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May 2013. About The Company. International patents have been granted on a platform implant technology that addresses three markets:. The Global Dental Implants Market The Global Orthopaedic Implant Market Veterinary Implantology.
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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 The Global Orthopaedic Implant Market Veterinary Implantology 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).
Value Proposition – Dental Implant SIT Implant Current Implant (Double Stem design) (Single post design) • 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
Market Needs and Assessment Competitive Advantage Growth Market Limited Entry Barriers Market Expansion
Funding Requirements and Uses Uses of Funds * 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 • Funding to Q4 – 2015, all other costs offset by cash flows from future revenues • ** Consists of 5 personnel at average $132K per annum (base)
Critical Path 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
Financial Highlights NPV (after-tax) of $47.7M (Independent third party valuation) Projected Value per share of $40.78 (June 2017)
Markets & Revenues Conservative projections based on .08% of global market volume of $4.2 billion (2015)
Projected ROI & Exit Strategy 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
Professional Team • 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 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 • Corporate Advisors • Gowling, Henderson, LeFluer (Patents) • Gardiner-Roberts LLP (Corporate Attorneys) • Deloitte Touche – (Auditors) • Randy Gillen - Licensing
Contact information • Christopher Ostrovski, President & CEO costrovski@stemmedimplant.com Tel. 416 – 626 – 1835 ( Canada ) • Douglas McNaughton, CFO dmcnaughton@stemmedimplant.com Tel. 289 -213-8886 ( Canada ) • www.stemmedimplant.com