Disclaimer The views expressed here contain information derived from publicly available sources and...

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Disclaimer The views expressed here contain information derived from publicly available sources and have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. For additional information on these or other factors, please see the Company's fillings on SEDAR. This presentation should not be relied upon as a recommendation or forecast by Hodgins Auctioneers. Nothing in this presentation should be constructed as

Transcript of Disclaimer The views expressed here contain information derived from publicly available sources and...

DisclaimerThe views expressed here contain information derived from publicly available sources and have not been independently verified. No representation or warranty is made as to

the accuracy, completeness or reliability of the information. Any forward looking information in this presentation has been prepared on the basis of a number of

assumptions which may prove to be incorrect. For additional information on these or other factors, please see the Company's fillings on SEDAR. This presentation should

not be relied upon as a recommendation or forecast by Hodgins Auctioneers.

Nothing in this presentation should be constructed as either an offer to sell or a solicitation of an offer to buy or sell shares in any jurisdiction.

Investment Highlights

An Established Auction Company In A Big Marketplace With The Right Management & Board And Support Team Providing World Class Services In Three Big Markets With A Great Growth Strategy In a Great Industry with Great Competitors Only A Few Are Public Our Past Performance Grow Revenues with Online Auctions What We Need Use of Proceeds A Tight Structure

An Established Auction Company

Hodgins family first entered the industry in 1957

6000 plus auctions conducted Gross annual system sales between 40 and

50 million Gross revenues between 3.5 and 4.5 million

In a Big Marketplace

2007 North American system sales ~ $270.7 billion USD (Live auctions only).

Largest competitor commands only 1% of the total market

Lots of room for growth

Industry Growth

With The Right Management & Board

Barrie Jung • President/CEO ~ 25 years +

Grant Hodgins • General Manager ~ 30 years +

Todd Bennett• New Business Development Manager ~ 2 years

Larry Buchinski • Industrial Sales Manager ~ 25 years +

Lyle Gradin • Agricultural Manager ~ 10 years +

Myles Taylor • E-Commerce Sales Manager ~ 5 years +

Gordon Anderson • Chairman of the Board

And The Right Support Team

Marketing Experts Call-Center Staffing Trust Administrators Operational Technicians

ProvidingWorld-Class Services

Professional, Comprehensive Marketing Campaigns

100,000 + Customers in Database Complete Set-up Services and Equipment Capacity to do 100 - 200 Auctions per Year

Competing inThree Big Markets

Agricultural Industrial Automotive

A Great Industrywith Great Competitors

Local, Regional, National Ritchie Bros. – World’s Largest Industrial

Auctioneer Listed NYSE Adesa – Formerly Owned by Minnesota Light

& Power Manheim – Owned by Cox Enterprises

– 15 Billion in Revenues– 77,000 Employees

Few Publicly ListedAuction Companies

Very Few Auction Companies Publicly Listed Most Held Closely in Private Structures Opportunity For Investors in Hodgins

Our Past Performance

A GreatGrowth Strategy

Increase Margins With More Bought Deals Bought Deals

– Financial Guarantees– Out-right Purchases– Recent Bought Deals

Bought Deals for Last 2 Years

Diversify By Market Segment & Geography

Diversify By Segment– Heavy Construction– Industrial Plant– Automobiles

Diversify By Geography– Ontario– Alberta

Grow Revenues with Online Auctions

New Technology Wholesale Auto Auction Revenue Potential

– 6000 Auto Dealers in Canada– 10% at $349 per month = $2.5 million annually– USA Market

• 60,000 Dealers• 10% at $349 per month = $25 million Annually

What We Need

This is an IPO for Hodgins Private Placement by Accredited Investors Initial Raise of $750,000 to $1,000,000

Use of Proceeds

50% Bought Deal – $500,000 Equity Levers $1,500,000

50% Working Capital– Marketing– Expand Sales Force– Seasonal Cash Flow

A Tight Structure

8,598,500 Shares Issued & Outstanding 9.2 Million Fully Diluted 55% Owned by Management Public Float Less than 4 Million Shares

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