Magnetic North Acquisition Corp. · TSXV:MNC
Magnetic North Acquisition — Investor Presentation (August 2022)
34 slides from Magnetic North Acquisition's investor presentation, August 2022
Slide 1: Creating Value by Adding Capital and Active Management from Investment to Exit
Creating Value by Adding Capital and Active Management from Investment to Exit
Slide 2: Capital alone does not solve business problems – People do
“Capital alone does not solve business problems – People do.”
Slide 3: History
History Since 2013, MagneticNorth Acquisition Corp. (“MagneticNorth”) has been M in the business of actively working with companies that have various needs, including capital and management. Our expertise is finding and improving companies that are close to cash flow positive, lacking some managemen
Slide 4: Our Business
ACQUISITION CORP Our Business
Slide 5: Magnetic North – A Unique Opportunity
Magnetic North – A Unique Opportunity Invest in private businesses with solid business models that can M generate exceptional returns with calculated risk Invest in high-growth opportunities that provide significant N ”torque” in cash flow growth Experienced management team that are deeply involved
Slide 6: Magnetic North – Investment Strategy
Magnetic North – Investment Strategy M Investing in/or acquiring companies that: • Show potential to build value from under $5 million to over $100 million; N • ESG opportunities = better business and valuation • Require capital to accelerate growth; • Have a clear path to generate positive cash flo
Slide 7: Magnetic North Business Model
Magnetic North Business Model Focused on Applying the Original VC/PE model by: • Providing a team of professionals highly experienced in: • Finance • Marketing and Communications • Operations • Strategy • Concentrating on select deals that meet our investment strategy; • Reducing risk through divers
Slide 8: Management and Board
ACQUISITION CORP Management and Board
Slide 9: Magnetic North Management Team
Magnetic North Management Team Andrew Osis • 20+ years of experience working in investment banking and commercial Co-CEO & Director operations. • Formerly VP, Global Banking with RBC Dominion Securities; also held positions with Peters & Co. and Newcrest Capital focusing on mergers and acquisitions,
Slide 10: Management Team Continued
Management Team Continued Cindy Davis • Ms. Davis has worked as CFO to a variety of companies as an independent CFO contractor, and was previously CFO of Magnetic North in 2019/2020. • Chartered Professional Accountant Stephen McCormick • Senior executive with over twenty years of experience across
Slide 11: Magnetic North Board of Directors
Magnetic North Board of Directors Ian Wild • Former Executive VP at ATB Corporate Financial Services. Executive Chairman • Experience in banking spans over 30 years; began working for National Westminster Bank Ltd. in the U.K., and after immigrating to Canada began working for Continental Bank of Ca
Slide 12: Additional Management Resources
Additional Management Resources The Magnetic Management team and Board have sufficient experience and knowledge to support investee companies. However; those skills experience and capacity will be extended by bringing in additional resources for each Company. Those resources may be engaged by Magnet
Slide 13: Portfolio Companies
ACQUISITION CORP Portfolio Companies
Slide 14: Portfolio Overview
Portfolio Overview MagneticNorth has a portfolio of companies that have a solid business plan and are on-track for phenomenal growth. Investment Industry Post-Investment Ownership Previcare Anti microbial technology 32% CXTL Recycling Canada Corp Plastic and Ewaste Recycling 50% Other Investments Ma
Slide 15: Previcare
Previcare Healthcare company focused on the research, development, sales, and marketing of industry leading hard surface disinfectant and hand sanitizing products. They serve retail consumers, wholesalers, and institutional clients, and government agencies worldwide. MNAC currently owns 32% of Previ
Slide 16: Previcare - Overview
Previcare - Overview • Since 2017, MNAC has been working with Previcare to bring bespoke chemical solutions to market that are focused on next generation hard-surface disinfectant and hand sanitizer offerings. • Early focus was on in-licensed and internally developed intellectual property that vastl
Slide 17: Previcare - Disinfectant
Previcare - Disinfectant Previcare offers the following hard-surface disinfectant products: • GR-AD Pro Disinfectant Solutions • Residual Kill Technology – eliminates pathogens from hard surfaces for up to 30 days. • CAx Disinfectants • Late January 2021, President Biden signed an Executive Order fo
Slide 18: Previcare - Sanitizer
Previcare - Sanitizer Previcare offers the following hand sanitizer products: • AllDay Hand Sanitizers • Residual Kill Technology – eliminates pathogens for up to 24 hours when applied! • Sopuro Hand Sanitizers • 70% Alcohol based sanitizer with aloe vera for dry skin protection available in three s
Slide 19: Previcare - Advantage
Previcare - Advantage Since its inception, Previcare has focused on using trusted ingredients, proprietary additives and unique processing to increase cleaning power and length of time the formulas remain active on surfaces and skin – providing residual kill technology to both: • Alcohol - Previcare
Slide 20: Previcare - COVID
Previcare - COVID • COVID brought with it much opportunity, while at the same time, much confusion in the sanitizer & disinfectant markets. • Early stages saw daily changes to regulatory requirements leaving customers frustrated; • Alcohol vs BZK, minimum % alcohol, supply chain issues, etc. • In re
Slide 21: Previcare - PPE
Previcare - PPE • In March of 2020, Previcare began assisting its clients in securing PPE in order to help protect their stakeholders, including but not limited to; • Masks (all levels) • Medical gloves • Test kits • Therapeutics • Previcare, alongside the rest of society, became concerned with the
Slide 22: Previcare – Compostable Masks
Previcare – Compostable Masks • Previcare entered a partnership to manufacture compostable masks in North America for its customers. • Initial production is currently ramping to 350,000 boxes (17.5M masks) per month. • In order to meet initial customer demand, Previcare is targeting production and d
Slide 23: FoamTech
ACQUISITION CORP FOAMTECH
Slide 24: FoamTech
FoamTech FoamTech was formed in 2009 as exclusive manufacturer and distributor of over 20 different types of FoamTech Products. • FoamTech’s AluFoam and AluStone • Porous foam structure for energy products have undergone rigorous testing absorbent efficiency to demonstrate their soundproofing, non-
Slide 25: FoamTech – Investment Highlights
FoamTech – Investment Highlights Steel, Petro-Chemical, and Other Vessels,Vehicle and Plants Railroad Aluminum Foam Applications Civil Engineeringand Military and Construction Defense Living and KitchenFurniture Other Industrial Materials Applications
Slide 26: CXTL Recycling
ACQUISITION CORP CXTL RECYCLING
Slide 27: CXTL Recycling Canada Corp - Introduction
CXTL Recycling Canada Corp - Introduction CXTL was co-founded by Magnetic and the inventor to create a company that can enable a circular economy by completely recycling and reclaiming all plastics in a profitable and environmentally conscious way. Over 90 per cent of plastics end up incinerated, or
Slide 28: EPA quote on circuit boards and metal content
U.S. Environmental Protection Agency (EPA) says, “One metric ton of circuit boards can contain 40 to 800 times the amount of gold and 30 to 40 times the amount of copper mined from one metric ton of ore in the United States.”
Slide 29: Next Steps
NEXT STEPS: • Magnetic is currently re-evaluating the CXTL business plan. • COVID and supply chain issues created major issues with sourcing materials for the facility. • Economics and funding are currently being reassessed. • Decision to be made late in the first quarter
Slide 30: Equity Structure
ACQUISITION CORP EQUITY STRUCTURE
Slide 31: Equity Structure
Equity Structure Preferred A Shares • Senior most security in the Company • Principal (face value) ranks first in any liquidation or wind up which provides some protection for investors • Preferred Shares are redeemable in 2026 • Three streams of income for investors • Regular dividend to be restart
Slide 32: Participating Preferred – Illustrative
Participating Preferred – Illustrative Example Magnetic North Acquisition Corp. (“MNAC”) 1. Magnetic North invests $5 mm in invests $5 mm into Portfolio Company A. Company A 2. MNAC sells all of its shares of Portfolio Company A for $55 mm cash • $55 mm sale price less the $5 mm initial Portfolio in
Slide 33: Market Capitalization
Market Capitalization Capitalization • Magnetic North has 59.05 Total Common Shares (mm) 59.05 m m Common shares, Last trading price ($/shr) $0.175 1,712,927 Preferred A shares Market Capitalization ($mm) $10.33 and no debt. Total Preferred A Shares (mm) 1.71 Price ($/shr) $7.00 • Both the Common an
Slide 34: Contact
Contact Stephen McCormick Vice President – Capital Markets stephen@magneticnac.com
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