may 2015. about the company international patents have been granted on a platform implant technology...

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Page 1: May 2015. About The Company International patents have been granted on a platform implant technology that addresses three markets: The global dental implants

May 2015

Page 2: May 2015. About The Company International patents have been granted on a platform implant technology that addresses three markets: The global dental implants

About The Company

International patents have been granted on a platform implant technology that addresses three markets:

The global dental implants market is forecasted to grow at 6% (CAGR) from $3.2 billion in 2010 to $4.2 billion in 2015 (Sandler Research, Nov., 2010).

The Global Dental Implants MarketThe Global Orthopaedic Implant Market

Veterinary Implantology

Page 3: May 2015. About The Company International patents have been granted on a platform implant technology that addresses three markets: The global dental implants

Stemmed Implant Technology (SIT)

A life sciences product development company that identifies, develops and adds value to a diverse portfolio of promising and innovative implant products.

Product # 1 – SIT dental implants and placement system .

Page 4: May 2015. About The Company International patents have been granted on a platform implant technology that addresses three markets: The global dental implants
Page 5: May 2015. About The Company International patents have been granted on a platform implant technology that addresses three markets: The global dental implants

Value Proposition – Dental Implant

SIT Implant Current Implant

• Uses existing comparable metals• Less prone to failure (double

stem)• Lower Cost• No damage to bone (no cutting

or crushing)• Angled rings simplify insertion

and fixation• Superior in resisting torque

(turning)• Removes less tissue • Easily Installed / single

precision placement• Enhanced opportunity for

dentists (GP’s)

• Prone to failure (falling out)

• Rotates due to single post• High costs of screw

implants• Complex process for

dentists (GP’s)• Lengthy patient waiting

time

(Double Stem design)

(Single post design)

Page 6: May 2015. About The Company International patents have been granted on a platform implant technology that addresses three markets: The global dental implants

Mal-positioned implants with implant axis tilted severely lingually (British Dental Journal )

Page 7: May 2015. About The Company International patents have been granted on a platform implant technology that addresses three markets: The global dental implants

Market Needs and Assessment

- Only screw-less implant

- Professionals concur quick adaptability rate

- Greater profit margin for practitioners and manufacturers / distributors

- Improved patient outcomes and recovery

- Savings in procedure costs and time

- Game-changing lead product

- Aging population boosting market

- Rising awareness for oral health and improved dental treatments

- Growth rate of 6-20% globally (Sandler report)

- Rising edentulous population worldwide

- Patents issued in six countries - Short time to market (minimal

clinical trials) - Certified Health Canada

manufacturer ) in place with metal specifications

- Extension / replacement of current product line for Manufacturers and Distributors (Big Four hold > 60% of market) or new

- Bone implants patents can be used for a family of products, procedures, and processes for the Orthopaedic and Veterinary markets

- Tooth restoration market under-penetrated globally

- Increased practitioner usage = revenues

Competitive Advantage Growth Market

Limited Entry Barriers

Market Expansion

Page 8: May 2015. About The Company International patents have been granted on a platform implant technology that addresses three markets: The global dental implants

Funding Requirements and Uses

Uses of Funds *

Clinical (Trials & Strategy)

Intellectual Property

Regulatory

Engineering (Prototype)

Research & Development

Salaries & Benefits **

General & Administration

Consulting

Fees & CAPEX

• Funding to Q4 – 2015, all other costs offset by cash flows from future revenues** Consists of 5 personnel at average $132K per annum (base)

Funding Amount:

$3.77 million total equity funding sought

Ideally in tranches of $500K to $1.0M from each investor to coincide with cash flow timing.

Partial funding from warrants exercised Residual funding by non-dilutive

government grants

Means: Preferred Shares (convertible) with

common share purchase warrants @ $10.00 per share

Warrants – 2 common shares for each Preferred share @ $7.50 per share

Warrants are detachable and transferrable Bonus Shares – 1 common share for each

Preferred Bonus Shares – 1 common share for each

warrant exercised and common share purchased

Page 9: May 2015. About The Company International patents have been granted on a platform implant technology that addresses three markets: The global dental implants

Critical Path

Financing

Pilot Clinical, 20 patients

Regulatory Pre-Submission / Meetings

Clinical Trials

Regulatory Submissions / Approval

Q1-Q4 2014 Q2-Q3 2015| Q4 2015 Q1 2016 - Q4 2016 Q4 2016 CanadaQ2 2017 FDA

* Licensing discussions begin Q2 2016

Page 10: May 2015. About The Company International patents have been granted on a platform implant technology that addresses three markets: The global dental implants

Projected ROI & Exit Strategy

(000’s)Preferre

dWarrant

s* Total

Investment Dollars $500 $375 $875

Year 3 – Dividends ** 763 763 1,526

Year 4 - Dividends 536 536 1,072

Year 5 - Dividends 209 209 418

Year 5 – Capital Appreciation 4,076 4,076 8,156

TOTAL 5,666 5,586 11,252

IRR% 74.7% 83.71% 78.8%

Multiple 11.3X 14.9X 12.9X

Payback (in years) 2.75 2.75 2.75

% ownership 6.6% 6.6% 13.2%

Return on Investment

NPV of $47.7M (independent valuation) <upon regulatory approval>

Projected Value per share of $40.78 (on regulatory approval )

Possible IPO in five years

Possible divesting of whole company or just dental asset as development continues on the orthopaedic and veterinary applications

* Assumes 50% of warrant shares exercised** Anticipated distribution of Licensing revenues

Page 11: May 2015. About The Company International patents have been granted on a platform implant technology that addresses three markets: The global dental implants

Professional Team

Management Team

Christopher Ostrovski, President & CEO

Dr. Michael Lococo, Director Innovation

Doug McNaughton, CFO Martin Lococo, Director Marketing

& Sales Diane Kalina, Director Licensing

Corporate Consultants Dr. Scott Proctor - PG Business

Growth Advisors and Certified Public Accounts, LLC

Wendy Hill - GAP Strategies

Daryl Wisdahl – EMERGO Group

Diane Kalina – BioCatalyst Yorkton Ltd.

Bonnie Loubert – Loubert Brown Consulting

Scientific Advisors Dr. Emmanuel Rajczak, DDS

Dr. Greg Wohl, Ph.D. – Biomedical Engineering, McMaster University

Dr. Karl Stobbe, M.D., Regional Assistant Dean, Michael G. DeGroote, School of Medicine, McMaster University

Dr. Robert Josefchak – Orthopaedic Surgeon, McMaster University

Corporate Advisors Gowling, Henderson, LeFluer

(Patents)

Berreskin & Parr - patents

Gardiner-Roberts LLP (Corporate Attorneys)

Deloitte Touche – (Auditors)

Randy Gillen - Licensing

Page 12: May 2015. About The Company International patents have been granted on a platform implant technology that addresses three markets: The global dental implants

Contact information

• Christopher Ostrovski, President & CEO [email protected]

Tel. 416.626.1835 ( Canada )

• Douglas McNaughton, CFO

[email protected]

Tel. 289.213.8886 ( Canada )

• www.stemmedimplant.com