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Published byAlexandra Cross Modified over 9 years ago
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May 2013
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About The Company International patents have been granted on a platform implant technology that addresses three markets: The global dental implants market is forecasted to grow at 6% (CAGR) from $3.2 billion in 2010 to $4.2 billion in 2015 (Sandler Research, Nov., 2010). The Global Dental Implants Market The Global Orthopaedic Implant Market Veterinary Implantology The Global Dental Implants Market The Global Orthopaedic Implant Market Veterinary Implantology
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Value Proposition – Dental Implant SIT Implant Current Implant Uses existing comparable metals Less prone to failure (double stem) Lower Cost No damage to bone (no cutting or crushing) Angled rings simplify insertion and fixation Superior in resisting torque (turning) Removes less tissue Easily Installed / single precision placement Enhanced opportunity for dentists (GP’s) Prone to failure (falling out) Rotates due to single post High costs of screw implants Complex process for dentists (GP’s) Lengthy patient waiting time (Double Stem design) (Single post design)
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Market Needs and Assessment - Only screw-less implant - Professionals concur quick adaptability rate - Greater profit margin for practitioners and manufacturers / distributors - Improved patient outcomes and recovery - Savings in procedure costs and time - Game-changing lead product - Aging population boosting market - Rising awareness for oral health and improved dental treatments - Growth rate of 6-20% globally (Sandler report) - Rising edentulous population worldwide - Patents issued in six countries - Short time to market (minimal clinical trials) - Certified Health Canada manufacturer ) in place with metal specifications - Extension / replacement of current product line for Manufacturers and Distributors (Big Four hold > 60% of market) or new - Bone implants patents can be used for a family of products, procedures, and processes for the Orthopaedic and Veterinary markets - Tooth restoration market under-penetrated globally - Increased practitioner usage = revenues Competitive Advantage Growth Market L imited Entry Barriers Market Expansion
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Funding Requirements and Uses Uses of Funds * Research & Development Engineering (Prototype) Clinical (Trials & Strategy) Intellectual Property Regulatory Salaries & Benefits ** General & Administration Consulting Fees & CAPEX TOTAL Funding to Q4 – 2015, all other costs offset by cash flows from future revenues ** Consists of 5 personnel at average $132K per annum (base) Funding Amount: $3.77 million total equity funding sought Ideally in tranches of $500K to $1.0M from each investor to coincide with cash flow timing. Partial funding from warrants exercised Residual funding by non-dilutive government grants Means: Preferred Shares (convertible) with common share purchase warrants @ $10.00 per share Warrants – 2 common shares for each Preferred share @ $7.50 per share Warrants are detachable and transferrable Bonus Shares – 1 common share for each Preferred Bonus Shares – 1 common share for each warrant exercised and common share purchased
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Critical Path Financing Regulatory Pre- Submission / Meetings Clinical Trials Regulatory Submissions / Approval Licensing * Q3-Q4 2012 |Q4 2012–Q1 2013 |Q1 2013-Q2 2014 | Q1 2014-Q1 2015 |Q4 2014 Canada Q1 2015 FDA * Licensing discussions begin Q1 2013
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Financial Highlights 20142015201620172018 Revenues 5254,1697,653 Licensing Revenues 28,00012,000 EBITDA (586)3,0276,441 Net Income 43625916,0058,4483,484 Cash Flow 6337555,000 NPV (after-tax) of $47.7M (Independent third party valuation) Projected Value per share of $40.78 (June 2017)
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Markets & Revenues Conservative projections based on.08% of global market volume of $4.2 billion (2015)
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Projected ROI & Exit Strategy (000’s)PreferredWarrants*Total Investment Dollars $500$375$875 Year 3 – Dividends ** 763 1,526 Year 4 - Dividends 536 1,072 Year 5 - Dividends 209 418 Year 5 – Capital Appreciation 4,076 8,156 TOTAL 5,6665,58611,252 IRR% 74.7%83.71%78.8% Multiple 11.3X14.9X12.9X Payback (in years) 2.75 % ownership 6.6% 13.2% Return on Investment NPV of $47.7M (independent valuation) Projected Value per share of $40.78 (June 2017) Possible IPO in five years Possible divesting of whole company or just dental asset as development continues on the orthopaedic and veterinary applications * Assumes 50% of warrant shares exercised ** Anticipated distribution of Licensing revenues
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Professional Team Management Team Christopher Ostrovski, President & CEO Dr. Michael Lococo, Director Innovation Doug McNaughton, CFO Martin Lococo, Director Marketing & Sales Diane Kalina, Director Licensing Corporate Consultants Dr. Scott Proctor - PG Business Growth Advisors and Certified Public Accounts, LLC Wendy Hill - GAP Strategies Daryl Wisdahl – EMERGO Group Diane Kalina – BioCatalyst Yorkton Ltd. Bonnie Loubert – Loubert Brown Consulting Scientific Advisors Dr. Emmanuel Rajczak, DDS Dr. Greg Wohl, Ph.D. – Biomedical Engineering, McMaster University Dr. Karl Stobbe, M.D., Regional Assistant Dean, Michael G. DeGroote, School of Medicine, McMaster University Dr. Robert Josefchak – Orthopaedic Surgeon, McMaster University Corporate Advisors Gowling, Henderson, LeFluer (Patents) Gardiner-Roberts LLP (Corporate Attorneys) Deloitte Touche – (Auditors) Randy Gillen - Licensing
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Contact information Christopher Ostrovski, President & CEO costrovski@stemmedimplant.com Tel. 416 – 626 – 1835 ( Canada )416 – 626 – 1835 Douglas McNaughton, CFO dmcnaughton@stemmedimplant.com Tel. 289 -213-8886 ( Canada ) www.stemmedimplant.com
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