Diapositiva 1 - Stemmed Implant

Report
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
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
(Double Stem design)
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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)
Current Implant
(Single post design)
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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
- 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
Limited Entry Barriers
- 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
Growth Market
- 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
Market Expansion
- 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
Funding Requirements and Uses
Uses of Funds *
Funding Amount:
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$3.77 million total equity funding sought
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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
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Means:
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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
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)
Critical Path
Licensing *
Regulatory
Submissions / Approval
Clinical Trials
Financing
Regulatory
PreSubmission
/ Meetings
Q3-Q4 2012 | Q4 2012–Q1 2013 | Q1 2013-Q2 2014 | Q1 2014-Q1 2015 |
* Licensing discussions begin Q1 2013
Q4 2014 Canada
Q1 2015 FDA
Financial Highlights
2014
2015
Revenues
Licensing Revenues
EBITDA
2016
2017
2018
525
4,169
7,653
28,000
12,000
(586)
3,027
6,441
Net Income
436
259
16,005
8,448
3,484
Cash Flow
633
755
5,000
5,000
5,000
NPV (after-tax) of $47.7M (Independent third party valuation)
Projected Value per share of $40.78 (June 2017)
Markets & Revenues
Canada
USA
Europe
ROW
2018
2017
2016
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Conservative projections based on .08% of global market volume of $4.2 billion (2015)
Projected ROI & Exit Strategy
Return on Investment
(000’s)
Preferred
Warrants*
Total
Investment Dollars
$500
$375
$875
 NPV of $47.7M (independent valuation)
Year 3 – Dividends **
763
763
1,526
Year 4 - Dividends
536
536
1,072
 Projected Value per share of $40.78
(June 2017)
Year 5 - Dividends
209
209
418
Year 5 – Capital Appreciation
4,076
4,076
8,156
TOTAL
5,666
5,586
11,252
IRR%
74.7%
83.71%
78.8%
Multiple
11.3X
14.9X
12.9X
Payback (in years)
2.75
2.75
2.75
% ownership
6.6%
6.6%
13.2%
* Assumes 50% of warrant shares exercised
** Anticipated distribution of Licensing revenues
 Possible IPO in five years
 Possible divesting of whole company or
just dental asset as development
continues on the orthopaedic and
veterinary applications
Professional Team
Management Team
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Christopher Ostrovski, President & CEO
Dr. Michael Lococo, Director Innovation
Doug McNaughton, CFO
Martin Lococo, Director Marketing & Sales
Diane Kalina, Director Licensing
Scientific Advisors
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Dr. Emmanuel Rajczak, DDS
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Dr. Greg Wohl, Ph.D. – Biomedical
Engineering, McMaster University
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Dr. Karl Stobbe, M.D., Regional Assistant
Dean, Michael G. DeGroote, School of
Medicine, McMaster University
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Dr. Robert Josefchak – Orthopaedic Surgeon,
McMaster University
Corporate Consultants
Corporate Advisors
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Dr. Scott Proctor - PG Business Growth
Advisors and Certified Public Accounts, LLC
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Gowling, Henderson, LeFluer (Patents)
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Gardiner-Roberts LLP (Corporate Attorneys)
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Wendy Hill - GAP Strategies
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Deloitte Touche – (Auditors)
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Daryl Wisdahl – EMERGO Group
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Randy Gillen - Licensing
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Diane Kalina – BioCatalystYorkton Ltd.
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Bonnie Loubert – Loubert Brown Consulting
Contact information
• Christopher Ostrovski, President & CEO
[email protected]
Tel. 416 – 626 – 1835 ( Canada )
• Douglas McNaughton, CFO
[email protected]
Tel. 289 -213-8886 ( Canada )
• www.stemmedimplant.com

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