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MACH7 TECHNOLOGIES LIMITED — Investor Presentation 2007
Nov 6, 2007
65285_rns_2007-11-06_12187085-3805-47ba-a403-b0e5e8bec757.pdf
Investor Presentation
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INVESTOR PRESENTATION
John Riemelmoser
CEO
November 2007
A company focused on developing and marketing a unique range of Safety Products led by its flagship – SecureTouch™ retractable safety syringe
Founded in 2001 by CEO, John Riemelmoser and listed on ASX in November 2005
Two acquisitions completed in early 2007:
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ProControl Systems in February 2007
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Bagot Press in May 2007
Mission
SafetyMed aims to be a global medical and health products developer, manufacturer and distributor, initially through commercialisation of its retractable syringe
Safety Medical Products Group
SafetyMed
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Development and commercialisation of innovative medical products
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Production & sales of SecureTouch™ retractable safety syringe commenced
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Direct sales for AU & NZ
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Agreement with Exelint of USA for international sales
Bagot Press
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Leading provider of printing and consumables to pharmacies
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Customer base of >2,000 pharmacies
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FY08 revenue projected to be $3.0–3.5m
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Selling SecureTouch™ & other SafetyMed products
ProControl
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Control systems and automation engineering company
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Customer base includes large & small industrial companies
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Designed & built SecureTouch™ assembly machine
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FY08 revenue projected to be $1.5– 2.0m
Highlights
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Development complete of the Company’s first full Retractable Safety Syringe, SecureTouch™.
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Australian and European Manufacturing and Sales Certifications granted.
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Production, Sales and distribution agreement in place with Exelint of USA.
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Production and sales commenced in October 2007.
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Low cost products.
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Recent value add acquisitions.
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Vertically integrated medical products company.
Safety Medical Products Limited is a developer and producer of a range of innovative products for the wholesale and retail medical sector.
Since listing in late 2005, SafetyMed has undergone a period of strong growth through a combination of reaching product development milestones, complementary acquisitions and distribution agreements.
| Capital Structure | |
|---|---|
| Shares | Total |
| 73321072 | |
| 31/12/2008 $0.20 Options | 20107150 |
| 31/12/2010 $1.00 Options | 35394800 |
| Average Daily Volume (3 months) | 39276 |
| 52-week High/Low | $1.48/$0.11 |
| Share Price 1/11/2007 | 0.345 |
Executive Chairman Mr John Darley
Managing Director and CEO Mr John Riemelmoser Non-Executive Director Dr Joseph Nicholas MB BS (UNSW) Chief Financial Officer Mr Tony Mitchell Company Secretary & Legal Counsel Mr Bruce Hocking LLB
Medical Advisory Board Mr Bruce Hocking LLB (Chairman)
Dr John A Cross MBBS FAFOM GDPH Mr Fred Boswell BSc. Dr Paul Russell MB BS
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Company’s primary objective.
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Development completed with initial production and sales commencing in Oct 2007.
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Only technology to utilise retrofitting process on current standard syringes.
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Advantages:
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Low cost, marginally higher than standard syringe;
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Expandable to full range of sizes;
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Easily adaptable and transportable manufacturing system.
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Exel International strategic alliance to provide access to manufacturing facilities and distribution to overseas markets.
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Sleeve and Locking Mechanism is owned with patent pending by SafetyMed.
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TGA and CE Certifications.
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US based medical products Company.
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Distribution network across US, Japan, Germany and UK.
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Strategic alliance to manufacture and distribute SafetyMed’s SecureTouch™ Retractable syringes.
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Committed to sales of 75 million units over initial two years;
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Sales commitment increasing by 10% per year for five years.
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Initial agreement for a period of five years, with an option of two further five year periods, each exercisable at SafetyMed’s discretion.
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International Production to be based in Seoul, South Korea.
SafetyMed will receive a royalty of USD$0.0135 per unit from the Exel JV.
| Year | Indicative JV Forecasts Units Sold Gross Royalty Revenue USD |
Gross Royalty Revenue AUD |
||
|---|---|---|---|---|
| 2008 2009 2010 2011 2012 |
25,000,000 $343,750 50,000,000 $687,500 55,000,000 $756,250 60,500,000 $831,875 66,550,000 $915,063 |
$381,944 $763,889 $840,278 $924,306 $1,016,736 |
Exchange Rate = AUD$0.90
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Sales in Australia are forecasted to reach 15 million units in 2008, generating revenue in the order of $2.5m at gross margin of approximately 30%.
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Federal Government funded clean needle program first key –
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Australian market opportunity 50m units per annum.
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Capacity of existing assembly equipment is approximately 3 million units per month.
SecureTouch™ Certification
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TGA Certification for the supply and sale of the SecureTouch™Retractable Safety Syringe in Australia.
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The Company received its Australian Conformity Assessment Certification for the manufacturers of Retractable Syringes in Australia.
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Only certified Company to manufacture Retractable Syringes in Australia.
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CE Marking Certification for sales into 27 countries of the European Union granted.
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Successfully demonstrated compliance to ISO 13485:2003, the International Harmonised Quality System Standard for Medical Device Manufactures
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Recognises highest quality standards for production, warehousing, traceability and documentation procedures.
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In September SafetyMed announced a 1 for 10 pro-rata non-renounceable rights issue to raise approximately $1.9 million.
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Issue Price of $0.28
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Attaching 1 for 2 Bonus Option with strike price $1.00 expiring 31/12/2010
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A total of 1,948,833 rights were taken up, raising approximately $545,673, with 40% of existing shareholders participating
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Under subscriptions totalled 5,142,054 shares
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Currently placing shortfall to interested parties, of which approximately 800,000 shares have been placed or committed to:
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Brokerage fee of 5% applicable
• Net proceeds from the Rights Issue used as working capital to finance costs associated with the commencement of full scale production and commercialisation of the Company’s SecureTouch™ syringe.
Product Development Timeline
May 2007 June 2007 Oct 2007 Nov/Dec 2007 Jan 2008 TBC
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Aims to be a world leader in rapidly growing industry:
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Government regulations changed to promote and enforce the use of safety syringes.
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Expected cheapest products on the market:
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Australian Conformity Assessment Certification: Only company certified to manufacture Retractable Syringes in Australia
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™
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SecureTouch automated assembly plant completed with initial production commenced in Oct 2007 and full production in early 2008.
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Development of other products and assembly systems accelerated due to recent acquisitions.
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Good position to capitalise on growth opportunities.
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Knowledgeable and experienced Board.