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[email protected] is pitching this new patented healthspan optimization aid till may 30 to accredited investors in Saskatchewan 701-240-9411, 306-447-4944 box 33, beaubier, saskatchewan, S0C-0H0 Canada .. any comments??
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LIFESPAN PHARMA INCLIFESPAN PHARMA INC..PRODUCT
• 4Xtra-Lifespan 1.0 “Extend Life Naturally” Lead Product• Antioxidant, anti-inflammatory regenerative medicine• Taken in pill form daily• Promoted as a key to a healthier lifestyle and prevent accelerated aging
What is LIFESPAN PHARMA INC?•Corporation formed in 2005 to commercialize products containing patent pending “whole hemp plant”. •Founding owners: Morris Johnson &Johnson Family (Greg, Erin, Leah) and Silas Kanning • Located @ LakeAlma/Beaubier,Sk.• Own a 10,000 square foot school facility to carry out operations
KEY INGREDIENTS• Hemp is grown in Sask. • Lead product has 3 other ingredients obtained from external sources: -Acetyl-L-Carnitine -Alpha Lipoic Acid -L-Carnosine>500 Peer-reviewed Ingredient -specific journal articles on file in our database.
Crop Year 2009 2010 2011 2012 2013
Sales 31,604,160 39,062,742 48,281,549 59,675,994 73,759,529
COGS 4,835,450 6,430,069 7,924,682 9,777,136 12,066,739
Gross Margin 26,768,710 32,632,673 40,356,867 49,898,858 61,692,790
Expenses 602,424 615,347 633,807 657,971 672,406
Net Income Before Tax 26,166,286 32,017,326 39,723,060 49,240,887 61,020,384
Income Tax 8,010,049 9,503,698
11,219,572 13,193,539 16,374,004
Net Income After Tax 18,156,237 22,513,628 28,503,488 36,047,347 44,646,380
Net Cash Flow to Equity 16,465,525 22,149,619
28,037,937 35,460,750 43,910,336
Year 2014 2015 2016 2017 2018
Sales 91,166,778112,682,13
7 139,275,122 172,144,051 212,770,047
COGS 14,896,391 18,397,910 22,724,973 28,072,317 34,685,222
Gross Margin 76,270,387 94,284,227 116,550,149 144,071,734 178,084,825
Expenses 692,406 718,660 734,756 756,799 784,966
Net Income Before Tax 75,577,808 93,565,567 115,815,392 143,314,934 177,299,858
Income Tax 20,304,508 25,161,203 31,168,656 38,593,532 47,769,462
Net Income After Tax 55,273,300 68,404,364 84,646,737 104,721,402 129,530,396
Net Cash Flow to Equity 54,352,446 67,259,364 83,224,094 102,954,911 127,342,724
Variable Base Case Break Even Worst Case
Number of Sales 902,976 160,249 573,390
Price of Product 35 6.21 22.23
Product Testing 100,000 51,244,019 14,831,760
Bottling and Labeling 1,986,547 27,775,699 3,841,555
NPV 177,850,461 0 -17,713,283
IRR 893.40% 20% 0%
0
200
400
600
800
1000
2008 2010 2012 2014 2016 2018 2020
Th
ou
san
ds
Year
Sal
es
Economic Net Income Cash Flow
Critical Value Base Case NPV=0 Allowable % Change
Sales 902976 160246 -82.25%
Price 35 6.21 -82.26%
Product testing 100000 51,244,019 51144.02%
Air time 200000 51,344,019 25572.01%
Bottling and labelling 1986547 27,775,699 1298.19%
L-carnosine 1986600 27,775,752 1298.16%
Growth in selling prices 3.00% -181.40% -6146.67%
Average days receivable 16 1,318 8137.50%
Marketing expenses 471000 51,615,019 10858.60%
Direct materials 5212537 31001689 494.75%
SWOT ANALYSISInternal Strengths and Weaknesses
StrengthsHuman Resources • Few labourers /Outsourced services• Competitive wages• Owners/Board have diverse skills• U of Sask Business and Marketing plan Physical Resources • Hemp production is patented• New and innovative product• Building capital already purchased
Financial Resources• Lots of money to be made• Required equipment is relatively inexpensive
External Opportunities and Threats
WeaknessHuman Resources • Availability and skill of employees• Manager has vast responsibilities • Marketing expertise is contracted out
Physical Resources• Hemp inflow only once per year• Coordination of several locations • Proper Hemp harvesting is the key issue
Financial Resources• Ingredients , Mfg runs must be prepaid.• Building needs complete renovation. Raising cash in an turbulent economy
Threats
• Negative market trends and fluctuations
• New and similar products entering market
• Negative Connotation towards hemp
• Government regulation can change
Opportunities• Strong health supplement and personalized CAM market trends
• Elderly baby boomers are motivated to seek solutions
• First product of it’s kind
• The idea of prolonged life expectancy
• Few competitors + patent = monopoly
SUMMARY OF FINANCIAL RESULTS
SCENARIO ANALYSIS
CRITICAL VARIABLES
BREAK EVEN ANALYSIS
Current Lifespan Pharma Products:
Hemp Capsules & Hemp for Horses
Excepts from Patent number 2,636,594……….
REGULATORY COMPLIANT METHOD TO GROW , HARVEST AND PRODUCE INDUSTRIAL MILLED HEMP SEED AND DERIVATIVE FUNCTIONAL PRODUCTS FOR HUMAN AND VETERINARY USEABSTRACT:
A Method to create a novel hempseed material embodying the chemistry of the whole hemp plant by utilizing a special harvesting method. The embodiments resulting from application of this method allow commercialization of hempseed in a broad range of end uses. Another embodiment preserves the integrity and stability of the hempseed. Yet another embodiment allows this material to be compliant with government regulatory laws and regulations in all the commercial applications of the novel hempseed material which
are a direct result of and are dependant upon and require setting the harvester to intentionally break and crack the grain.
FIELD OF THE INVENTION
The following invention relates generally to the field of methods to allow regulatory compliance when growing, processing , distributing and selling Industrial Hemp Seed ( low delta 9 THC Cannabis Sativa )
As food, nutraceutical, food supplements, dietary supplements, natural health products, cosmetic or animal feed (or the equivalent class in any country this patent is registered in) .
……………………………………………………………………………………………………………………………………….
8. Without this invention all the cited examples may result in commercial hempseed products which may be classified as pharmaceuticals or controlled substances. This invention allows commercialization of hempseed for a broad series of novel applications as foods, dietary supplements , nutraceuticals and cosmeceuticals and medicinal feedstocks.
Milestones• Reassess progress compared to 2009 Projected Plans- monthly and as required• University of Saskatchewan Xtra-Lifespan 1.0 business and marketing plans
received -30 Dec 2008• Formally appoint Interim Directors- 15 Jan/09• Do Investor Pitch – >15 Mar/09• Appoint Executive/Board/Staff- April 2009• Detail items on 2009 budget – April 2009• Close Financing- < 30 May/09• Sign Shareholders Agreement < 30 May/09• Order other Ingredients < as per budget > 30 May/09• Contract 2009 Hemp crop < 15 June/09• Appoint Infomercial Developer <15 June/09• Link 2008-9 Financials to the 10 year Uof Sask. Projections < 15 June/09• Appoint target marketer and / or strategic marketing ally < 15 June/09• Appoint a Contract Manufacturer < 30 June/09• Set 2009 R&D budget based on capital raised &sales variables < 30 June/09• Submit Expanded Research Program to Revenue Canada for R&D Tax Credit
Evaluation <30 June/09• Extend Patent filings < 15 July/09• Contract Hemp for Horses animal trials for 2009 < 15 July/09• File “Extend Life Naturally”, and “I can’t Believe it’s not Marijuana” Trademark
apps. < 30 July/2009• Appoint Fulfillment Agent < 30 July/09• Submit Lake Alma Building upgrade plans to CFIA for approval < 01 Aug 2009• Harvest 2009 crop < 15 Sept /09• Process finished batches at Food Centre and deliver to Mfg. <5 Sept/09• First mfg run complete and delivered back to Plentywood, Mt. <15 Sept/09• Write HACCP plan < 30 Sept/09• Prepare and Submit Product License application to Health Canada (HC) <30 Oct/09• Prepare and Submit Site Licence Application to HC < 30 Nov/09• Plan Annual Meeting for December 2009.• Change fiscal year from calendar year to “crop year”<31 Dec/09• Contract 2010 acres< 30 Mar/10• Upgrade building and buy/install equipment <30 mar/10• Complete Voluntary HACCP plan/site CFIA Audit <30 Apr/10• Prepare research results to date for publication <30 June/10• Offer License for Xtra-Lifespan 1.0 ingredient to targeted functional food
manufacturers >30Jun/10• Celebrate a successful 2009 -10 crop year 01 July 2010!!!• LIFESPAN PHARMA INC. , MORRIS JOHNSON , PRESIDENT• ROAD 707 SOUTH, SW34-01-16-W2ND, BEAUBIER, SK., S0C-0H0• 701-240-9411-CEL, 306-447-4944-FAX, LIFESPAN.PHARMA.INC2GMAIL.COM
Management Management Team and Responsibilities: Morris Johnson , President and Chief Technology Officer (CTO) Sk. hemp farmer, product designer, science package mgr.,regulatory compliance mgr. LIFESPAN PHARMA INC.’s (LPI) Founder, registered “LIFESPAN” trademark ,
converted “Trade Secrets” into patent 2,636,594. ,consumed the LPI lead formulation for 2.5 years as part of his health management program,created ingredient specific data package supported by > 500 peer reviewed journal papers, directed 2 university of Sask. Undergraduate teams to develop LPI business and marketing plans.
Silas Kanning, Vice President Plentywood, Montana - Co-founder of LPI , operates a 5000 acre diversified grain farm. Lana Tatarliov, Director of non-human Marketing Minton Sask. mixed-farmer, VAR(Value added reseller), CRM consultant, animal testing
coordinator and owner of http://www.Hemp-for-horses.com, has USA sub distribution, Owns and operates Kashmerekiss Day Spa, understands the unmet needs for the health and wellness market, manages “Proof of Concept” market in USA
Del Johnson, Advisory Board Member Takes niche products to the market in a variety of industries, used private placements ,
attracted distributors and created international licensing agreements for BTI a Tx Corp Brad Grimes, Advisory Board Member Nutraceutical plant design and plant management ,nearly twenty years of experience in
the neutraceutical and pharmaceutical industry with manufacturing equipment and product marketing,marketing of contract manufacturing services and equipment procurement, set-up and operation, knowledge of business operations including HR management and customer satisfaction and sales experience.
Darrel Cunningham, Advisory Board Member Investor and marketing relationships and agribusiness financial management
consultant, a central Saskatchewan farmer, served as Saskatchewan minister of agriculture and rural development, been chairman of the board of Big Sky Farms (http://bigsky.sk.ca/), director of Saskatchewan Government Growth fund (http://www.sggfmc.com/) ,director of (http://www.prairiediamond.cu.sk.ca/) Affinity credit union ,a director of A.P.E.X. venture capital fund.
Steve Burnside, R.PH. Advisory Board Member Compounding pharmacist, Clinical trial design consultant, Registered pharmacist
@1972, hospital pharmacist for 27 years, specializing in natural therapies, operate nutritional pharmacy in Minot, N.D. USA , attends CAM seminars.
Ms. Kelly Fitzpatrick, M.Sc., Contract Developer of Multimedia marketing Materials and target marketing strategy
Her company, NutriTech Consulting, Winnipeg, MB offers Consulting services in the areas of health and nutrition, food science, oilseed genetics, nutraceuticals, functional foods and natural health products on behalf of numerous private industry and govt.clients including NRC, Ab., B.C, Man. govts, HC/NHPD, AAFC, SNN founding Dir.
Chris Smith Prospective COO and General Manager Until 15 mar/09 was SAF , Market Development and Food Branch - Food quality
Assurance Officer , Food Centre @ Saskatoon, a public owned federally (CFIA) inspected pilot plant and contract service provider, provided Sk. food processors technical support to develop and implement food safety, quality assurance programs, HACCP systems, GMP development ,provided contract product development and corporate training.
Utilizing the U of S undergrad team’s business and 10 year detailed marketing/financial plan , the board will utilize mostly contracted outsourced services. The first half of the year 2009 is designated year 0 and has a start-up year cash flow sheet on the next page. The Investors and board will put a full time CFO with strong financial management skills in place to replace the part time services of Lana , Silas and Morris.