Ib2 c due diligence report
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Transcript of Ib2 c due diligence report
DUE DILIGENCE REPORT
Benjamin J. Garber
18 November 2010
Prepared for BlueTree Capital Group | BlueTree Allied Angels
Due Diligence Team
Kirk Vincent David Charlton Dwayne Bucko Jenny Karlsson Jason Matzus Ben Garber
Company
Intimate Bridge 2 Conception (Ib2C) is a medical device company focused on fertility
Initial sales driven online and through infomercials
Ib2C is hoping to raise $1.5MM this round CEO, Steve Bollinger
Market Advisors, Messrs. Swenson & Tovian Medical Advisors, Drs. Pelekanos & Hoffman Legal Advisors, Foley Hoad LLP
Company
Intimate Bridge 2 Conception (Ib2C) is a medical device company focused on fertility
Initial sales driven online and through infomercials
Ib2C is hoping to raise $1.5MM this round CEO, Steve Bollinger
NO FEMALE PRODUCT OR MARKET ADVISORS
Product
Focus Touch Kit is a cervical cap devise featuring a unique delivery method
Key Considerations
No indication of market acceptance No prototype or claim of product efficacy No Freedom to Operate Study Large market potential Few competitors
Problem
7.3MM women in the U.S. and 100MM+ worldwide having trouble conceiving
1.2MM in the U.S. are actively seeking assistance
Existing IUI and IVF treatments are costly, invasive, uncomfortable, and unnatural
Solution
The Focus Touch Kit is: Inexpensive at $80 (IUI is $2k and IVF
is$20k) Do-it-yourself low technology devise; no
surgery Used within the privacy of your own home Reduces stress associated with conception Hormone free utilizing natural mechanical
techniques
Sales
BlueTree investment will primarily be allocated to product and strategy refinement and initial marketing efforts
Internet search marketing powered by GoogleAdwords... later social media, Yahoo, Bing
Infomercials supported by GoogleTV
Sales
BlueTree investment will primarily be allocated to product and strategy refinement and initial marketing efforts
Internet search marketing powered by GoogleAdwords... later social media, Yahoo, Bing
Infomercials supported by GoogleTV $4.2MM marketing expense budgeted
for first 200,000 unit sales represents the lower bound
Forecasts
Pending 510(k) approval in Q3 2011 25,500 units IN Q3/Q4 2011 (6,375
customers) for revenue of $2.04MM $12.5MM in 2012 to $22.5MM in 2013
OTC and international launch
Forecasts
Pending 510(k) approval in Q3 2011 25,500 units IN Q3/Q4 2011 (6,375
customers) for revenue of $2.04MM $12.5MM in 2012 to $22.5MM in 2013
OTC and international launch Risk that sales will not accelerate as
anticipated and Ib2C will need additional capital potentially diluting BlueTree’s interest
Document Review
Terms offered to BlueTree are same as PLSG including convertible promissory note and warrants Received $200k from IW and $275k from
PLSG If the company sells for $20MM, PLSG
would receive $1.55MM for it’s $275k in notes
PLSG conversion to 450k or 580k shares based on $4.5MM and $2.5MM valuations
Internet Marketing