And for Investors – PPM

bioZhena venture – with synopsis of financial projections, the big picture:  https://biozhena.wordpress.com/the-biozhena-project/

Read it, and/or view this set of my 11 slides (most of them narrated by yours truly) :

Transforming Female Reproductive Health Management prt scr 2019

Transforming Female Reproductive Health Management https://biozhena.files.wordpress.com/2019/09/transforming-female-reproductive-health-management-918-1-ed-919-blue11slides-w.yellowref.to20sl.ppsx

Serious investor, please review the above slides, which contain a link to bioZhena business presentation (20 slides in PDF, printable). Request your copy of bioZhena Corporation Private Placement Memorandum – Business Plan by email addressed to Vaclav at: vaclav at biozhena dot com

Citing from the Private Placement Memorandum:

The Company, a Colorado C-Corporation, is offering 2,000,000 shares for a 20% ownership purchased possibly in a two-step process. Offering in step one 1,000,000 shares, which, if fully subscribed, will purchase 10% of the Company’s shares at the price of $ 3.00 per share.  Each purchased share will have attached to it a warrant at the same share price, to be exercised within one year of the subscription date in step two (see Exhibit 2).

The warrants can be exercised immediately at the time of subscription.

The Offering also allows for an investor with a $15 million investment minimum to buy 26% ownership at $5.80/share.

The preferred minimum investment is $ 250,000.  The Company may permit purchases of a lesser amount for fewer shares.  (See Subscription Agreement in Exhibit 1.) 

A different deal could be signed with a large strategic investor.

The Offering will remain open until fully subscribed, or until closed by the Company, at its sole discretion. This Offering may be a bridge to a strategic partnership such as an Investment Banker has once proposed (investment of up to $25 million, which was contingent on meeting engagement costs, which was not feasible).

.
The anticipated capitalization plan is:
Founders plus ISOP and ESOP                                                                                           74.0%
Founders’ stock offered in this offering  (1,000,000 shares at $ 3.00/share)     10.0%
First round financing – warrants            (1,000,000 shares at $ 3.00/share)        10.0%
Second round financing, if any            (   600,000 shares at $15.00/share)           6.0%
____________________________________________________________________________________
Total equity capitalization                  2.6 million shares for $15,000,000              100%
.
Equity capital is thus anticipated to be acquired as follows:
Founders’ stock offered in this offering          $ 3,000,000
First round financing from warrants                $ 3,000,000
Second round equity financing                          $ 9,000,000
Financing plan including second round          $15,000,000 at $5.80/share, the share price paid by a $15,000,000 investor purchasing all of the 26% equity.

 

Discounted Cash Flow Analysis in bioZhena Corporation’s pro forma financials (see at https://biozhena.files.wordpress.com/2018/11/biozhena-pro-forma-financial-projections-ppm.xls, tab Pro forma sum):

   DCF Analysis

Year 1

Year 2

Year3

Year4

   Cash Flow (excluding equity)

(3,975,730) (209,900) 17,521,876 33,133,124 52,330,213

   Discount Rate

30%

   Long Term Growth Rate

5%

   Net Present values of CF

30,487,785

   PV Residual Value (5X cash flow)

59,195,001

 NPV

89,682,786

20% equity ownership

17,936,557

 

IRR Analysis of 20% ownership for investment of $6 million indicates 67% with residual value at 5X cash flow, and 30% without residual value.

 

A well-matched investor who is attuned to the bioZhena project will see beyond the 5 year horizon of the startup phase. They will consider the Full Value Scenario and the associated Net Present Value (ca. $2 Billion).

 

Furthermore, the Company is prepared to negotiate with investors in case they may be interested in royalty-based investment, aiming at regular income from gross revenues after breakeven.

Yet another option the Company is open to is a pre-agreed buyback of shares at an agreed time after breakeven.

 

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