CAPITAL RAISING ("THE OFFER")
The company intends to raise an amount of approximately $750,000 of seed capital. $250,000 has already been committed by management.
Current Capital Structure
|Shares Authorized||Shares Issued|
|15,000,000 common||1,500,000 common|
|1,000,000 preferred||0 preferred|
|Mike Marriott||300,000 shares|
|Nathan Wain||300,000 shares|
|Brian Bell||300,000 shares|
For $750,000, the investing party will receive 750,000 preferred shares, or 33.3% of the company. Preferred shares will include senior debt and anti-dilution provisions as negotiated.
Utilization of Proceeds:
The proceeds from the offer will be used to fund the working capital requirements of the company (and its subsidiary and associated companies, if any).
Acquisition of assets
Land & building, plant & machinery, and other fixed assets will be purchased as and when deemed necessary to maximize the profits of the company
Cashflows incidental to the normal business operations of the company.
Funds will be used for the purpose of business operations of the company.
The most likely exit afforded investors will be through acquisition. If the company's actual operational and financial results are in any reasonable range of the projected results herein, the company will become an attractive asset to an acquisitive competitor or larger medical device company. No particular competitor or medical device company is thought to be more likely than another to be interested in MedNexis' technology.
To the extent that actual operational results materially exceed those projected herein, the probability of an IPO exit increases. Exceptional results would enhance the Mednexis brand name and financial position, making new product development and the likelihood of new product success more plausible. In this scenario, the opportunity to raise capital and provide an investment exit to shareholders becomes more likely.
A third exit possibility for investors may be an acquisition after IPO. This strategy would allow an investor to delay exit until after capital from an IPO is invested in successful projects, further raising the value of the firm.
The break-even analysis below is based on estimates for fixed costs, average revenue per unit and average variable cost per unit for both MedStim and TheraMag systems.
Barring any unforseen circumstances, MedNexis is anticipated to break-even by Year 3 of operations. Profits for the company in subsequent years will accelerate with the increase in anticipated sales volume.
It will be noted that the company's cash flow will be steadily declining for the first year of operations. This is expected due to large capital investments and initial slow sales. the company has calculated its financial plan so that it will have enough cash from investors and debt to survive until profitability reaches acceptable levels.
The table below presents the Balance Sheet for MedNexis.
The ratios contained herewith are not based on a post-diluted enlarged capital base. The figures come from the Standard Industry Classification (SIC) Index code 3845, Electromedical Equipment.