A Paradigm Shift in Minimally Invasive Surgery Corporate Presentation | September 2019 - Aquarius Surgical Technologies Inc. (CSE: ASTI) ...
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A Paradigm Shift in Minimally Invasive Surgery
Corporate Presentation | September 2019
Aquarius Surgical Technologies Inc. (CSE: ASTI)
Disclaimer
CSE: ASTI | www.surgicallasersinc.com
FORWARD-LOOKING STATEMENTS
Apart from historical data, this document may contain information and statements concerning the
future results of Aquarius Surgical Technologies Inc. (“the Company” or “Aquarius”) which should be
considered as prospective and forward-looking.
These statements, when utilized, reflect the current vision of the Company concerning future events;
they are based on information currently available to the Company and on assumptions which are
considered reasonable. These prospective statements are subject to risks, uncertainties and other
factors likely to influence the results, performance and achievements of the Company such that they
could differ substantially from the results, performance and achievements prospective statements of
this nature might imply.
2
About Us
An exclusive provider of innovative, minimally invasive medical laser systems and
CSE: ASTI | www.surgicallasersinc.com
consumables for multiple medical disciplines, principally in the field of urology.
Solutions also include clinical education, service, support and maintenance.
Focus on:
• increasing the availability of services for patients
• enhancing the quality of patient care
• improving operational efficiencies
• reducing total operational costs
Our medical laser solutions target these issues:
Benign Prostate Hyperplasia (BPH), urinary stones (bladder & kidney)
and incontinence.
3
Management Team & Board
• President has 35+ years of experience in medical laser business across multiple medical disciplines
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• Core management comprise 90+ years of experience
David Hennigar - Chairman
Founder of Acadian Securities Inc., Mr. Hennigar is experienced in all areas of the investment business,
especially mergers and acquisitions, assisting with the takeover of Fraser Papers Inc. by Noranda, the
acquisition of the Halifax Shipyards, the restructuring of National Sea Products, the reverse takeover of
Crown Life by Extendicare Inc., and numerous other transactions.
Mr. Hennigar is currently the Chairman of Aquarius Surgical Technologies. He also serves on the Board of
Directors of other public companies including High Liner Foods Inc., Metalo Manufacturing Inc., and MedX
Health Corp.
Gordon Willox – President & Chief Technical Officer
Mr. Willox embraces an unparalleled experience over the past 40 years in all aspects of the medical laser
business, including providing technical and clinical trainings of all commercially available medical laser
technologies to thousands of hospitals and major health centres across North America.
Mr. Willox is the founder, President and CTO of Aquarius Surgical Technologies. He had previously
founded and served as CEO of several companies and associations, including TASC Laser Inc., and Institute
for Laser Surgery
4
Management Team & Board
Gary Van Nest, Director, CEO & Vice Chairman
CSE: ASTI | www.surgicallasersinc.com
Mr. Van Nest has over 50 years of management experience in brokerage, merchant banking, investment
management and venture capital industries. He served as a Director/Officer of several notable public and
private companies, including Elliott and Page Ltd., Canadian Venture Capital Corporation, Cameco
Corporation, Noble China Ltd. and Pathfinder Beverages Ltd.
Mr. Van Nest is currently the CEO and Vice Chairman of Aquarius Surgical Technologies. He also serves as
Chairman of Woodland Biofuels Inc. and MedX Health Corp., and Director of several other public and
private companies
Dr. Stan Swierzewski III MD – Chief of Urology, ASTI Director
Dr. Swierzewski is an award-winning physician who had been serving on the board of directors of various
companies and clinical institutions, including HealthCommunities.com Inc., Holyoke Hospital, Bay State
Medical Centre, Noble Hospital, Wing Memorial Hospital and Hampden Urological Associates.
Dr. Swierzewski completed his urological residency at the University of Michigan Medical Center in Ann
Arbor, where he received numerous awards for his research publications
Dr. Robert W. Francis M.D.,C.M., – Founder, Director & Chief Medical Officer of MedCan Clinic, ASTI
Director
Dr. Francis has over 25 years of experience in private practice and corporate medicine. He founded and
served on several executive positions at Medcan Health Management Inc. He also served as
Chairman/Director of several businesses and medical institution, including Richtree Inc. and Canadian
Business Health Research Institute. He is on staff at St. Michael’s and Mount Sinai Hospitals.
5
Highlights
• ASTI’s state-of-the-art proprietary FDA approved holmium laser fiber for kidney and
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bladder stones is gaining momentum in the market as a true innovation in laser
lithotripsy.
• Production began in the first quarter of 2019. Future consumable sales will
grow as this will be the only fiber optic which will be locked and matched to
the high power HYPHO Holmium laser.
• ASTI’s flagship laser for Benign Prostate Hyperplasia (BPH) continues to grow market
share with multiple product evaluations scheduled at private practices, surgical
centers and university teaching hospitals across the country. Each laser sold will use
one of ASTI’s single use consumable fibers per treatment, for the life of the laser,
further building sustainable consumable sales growth.
• Multiple ongoing negotiations with leading manufacturers and distributors of
surgical instruments to the urology/gynaecology marketplace in the US.
“ Last year, we had spent most of our time on educational and training sessions across
the US. Now that our technology has been successfully tested by numerous well-
“
regarded surgeons and institutions, we are focused on ramping up sales and are
already securing new sales distribution agreements.
– Gordon Willox, Founder &President
6
The US Market Opportunity is Enormous
Laser Urinary
Laser BPH Market Laser Incontinence
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Stone Market
Market
43 30 31
Million Men Million People Million Women
$21.3B $5.5B $16.3B
TOTAL ESTIMATED US MARKET: $40B+
7
Current Treatment Options
Urinary
Benign Prostate
Stones
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Hyperplasia Incontinence
(Bladder
(BPH)
& Kidney)
Medication Shockwave Therapy Pads
• Limited outcome • Less reliable outcomes • Inconvenient
• Side effects • Legacy system, & Expensive
expensive to maintain,
220V
Traditional Surgery
Traditional Surgery
• Mesh & Slings
• Significant blood loss
• Mesh erosion, surgical risks,
• General Anesthetic Older Laser Technology FDA warning
• Requires operating • Expensive to purchase • Requires operating room
room resources & & maintain, 220V resources & overnight stay in
overnight • Less effective hospital
stay in hospital
8
Our Technology Advantage
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Benign Prostate Urinary Stones
(Bladder & Kidney) Incontinence
Hyperplasia (BPH)
Portable
Affordable
Outpatient
Minimally Invasive
Predictable Outcomes
On average our lasers cost 50% less than competitive systems
ASTI’s products cost less to purchase, are less expensive to operate (FIBER)
and unlock higher margin outpatient opportunities.
9
Our Clinical Advantages
CSE: ASTI | www.surgicallasersinc.com
Benign Prostate Urinary Stones
Hyperplasia (BPH) Incontinence
(Bladder & Kidney)
Less Bleeding Greater Precision No Anesthetic
(smaller fragments)
Local or General 5 Min Procedure
Anesthetic Improved Safety
(stone stability) No Pharmaceutical
Faster Recovery or Surgery Risk
Shorter Treatment
Shorter Treatment Times Shorter Treatment
Times Predictable Outcomes Times
Predictable Outcomes Predictable Outcomes
ASTI’s solutions are all outpatient based, increasing patient acceptance
and eliminating the requirement for overnight stay.
10Our ROI Advantage for Doctors & Hospitals
CSE: ASTI | www.surgicallasersinc.com
Benign Prostate Urinary Stones
Hyperplasia (BPH) (Bladder & Kidney) Incontinence
Less Expensive Laser Less Expensive Laser Less Expensive Laser
Less Expensive Fiber Less Expensive Fiber Less Expensive to Maintain
Less Expensive to Maintain Less Expensive to Maintain
• The ONLY Office Based • Hospital makes more • Cash pay business model
solutions for Laser BPH money on lower cost • $3000 for series of
• Higher compensation for consumable 3 treatments
Urologist for Office • 5 minute treatment
Based procedure • Breakeven 43 Patients
• $1852.00 vs.
$715 per case
11Intellectual Properties & Patents
• Patent pending on BPH fiber
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• 31 Additional FDA approved fibers for multiple medical disciplines
• ASTI has input into engineering & design of all products
• Exclusive distribution rights with proprietary technology
• Growth opportunity to other market sectors with the same manufacturers: ENT,
ophthalmology, lung surgery, dermatology, neurosurgery, etc.
12Our Business Model
“Razor - Razor Blade” recurring revenue:
• BPH - on average 7 procedures/month
CSE: ASTI | www.surgicallasersinc.com
• Urinary stones - on average 10 procedures/month
• With at least one fiber per procedure
Urinary Incontinence
BPH Laser Fiber
Stones Laser Laser
57% 83% 120% 225%
Mark-up Markup Mark-up Mark-up
Product Cost: $200 | Product Sell: $500
13Financial Forecast
CSE: ASTI | www.surgicallasersinc.com
Revenue and EBITDA Projection Operational Metrics
$ 25000000 133 Lasers
14,258 Fibers
16000 140
$20,181,662
14000 120
$ 20000000
12000 85 Lasers 100
6,979 Fibers
$ 15000000 10000
80
$11,532,057 8000
43 Lasers
60
$ 10000000 6000 987 Fibers
40
4000 12 Lasers
$4,381,749 287 Fibers
$ 5000000 2000 20
$755,000 0 0
2019 2020 2021 2022
0
2019 2020 2021 2022 Lasers Fibers
Sales EBITDA
14Capital Structure and Financial Status
• 2019 Fiscal Year Revenue – CDN $727,217
CSE: ASTI | www.surgicallasersinc.com
• Q1 2020 Revenue – CDN $303,220
• Current Burn Rate – CDN $115k per month
Stock Information (as of August 2019) Stock Chart
$0.70 .20mm
Share Price $0.40 $0.65 .18mm
$0.60 .16mm
$0.55 .14mm
Market Cap ~$8.4M
$0.50 .12mm
Volume
Price
52 Week High/Low $0.51/0.20 $0.45 .10mm
$0.40 .08mm
Shares Issued & $0.35 .06mm
~21M $0.30 .04mm
Outstanding
$0.25 .02mm
$0.20 0
Warrants & Options 3.6M
Jul-2018
Jan-2018
Oct-2018
Nov-2017
Feb-2018
Sep-2018
Apr-2018
May-2018
Dec-2017
Mar-2018
Aug-2018
Jun-2018
Fully Diluted 24.7M
15Exit/Liquidity
• Likely acquisition by established medical company, such as Boston Scientific, Bard,
Cooke or Olympus
CSE: ASTI | www.surgicallasersinc.com
• Industry Comparables
Time Takeover cases Sales Value
US $715M/ 8 times
June, 2006 AMS acquired Laser Scope US $90M
sales
Boston Scientific acquired AMS US $1.65B/ 4 times
May, 2015 US $400M
Urology Portfolio sales
US $1.65B/ 4 times
February, 2017 Hologic acquired Cynosure US $430M
sales
• Potential Return Scenario – average 5 times revenue
Numbers of
Time Potential Revenue Potential Value Price per share
shares
2020 CDN $4.4M CDN $22M 25M CDN $0.88
2021 CDN $11.5M CDN $57.5M 25M CDN $2.30
2022 CDN $20.1M CDN $100.5M 30M CDN $3.35
16Key Takeaways
Cost-effective, portable, practical, FDA-approved technology which addresses the
CSE: ASTI | www.surgicallasersinc.com
demands of a growing market
Exclusive distribution rights including proprietary private label consumable
31 FDA-approved fibers (profitable razor/razor blade business model with high
margins)
Strong IP with long-term partner, influence on the engineering process, first right of
refusal on current patents
10 distribution contracts signed with projection of 10 new distributors per year
growth
Insurance reimbursement codes already in place with big positive financial impact for
doctors
Generating revenue from sales
17Private Placement
CSE: ASTI | www.surgicallasersinc.com
ASTI has initiated Private Placement of Units to raise aggregate gross proceeds of up to
CAD$2.5M, with a minimum of CAD$500k, at a price of $0.35 per Unit.
The proceeds from this Private Placement will be used as follows:
(a) Development of product and marketing initiatives;
(b) Inventory maintenance;
(b) General corporate expenses, and working capital.
The Closing Date is intended to be on or before September 16, 2019.
18CSE: ASTI | www.surgicallasersinc.com
19
NotesContact Us
CSE: ASTI | www.surgicallasersinc.com
Gordon Willox, Founder
& President
E: gordonwillox@live.ca
T: + 1- 844-441-9090
Cathy Hume,
Investor Relations
E: cathy@chfir.com
T: 416-868-1079 x 231
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