In the Pipeline is a company whose strengths lie in identification, development and promotion of innovative products. The management team has proven their ability to rapidly evolve a new product from the conception of the idea to commercialization.
The company's launch product is Snapfix, a long awaited solution to the often difficult repair, redesign and installation of PVC pipe. Snapfix provides both cost savings and increased efficiency.
In the Pipeline's competitive advantages lie in the identification and marketing of commercially viable new products. For commercialization of Snapfix, In the Pipeline requires access to an established manufacturing base and distribution network. An incorporated joint venture will allow In the Pipeline to merge these competitive advantages with a company whose complementary strengths lie in plastics manufacturing and distribution.
The demand for Snapfix is derived from the demand for PVC pipe which represents an enormous market. Based on modest market penetration rates, sales revenues are expected to be $2.4 million in 1998, growing to $23.3 in 2002. Net present value of the cash flows during 1998-2002 is $6.9 million when discounted at 40% and with an IRR of 157%. In the worst case scenario, sales grow from $1.4 million in 1998 to $11.9 million in 2002, with NPV of $3.1 million when discounted at 40% and with an IRR of 94%.
In the Pipeline offers to the investor a five year convertible note of $500,000 and a coupon rate of 35%; interest paid quarterly. The note holder has the option to convert by 30 June 2000 for 25% equity in ITP. Upon conversion, the note holders investment will yield an IRR of 89% and an NPV of $2.1 million.
In the Pipeline is offering you an opportunity to become involved in an innovative, exciting and highly profitable venture.
|In the Pipeline|
|Table of Contents||Appendices|
1. Executive Summary|
2. Company & Product
4. Operational Plan
5. Financial Plan
6. Offer to Investors
|The information and ideas herein are the confidential,|
proprietary, sole, and exclusive property of the company's founders.