Preshafood Limited were referred to us by a colleague and the opportunity presented us with a number of challenges. Firstly, the Company was losing money at around $250,000 per month. They were almost broke and needed a large amount of capital very quickly. The Company’s CEO was a fantastic marketer called Andrew Gibb and he had successfully secured ranging agreements to supply Coles and Woolworths but the Company did not have the money to fund the orders.
Prior to Tauro’s engagement a wealthy Melbourne based high net worth family had offered to invest in the business but kept delaying and changing the terms of the deal.
We were engaged in April 2009 and we decided to proceed with a capital raising through the ASSOB platform. Anyone who tasted the Company’s product wanted to invest, they were that good. Three months later we had raised commitments of $2.5 million which represented over subscriptions of $1 million. Some of the funds were accepted as over subscriptions and the balance was used to exit an existing shareholder. Another 12 months later the Company came back to us seeking additional funds. We then raised another $1.5 million in two months bringing the total raised for this company to $4 million.