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Hello Pal International Inc.(CSE:HP)


Hello Pal International Inc.(CSE:HP)

Business Overview

  • Hello Pal is a mobile messaging application built on top of language learning and travel functionality.
  • Hello Pal’s early popularity is due to a focus on three trends; mobile social interaction; language learning and travel. These features are all built on top of a solid easy to use and dynamic messaging platform.
  • Hello Pal believes it will benefit from and succeed do to multiple trends:
  • Messaging apps have begun to overtake social media platforms in user engagement and monthly active user numbers.
  • Consumer activities are continuing to rapidly expand beyond websites and desktop software to mobile apps.
  • The education sector is experiencing disruption by online and mobile utilization of services.

Investment Highlights

  • Hello Pal was recently launched and already achieving high numbers of registered users with no marketing and thousands of new users registering daily
  • Recent oversubscribed financing and no debt with low burn rate.
  • Launching aggressive PR and user acquisition campaign and expansion of technical and marketing team
  • Major Chinese shareholders with substantial financial backing and deep business and entertainment networks
  • Messaging has emerged as the new frontier of social on mobile and apps built on messaging platforms have high user retention and engagement
  • Rapidly growing language learning market particularly in mobile E-learning
  • Comprehensive investor relations and stock marketing program in place organised by an experienced team

Products/Technology Information

Hello Pal was built on the back of an idea by the founder KL Wong. It stems from an award winning early education language learning platform he created called Brillkids. Hello Pal benefits tremendously from the technical team’s experience building Brillkids and working together for a decade. This is evidenced by the clean user interface and functionality and mature feel of the platform.

Hello Pal was launched on Android in May 2015 and IOS November 2015. Since then the Company has conducted minimal marketing efforts and is gaining many users and traction organically having already achieved over 1,000,000 registered users. The app wasn’t initially built with a focus on user acquisition or retention functions and even without this has been strong in gaining and keeping users. Hello Pal recently added Facebook integration and the ability to invite friends as features.

Hello Pal has two key points that make it stand out over the other similar mobile apps fighting for users. The first as mentioned is immediate strong organic growth without a large and expensive marketing effort toward this. Having current and relevant functionality like language learning and travel, experienced through a user friendly messaging platform with a large and growing active user base, has proven to be the recipe for early success for Hello Pal.

The second is the team and financiers behind it. The main seed stage financier and second largest shareholder is Hans Xu. Mr. Xu is a key managing partner of the New Margin fund in Hangzhou China. New Margin itself is a very successful VC fund managing over 3BB USD. Mr. Xu has an extensive technology and entertainment network of investments to tap into for Hello Pal.

Mr. Xu, and directors Michael Koh, and SJ Wong are the three main shareholders along with the founder KL Wong.

SJ Wong is a very successful entrepreneur in Asia with an extensive business network. Along with this and Mr. Xu’s entertainment and technology investments and contacts they could have major entertainment figures and influencers in Asia endorse the app. Another benefit of their network is access to the largest internet and technology companies which could become potential partners as Hello Pal grows and hits its milestones.

Hello Pal has multiple avenues for monetising its user base such as VIP memberships, advertising, stickers, premium phrasebooks and different ways to capitalise on language instruction and learning. Although mobile apps can receive high valuations from user numbers, growth and retention like Hello Pal is receiving, the ability to generate impressive revenue from these sources is considerable.

In June 2016 the Company listed on the Canadian Securities Exchange and completed a substantially oversubscribed financing of $1.8mm CDN. These funds are predominantly going to a user acquisition and PR campaign, app development and stock promotion in a short period. Hello Pal has been very active since going public and completing the financing. It has expanded its technical team and launched Version 3.0 that includes voice and audio calling. A key new hire is former Huawei Chief Architect Daniel Kou as CTO.

To sum it up Hello Pal is already achieving strong user growth and has a large PR user acquisition plan in place with substantial financial backing and the business network to make it a success. The business model is to continue growing its user base while looking toward partnership or collaboration opportunities through the management and shareholder’s business and entertainment network.

Management Bio

KL Wong Chief Executive Officer, President and Director Hello Pal is the brainchild of KL Wong, who currently resides in Hangzhou, China. KL was born in Malaysia, studied and worked in the UK for 10 years, and worked in Hong Kong for 16 years. He graduated with a law degree from Cambridge University and started off his career as a lawyer with international law firm Clifford Chance in the UK and Hong Kong. He then worked in senior management positions at Chinadotcom Corporation (China internet portal) and Softbank International Investment (venture capital/private equity) before founding BrillKids shortly after the birth of his daughter Felicity. KL is fluent in English, Mandarin and Cantonese, and has a working knowledge of Malay and French. He is currently learning Japanese and Korean. He can be contacted at KL(at)hellopal(dot)com. Gunther Roehlig – Director Mr. Roehlig has more than 15 years of experience in the financial and investment industry. In particular, Mr. Roehlig has experience in restructuring, managing and financing junior public companies. Most recently, Mr. Roehlig served as the president of Terra Ventures Inc., which held a 10% stake in the high grade Roughrider uranium discovery owned by Hathor Exploration. In May 2011, Terra Ventures was acquired by Hathor Exploration – Hathor was then subsequently acquired by one of the world’s largest mining companies Rio Tinto in late 2011. Robert McMorran – Director Mr. McMorran is a Certified Professional Accountant (CPA, CA). In July 1997 he founded Malaspina Consultants Inc., a private company that provides CFO, accounting and administrative support services to junior public companies. Mr. McMorran has held board and senior management positions with a number of public companies since 1991 and is a director and or CFO of a number of companies, including Encanto Potash Corp. and Santacruz Silver Mining Ltd

Share Structure

Contact Information:

Ryan Johnson, Investor Relations
604-683-0911