Ecolibrium Biologicals Investment offer preview

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Introduction

Ecolibrium Biologicals (EcoBio) is an agri-biotech company developing effective and sustainable pest control solutions for the agriculture and horticulture industries. Their biological pesticides are available on a commercial scale to treat crop damaging pests without any risk to human health or the environment.

Who is Ecolibrium Biologicals?

EcoBio’s mission is to utilise New Zealand’s unique fungus and bacteria to develop natural alternatives to commonly used chemical sprays. Their biological pesticides have a strong reputation as high quality pest control solutions and the company is well positioned to address the major industry challenges of pest resistance and consumer demand for products that are free from harmful chemicals.

Founded in 2018, EcoBio’s product range was developed in close consultation with industry, research groups and academia and the company has grown annual revenue to over $600k. This has been largely driven by domestic sales of two product lines focused on Brassica crops (e.g. broccoli, cabbage, cauliflower). The company is now raising $3m to fund new product development, and the working capital needed to both capture a greater share of the NZ market while expanding into Australia.

The company’s growth strategy includes:

  • Implementing a product extension to enable them to serve a wider segment of the Brassica market
  • Expanding the sales team to reach new horticulture segments (e.g. kiwifruit, avocados and grapes)
  • Launching a consumer product targeted at home gardens in partnership with a leading brand
  • Increasing the production capacity of their manufacturing facilities

A wide range of opportunities for international expansion also exist.

Investment Highlights

  • Leading biopesticide company providing pest control solutions that are effective while also being safe for human health and the environment
  • Well positioned to address changing consumer demands, and the major industry challenge of pest resistance
  • Strong intellectual property disciplines, with a mix of patents and trade secrets, and deep relationships with industry and Government stakeholders
  • A robust growth plan forecasts revenue will lift from $600k in FY21 to over $2.6m in FY22, supported by multiple new revenue streams
  • Existing gross margin of 69% expected to improve further as the company expands production
  • Favourable regulatory environment compared to conventional pesticides with no major competitors offering biological pesticides at a commercial scale in New Zealand

Next Steps

Please register your investment interest below if you would like to receive further information and gain early access to the offer when it launches.

If you have any questions feel free to get in touch with Ben Brown at [email protected]


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About Snowball Effect

Snowball Effect is a New Zealand-based online investing marketplace, that enables New Zealand companies to offer shares to members of the public. Snowball Effect was founded in 2012 and launched in August 2014, after being one of the first to acquire an equity crowdfunding license from the New Zealand Financial Markets Authority (FMA). Over NZ$90 million has been raised on the platform.