BlackWatch Advisors

Sixense sells part of its stake in MVI Health to JV partner expand

On September 4, 2018, Penumbra Inc. ("Penumbra") announced the acquisition of a controlling stake in MVI Health, Inc. (“MVI Health”)
Penumbra increased its ownership from 50% to 90% of the equity of MVI Health for $20M in cash consideration
MVI Health, formed in May 2017, is a joint venture between Penumbra and Sixense Enterprises, Inc. ("Sixense")

Sixense, based in Los Gatos, CA, is a leading provider of enterprise VR/AR solutions
Sixense's technology enables immersive, full- presence VR/AR experiences across a range of applications, such as video games, healthcare et al

MVI Health, based in Alameda, CA, is a developer of VR technology for healthcare
It combines immersive VR computing with development of medical products

On May 23, 2018, The Kroger Co. ("Kroger") signed a definitive agreement to acquire Relish Labs LLC ("Home Chef") in a deal valued at up to $700M
Kroger will make Home Chef meal kits available to Kroger shoppers, both in stores and online
Will introduce Kroger’s 60M shoppers to Home Chef, enhance Kroger’s ship- to-home and subscription capabilities and contribute to Restock Kroger
Upfront cash consideration of $200M and future earnout payments of up to $500M over five years are contingent on achieving certain milestones, including in-store and online meal kit sales
Home Chef will operate as a subsidiary of Kroger and assume responsibility for Kroger's meal solutions portfolio

Home Chef is one of the largest meal kit delivery companies in the U.S., with over 3 million meals delivered each month
Founded in 2013, Home Chef offers fresh, pre- portioned ingredients and easy to follow recipes delivered weekly and is designed for anyone to be able to cook and everyone to enjoy
The Chicago-based company delivers nationwide from its distribution centers in the Chicago, Atlanta, and Los Angeles areas

$52M Series D equity investment to fund continued strong growth
Significant contribution from existing & new investors
Post-money valuation of more than 15x LTM revenue
$20M participation from new investors Panorama Point Partners ("PPP") & family behind Bauer Media Group
Stephen George (Founder & Managing Partner) of PPP to join HZO Inc.'s (“HZO") board
Result of tightly-controlled, competitive process including leading financial & strategic investors globally

HZO, headquartered in Draper, Utah, is the market leader & pioneer in developing thin film protective coating for electronic circuitry & devices
HZO combines expertise in materials science, vacuum deposition, laser technology, equipment and automation to provide an end-to-end solution against exposure to damaging environments
The company owns a global patent portfolio spanning chemistry, equipment, processes, and ecosystem

The current SoftBank transaction provides Kabbage Inc. ("Kabbage") with funding to continue its strong growth & market share gains in the US, as well as further international expansion efforts
SoftBank previously led Kabbage's Series D preferred stock funding via its affiliate SoftBank Capital
SoftBank's $250m investment in Kabbage was the culmination of a tightly-controlled and competitive process, including other leading financial and strategic investors.
Andrew Kass of BlackWatch Advisors advised Kabbage in the Series D funding round at his prior firm

Kabbage, headquartered in Atlanta, has pioneered a financial services data and technology platform to provide automated funding to small businesses in minutes
Kabbage leverages data generated through business activity such as accounting data, online sales, shipping and dozens of other sources to understand performance and deliver fast, flexible funding in real time
Kabbage has provided powering automated lending for three of the world’s top 50 global banks