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Ib2 c due diligence report
1. DUE DILIGENCE REPORT
Benjamin J. Garber
18 November 2010
Prepared for BlueTree Capital Group | BlueTree Allied Angels
2. Due Diligence Team
Kirk Vincent
David Charlton
Dwayne Bucko
Jenny Karlsson
Jason Matzus
Ben Garber
3. Company
Intimate Bridge 2 Conception (Ib2C) is a
medical device company focused on fertility
Initial sales driven online and through
infomercials
Ib2C is hoping to raise $1.5MM this round
CEO, Steve Bollinger
Market Advisors, Messrs. Swenson & Tovian
Medical Advisors, Drs. Pelekanos & Hoffman
Legal Advisors, Foley Hoad LLP
4. Company
Intimate Bridge 2 Conception (Ib2C) is a
medical device company focused on fertility
Initial sales driven online and through
infomercials
Ib2C is hoping to raise $1.5MM this round
CEO, Steve Bollinger
NO FEMALE PRO DUCT O R MARKET
ADVISO RS
5. Product
Focus Touch Kit is a cervical cap devise
featuring a unique delivery method
6. Key Considerations
No indication of market acceptance
No prototype or claim of product efficacy
No Freedom to Operate Study
Large market potential
Few competitors
7. Problem
7.3MM women in the U.S. and 100MM+
worldwide having trouble conceiving
1.2MM in the U.S. are actively seeking
assistance
Existing IUI and IVF treatments are costly,
invasive, uncomfortable, and unnatural
8. Solution
The Focus Touch Kit is:
Inexpensive at $80 (IUI is $2k and IVF is$20k)
Do-it-yourself low technology devise; no surgery
Used within the privacy of your own home
Reduces stress associated with conception
Hormone free utilizing natural mechanical
techniques
9. Sales
BlueTree investment will primarily be allocated
to product and strategy refinement and initial
marketing efforts
Internet search marketing powered by
GoogleAdwords... later social media, Yahoo,
Bing
Infomercials supported by GoogleTV
10. Sales
BlueTree investment will primarily be allocated
to product and strategy refinement and initial
marketing efforts
Internet search marketing powered by
GoogleAdwords... later social media, Yahoo,
Bing
Infomercials supported by GoogleTV
$4.2MMmarketing expense budgeted forfirst
200,000 unit sales represents the lowerbound
11. Forecasts
Pending 510(k) approval in Q3 2011
25,500 units IN Q3/Q4 2011 (6,375
customers) for revenue of $2.04MM
$12.5MM in 2012 to $22.5MM in 2013
OTC and international launch
12. Forecasts
Pending 510(k) approval in Q3 2011
25,500 units IN Q3/Q4 2011 (6,375
customers) for revenue of $2.04MM
$12.5MM in 2012 to $22.5MM in 2013
OTC and international launch
Riskthat sales will not accelerate as
anticipated and Ib2C will need additional
capital potentially diluting BlueTree’s interest
13. Document Review
Terms offered to BlueTree are same as PLSG
including convertible promissory note and
warrants
Received $200k from IW and $275k from PLSG
If the company sells for $20MM, PLSG would
receive $1.55MM for it’s $275k in notes
PLSG conversion to 450k or 580k shares
based on $4.5MM and $2.5MM valuations