critical minerals to healthcare and everything in between<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"The room where I happen<\/strong><\/h2>\n
To the show<\/strong><\/h2>\n
Graham Howard, MD at<\/strong> VP Minerals<\/strong><\/h2>\n
Lots of Really<\/em> Critical Minerals<\/strong><\/h2>\n
CarePage<\/strong><\/h2>\n
Let\u2019s talk about Reach<\/strong><\/h2>\n
A lunch well spent<\/strong><\/h2>\n