Me Today Limited Annual Meeting
September 25th 2020
The order of events for this morning's meeting will be as follows:
Formal business of the meeting which includes the resolution on auditor fees
Voting on the resolution will be conducted by way of a poll.
Those of you present at the meeting will be able to ask questions as well as those participating online through the virtual meeting website.
I encourage shareholders who are attending online to send their questions through as soon as possible.
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This is the first Annual Meeting since the CSM Group acquired 100% of the Good Brand Company Limited via a reverse listing. CSM had been actively seeking to find a business to invest in, or to undertake a reverse listing on the NZX Main Board.
On 11 December 2019, CSM announced to NZX that it had reached agreement to acquire 100% of The Good Brand Company Limited. The Good Brand Company owns 100% of Me Today NZ Limited.
The Me Today Group was founded by myself , Stephen Sinclair and Michael Kerr. Stephen and I have a long history of success in business start-ups, being involved in the successful listings of 42 Below and Ecoya, as well as Ecoya's acquisition of Skincare brand Trilogy. Both of us were also involved with the turnaround of finance company Dorchester Pacific which is now Turners automotive group, I am currently Chairman of Turners. Michael has a vast amount of experience in the healthcare and wellness sectors and was responsible for establishing the Swisse brand in NZ and, more recently, was the general manager of the Skincare brand Trilogy.
The three of us joined forces as we believe there to be significant opportunity for a new brand in the wellness space. Both the Supplements and the Natural Skincare categories in NZ and overseas have experienced significant growth in recent years.
The Me Today brand was created in Auckland, we worked with creative design
agencies, associates in the health and wellness sector, talked with consumers and
conducted research in the marketplace.
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During this investment stage the Me Today brand secured ranging with Green Cross
health to launch into its pharmacy network of Life and Unichem pharmacies across
New Zealand. The brand was launched into the network of Life and Unichem
Pharmacies on 1 November 2019 and at the 31st of August 2020 Me Today was listed
in 245 of these pharmacies.
The Good Brand Company complements the offering of Me Today and has a network
of sales staff servicing pharmacies and health stores nationwide. Alongside Me Today
it represents three agency brands Life Space, Artemis and Sleep Drops.
The strategy of the group outlined through the reverse listing and reinforced in the company's annual report is to aggressively grow the brand. To support this strategy and to enable increased investment in the business to accelerate growth the company announced an equity raising on 8 July 2020.
The capital raise was well supported by investors, attracting bids for over two times the $3m sought. Me Today elected to receive oversubscriptions , meaning the total amount of capital raised under the retail offer was $4m. In addition to the retail raise the company completed a share purchase plan. The share purchase plan was also oversubscribed with the company electing to accept $250,000 of oversubscriptions meaning $500,000 was raised from the SPP. In total the company raised $4.3m net of capital raising costs. At 31 August 2020 the company had cash reserves of $7.1m to support the growth of the brand.
Me Today is targeting run rate gross revenue by the end of FY21 in excess of $2.0m. Given the listed company costs and the continued investment in the Me Today brand the company will be loss making for the six months to 30 September 2020 and for the full year to 31 March 2021.
The company has achieved a significant amount in the short period since listing on the NZX with these achievements taking place in the challenging environment created by the Covid-19 pandemic. The team has continued to operate remotely putting in place
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the building blocks required to grow the brand. The lockdown restrictions have made it difficult for the sales force to interact with customers in store. The pharmacy channel remained open through lockdown however the main priority of pharmacies was to deliver over the counter prescriptions. Given that health and wellness is more than ever top of mind we believe that the group is very well positioned to expand and grow in the current environment. The reducing restrictions have created more freedom for consumers to enter the retail market again with sales responding accordingly.
Given the backdrop of the Covid-19 pandemic, New Zealand will remain the focus for Me Today for the financial year ahead. The brand has great opportunity for growth in the New Zealand market and the group wants to cement a position of strength in the local market.
Other pillars to the strategy of growing the Me Today brand include International Market expansion, innovation and new product development together with further developing the traditional marketing, digital and online strategies. Our CEO Michael Kerr will expand on these strategies.
The group has also been approached by brands looking to sell their business. Whilst acquisition is not an active strategy should a business or brand present that provides a strategic fit to the group then the board will investigate and consider should it think the investment appropriate.
We are excited by commencing the journey as a new company listed on the NZX and look forward to the partnership with our shareholders in creating a truly iconic New Zealand health and wellness business.
I will now hand over to our CEO, Michael Kerr who will expand on the achievements of the company to date and provide more detail on the activity and strategy for the remainder of FY21 and beyond.
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CSM Group Limited published this content on 25 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 September 2020 04:04:00 UTC