MedNexis will research and develop biomedical devices, including the MedStim and TheraMag systems, to aid in the treatment of a variety of diseases. Its customers are patients afflicted with any condition resulting in muscular atrophy, as well as those patients interested in the proposed alternative benefits of magnetic therapy. The company is currently developing its patent-applied technology to final product and approval stage. It is also seeking to establish its corporate identity in the medical products field. The company's growth strategy involves the following objectives:
The company will be incorporated in North Carolina. It will have authorized 15,000,000 ordinary shares and 150,000 preferred shares. The rights and privileges of these shares will be stated in the company's Articles of Incorporation.
The proposed share capital of the company prior to capital raising
|Owner||Percentage of Shares Owned|
The company is expected to raise seed capital of approximately $750,000 prior to the commencement of its business operations. Additional working capital is anticipated and will be raised in year 2 of operations. Capital raising exercises are anticipated to be conducted in 2 portions (i.e. Year 0 and Year 2) raising approximately $6.75 million in funds.
The key elements in the start-up plan for the company are:
Costs of raising capital through private placement
Approximately $250,000 was raised from the founders of the company for these purposes. This funding will be available in early 2001 and these tasks have either been completed successfully or are in the final process of completion.
These are treated purely as start-up expenses and initial working capital by this plan. The $250,000 is treated as cash-on-hand as of the start of this plan on January 1, 2001. The remainder of the start-up capital required, as well as capital required for the continuation of operations in the first 6 months will be provided by selling the shares via a private placement to key investors. The capital obtained through this fund-raising exercise is expected to provide an additional $750,000 and the business plan calls for these funds to be infused for the purposes of operating the business, in accordance with this business plan.
The company will initially be based in the Research Triangle Park area in North Carolina.
In view of the strategic plan to contract with a third party for all manufacturing requirements, the facilities needed will be mainly offices for personnel and storage space for inventory. After Year 5, when the market for our products reaches our anticipated milestone, the company will explore the feasibility of constructing its own manufacturing facilities.