nile/snapp presentation
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This presentation is a high level summary of Lucite Advisor’s SNAPP Program available through Nile Capital.
For more information, contact: Bob Roach (617) 641-2865 or Bilal Basrai (312) 475-0104
Presented by Nile Capital, LLC. & Lucite Advisors, LLC.
Nile Capital, LLC Page 2Private and Confidential
Nile Capital, LLC, (“Nile”) is a minority owned, boutique investment firm focused upon closely held and publicly traded microcap companies (www.nilecapital.com)
Nile facilitates access to capital, exit/liquidity events, corporate finance advisory, business development and strategic planning
The principals of Nile have broad and varied experience in private placements, venture capital, corporate finance, M&A, investor relations and operations
Nile proactively works with clients in a variety of industries to create and enhance shareholder value utilizing a strategic, operating and balance sheet perspective
Nile Capital, LLC Page 3Private and Confidential
Facilitate access to acquisition and growth capital for select companies with defined markets and extraordinary growth and ROI potential
PIPE, venture capital, private equity and mezzanine debt financings Industry agnostic, but specific analytical capabilities in Life
Sciences and technology companies
Accelerate the achievement of business and financial objectives
Provide hands-on strategic, financial, & operational expertise and assistance
Utilize Nile’s internal resources as well as Nile’s strategic partner relationships to enhance and maximize shareholder value
Develop, drive and execute viable exit/liquidity scenarios
Wealth creation for principals and investors
Nile Capital, LLC Page 4Private and Confidential
Strategic Advisory Services Consult to business owners regarding Financings, Divestitures,
and Mergers & Acquisitions
Corporate Finance Raise debt and equity capital to fund projected uses Raise debt and equity for the acquisition of an existing
business
Business Plan Development Create business plans for companies seeking equity capital,
debt financing, or to attract potential buyers or strategic partners
Nile Capital, LLC Page 5Private and Confidential
Nile’s primary business focus is to identify promising growth or acquisition opportunities that fit the risk/return profile for a variety of accredited investors
Promising companies at attractive valuations possessing good management
Targeted investment opportunities include: Private and publicly traded microcap companies with superior,
risk adjusted ROI prospects below the radar screen of traditional private equity sources
Selective early stage venture capital situations
As an asset class, the microcap segment provide risk diversification as well as attractive risk-adjusted returns
Nile Capital, LLC Page 6Private and Confidential
Lucite Advisors, LLC is an investment advisory firm that assists both public and private companies raise growth capital (www.luciteadvisors.com)
Lucite partners with management teams and leading financial institutions to provide the capital, expertise, and strategic relationships necessary to build market-leading businesses
Lucite Advisors developed the SNAPP program to significantly increase a company’s shareholder base while providing accredited investors with investment opportunities at a discount to current market values
Lucite Advisors conducts all securities-related activity through Nile Capital
Nile Capital, LLC Page 7Private and Confidential
Nile has partnered with the principals of Lucite Advisors, LLC to offer a unique program called SNAPP – Shareholder Net Acquisition Placement Program
SNAPP provides a platform to significantly increase the shareholder base of promising, microcap companies (market capitalization less than $300 MM) with defined markets, proven revenue and business models
Through Nile, approved microcap companies offer up to $1 million of common equity shares to SNAPP investors at a significant discount to current market value
Accredited investors who participate in the SNAPP program are provided the opportunity to build a diverse portfolio of promising microcap companies with an initial cost basis below the then current market value plus potentially other enticing investment terms
A simple, cost effective process that benefits both investors and companies
Nile Capital, LLC Page 8Private and Confidential
Many small companies seek a more robust shareholder base
A limited shareholder base makes it more difficult for companies to raise sufficient capital to grow operations, move to a higher-level public exchange, and ultimately bring increased liquidity to their stock.
While as an asset class, the microcap market offers investors risk & asset allocation diversification, price volatility is often a mitigating factor
As with many investments, cost basis is a key factor to generating superior, risk adjusted returns
Nile Capital, LLC Page 9Private and Confidential
Shareholder Net Acquisition Placement Program (SNAPP) Issuer Benefits
Increases shareholder base
Raises additional capital
May qualify company for listing with a higher exchange
Positions company for more trading volume
Provides an investor relations function
Investor Benefits Cost basis at a significant discount to current market value
Relatively low, per company investment exposure (up to $5,000)
Complete control of investment decision making and exit process
Ability to build a portfolio of SNAPP investments
Nile Capital, LLC Page 10Private and Confidential
Nile Capital, LLC Page 11Private and Confidential
Q: What is the typical investment size for a SNAPP transaction?
A: We anticipate an initial range between $2,500 and $5,000 per investor.
Q: May I decide how much to invest in each SNAPP transaction?
A: No, each offering will be a fixed amount for all investors. However, investors will be able to decide (on a company by company basis) whether or not to invest.
Q: May I decide which SNAPP offerings I’d like to invest in or is this a series of offerings to which I’m obligated?
A: You may decide which offerings you’d like to invest in and which ones you will reject. Each transaction will be a separate offering.
Q: How many SNAPP offerings can investors expect to see? A: Eventually we hope to facilitate as many as one to two offerings per
month.
Nile Capital, LLC Page 12Private and Confidential
Q: What is the waiting period from the time a SNAPP investor funds an investment until the shares are tradable?
A: Typically it will take 6 months, although it could be sooner, depending upon the type of transaction. Again, you will be able to manage the shares in your individual brokerage account.
Q: Why would a company be willing to sell shares at a discount?
A: Many quality companies have a substantial need to add new shareholders to their base. Because of this, companies are willing to offer enticing terms in order to attract a large and diverse accredited shareholder base.
Q: Please describe the model SNAPP company? A: A typical SNAPP target company may be traded on the Over-the-
Counter Bulletin Board (OTCBB), have a strong & experienced management team, solid earnings & operational history, clean balance sheet, compelling product/service and in need of additional accredited shareholders.
Nile Capital, LLC Page 13Private and Confidential
Q: How does a SNAPP investor’s small investment help a high-growth company?
A: By making a small investment, SNAPP investors become shareholders of the company and thereby increase the shareholder base and public float. Many of the higher-level exchanges, such as the NYSE AMEX or NASDAQ National Markets, have minimum corporate shareholder size requirements of 400-800 public shareholders. Once the company has acquired additional shareholders, they are able to move to a higher-level exchange, thereby increasing the company’s exposure to a larger universe of investors and analyst coverage. These types of moves to higher level exchanges may result in improved market valuations and acceptance.
Nile Capital, LLC Page 14Private and Confidential
Nile Capital, LLC Page 15Private and Confidential
Benefits to Investors/Shareholders: Favorable investment terms for the participating investors at a significant
discount to the public market price of a growth oriented microcap company Risk is mitigated due to a relatively small amount of money invested in each
transaction (up to $5,000) Normally a 6-month lock-up, then shares may be sold at your discretion –
this is NOT a fund, investors manage their own account Nile identifies suitable companies with solid fundamentals, good growth
trajectories, clean balance sheet, good management, reasonable valuation Target to offer one opportunity per month, thus increasing portfolio
diversification – investors are NOT obligated to invest in any of the transactions
Interested investors will need to fill out an accredited investor questionnaire. Please contact Bob Roach (roach@nilecapital.com), Bilal Basrai (bbasrai@nilecapital.com) or your Nile relationship manager
Nile Capital, LLC Page 16Private and Confidential
Benefits to Company Receiving Funds: Over-arching goal is to increase both the company’s shareholder
base and public awareness of the stock Facilitates accredited investor interest and following of a microcap
company Helps to enable a microcap company to qualify for a broader stock
exchange (NASDAQ National/ NYSE AMEX), with hopefully a better reflected share price
Prospects for greater liquidity and increased average daily volume Ability to provide post-transaction, investor relations support Dilution is minimal – typically 7% or less
Interested companies should contact Bob Roach (roach@nilecapital.com), Bilal Basrai (bbasrai@nilecapital.com) or your Nile relationship manager
Nile Capital, LLC Page 17Private and Confidential
Robert G. Roach, Jr.CEO & Managing Directorroach@nilecapital.com
Boston, MA •SNAPP•Venture Capital Opportunities•Acquisitions/roll ups•PIPES•Hedge Fund Marketing•Contract CFO
Graham PhillipsManaging Directorgphillips@nilecapital.com
Los Angeles, CA •Acquisitions/roll ups•PIPES•Later Stage Opportunities•Hedge Fund Marketing•Contract CFO
Mary LeccaVice President &Compliance Officermlecca@nilecapital.com
Boston, MA •Compliance & Operations•Transaction Support
Bilal BasraiVice Presidentbbasrai@nilecapital.com
Chicago, IL •SNAPP Program Manager•PIPES•Equity Lines of Credit
Debra GoundreyVice Presidentdgoundrey@nilecapital.com
New York, NY •Hedge Fund Marketing•Acquisitions/roll ups
Henry NoelVice Presidenthnoel@nilecapital.com
Boston, MA •SNAPP•Venture Capital Opportunities•Acquisitions/roll ups•PIPES
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