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GREEN360 TECHNOLOGIES LIMITED — Investor Presentation 2014
Jul 9, 2014
65020_rns_2014-07-09_06316b20-a144-484c-bd69-e4beb96b326f.pdf
Investor Presentation
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- ACQUISITION OF MPIRE MEDIA Investor Presentation July 2014
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MPIRE MEDIA presentation - 2014
DISCLAIMER
This presentation contains summary information about Lithex Resources Limited (LTX) and its proposed acquisition of Livelynk Group Pty Ltd (the operator or Mpire Media) and is current as at 10 July 2014. The information in this presentation is of general background and does not purport to be complete. It should be read in conjunction with LTX’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.
This presentation is not investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.
LTX has prepared this document based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in this presentation.
Some of the statements appearing in this presentation are in the nature of forward looking statements. You should be aware that such statements are only predictions and are based on assumptions of the Board of the Company concerning, among other things, the proposed acquisition and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which the Company and Mpire Media operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets.
Actual events or results may differ materially from the events or results expressed or implied in any forward looking statement. None of the Company or its officers or any person involved in the preparation of this presentation makes any representation or warranty (express or implied) as to the accuracy or likelihood of fulfilment of any forward looking statement, or any events or results expressed or implied in any forward looking statement, except to the extent required by law. You are cautioned not to place undue reliance on any forward looking statement. The forward looking statements in this presentation reflect the Company’s Board’s views held only as at the date of this presentation.
To the maximum extent permitted by law, LTX, its related bodies corporate (as that term is defined in the Corporations Act) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of the presentation or its contents or otherwise arising in connection with it.
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MPIRE MEDIA presentation - 2014
ABOUT US
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•Established performance-based online advertising network
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•Leveraging our proprietary software platform
MPIRE MEDIA
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•Experienced international team with a proven track record
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•Already generating revenue and well positioned for future growth
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MPIRE MEDIA presentation - 2014
WHAT WE DO
PERFORMANCEBASED ADVERTISING
“Performance-based advertising”, means that the network charges an advertiser only if its marketing campaign achieves specific, measurable results, such as generating sales, business leads or page views
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The ability to directly measure the results of online advertising has transformed marketing models
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The power of performance-based advertising is evident from the growth of online advertising
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Performance-based advertising comprised 66% of total U.S. online advertising spending in 2012
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MPIRE MEDIA presentation - 2014
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THE MARKET OPPORTUNITY
0.6%
6.6%
6.8%
Television
7.0%
Internet
ADSPEND BY 39.5%
Newspaper
Outdoor
MEDIUM 2015 2015 Magazines
Radio
14.9%
Cinema
By 2015 internet advertising will
account for 24.6% of all adspend
24.6%
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Source: ZenithOptimedia
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MPIRE MEDIA presentation - 2014
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THE MARKET OPPORTUNITY
Projected Growth of The Global Internet Advertising Market (US$ Billion)
2011-2017
180
ONLINE
ADVERTISING
135
GROWTH
90
US$ 175 BILLION
US$ 147 BILLION
By 2017 it is estimated that the global
US$ 110 BILLION
45 US$ 87 BILLION
internet advertising market will
be worth US $175 Billion per annum
0
2011 2013 2015 2017
Source: Zenith Optimedia and PwC Global Entertainment & Media Outlook
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MPIRE MEDIA presentation - 2014
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CORPORATE STRUCTURE
Mpire Media is based in Perth, Australia with offices in Dublin, Ireland and Toronto, Canada.
MPIRE MEDIA PTY LTD
(Australian Private Co.)
MAROON TECH LTD
(Irish Private Co.)
LIVELYNK GROUP PTY LTD
(Australian Private Co.)
MPIRE NETWORK INC
(Canadian Private Co.)
MPIRE TECH LIMITED
Proposed new name for Lithex Resources Ltd
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MPIRE MEDIA presentation - 2014
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OUR BUSINESS AFFILIATE NETWORK MODEL
Mpire (the network) acts as an intermediary between the affiliates and advertisers, providing valuable attribution tracking and reporting tools while managing the offers and selectively sourcing affiliates to develop comprehensive customer acquisition solutions for the advertiser.
Advertiser Benefits
This is an ideal model for the advertiser, more about selling than marketing.
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They only pay when they sell something
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The media spend risk is reduced
Affiliate Benefits
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They only need concern themselves with their skill area, marketing
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Low cost setup compared to replicating the advertiser’s business
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Scale - can simply partner with 100’s of advertisers
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Cost of sale can now be tracked in real time
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ROI can drive immediate scale to the marketing
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MPIRE MEDIA presentation - 2014
OUR BUSINESS
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nxus is the attribution tracking software solution for online and mobile performance marketing.
Our team developed nxus the over the last 2 years due to our need for a scalable and comprehensive platform to operate, track, analyse and optimise all of our products and services.
Proven
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Currently manages the entire life-cycle of our Affiliate Networks
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40 million monthly clicks delivered in over 180 countries
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500,000+ monthly attributions
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Accurate, real-time analytics
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Operational efficiency
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ROI focused tools and workflows
Innovation
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SaaS enterprise solution
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Fraud Detection
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Cookie-less Tracking
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Mobile Unique Identifier Tracking
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MPIRE MEDIA presentation - 2014
CASE STUDY
The Task�
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Client required a dependable source of high quality leads�
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Previous online media buys proved
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uneconomical�
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Client’s main concerns resulted from low
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contact rates with consumers who submitted a form on their website�
The Solution�
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Mpire designed and implemented an optimised desktop and mobile microsite for the client�
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Included in the sites was a “click to call” feature to initiate phone calls in real-time from highly motivated consumers�
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Both the sites and the click to call features were seamlessly integrated into nxus�
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The Result�
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Within a few days from conception the client began receiving leads, both online and by phone�
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The new sites provided a much higher online conversion rate�
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A very high percentage of the leads came by phone and immediately yielded improved sales ratios�
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The deep insights provided by nxus combined with the improved lead quality resulted in greater ROI for the client�
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The client was now able to scale their
- campaign with Mpire Network in an efficient manner that consistently yielded great results
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Mpire Network setup an online marketing campaign on a performance basis (CPA) to drive online traffic to the new microsites�
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MPIRE MEDIA presentation - 2014
THE TEAM
LUKE TAYLOR Chief Executive Officer
Luke is an analytical, innovative, and solution focused operational leader with a strong technology management background and over 12 years of experience that includes a successful international expansion. Luke utilises his expertise in digital marketing, internet and mobile technology to ensure effective project coordination.
Luke has a proven ability to manage multifunctional teams both directly and remotely, and has competitive attitude and a track record for successfully developing and deploying ROI driven strategies.
JEFF BOTNICK Chief Marketing Officer
Jeff brings to the table 12 years of successful results in the digital marketing and ecommerce arenas.
Having managed and grown two of the largest performance based agencies in the US, Jeff has earned a reputation as a
visionary in performance marketing.
- Further he has proven himself as an innovative and effective team builder capable of driving results in both start-up and mature businesses.
FIONA MUIR Chief Financial Officer
ZHENYA TSVETNENKO Founder
Fiona is a chartered accountant with over 14 years experience in both commerce and professional practice in South Africa, Australia and the United Kingdom.
Fiona has extensive experience in corporate transactions having worked as the Chief Financial Officer of ASX listed Cape Lambert Resources Limited and Xceed Resources Limited. Fiona has also acted as Company Secretary for a number of ASX listed entities including DMC Mining Limited, Corvette Resources Limited, Matrix Metals Limited and Xceed Resources Limited.
Zhenya has over 8 years experience in the mobile premium messaging services including data, music, games, and news. He is a highly successful entrepreneur and is also the Executive Chairman of digitalBTC.
Zhenya was awarded the prestigious Ernst and Young, Entrepreneur of the Year 2010 young category and the Western Australian Business News 40 under 40 awards 2011.
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MPIRE MEDIA presentation - 2014
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TRANSACTION SUMMARY
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• Lithex Resources (LTX) has entered into a Heads of Agreement to acquire 100% of the issued capital of Livelynk Group Pty Ltd
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• Livelynk is the operator of Mpire Media. Mpire Media is being spun out of the Zhenya Group of companies, controlled by successful entrepreneur Zhenya Tsevtnenko, to leverage its developed expertise, technology and industry networks to pursue additional growth opportunities in the online advertising space
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The transaction will transform LTX into an internet services company with an established high potential performance based advertising business operating at the forefront of the internet arena
• The transaction includes:
• Consolidation of LTX’s existing capital
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A placement of 14.1M pre-consolidation shares at an issue price of $0.02 each to sophisticated investors to raise a total of $283,000, with DJ Carmichael Pty Ltd acting as lead manager.
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An underwritten non-renounceable rights issue to raise up to $542,000 from the issue of 27.1M pre-consolidation shares at an issue price of $0.02 each underwritten by CPS Capital Group Pty Ltd
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A capital raising via a prospectus to raise a minimum of $3.5M and a maximum of $5M through the issue of up to 25M post consolidation shares at an issue price of $0.20 each
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The issue of 23.5M fully paid shares (post consolidation) in LTX to the vendors of Livelynk at a deemed issue price of $0.20 per share, plus the issue of the following performance shares:
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39.9M Class A Performance shares which convert on a 1 for 1 basis (post consolidation) if Mpire generates gross revenue of $15M in the 18 months following the completion of the acquisition
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26.6M Class B Performance shares which convert on a 1 for 1 basis (post consolidation) if Mpire generates gross revenue of $25M in the 24 months following the completion of the acquisition
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PRO FORMA CAPITAL STRUCTURE
Shares Number
Shares currently on issue 94,353,015
Placement Shares 14,152,952
Rights Issue Shares 27,126,491
Total Shares on issue pre-consolidation 135,632,459
Shares on issue post consolidation 27,126,491
Promoter Shares 4,650,000
Vendor Shares 23,500,000
Capital Raising Shares 25,000,000
TOTAL 80,276,491
Performance Shares
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Existin Performance Shares on issue
g
Issue of Performance Shares pursuant to the acquisition 66,500,000
TOTAL 66,500,000
Options
Existing Options on issue pre-consolidation 60,412,754
Existing Options on issue post-consolidation 12,082,550
Promoter Options 6,000,000
TOTAL 18,082,550
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INDICATIVE TIMETABLE
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| Action Target Dates Execution of Heads of Agreement 9 July2014 Announce execution of Heads of Agreement 10 July2014 Execution of Share Purchase Agreement 4 August 2014 Completion of due diligence investigations 19 August 2014 Despatch Notice of Meetingand independent expert’s report to LTX shareholders 2 September 2014 General Meetingof LTX shareholders 2 October 2014 LTX Shares suspended from trading 2 October 2014 Lodgement of Prospectus for Capital Raisingwith ASIC and ASX 6 October 2014 OpeningDate of offer for Capital Raisingunder the Prospectus 14 October 2014 ClosingDate of offer of Capital Raisingunder the Prospectus 6 November 2014 Completion of Share Purchase Agreement and issue of Shares 11 November 2014 Satisfaction of requirements of Chapters 1 & 2 11 November 2014 Re-instatement to tradingon ASX 20 November 2014 |
Action Target Dates Execution of Heads of Agreement 9 July2014 Announce execution of Heads of Agreement 10 July2014 Execution of Share Purchase Agreement 4 August 2014 Completion of due diligence investigations 19 August 2014 Despatch Notice of Meetingand independent expert’s report to LTX shareholders 2 September 2014 General Meetingof LTX shareholders 2 October 2014 LTX Shares suspended from trading 2 October 2014 Lodgement of Prospectus for Capital Raisingwith ASIC and ASX 6 October 2014 OpeningDate of offer for Capital Raisingunder the Prospectus 14 October 2014 ClosingDate of offer of Capital Raisingunder the Prospectus 6 November 2014 Completion of Share Purchase Agreement and issue of Shares 11 November 2014 Satisfaction of requirements of Chapters 1 & 2 11 November 2014 Re-instatement to tradingon ASX 20 November 2014 |
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|---|---|---|
| Action | Target Dates | |
| Execution of Heads of Agreement | 9 July2014 | |
| Announce execution of Heads of Agreement | 10 July2014 | |
| Execution of Share Purchase Agreement | 4 August 2014 | |
| Completion of due diligence investigations | 19 August 2014 | |
| Despatch Notice of Meetingand independent expert’s report to LTX shareholders | 2 September 2014 | |
| General Meetingof LTX shareholders | 2 October 2014 | |
| LTX Shares suspended from trading | 2 October 2014 | |
| Lodgement of Prospectus for Capital Raisingwith ASIC and ASX | 6 October 2014 | |
| OpeningDate of offer for Capital Raisingunder the Prospectus | 14 October 2014 | |
| ClosingDate of offer of Capital Raisingunder the Prospectus | 6 November 2014 | |
| Completion of Share Purchase Agreement and issue of Shares | 11 November 2014 | |
| Satisfaction of requirements of Chapters 1 & 2 | 11 November 2014 | |
| Re-instatement to tradingon ASX | 20 November 2014 |
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MPIRE MEDIA presentation - 2014
- Opportunity to secure a position in a group that is set for rapid growth from more than one product offering in the expanding online advertising space
• The global digital advertising market is expected to grow to $156 billion by 2016 from $88.8 billion in 2012, according to media agency ZenithOptimedia
INVESTMENT OPPORTUNITY
• Industry leading software platform and future commercialisation strategy
• International reach to over 180 countries and regions
• High scalability via our premium publisher network
• Exclusive industry relationships
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Internal media buying division
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Highly experienced founders and team
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Internal mobile offers that are highly regarded by publishers
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MPIRE MEDIA presentation - 2014
THANK YOU
For further information please contact:
Mpire Media Pty Ltd Luke Taylor Phone: +61 8 9473 2502 Email: [email protected]
Investor Relations Shane Murphy, FTI Consulting Direct: +61 8 9485 8804 Mobile: +61 420 945 291 Email: [email protected] Twitter: @ShaneWMurphy Skype: shane.murphy999
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MPIRE MEDIA presentation - 2014