Biogas Power Plant

Raised

MYR 800,740

N/A Day(s) Left200%

Min Target MYR 400,000
Max Target MYR 800,000
Min Equity 3.37%
Max Equity 6.52%


Notify me for future fund raise





INTRODUCTION


Green Lagoon Technology Sdn Bhd (“GLT”) provides BOOT (Build-Own-Operate-Transfer) and turnkey solutions for palm oil millers to manage the biogas emitted from palm oil mill effluents ("POME").  GLT specializes in biogas trapping, harvesting, storage, treatment and utilization. In doing so, GLT is helping the palm oil mills to manage their biogas emissions and to optimize their wastewater to generate renewable income streams for the palm oil mills, and also to help in carbon reduction monitoring.  Palm oil mills supply the POME free of charge in exchange for royalty fee of between 10%-13% of electricity sales revenue. Electricity is sold to Tenaga Nasional Berhad ("TNB") and/or the millers.


INVESTMENT HIGHLIGHTS


  • Completed 10 projects up-to-date and invested in 3 others
  • Proven track record and profitable
  • Strong management team with years of experience in renewable energy and engineering
  • Capacity to handle the whole process from feasibility to design, project implementation and operations of a biogas power plant



REVENUE MODEL


3 REVENUE SOURCES FOR GLT :



REFERENCE PROJECTS - COMPLETED AND ON-GOING


Prosper Palm Oil Mill


Sg Kahang Palm Oil Mill


Rinwood Pelita Palm Oil Mill


Havys Oil Mill


Mukah Kilang Kelapa Sawit


Kilang Sawit Bukit Sagu (FELDA)


IOI Syarimo Palm Oil Mill


Mawar Mentari Palm Oil Mill




INVESTMENT PROJECTS


KILANG SAWIRA MAKMUR ("Investment 1")



Location

Bandar Muadzam Shah


Construction completion date

December 2015


Type of products/ services

Investment, project development, engineering design, and project management for 1MW biogas power plant with in-ground Biogas Reactor


Status

Construction completed and commissioning in progress for export of 1MW electricity to TNB


Current Ownership

GLT (20%) + Cenergi Sea (80%)


Expected Equity IRR (Payback period)

Current ownership : 25.3% (4 years)


Option

Additional 20% equity stake for RM412,800

CHEEKAH-KEMAYAN PALM OIL MILL ("Investment 2")



Location

Bandar Bera, Pahang


Construction completion date

December 2015


Type of products/ services

Investment, project development, engineering design and project management for 1MW biogas power plant with in-ground biogas reactor


Status

Construction completed and comissioning in progress for export of 1MW electricity to TNB


Current Ownership

GLT (20%) + Cenergi Sea (80%)


Expected Equity IRR (Payback period)

Current ownership : 29.7% (4 years)


Option

Additional 20% equity stake for RM412,800



ON-GOING PROJECTS


ROMPIN PALM OIL MILL ("Investment 3")



Location

Rompin, Pahang


Construction completion date

To be completed in December 2016


Type of products/ services

Investment, project development, engineering design, and project management for 2MW biogas power plant with in-ground biogas reactor


Status

Construction in progress


Current Ownership

GLT (30%) + Rompin Palm Oil Mill (70%)


Expected Equity IRR (Payback period)

Current ownership : 67.5% (2 years)


Option

Additional 30% equity stake for RM1,092,000




PIPELINE PROJECTS



1.    KULIM PALM OIL MILL ("Investment 4")


Location

Kulim, Kedah


Type of products/ services

2MW for SEDA FiT (POME Biogas)


Status

Power system study approved with SEDA Certificate and temporary licence from Energy Commission issued


Investment

RM 14 million



FUNDING OBJECTIVE


Funding amount required: RM 400,000 - RM 800,000


USE OF PROCEEDS

To exercise the option to increase the equity stake to 40% from 20% for Investment 1 and Investment 2.



FINANCIAL FORECAST (2016-2018)


('RM)201620172018
Revenue29,637,18336,115,00060,319,000
Revenue growth (%)-22%67%
Gross profit
4,240,0798,212,37812,693,284
Gross profit margin (%)
14%23%21%
Operating expenses
1,689,5272,302,7622,705,475
Net profit2,550,5525,909,6169,987,810
Net profit margin (%)9%16%17%



DUE DILIGENCE


FINANCIAL
By YL CHEE & Co. (AF 0725) Chartered Accountants

Financial due diligence audit for Green Lagoon Technology Sdn. Bhd. on Investment in subsidiary company, associated company and other investment; Amount due from associate company, Trade debtors, Development expenditures, Other payables and accruals, Amount due to directors, Revenue and Cost of goods sold, namely Construction, Sub-contractor and Consultancy for the period ended 31 December 2015 (after taking in the assurances from the directors) show that these stated accounts were fairly stated.



LEGAL 
By CHUR Associates advocates & solicitors

A legal due diligence exercise has been carried out on the Issuer and its related companies, namely GLT Eco Sdn Bhd, GLT Energy Sdn Bhd and GLT Renewable Sdn Bhd (“GLT Group”). The scope of due diligence exercise includes checking and reviewing of the GLT Group’s corporate records, material business contracts and employment contracts.

The legal due diligence exercise on GLT Group reveals that: 

  • There is no issue, business or affair which may materially and adversely affect the Issuer’s ability to perform its obligations under in the Term Sheet of the proposed equity crowdfunding exercise; and

  • There is no corporate record, contract and/or agreement to which the Issuer is a party has provision prohibiting a change in the shareholding of the Issuer or requires such change to be conditional upon consent being obtained, save that the Issuer shall amend its articles of association in accordance to the terms stated in the Term Sheet of the proposed equity crowdfunding exercise.



MANAGEMENT TEAM


CHAN SOW KEONG Chief Executive Officer 


  • Past experience as Director of Renewable Energy Division in Cenergi SEA Sdn Bhd
  • MBA from University of Southern Queensland, Australia; BSc in Mechanical Engineering from Western Michigan University, USA


RAYMOND CHEAH Chief Operating Officer 


  • Qualified civil engineer with over 19 years’ experience in the construction industry
  • Handled more than 12 projects for construction and commissioning


CHEH KOON CHEE Executive Director 

  • Qualified Mechanical engineer and expert in the engineering and design for the renewable energy projects
  • Involved in the engineering of more than 15 projects in palm oil mills in Malaysia and Indonesia 


CHOONG WEE KEONG Non-Executive Director 

  • Qualified Construction Engineer and experienced in structural repairs, HDPE works and waterproofing works
  • One of the founders of Sunbes Specialist Services Sdn Bhd since 1990, and is currently the COO


HOW YOON FOR Non-Executive Director 

  • Qualified Construction Engineer and experienced in structural repairs, HDPE works and waterproofing works
  • One of the founders of Sealcon Group since 1986 before setting up Sunbes Specialist Services Sdn Bhd, and is currently the CEO



CORPORATE STRUCTURE



CORPORATE INFORMATION AT A GLANCE

NAME OF COMPANY
Green Lagoon Technology Sdn Bhd

REGISTRATION NUMBER
900336-X

DATE OF INCORPORATION
10th May 2010

REGISTERED ADDRESS
No.31, Jalan 3/108C, Taman Sungai Besi, 57100 Kuala Lumpur

BUSINESS ADDRESS
Unit C-709, Metropolitan Square, Jalan PJU 8/1, Damansara Perdana, 47820 Petaling Jaya, Selangor

COMPANY SECRETARY
Pronett Advanced Sdn Bhd

AUDITOR
JB Lau

WEBSITE URL




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** Note: This page is restricted to registered investor only

** Note: This page is restricted to registered investor only

** Note: This page is restricted to registered investor only

** Note: This page is restricted to registered investor only

** Note: This page is restricted to registered investor only