Expansion for Medical Device Company (collateral ready)

Expansion for Medical Device Company (collateral ready)

Current Status Break-Even, Profitable
Amount Invested RM 180,000.00
Funding Required RM300,001 to RM600,000
Description We are a medical device company that has been in existence since 2012. We started off with just 2 staff and RM 30,000.00 and today we operate with a total of 10 staff and we are generating revenues up to RM 1.7 million a year with profits as well.

We got our first round of funding from an investor in Capital.my in early 2014 and now we are looking to grow and make good profits and we have new products that is proven to have demand with excellent margins within our Medical Device Industry.

We have already made a name for ourselves within the industry and we have over 200 existing clients which will ensure whatever product we bring in for expansion WILL SELL and will sell very well.

However, since we only received a small funding in our first round, this time we need a bigger investment to make it happen.

Will explain in detail if there are potential investors.

Business Opportunity We have been dealing with big medical devices such as blood analyzers and ultrasound machines over the past 4 years and with the current market situation, selling big devices can be a challenge since Doctors are facing tight cash flow situation everywhere and our profits are also decreasing because of extreme competition.

With the newly introduced GDPMD (Good distribution practice for Medical Devices ) License, the government has a put a stop to many one man show medical device reps and small unauthorized companies. This is where we saw our opportunity as we are already licensed.

We identified that the Diagnostic world is heading towards rapid testing kits and in 2015 alone, the Malaysian government spent about RM 25,000,000.00 on rapid testing kits and the private sector spent about the same.

Our strength is that after June 2016, not all companies can import medical devices into Malaysia and even more so for rapid testing kits as it is heavily regulated and we are qualified. Not only that, we managed to find the cheapest and most competitive rapid testing kits to step foot into Malaysia.

We can sell our products at least 30% cheaper than market and still make a 100% profit margin.

Will present in much more details for potential investors.

Revenue / Business Model We have already built relationships with the following stakeholders:

1) Medical Magazines
2) Medical social media operators
3) Over 1500 clinics
4) Over 100 hospitals
5) Over 70 individual distributing companies.

We do sales via all the channels above and we personally have so many clients. 200 + clients are our core clients but if we calculate our networking, Clinics and Hospitals we have sold small things to, agents we sell products to and so on, we have close to about 400 to 500 clients.

This being said, we have identified with our current network, we will be able to sell 17 different types of rapid testing kits with a total of 10,000 kits sold every month with mark ups of at least 100%.

This will give us PROFITS of nothing less than RM 48,000.00 a month and revenue of nothing less than RM 96,000.00 a month.

We have the network, we have the products, we have the license, WE JUST DON’T HAVE THE FUNDS so that’s exactly what we are seeking.

Will show in precise details to potential investors.

Management Team We are the same management team that started this company 4 years ago.

Will reveal ourselves to potential investors.

Company Background We started in 2012 and started off in a room with RM 30,000.00 with none of our own products. Today we have a proper office, 4 brands that we represent and built a market presence for here locally, proper service engineers and sales men, proper licensing and quality management system and we have invested a total of RM 180,000.00 in it so far.

Our whole team is young (all below 30) and we are looking to take the next step forward. We do not have any big debts with anyone (except payables to suppliers which we are more than capable of settling off) and we have a good clean collection record as well.

We started off small and today we generate revenues of close to RM 1.7 million and we are targeting RM 2.5 million in 2016-2017 financial year (without the new funding and products).

We are a clean, honest company with excellent market reputation and we are sincerely looking for funds to expand in an honest way.

Funding Milestone We need RM 450,000.00 in one go and no more after that.

We will use the funds for :

Product registrations with the Medical Device authority = RM 50,000.00
Product Evaluations = RM 20,000.00
Stock purchase for 3 months = RM 165,000.00
Marketing and advertisement materials = RM 20,000.00
Hiring of new staff and salaries for one year = RM 195,000.

First year we expecting to reach profits of at least RM 400,000.00.

We will pay out investor 50% of profits every year until ROI and after that 25% of the profits every year after that.

% Equity Allocation 25
Expected ROI 2 years (max)
Risks and Mitigation The only real risk in the investment is that stock expires before sales and of course, not being able to sell the products.

We have solid concrete proof that we have been in this business long enough and there is a market for the rapid test products. All we need to do is set an appointment with potential investor and we can explain the rest.

Exit Strategies We will pay 50% of the profits to investor untill ROI is returned every year (expected 2 years max).

Once ROI returned, investor will get 25% of yearly profits which includes our current equipment sales as well.

Besides that, we will offer a director fee of at least RM 4,000.00 a month for investor which amounts to RM 48,000.00 a year and we do not require Investor to work.

Also we will set a sinking fund for investor every year where 10% of the profits will be retained in the fund and will not be used in case investor wants to leave and we can use those funds to buy back the shares.

If shares is valuated above the sinking fund value, us the current Directors will pay for the shares ourselves.



Capital Team Posted on6:48 pm - 23/04/2016

Healthcare sector with track record, seems promising. Contact us to get more details

Capital Team Posted on10:08 am - 17/01/2017

The offering is closed.