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LETS GET DOWN TO BUSINESS.

Question :
Kia ora,We have a vision, as Ngatiwai,  people of the sea – we wish to restock the waters of the world and feed the people with kiamoana Our Ngatiwai whanau 20 years set up one of the first mussel farms in NZ, unfortunately, it was sold, 2 months ago we were offered the farm back from Sanfords, the contract is unconditional believing our investors until COVID it is in start-up and we had been talking to investors well they have dissapeared, we do not have the money now to complete the sale of the farm and are looking for investors it is a 9.5 hectare farm which is spade ready, it is a fantastic opportunity for our people for economic Development but above all it gives us back our sense of pride and returns the Taonga back home. There are so many funding platforms but we are not sure which one is secure, is the government funding small businesses in total we will need about  800k. thank you

Question submitted 17/05/20 @ 07:18am
Industry: Funding & Finance
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  • Morena Lojo,

    There are a number of options that I am sure you will be investigating…
    1) First and foremost negotiate with Sanford to see if you can agree a delayed settlement, or alternatively a “vendor loan” to make up some of the shortfall. I am sure a willing buyer/willing seller scenario in the context of Covid can come to a mutual agreement that satisfies both parties.
    2) One of your key proponents of Northland is no doubt Shane Jones and his Provincial Growth Fund… whilst this has been diverted into infrastructure under the Covid-19 response package, I don’t see why this is not off the agenda and you should use your influence here to have a discussion on funding.
    3) Consider other ‘friendly’ organisations for a short term facility (debt) while you raise the funding in the background… this temporary facility may come at a cost (mezzanine funding or quasi-equity i.e. it converts to equity if cannot repay) – is there anything available with Whangarei District Council and its economic development arm? Moana Fisheries? Aotearoa Fisheries?
    4) The GOVT small business loan only goes up to $100k and is dependent on the number of employees and this may be constrained given the start-up nature of this development.
    5) Other banking facilities may be available by leveraging wider Ngati Wai assets? Or work with other Northand Iwi collectively under a different structure.
    Hope this helps.
    Happy to provide further advice (jonathan.cameron@elevatecp.co.nz, 021 825753)

    Kia ora Lojo,

    Jonathan gave some great advice above!

    One other option could be looking to your crowd to see if they would want to invest (either in part or for the full $800,000 required). You could do this a few different ways – but I really loved how the “Own the Factory” crew down in Dunedin did it when Cadbury decided to stop making chocolate there. They set up a simple website and form, and a Facebook page, and activated their community – asking them if they wanted to keep chocolate making skills and jobs in the region. They had over $5million pre-committed, and ended up launching a campaign to raise the investment a few months later.

    If you want to talk about this a bit more – let me know!

    Anna (anna@pledgeme.co.nz)

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