9 Meters Biopharma, Inc. · OTC:NMTRQ
9 Meters Biopharma — Monster Digital — IPO Roadshow (June 2016)
44 slides from 9 Meters Biopharma's IPO roadshow presentation, Jun 7, 2016
Slide 1: Initial Public Offering Presentation
Filed Pursuant to Rule 433 of the Securities Act of 1933 Issuer Free Writing Prospectus dated June 7, 2016 Registration No. 333-207938 INITIAL PUBLIC OFFERING PRESENTATION
Slide 2: Forward Looking & Free Writing Prospectus Statements
This presentation contains “forward - looking statements.” Forward - looking statements reflect our current view about future events. When used in this presentation the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar express
Slide 3: About Us
[ 3 ] We develop, market, and distribute Monster branded products for use in high - performance consumer electronics, mobile products and computing applications. ABOUT US
Slide 4: Turning Around Monster Digital
[ 4 ] NEW MANAGEMENT TEAM Chairman & CEO, Special Advisor to the CEO, CFO, Executive VP Sales & Marketing, VP Operations CREATION OF INDEPENDENT BOARD OF DIRECTORS Skill sets to be “Value Added” TURNING AROUND MONSTER DIGITAL REVISED BUSINESS PLAN DESIGNED TO IMMEDIATELY INCREASE SALES AND OPERATING
Slide 5: Management Team
NAME EXPERIENCE DAVID CLARKE Chairman/ CEO/President and Director ▪ CEO ,GSB Holdings, Inc., Privately held ▪ Chairman/CEO/ Director United Pacific Resources, Inc. Industries, Ltd, listed Hong Kong stock exchange ▪ Chairman/CEO, Director J Jacuzzi Brands, Listed NYSE JON ORBAN Sr. Advisor to the Cha
Slide 6: Independent Board Members
NAME EXPERIENCE JONATHAN CLARK Director Nominee ▪ CEO, President, Priority Posting and Publishing, Inc. ▪ Past President, CEO Sundance Spas, Inc. ROBERT MACHINIST Director Nominee ▪ Chairman, CIFC Corp. ▪ Chairman, Board of Directors, MESA ▪ Board of Directors, United Pacific Industries ▪ Board of D
Slide 7: A Simple Turnaround Plan
[ 7 ] • Drive sales of current and continuously introduce new, value added products. • Increase gross profit margin. • Shift in product mix to new, higher margin products • Historically s everely constrained by a lack of working capital • Reduce SG&A as a percentage of Sales. A SIMPLE TURNAROUND PLA
Slide 8: Key Investment Highlights
[ 8 ] ▪ Monster, Inc. owns 10% of the company, enabling utilization of sales, marketing and distribution channels on a global basis ▪ The Monster brand is globally recognized for its high quality audio video products ▪ Ability to quickly develop products which satisfy existing and emerging consumer
Slide 9: Sales and Marketing
[ 9 ] SALES AND MARKETING Neal Bobrick
Slide 10: Vision
[ 10 ] Offer products with high growth potential while combining performance, reliability and functionality at competitive prices that address identifiable market trends VISION
Slide 11: Premium Product Strategy
[ 11 ] PREMIUM PRODUCT STRATEGY High Growth, Branded, Premium Products, at Competitive Price MONSTER Higher Priced Competition
Slide 12: Sales and Marketing Strategy
[ 12 ] SALES AND MARKETING STRATEGY TRENDS MANUFACTURING GLOBAL DISTRIBUTION MONSTER BRAND MARKETING
Slide 13: Trends
[ 13 ] TRENDS TRENDS MANUFACTURING GLOBAL DISTRIBUTION MONSTER BRAND MARKETING
Slide 14: Riding the Trends
▪ Popularity and growth of social networking driving current and proposed product lines ▪ Internet - based applications driving demand for digital content, storage and distribution ▪ Technological advances leading to more cost effective and higher end products RIDING THE TRENDS [ 14 ]
Slide 15: Global Action Camera Market Growth
AN EXAMPLE: GLOBAL ACTION CAMERA MARKET GROWTH PROJECTED CAGR OF 23.0% THROUGH 2019 $1.99 billion 42% 2014 7.63 million units [ 15 ] $5.72 billion 21.5 million units 2019 Projection Source: Technavio Insights/Global Action Camera Market Study 2015 - 2019
Slide 16: Monster Brand
[ 16 ] MONSTER BRAND TRENDS MANUFACTURING MARKETING MONSTER BRAND GLOBAL DISTRIBUTION
Slide 17: Power of the Monster Brand
[ 17 ] ▪ Monster, Inc. ( www.monsterproducts.com ) founded in 1979 by Noel Lee, a design engineer, audiophile and professional drummer. ▪ Over its 35 year history, has created a highly recognized brand for high quality audio - video products. ▪ Launched Beats Brand headphone in partnership with Dr.
Slide 18: Monster License Agreement
[ 18 ] MONSTER LICENSE AGREEMENT ▪ Monster, Inc. and Noel Lee collectively own 13% of Monster Digital ▪ Right to use “Monster Digital, Inc.” as a corporate name ▪ Licensing of the Monster trademark for a term of 25 years covering a variety of products in exchange for: Years Minimum Quarterly Royalty
Slide 19: Manufacturing
[ 19 ] MANUFACTURING TRENDS MARKETING MONSTER BRAND MANUFACTURING GLOBAL DISTRIBUTION
Slide 20: Manufacturing
[ 20 ] MANUFACTURING ▪ Subcontract manufacturers and suppliers ▪ Rapidly develop and cost effectively bring our products to market ▪ Asian suppliers have extensive experience in engineering and manufacturing ▪ Capitalize on the opportunity on a world - wide basis through global marketing and distrib
Slide 21: Marketing
[ 21 ] MARKETING TRENDS MONSTER BRAND MANUFACTURING MARKETING GLOBAL DISTRIBUTION
Slide 22: Global Marketing
[ 22 ] GLOBAL MARKETING Support of all retailers marketing and display requirements
Slide 23: Distribution
[ 23 ] DISTRIBUTION TRENDS MONSTER BRAND MANUFACTURING MARKETING GLOBAL DISTRIBUTION
Slide 24: Distribution
DISTRIBUTION [ 24 ] ▪ Leverage Monster, Inc.’s substantial retail and distribution channels ▪ Utilize the broad distribution channels developed for sale of memory storage devices ▪ 15,000 locations globally ▪ Accelerate international growth
Slide 25: Selected Customers as of 3/31/16
SELECTED CUSTOMERS AS OF 3/31/16 [ 25 ] DOMESTIC INTERNATIONAL Rite Aid Syncro (France) Sam’s Club ADL Fry’s Selfridges InMotion LeClerk
Slide 26: Camera Initiatives with Significant 2nd Half 2016 Potential
CAMERA INTIATIVES WITH SIGNIFICANT 2 nd HALF 2016 POTENTIAL [ 26 ] Sam’s Club Current 90 day test in 100 Stores Toy’s R Us In 600 stores with 720p Wireless Channel 150 store test of Go Wireless with 1080p
Slide 27: Current Product Lines
Wireless Streaming Internal & External Solid State Drives Action Sport Cameras iPhone and Android External Memory Consumer Memory CURRENT PRODUCT LINES [ 27 ]
Slide 28: ha MONSTER’
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Slide 29: The All-Inclusive Action Sport Camera
Includes ▪ 32GB microSD Card ▪ 15+ piece accessories/mounts Everything you need in one box! THE “ALL - INCLUSIVE” ACTION SPORT CAMERA [ 29 ]
Slide 30: Value in Our Initial 1080 Camera
Monster Vision 1080p 1080p Camera $129.99 2” LCD Screen Yes 32GB Memory Card Included Bar Mount Included Floats in Water Yes Replaceable Battery Yes Standard Tripod Compatible Yes Removable H20 Proof Housing Yes MSRP $129.99 Monster Digital Delivers an Incredible Value And Has Some Monster Advantage
Slide 31: A Full Line of Action Sports Cameras
Monster Vision HD Monster Vision 360 Lens count 1 1 Field of view 120 ° 190 ° Video resolution 720x1280/30 1440x1920/30 Sensor 5MP 8MP Display 1.7” color viewfinder 1” status App No Yes Replaceable battery Yes Yes Battery capacity 400mAh 1000mAh MSRP $79.95 $279.95 A FULL LINE OF ACTION SPORTS CAMER
Slide 32: iX32 Memory for iPhone and iPad
Instantly Add 32GB of Memory to iPod, iPhone, iPad ▪ Take more of movies, photos and music with you ▪ Backup, transfer, and share files ▪ No cable, computer or WiFi necessary iX32 MEMORY FOR iPHONE AND iPAD [ 32 ]
Slide 33: iX32 Memory for iPhone and iPad
iX32 MEMORY FOR iPHONE AND iPAD Available Now [ 33 ]
Slide 34: The Memory Cable
What you can do • Instantly add up to 128GB of space for Videos, Photos, Music and more • Backup contacts, calendars • Play music files and audio recordings • Play popular video file types • Access Dropbox • Optional password/fingerprint access Features • Light and compact design • Slim connector fi
Slide 35: Growth Strategy
[ 35 ] GROWTH STRATEGY Continue to offer synergistic products addressing identifiable market trends 1. 2. Accelerate international growth 3. Continue to leverage brand awareness 4. Continue to leverage the Monster Brand distribution network
Slide 36: Financials
MONSTER’ FINANCIALS David Olert
Slide 37: Past Performance Is Not Necessarily Indicative of Future Results
[ 37 ] PAST PERFORMANCE IS NOT NECESSARILY INDICITVE OF FUTURE RESULTS
Slide 38: Anticipated Growth in Sales
[ 38 ] ANTICIPATED GROWTH IN SALES • Recent introduction of full line consisting of 3 SKUs of Cameras for the multi billion Action Sports Camera Market. • Other line & product extensions under development. • Hiring of new sales team. • Commencement of domestic pilot distribution programs with the go
Slide 39: Anticipated Increase in Gross Margin
[ 39 ] ANTICIPATED INCREASE IN GROSS MARGIN • Shift in product from lower margin Memory Storage production to higher margin Action Sports Cameras • Launch of new products • Availability of Working Capital Expected Drivers
Slide 40: Capitalization
CAPITALIZATION [ 40 ] ($ thousands) ACTUAL AS ADJUSTED** CASH $ 42 $ 12,975 WORKING CAPITAL $(10,392) $ 7,060 TOTAL ASSETS $4,314 $ 16,049 TOTAL EQUITY $(7,017) $ 9,237 ** As adjusted column gives effect to the sale of 2,500,000 shares in this offering at an assumed initial public offering pri ce of
Slide 41: Cap Table
CAP TABLE [ 41 ] Common Shares 3,975,000 Shares to be issued upon conversions immediately prior to the Offering 1,589,072 Total Pre - Offering shares Outstanding 5,564,072 Shares to be Issued in the Offering 2,500,000 Shares Outstanding after the Offering 8,064,072 Warrants Outstanding 344,599 (1) O
Slide 42: Offering Summary
ISSUER Monster Digital, Inc. SECURITIES OFFERED 2,500,000 shares and 2,500,000 warrants OFFERING RANGE: $4.50 - $6.00 LISTING NASDAQ Capital Market: MSDI – Commons MSDIW - Warrants ANTICIPATED GROSS PROCEEDS: $11.25 - $15.0 Million USE OF PROCEEDS Working capital and general corporate purposes inclu
Slide 43: Use of Proceeds
USE OF PROCEEDS [ 43 ] $10,225 Working Capital Primarily consisting of the funding of inventory and the hiring of additional marketing and sales personnel and for other general corporate purposes, ($ in thousands) Monster License Payment $375
Slide 44: Key Investment Highlights
[ 44 ] ▪ Monster, Inc. owns 10% of the company , enabling utilization of sales, marketing and distribution channels on a global basis ▪ The Monster brand is globally recognized for its high quality audio video products ▪ Ability to quickly develop products which satisfy existing and emerging consume