for investment information contact: roland nadon · for investment information contact: roland...
TRANSCRIPT
For Investment Information contact:
ROLAND NADON [email protected]
1-888-984-8250
www.aquaair247.com
There were over 50
billion bottles of water
sold in the U.S. alone last
year, with an average
growth of 8% annually in
the industry.
WATER is the Foundation of Life
Over 1.2 billion people don’t have access to
clean drinking water.
There were over 3,500 boil water advisories
in Western Canada alone.
We pay more for a bottle of water than we do
for a litre of gas.
WATER is the Foundation of Life
Plastic water bottle waste is
polluting the ocean and
destroying our earth.
300 million tons of plastic waste
is produced globally every year.
We are proactive leaders in
clean water technology.
WATER is the Foundation of Life
Our very unique and exciting technology makes
pure, fresh drinking water from the air and
dispenses it into 550 ml reusable, refillable water
bottles to help save the planet
Simply plug our Aqua machine in and it will
produce up to 50 litres of pure, fresh water every
day, at an average cost of 18 cents per bottle.
Now that’s hard to compare!
Aqua Air 247 has the
SOLUTION
Our objective is to help eliminate the use of PET plastic bottles
that are so damaging to the environment and provide an
alternative, eco-friendly solution.
Aqua Air manufactures and markets specialized Atmospheric
Water Machines (AWM’s), utilizing green technology to produce
pure, fresh potable water by extracting atmospheric water
from both HUMID & DRY climates.
We focus on locations that have water shortages and/or
struggle with contaminated water. We are currently active in
Barbados, Belize, the Cayman Islands, and Canada.
Business Overview
We are also the sole Canadian manufacturer of outdoor
Reverse Osmosis (RO) vending machines. Our RO’s are leading
edge and designed for outdoor use, including cold climates.
Both AWM’s and RO’s can provide alkaline water.
Our business model includes:
Direct sales of AWM’s, RO’s, training, parts, and service
Sale of Distributorships with residual royalties
AWM Lease Program – Aqua Air would retain ownership
RO Program – placement of RO’s, Aqua Air would retain
ownership
We have signed 3 long-term contracts for AWM’s in Barbados.
We are shipping 4 AWM’s to Norwegian Cruise Line in Belize.
We are exploring patent opportunities on new Dry Climate Technology
allowing machines to produce water without a humid environment (IP).
We have ownership of proprietary electronic firmware & software (IP).
We are currently negotiating a master distributorship for the Caribbean
Islands with an estimated value of $1M.
We currently manufacture all our units in Kelowna, BC (Canada).
Achievements to Date
Manufacturing the only outdoor Reverse Osmosis
& Alkaline water machine produced in Canada.
Currently secured long-term contracts with
Lakeview Market, Sunshine Market, and the
Canadian Tire Corporation.
40 additional machines are currently being
manufactured with locations pending.
RO & Alkaline Machine
Research into the atmospheric
water generator industry indicates
the market is projected to reach
$8.4 billion USD by the end of 2024,
with an estimated compound
annual growth rate of 30% during
an 8 year period from 2016-2024.
(Source: Fractovia Market Trending News – January 2017)
Market Trends
U.S. Atmospheric Water Generator Market size,
by application, 2013-2024 (USD Million) –
Source: Global Market Insights, March 2016
We compete with a few companies operating internationally, however,
we are currently not aware of any products with similar features as our
Aqua Air AWM’s in the marketplace.
Other companies primarily focus on the residential consumer market
with a small number selling commercial units. Our AWM’s target the
multi-billion dollar commercial bottled water market. Our machines
have many advantages including:
Competition
water production in a HUMID and DRY climate
a choice of Alkaline or Atmospheric Water
less transport, storage, and on-site handling costs than bottled water
a simple, user-friendly interface with customized programming
a no-spill sensor and dispensing volume system
Aqua Air is offering 18% equity for $2M funding to
implement its business model and is seeking a suitable
investor(s). Minimum subscription is $50,000.
Estimated annual average ROI is 15% Years 1-5 / 45% Year 6 onwards plus capital appreciation
Estimated Gross Revenue Years 1-5 $46.2M / Net Income $8.5M
Investment
Year 1 Year 2 Year 3 Year 4 Year 5 Total
GROSS REVENUE:
Barbados - lease program 156,000 473,988 662,820 927,948 1,193,076 3,413,832
Belize - lease program 77,000 234,000 402,000 582,000 762,000 2,057,000
Cayman Islands - lease program 98,835 370,116 684,396 998,676 1,312,956 3,464,979
RO Program 184,901 836,940 1,931,400 3,219,000 4,506,600 10,678,841
Bottled Water Program - Domestic & Foreign 139,750 430,000 860,000 1,720,000 2,150,000 5,299,750
Direct Product Sales 1,003,838 1,442,000 2,250,550 3,059,100 3,867,650 11,623,138
Distributorship Program 1,051,851 1,506,537 1,948,716 2,390,895 2,833,074 9,731,073
TOTAL 2,712,175 5,293,581 8,739,882 12,897,619 16,625,356 46,268,613
DIRECT COSTS 0 0 0 0 0 0
GROSS PROFIT 2,712,175 5,293,581 8,739,882 12,897,619 16,625,356 46,268,613
EXPENSES 0 0 0 0 0 0
OPERATIONAL INCOME 2,712,175 5,293,581 8,739,882 12,897,619 16,625,356 46,268,613
HEAD OFFICE EXPENSES 560,750 647,100 713,100 743,100 761,100 3,425,150
NET INCOME BEFORE TAX 2,151,425 4,646,481 8,026,782 12,154,519 15,864,256 42,843,463
INCOME TAX 0 0 -237,400 -571,723 -873,402 -1,682,525
NET INCOME -552,331 335,111 1,166,820 2,286,892 3,493,608 6,730,101
FINANCIALS
Aqua Air 247 Inc. - Income Projections
Years 1 - 5 / Nov 2017 - Oct 2022
Year 1 Year 2 Year 3 Year 4 Year 5 Total
Net income -552,331 335,111 1,166,820 2,286,892 3,493,608 6,730,101
Debt retirement - loan #1 0 -130,000 -130,000 -130,000 -390,000
Debt retirement - loan #2 0 0 -100,000 -100,000 -100,000 -300,000
Debt retirement - loan #3 0 0 0 -80,000 -80,000 -160,000
New debt financing - year 3 0 0 500,000 -500,000 0 0
Share issues 1,500,000 500,000 2,000,000
Capital expenditures -Barbados -219,000 -168,000 -210,000 -210,000 -210,000 -1,017,000
Capital expenditures -Belize 210,000 -240,000 -210,000 -210,000 -210,000 -660,000
Capital expenditures -Cayman -192,000 -210,000 -320,000 -368,000 -320,000 -1,410,000
Capital expenditures - RO Program -210,000 -490,000 -700,000 -700,000 -700,000 -2,800,000
CASH ON HAND 536,669 263,780 260,600 249,493 1,993,101 3,303,643
Aqua 1000's & Aqua 2000's 80 162 252 342 432
RO's 30 100 200 300 400
FINANCIALS
Aqua Air 247 Inc. - Cash Flow Projections
Years 1 - 5 / Nov 2017 - Oct 2022
ROLAND NADON – Chief Executive Officer Extensive business background including real estate development
Lead the development and execution of the Company’s long-term strategy
Co-ordinate technical and financial development of Aqua Air’s products
JONATHAN RITCHEY – Marketing & Technical Advisor Quality Assurance Training & Certified Food Technologist
8 years of experience in the food and beverage industry
15 years of business leadership and successful inventor
BRYAN NORDINE, CPA/CGA – Financial and Tax Consultant Advise on the development and implementation of the company’s business plan
Advise management/staff on bookkeeping and procedural matters to present and report accurate,
timely financial information
Advise management on financing requirements based on past and expected performance
KLEANLEY MIKI – Senior Administrator Extensive administrative background including 15 years of experience managing a business centre
Co-ordinate domestic & international transactions and sub-contractors
Manage office and business activities including bookkeeping
Management Team
LANA ST. HILAIRE – Research & Marketing Consultant Generate sales leads and develop database of prospective clients in various markets
Liaise with management from Hotel & Tourism industry and organizations in the Caribbean
Explore opportunities for implementing technology targeting environmental issues
GORDON HAYMAN, P Eng.– Refrigeration Consultant Principal of GPH Mechanical Ltd.
Provide mechanical support and consultation on refrigeration processes
Sub-Contract Consultants Aqua Air engaged these specialists to design/develop its proprietary electronic & firmware systems:
SCOTT FAZACKERLEY, P Eng. – Professor @ UBC Okanagan (systems design and testing)
PAUL TOUPIN, P Eng. – Electrical Consultant (systems design, hardware development and assembly)
JESSE GOETTING – Electrical Consultant (systems design, hardware development and assembly)
Other Outsourced Specialists ALTAR METAL FAB. CO. LTD. – CNC and fabrication specialists
DITTOS – Graphic Design and application specialists