And for Investors – PPM

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

Read it, and view this set of 11 slides (most narrated) :

Transforming Female Reproductive Health Management prt scr 2019

Transforming Female Reproductive Health Management https://biozhena.files.wordpress.com/2019/06/transforming-female-reproductive-health-management-918-1-ed-619-blue11sl-wassumptions.pps

Serious investor, please review the above slides, which contain a link to bioZhena business presentation (also provided in The bioZhena Project post). 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 (“the Company”), is offering 1,000,000 shares of its common stock, at the price of $ 3.00 per share (shares of the Offering) to finance the manufacturing and marketing of medical consumer products previously demonstrated in proof-of-concept studies with pre-production prototypes, in studies that were used to obtain FDA 510k clearance. 

The shares sold in the Offering, if fully subscribed, will constitute 10% of the Company’s shares as of the date of issuance, and/or 20% with the associated warrants.

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.) 

Each purchased share will be accompanied by a Warrant exercisable within 1 year of the date of the Subscription Agreement, at the same $3.00 price (see Exhibit 2). A different deal could be signed with a large 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 – contingent on meeting engagement costs, which was not feasible).

.

Capitalization Plan:

Founders plus ISOP and ESOP stock option plans = 74.0%      

Founders’ stock offered in this offering (1 million shares at $3.00/share) = 10.0%

First round financing via warrants (1 million shares at $3.00/share) = 10.0%

Second round financing, if any (600,000 shares at $6.00/share) = 6.0%

___________________________________________________

Capitalization:  2.6 million shares for $9.6 million

 

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 (if any)   $ 3,600,000

_______________________________________________________

Total equity financing plan                       $ 9,600,000

 

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).

Since the valuation for the possible second round financing (if any) will likely be significantly higher than that considered in the plan shown above, we aim at implementing the first stage, i.e. financing of $6 million for 20% of founders’ equity.

 

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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