PetLynx Rebrands to Urban Animal; Offers a 22% Stake

Last week InfoStream caught up with PetLynx founder Larry R. Evans at his home near Crossfield, Alberta, Canada.

InfoStream (IS): We understand there are changes coming to PetLynx Corporation, our global audience now numbers over 320,000 and they would like to know more.

Larry R. Evans (LRE): Thank you for this opportunity to communicate with your audience.

IS: What is driving these changes at PetLynx?

LRE: Since 2013 we have observed huge changes in the pet industry and we believe there is much more to come. Because we have been ‘people centric’ in our approach, we could also see that our asset protection and recovery service under the HomeSafe™ brand has a much wider consumer base than we could reach from the pet industry. By late 2015 we identified the elements most important to people and the valuable things they wish to protect and recover.

IS: Does this mean the company is moving away from pets and pet owners?

LRE: Absolutely not! In fact, our pet owning subscribers will be the first to experience a broad range of new services that will give them ‘Fast, Cheap, Direct Protection of all things Valuable’.

IS: The press kit says you are rebranding the company. Why the name change?

LRE: In 2005, we developed the Urban Animal brand and used it extensively in our development of subject matter expertise through the Urban Animal Summit program.

The new name for PetLynx, Urban Animal Corporation, recently received the approval of our shareholders and we will move quickly to bring this brand to life in the market. I think everyone will agree that it is a strong brand that shows our ‘people centricity’ and will facilitate our move to ‘all things valuable’. People are the most important Urban Animal since they have votes, they have wallets and they have valuable things they wish to protect and recover.

IS: Why are you offering 22% of the company to outside interests?

LRE: In fact, we expect to part with even more of the company in a future round. We attract new investment to ensure that we have the capital to achieve our goals. In 2016 investors will provide commitments totalling over C$2 million dollars to acquire roughly a fifth of a company that we believe is now worth in the order of C$20 million.

IS: How can Urban Animal Corporation be worth C$20 million?

LRE: Let us first say that beauty and also value is in the eye (assessment) of the ‘beholder’. However, as we observe recent transactions (some involving pre-revenue or negative income companies) we can imagine how Urban Animal Corporation will be valued by investors.

I believe your readers can see a subtle change in the valuation of companies that represent large trusted ecosystems. As the global economy moves into the ‘post-digital’ environment, brands that haven’t been able to achieve their goals need to accelerate their e-commerce and digital programs to remain competitive.

Since 2013, we have observed transactions that have valued the acquisition of subscribers, members and policyholders (POPulation) at values ranging from C$23 to hundreds and even thousands of dollars per POP.

Brands have recognized they don’t have the ability or resources to achieve a timely competitive position except by acquisition or strategic partnership. At C$20 per active subscriber Urban Animal Corporation would be valued at just over C$20 million dollars today.

IS: Doesn’t it seem like development took a long time?

LRE: The Company has been fortunate to have core investors that have patiently invested more than C$7.4 million and eight years to be prepared for the day when the Company emergence would align with commercial activities.

Urban Animal now has a very strong position with 8 million public users and more than a million subscribers from which it has generated more than C$5.2 million in revenues. I might add that successful plays like Google, Facebook and Amazon have all taken more than a decade. However we can see the current pace of emergence has really accelerated.

IS: What makes Urban Animal believe it can be successful under current market conditions?

LRE: I think there are three elements that will lead us to achieve success:

• HomeSafe™ is the only Automated, Privacy Compliant, Online Recovery Service that provides Fast, Cheap, Direct Protection of all things valuable.
• Proven HomeSafe™ web services can be easily ported to the Android and IOS platforms and then bundled with Network services or OEM digital devices.
• We have assembled a stellar team of professionals that can take on the heavy lifting of finance, operations, marketing and administration.

IS: Can you identify the team you have assembled?

LRE: Our Merger and Acquisition team includes advisors from Bennett Jones (Legal/Tax/Structure), Deloitte (Capital Advisory), Armanino (Sell-side Support) and CAS Corporate Governance (Corporate Reporting/Administration). Deloitte Corporate Finance is contracted to prepare us for an additional round of investment in 2018.

Among the other professionals are Endeavor (Assurance), McRally (Real-time Financial Reporting), Andrea J. Parkins (Investor Relations), Cheryl Wallach Communications (Digital Media) and Cori Imberi Professional Services (Client Experience and Service Desk).

IS: We notice a strong marketing organization is missing.

LRE: There is currently much upheaval in this area as agencies and marketing organizations consolidate and move to more intimate success based roles with their clients. Even so, there are several candidates in view. We like the performance of Trone Brand Energy and Meredith Corporation in the US market.

The first major marketing activity will be the launch of the new brand and marcom development. We have a proposal from a local company, Venture Communications, that we like very much. By the second quarter of 2017, when we require a strong success based marketing partner we expect one of the organizations on our watch list will meet these requirements.

IS: Where does all this lead?

LRE: The Company is aimed at a moment in 2020 when it can attract a strategic partner or acquirer. At that moment, we expect the plan will deliver 42 million public users, 9 million active subscribers and a share value at or near C$0.90.

IS: Are you prepared to reveal the new services you alluded to?

LRE: We aren’t going to reveal new services until later. At that time there will be opportunities to share market data and reveal each new application (service).

IS:  Thank you for taking the time to update and clarify the plan for our audience.

LRE:  Thank you for this opportunity

Mars to buy most of P&G's pet food business for $2.9 billion

Mars, Incorporated and the Procter & Gamble Company announced today that Mars has agreed to buy the IAMS®, EUKANUBA® and NATURA® brands in major markets for $2.9 billion U.S. This is a strategic move for Mars Petcare to complement its large and growing global Petcare business. 

"We view the addition of the IAMS®, EUKANUBA® and NATURA® brands as exceptionally strategic," said Mars Petcare Global President, Todd Lachman. "This acquisition is a perfect fit with our Mars Petcare vision of making A BETTER WORLD FOR PETS™. The deal reinforces our leadership in pet nutrition and veterinary science, attracts world class talent and grows our world leading portfolio."

The geographic regions included in the acquisition, which account for approximately 80% of P&G Pet Care's global sales, include North America, Latin America and other selected countries excluding most European markets. P&G said it is working on alternate plans to sell its Pet Care business in European Union countries. 

"Exiting Pet Care is an important step in our strategy to focus P&G's portfolio on the core businesses where we can create the most value for consumers and shareowners," said P&G Chairman, President and CEO, A.G. Lafley. "The transaction creates value for P&G share owners, and we are confident that the business will thrive at Mars, a leading company in pet care." 

The company is expected to complete the transaction in the second half of 2014, subject to regulatory approvals. 

Mars Petcare is one of the world's leading pet food and veterinary care providers and employs more than 35,000 associates across 50 countries. Upon completion of the transaction, IAMS®, EUKANUBA® and NATURA® brands will join Mars Petcare's billion dollar stable mates PEDIGREE®, WHISKAS®, BANFIELD® and ROYAL CANIN®. 

For further company and financial impact related information, READ THE NEW RELEASE.

P&G Declares a 7% Dividend Increase

The Procter and Gamble Company announced last week that its Board of Directors declared an increase of 7% over the prior quarterly dividend from $0.562 to $0.6015 per share on its Common Stock and on the Series A and Series B ESOP Convertible Class A Preferred Stock of the Company. 

P&G has been paying a dividend for 123 consecutive years since the incorporation in 1890. This marks the 57th consecutive year that the Company has increased the dividend. 

READ THE PRESS RELEASE 

Zoetis shares see 20% rise in first trading day

Last week, Pfizer presented its Animal Health division - Zoetis - as a standalone spinoff company and offered a minority ownership stake through an Initial Public Offering (IPO).

A solidly profitable company with $446 million on top of $3.2 billion in revenue for the first nine months of 2012, Zoetis is poised to enjoy the largest stock market debut since Facebook's offering last spring. Zoetis raised $2.2 billion in its IPO. 

The shares began trading 1 February 2013 on the NYSE under the symbol "ZTS" and were a hit among investors as shares jumped nearly 20% from their initial price of $26 to $31.01. 

READ THE PRESS RELEASE

About Zoetis: 
Formed six decades ago as the animal health business of Pfizer,  Zoetis focuses on manufacturing and selling medicines for livestock and pets and is a leading animal health company, dedicated to supporting its customers and their businesses. The company generated annual revenue of $4.2 billion in fiscal 2011. Zoetis has more than 9,500 employees and a local presence in approximately 70 countries, including 29 manufacturing facilities in 11 countries. Zoetis filed with U.S. regulators for an IPO of Class A common stock August 2012 and completion was set for January 2013. Pfiser spun off Zoetis as part of its strategic plan to shed entities outside its core medicine business.

P&G reports quarterly dividend

The Board of Directors of the Proctor & Gamble Company declared a quarterly dividend of $0.562 per share on the Common Stock and on the Series A and Series B ESOP Convertible Class A Preferred Stock of the company. P&G has been paying a dividend for 122 consecutive years since its incorporation in 1890 and has increased its dividend for 56 consecutive years. 

READ THE PRESS RELEASE

Proctor & Gamble also announced last week that current director Johnathan Rodgers has decided not to to seek re-election at P&G's annual shareholder meeting in October 2013. In addition, Terry Lundgren, chairman, president and CEO of Macy's Inc. has been appointed to the P&G board of directors, effective immediately.  

READ THE PRESS RELEASE