CORPORATE PRESENTATION NOVEMBER 2018 - Copeland Biosciences
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CORPORATE PRESENTATION NOVEMBER 2018
D I S C LAIMER
FORWARD-LOOKING STATEMENTS This presentation is strictly confidential and from those anticipated in such statements. Accordingly, readers should not place
must not be copied, distributed, circulated or disseminated without the express undue reliance on forward-looking information. The Company does not undertake
written consent of Copeland Biosciences. (the “Company”). This presentation does to update any forward-looking information, except as required under applicable
not constitute an “offering memorandum” as such term is defined under Canadian securities laws.
securities legislation and confers no statutory, contractual or other similar rights of
rescission or other action or remedy to any recipient under securities legislation in Financial outlook and future-oriented financial information contained in this
Canada, the United States or other jurisdiction for misrepresentation or otherwise. presentation about prospective financial performance, financial position or cash
No securities are being offered for sale hereunder. This document does not provide flows is based on assumptions about future events, including economic conditions
full disclosure of all material facts relating to the securities offered. Readers must and proposed courses of action, based on management’s assessment of the
conduct their own analysis and review of the Company and of the information relevant information currently available.
contained in this presentation and must contact their own professional advisors.
This presentation contains “forward-looking information”. Forward-looking In particular, this presentation contains revenues, gross margins and earnings
information includes, without limitation, statements regarding macroeconomic before interest, taxes, depreciation and amortization for 2018 and 2019. These
factors, future demand and supply dynamics for cannabis, production and projections contain forward-looking statements and are based on a number of
development forecasts and timelines, estimates as to the demand for cannabis material assumptions and factors set out above. These projections may also be
and cannabis paraphernalia, future cannabis prices, solutions to past problems, considered to contain future oriented financial information or a financial outlook.
valuations, capital and operating expenditures, ability to obtain financing, future The actual results of the Company’s operations for any period will likely vary from
currency exchange rates, government regulation of cannabis, and environmental the amounts set forth in these projections, and such variations may be material.
risks. Similarly, forward-looking information also includes economic analysis of the See the above for a discussion of the factors that could cause actual results to
business of the Company and the results thereof, including, without limitation, vary. The future oriented financial information and financial outlooks contained in
cash flow projections, estimated capital and operating costs, and all economic this presentation have been approved by management as of October 20, 2018.
analysis derived from such estimates and forecasts. In general, forward-looking Readers are cautioned that any such financial outlook and future-oriented financial
information can be identified by the use of forward-looking terminology such information contained herein should not be used for purposes other than those for
as “plans”, “expects” or “does not expect”, “projects”, “forecasts”, “budget”, which it is disclosed herein.
“estimates”, “schedule”, “intends”, or variations of such words and phrases or
state that certain actions, events or results “may”, “could”, “would”, “might” or “will These materials may contain inaccuracies or typographical errors. The Company
be taken”, “occur” or “be achieved”. The forward-looking information is based shall not be responsible for any errors or omissions contained in these materials
upon factors and assumptions the Company believes is reasonable based on and do not guarantee the accuracy, completeness or timeliness of the information
information currently available to them. Forward-looking information is subject contained herein.
to known and unknown risks, uncertainties and other factors that may cause
the actual results, level of activity, performance of the Company to differ from See a description of the readers’ rights under “Statutory Rights of Action for
forward-looking information. There can be no assurance that such information will Damages or Rescission” at the end of this presentation.
prove to be accurate as actual results and future events could differ materially
2
A BOUT
C O PE LAN D
B I O SCIEN C ES
Copeland Biosciences is a medical marijuana company
based in Toronto, Canada, that unites the extensive
orthopaedic knowledge of renowned podiatrist Glenn
Copeland with ground-breaking discoveries in the use of
CBD oil in the treatment of sports injuries.
Copeland Biosciences is currently the only company to be
exploring the use of CBD formulations and the effects of
their topical application to tendon and muscular injuries.
The uses of cannabis-derived products in the sports
recovery industry remains fairly unexplored, meaning that
Copeland Biosciences has an opportunity to dominate this
market.
Copeland Biosciences aims to provide safer and more
effective remedies for osteoarthritis and inflammation
than is currently on offer in the form of Nonsteroidal Anti-
Inflammatory Drugs (NSAIDs), which may carry several
serious side effects for patients.
The scalable roll-out of SAM Pro 2.0 (to which Copeland
Biosciences holds the exclusive rights in Canada) will allow
the company’s activities to expand rapidly and treat far more
patients.
The company began its roll out on 17 October 2018, to
coincide with the nationwide legalization of marijuana
across Canada.
3
T EA M
D R GLE N N C O P EL A N D Currently Medical
Currently a Team Doctor
F OUNDER , C H AIRMAN AN D CE O Formerly a Director of:
or Medical Director for:
Director/CEO/Medical
Advisor to:
Possessing decades of experience in orthopaedic
treatment, Glenn Copeland is one of Canada’s most
prominent podiatrists. He has been working on CBD-
based formulations to combat inflammation for the last
three and a half years.
Dr Copeland has founded and directed several highly
successful medical companies. Among them are FootMaxx Inc,
which converted orthopaedic evaluation of the lower extremity from
moulding technology to pressure and motion mapping and was successful
in opening 1,880 clinics around the world.
Glenn has long and varied experience in top medical institutions. Between 2002 and
2008, he was the founder, chairman, and CEO of Cleveland Clinic Canada. Cleveland
Clinic is regarded as one of the top three medical institutions in the world.
He was recruited in 2008 by Mount Sinai Hospital in Toronto to establish the Rehab and
Wellbeing Center which continues to thrive, seeing over 10,000 patients each year.
As an expert in the treatment of sports injuries, Dr Copeland has offered invaluable
advice and service since 1979 in his role as the team podiatrist of the Major League
Baseball team the Toronto Blue Jays. He is also the Medical Director of the Ottawa
Sports and Entertainment Group, which re-established Canadian Football in the city and
culminated in the Ottawa Red blacks’ triumph in the 2016 Grey Cup.
Glenn Copeland is also a well-respected and popular author. He has written five
international books and is especially well-known for his works ‘The Foot Doctor’ and
‘Healthy Feet’, which have been translated into twelve languages.
4
T EA M
PR OFE S S O R
Associated With: Member of:
SI R MA R C F E L DM A N N
AC FAA FR S FR C P FR C PAT H FM ED SC
C HA I R MA N O F T H E ME D ICAL
A DV I SORY C OMMIT T E E , BOARD OF
DI R EC TOR S, AN D CH IE F RE SE ARCH
OF F I C ER
Professor Sir Marc Feldmann is a preeminent immunologist at
the Kennedy Institute, University of Oxford.
Feldmann has worked on immunology since the 1970s, and whilst working at the Imperial
Cancer Research Fund’s Tumour Immunology Unit with Professor Avrion Mitchison
he developed a new hypothesis in 1983 for the mechanisms behind autoimmunity,
highlighting the role of cytokines.
His team discovered the importance of TNF in rheumatoid arthritis and subsequently
developed anti-TNF therapy. Professor Feldmann’s patent was marketed by Centocor
as Remicade, which was the key driver behind Johnson & Johnson’s $4.9 Billion USD
acquisition of Centocor in 1999.
Anti-TNF therapeutics currently lead the global drugs market, and Remicade alone had
over $7.7 Billion USD of sales in 2017 – making it Johnson & Johnson’s best-selling drug.
Professor Sir Marc Feldmann has received numerous recognitions for his important
discoveries. He is a fellow of, among others, the Royal College of Physicians, the Royal
College of Pathologists, the Royal Society and the Australian Academy of Science. In 2010
he was knighted in the Queen’s Birthday Honours for services to medicine.
Among the prizes awarded to Feldmann and his colleagues are the Crafoord Prize, the
Albert Lasker Award (2003), the Cameron Prize for Therapeutics (2004), the John Curtin
Medal (2007), the Dr Paul Janssen Award for Biomedical Research (2008), the Ernst
Schering Prize (2010), and the Canada Gairdner International Award (2014).
Professor Sir Marc Feldmann has authored over 600 published papers reflecting his
overarching interests in the cellular aspects of inflammatory autoimmune biology
messenger molecules, cytokines, and therapeutic applications.
5
T EA M
MARCY HE R R I MA N DAV E W R IG HT
C H IEF OP E R AT I N G OF F I C ER D IRE CTOR OF S P O RTS M E D IC IN E
Marcy possesses in-depth knowledge of sports medicine. Dave Wright is a highly-qualified and professional
She is a graduate of Northeastern University, where she athletic therapist and brings this experience to Copeland
received a BSc in Athletic Training. She continued her Biosciences. He has been practicing as a Certified Athletic
academic career earning a MSc in Applied Anatomy and Therapist for over 30 years and is an active member of
Physiology from Boston University. both the Canadian Athletic Therapists Association and the
Whilst studying, Marcy gained significant experience Ontario Athletic Therapist Association.
relating to the sports medicine market by working with, Prior to his time with Copeland Biosciences, Dave was a
among others, Harvard University’s football team, Northeastern staff member of the University of Guelph Athletics Department
University’s men’s ice hockey team, and Washington Northeastern working with varsity teams and athletes.
University’s women’s basketball, soccer, and track and field squads.
In professional sports, Dave held the position Director of Athletic Therapy for Ottawa Sports
She has been involved in the business side of healthcare for the past 6 years; Marcy was the and Entertainment Group managing the sports medicine and conditioning departments for
Director of Business Development and Operations, and a board member, of Performance the 2016 Canadian Football League Grey Cup Champion Ottawa Redblacks, the Ottawa
Orthotics. Fury FC soccer team and the Ottawa 67’s hockey club.
Marcy has worked with Dr Glenn Copeland at his clinic in the Mount Sinai Hospital in He was also the Head Athletic Therapist for the 100th CFL Grey Cup Champions Toronto
Toronto since 2010, where her identification and improvement of issues has led to marked Argonauts Football Club. Dave has served as a member of the CFL Medical Committee and
increases in patient satisfaction, as well as significant profitable growth. as a board member of the CFL Health and Safety Committee.
She is a native of Connecticut and is a member of the National Athletic Trainers’ Association,
as well as being a licensed athletic trainer by the Massachusetts Board of Allied Health.
A ARON CO PE LA N D J UL IE G UER R E R O
SAL ES A N D M A RK ETI NG, ACCOU N T MAN AGE R
LEGAL A F FA I R S
Julie Guerrero is a kinesiologist who partners with a
Aaron Copeland began as a high-achieving undergraduate collection of orthopaedic surgeons and sports medicine
at Dalhousie University, where, in his second year, he was specialists providing medical orthoses and state-of-the-art
accepted into an internationally renowned law program at therapeutic modalities to an all-age population.
Monash University where he obtained his BA and LL.B.
She is an active member of both the Ontario Kinesiology
During his studies, Aaron gained experience in the Association and College of Kinesiologists of Ontario.
sports industry interning for the Toronto Blue Jays Baseball
Operations Department. After obtaining his degree in law, Aaron Julie holds a BA in Kinesiology from York University, Toronto,
was called to the Ontario Bar. Ontario. Although her studies and experience laid the groundwork
for her exciting career, Julie’s core strengths are connecting and
He began his career in business development with a prominent legal communicating with the people she meets on a daily basis. Julie excels
software company, where he cultivated a large client base consisting of in a community setting with a strong emphasis on building relationships.
some of Ontario’s most respected legal practices. Aaron brings this business experience as
well as his incisive mind to Copeland Biosciences. Julie’s passion stands in project management. In keeping with the rapid technological
advances in the modern world, Julie currently is managing a 3D solution to creating
Aaron will join Copeland Biosciences as the in-house legal consultant, where he will prefabricated orthoses.
also work closely with the sales team in order to exploit potential opportunities in the
marketplace. Julie’s dynamic roles and experience will be a great asset to Copeland Biosciences.
6
C U R R E NT EXIST I NG
T RE ATM EN TS
Current options to treat problems such as osteoarthritis
are dominated by ineffective solutions:
Joint
Corticosteroids Viscosupplementation
Replacement
Hyaluronic Physical
NSAIDs
injections therapy
C O M P L I CATI O NS : 1
High blood Ulcers (in up to
Osteoporosis
pressure Bleeding in the 25% of patients)1
Kidney Addictive and prone
complications Weight gain intestines and
to abuse
stomach
As many as 19% of frequent NSAID users develop ulcers. The US FDA also The adverse incident rate for consumers of this drug was 50% higher than
released a warning that prolonged use of NSAIDs, other than aspirin, can before they took it; far higher than those who took alternative medication
increase the risk of heart attack and stroke. or nothing at all.
One study conducted in Denmark 1996-2016 demonstrated that the NSAID
Diclofenac posed significant cardiovascular risks.
7COPELAND BIOSCIENCES’ SOLUTION
Dr Glenn Copeland has developed an
innovative solution to these problems over
the last three and a half years.
These formulations contain different concentrations
of CBD oil; the quantities have been carefully tested
to ensure efficacy.
Ground-breaking agents in the formulations will allow
the cream to break through the epidermis and dermis
and effectively treat the inflammation and injured
tissue. The number of
formulations Copeland
Biosciences has
114 developed targeting
specific areas of tissue
injury
All of these are topical formulations, allowing the user
to apply the cream directly and solely to the affected
area – avoiding the risk to the entire body posed by
25% concentration of Concentrations of 2% other forms of medication.
25% CBD oil, for example, is CBD, on the other hand, 2%
In Canada, Copeland Biosciences also holds the
CBD CBD
perfect for treating joint are much better for
inflammation. treating ankle sprains. exclusive distributor rights to SAM Pro 2.0
an energy-wave-based therapy treatment which is
safe and effective in reducing inflammation.
8M A R KE T FO R
TREATING
MUSCULAR AND
TENDON INJURIES
Widespread osteoarthritis has created a huge
potential market for treatment:
IN 2017, THE MARKET WAS VALUED AT
$10.4 BILLION CAD
IT IS EXPECTED TO REACH
$15.3 BILLION CAD
BY 2025 WITH PREDICTED CAGR OF 4.8%.2
THE US CENTERS FOR DISEASE CONTROL (CDC) AND THE
WORLD HEALTH ORGANIZATION (WHO) ESTIMATE THAT
30 MILLION AMERICAN ADULTS AND
40 MILLION EUROPEAN ADULTS ARE
AFFECTED BY OSTEOARTHRITIS.3
9OTHE R TARG ET INDICATIONS
Tendonitis/Overuse Injuries Soft Tissue Inflammation Athletic Traumatic Injury
The global tendinitis treatment market is worth $461 The global market is worth $5.12 Billion CAD in 2018 The global market was worth $7.6 Billion CAD in 2017,
Million CAD in 2018 and is predicted to exceed more and is predicted to be worth $11.56 Billion CAD by and is expected to rise to $10.84 Billion CAD by 2022
than $561 Million CAD by 2023 at a CAGR of 3.8%4 2025 at a CAGR of 8.3%.8 at CAGR of 7.4%.11
• Tendonitis (also spelt tendinitis) is the swelling of a • Soft tissue injuries include damage to any of the • Athletic traumatic injuries cover any problems
tendon after an injury. body’s muscles, tendons and ligaments. that occur as a result of participation in sport.
• Soft tissue covers a wide area of common injuries • In 2016 and 2017, 17,655 Canadians were
including sprained ankles – a problem 25,000 hospitalised due to sports injuries.12
Approximately half of people suffer every day in the US. 9
50% all sports injuries are a Professional leagues have paid for injured players’
result of overuse5 salaries in 2018:
It also includes plantar
fasciitis, a problem that $1B
10% 10% of the US population
• This is the case in running, in which 40 million
suffers from every year 10
Americans partake regularly.6
• According to the US Bureau of Labor Statistics, $328M
70,000 people in the US miss work each year due
$47M
to tendonitis. 7
NFL NHL MLB
Total amount paid for injured players’
salaries by professional leagues
Source: https://www.spotrac.com/
10M EDICAL M ARIJUANA A P P L I CAT I O N
The legalization of medicinal cannabis has
opened the market for new solutions in the
sports medicine industry.
HEALTH CANADA
Medical Cannabis sales and production data13
The legalization of medical marijuana in Canada
and 29 US states has opened an opportunity for Q1 2015
innovative research employing the by-products
of the plant. Over the last few years, the use of Q2 2015
medical marijuana has expanded exponentially,
from approximately 300kg in 2015-Q4, to over Q3 2015
9,200kg in 2017-Q3. Some competition in the
market for cannabis-based anti-inflammatories
Q4 2015
may manifest itself in the form of copy-cat
companies who also use CBD formulations.
However, without the proprietary agent Copeland Q1 2016
Biosciences uses in aiding the penetration of
the epidermis and dermis, they are likely to be Q2 2016
far less effective. Copeland Biosciences will also
contest with large pharmaceutical companies who
Q3 2016
continue to promote the use of NSAIDs. As has
previously been explained, Copeland Biosciences’
products hold none of the negative side effects Q4 2016
Sales Dried Cannabis (KG)
of NSAIDs, and also target the affected area
directly. Q1 2017
Sales Cannabis Oils (KG)
Q2 2017 Production Dried Cannabis (KG)
Q3 2017 Production Cannabis Oils (KG)
0 2,000 4000 6,000 8,000 10,000 12,000
11B I G PHARM A M& A
YEAR JUNE 2018 MAY 2018 MARCH 2018 FEBRUARY 2018 FEBRUARY 2018 JANUARY 2018 JANUARY 2018
TYPE Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition
ACQUIRER
Advanced Sterilization Products BeneVir Biopharm Prexton Therapeutics Viralytics Impact Biomed Bioverativ Ablynx
NYSE:FTV $25.5B USD NYSE:JNJ $375B USD CPH:LUN $58B DKK NYSE:MRK $193B USD NASDAQ:CELG $55B USD EPA:SAN $99.7B EUR EPA:SAN $99.7B EUR
TARGET
$1.45B CAD
VALUE $3.7B CAD $1.4B CAD $1.2B CAD $520M CAD (potentially up to $15.3B CAD $6.3B CAD
$9.2B CAD)
This was also part of
Fortive acquired a division Merck completed the deal Celgene paid for Impact, a
J&J made the acquisition to Lundbeck acquired Prexton, Sanofi made the acquisition Sanofi’s expansion into the
of Johnson & Johnson to acquire Viralytics’s tiny startup that received
NOTES specializing in disinfection
access BeneVir’s oncolytic who are in phase II for their
investigational oncolytic $29M CAD at the end of 2017,
to access Bioverativ’s treatment of rare blood
immunotherapies. drug to treat Parkinson’s. haemophilia treatments. disorders, for which Ablynx
solutions. immunotherapy. for its JAK2 inhibitor.
is developing drugs.
12CA NNABIS M&A
YEAR OCTOBER 2018 MAY 2018 MAY 2018 MARCH 2018 FEBRUARY 2018 AUGUST 2017
TYPE Acquisition Acquisition Acquisition Acquisition Acquisition Investment
ACQUIRER
PharmaCann Agro-Biotech MedReleaf CanniMed Broken Coast Canopy Growth
CNSX:MMEN $2.91B CAD CVE:EMH $590M CAD TSE:ACB $9B CAD TSE:ACB $9B CAD TSE:APHA 3.8B CAD NYSE:STZ $38.8B
TARGET
VALUE $900M CAD $90M CAD $3.3B CAD $1.6B CAD $217M CAD $4.5B CAD
Aphria acquired the
MedMen acquired the Constellation, the makers
The cultivator acquired a This deal created the At the time, the deal made premium brand, in a deal
medical marijuana retailer of Corona beer, made the
NOTES in the largest US cannabis
rival company and also largest cannabis company Aurora the largest cannabis making it the largest
investment to move into the
expanded into Quebec. in history. company in the world. Canadian producer at the
deal to date. cannabis market.
time.
13ENE R GY WAVE T H E R APY
Over the last 15 years, energy wave therapy has been established as a safe and non-intrusive way to treat
inflammation and pain in the human body.
Glenn Copeland’s clinic at Mount Sinai Hospital was among the first to purchase and study focal acoustic wave
therapy.
The clinic soon made demonstrable improvements in treating arthritic joint disease and overuse injuries such as:
Overuse
Plantar injuries to the
Epicondylitis shoulders,
fasciitis
Achilles neck and
tendonitis Shin splints back
Pain Relief Grows with Regular Therapy
and Joint Function Improves
50%
Acoustic waves are helpful in one particular area:
% Improvement of Pain
40%
increasing the permeability of the skin. In a process
30% known as sonophoresis, discovered thirty years ago,
the acoustic waves allow deeper penetration of the
20% CBD products that are applied topically.
10%
pSAM SP O RT
SAM Sport is a clinically proven multi-hour therapy
that utilises ultrasonic waves.
It is designed to activate the following mechanisms to
facilitate soft-tissue recovery:
Increase
blood flow and
UN ITE D STATE S
oxygenated
haemoglobin
• SAM Sport has been used for over 3 years.
Stimulate
• Many insurance companies including WCB and the
angiogenesis and VA authorize and cover the use of SAM Sport.
new blood vessel
development
Increase
collagen
lay-down in
connective tissue
CA N A DA
• Copeland Biosciences has an advantage over its
US neighbours due to the early adoption of medical
marijuana.
Increase nutrient
• This advantage is not only in its use as a therapy
transfer to injured
tissues to aid in product, but as a carrier for the CBD products.
recovery
15CASE ST U DY O ST E OART H R I T I S
In multiple clinical trials, SAM® Sport has been
proven clinically effective on reducing pain
and improving function of patients suffering
from moderate to severe Osteoarthritis.
When applied during normal daily
activity, patients experience 39% to 51%
pain reduction in the treated joint.
In one clinical trial on knee Osteoarthritis,
treatment of patients with moderate to
severe pain with SAM® Sport resulted in a
39% reduction in pain levels, compared to
only a 17% decrease in pain in the control
group (pCASE ST U DY AC CE L E R AT E D M U S CLE R E C OV E RY
SAM has demonstrable effects on the
recovery time from sports injuries:
• Athletes given a single session with SAM
experienced a 20% reduction in lactate
accumulation.
• This led to greater muscle performance
when they were tested.
• SAM was likely responsible for stimulating
local circulation to activate muscles.15
14 Average Power (W) Control SAM® Sport
12
10
Lactate (mmol/L)
8
6
4
2
20%
Reduction in Post Exercise
Peak Torque(N-m)
Blood Lactate Levels with sam® Therapy
0
175 180 185 190 195 200
0 2 5 10 20 40
Minutes after Exercise
17CASE ST U DY T END O N I NJU RY R E COV E RY
Patients treated with SAM Sport on a daily
basis recover faster after a tendon injury.
• Clinical trials demonstrated that patients
with tendinosis of the elbow or Achilles,
treated daily with SAM Sport for four hours
per day, experienced a 70% reduction in
pain after 6 weeks of treatment.
• Grip strength also increased by 17%
in patients with elbow tendinosis,
demonstrating recovery of the injured
tendon.16
70% Decrease in Pain after 6 Weeks
Grip Strength 10
of injured Arm
increased
8
Pain Score (0-10)
17%
6
4
with SAM® Sport 2
Treatment 0
Before Treatment After Treatment
18FUTUR E D EVELOP M E NTS
Whilst Copeland Biosciences’ use of SAM Sports and CBD-based formulations are effective at reducing pain and
swelling, there remains an opportunity to develop great treatment protocols for the sources of these problems.
Copeland Biosciences aims as its next step to address healing tissue. This is currently left to the body, but
ground-breaking research at the University of Oxford may offer a solution.
P R OFESSOR P ROFE S S OR
S I R MAR C FELD M A NN JAGD E E P N AN C H AH AL
Professor Sir Marc Feldmann’s work in combatting Professor Nanchahal has recently led research into
auto-immune diseases and inflammation over four stem cells and the endogenous nuclear protein
decades is very applicable to Copeland Biosciences’ HMGB1.
eventual aim of combatting the root causes of
This research is useful in one particularly exciting sense
inflammation.
for Copeland Biosciences: HMGB1 accelerates the
His experience can be applied to the new area of healing process in damaged tissue. Whilst Copeland
sports medicine, which remains relatively unexplored Biosciences’ existing products are effective at dealing
at the cutting-edge of science, and be used to improve with inflammation, Nanchahal’s research would allow
the efficacy of Copeland Biosciences’ products. the company to explore healing tissue damage on a
more substantive level.
Copeland Biosciences will adhere to all rules in professional sports leagues, allowing athletes to take its products
without concern.
Utilizing the research undertaken by these scientists focused on pain relief and muscular recovery, lays a
foundation for further pinpointed research providing an opportunity for Copeland Biosciences to become a
world leader in the industry.
19U SE OF PRO CEED S
PRE-IPO RAISE ($0.20 SHARES AT 12 MILLION = 2.4 MILLION CAD) PRE-IPO RAISE + RTO RAISE ($0.60 AT 12 MILLION = 7.2 MILLION CAD)
SAL A R I E S A ND BENEFITS $1,150, 000 SALARIES AND BENEF ITS $2,800,000
OFF I CE CO ST $60, 000 OFFICE COST $480,000
MARK E TI NG / C O M M U NICATIO N $90, 000 MARKETING / COMMUNICAT ION $5 90,000
T RAV E L & E NTERTAINM ENT $80, 000 TRAVEL & ENTERTAINMENT $5 5 0,000
RESE A R CH & D EVELO P M ENT $135, 000 RESEARCH & DEV ELOPMENT $85 0,000
UN I TS (2 00 UNITS @ $ 3 0 0 0 CAD ) $600, 000 UNITS (800 UNITS @ $3000 CAD) $2,400,000
COST OF GOO D S ( C REAM ) $100, 000 COST OF GOODS (CREAM) $1,000,000
SAL E S TR A I NI NG AND TRAVEL $100, 000 SALES TRAINING AND T RAVEL $400,000
DEVELOPMENT & BUILDING OF OWN
RESI D UA L $85, 000 $5 00,000
COUNPOUNDING LABORATORY
TOTAL ( I N CA D) $2, 400, 000 TOTA L (IN CA D) $9,5 70,000
Copeland Biosciences is seeking to raise 2.4 Million CAD for its Pre-IPO Copeland Biosciences will then seek to raise $7.2 Million CAD for its RTO
round at $0.20 for a total of 12 Million shares. at $0.60 for a total of 12 Million Shares.
The total amount Copeland Biosciences seeks to raise over two rounds is $9,570,000 CAD
($ CAD)
20B USINES S O PERAT I O NS M O D E L
P R OF I T/LO SS
Estimated Operating Expenses Year 1 Year 2 Year 3
Revenue $3,984,000 Revenue $19,920,000 Revenue $36,520,000
(Based on 1500 units, annual cream fulfillment (Based on 6000 units, annual cream fulfillment (Based on 11 000 units, annual cream fulfillment
and leasing commission) and leasing commission) and leasing commission)
MANAGEMENT SALARIES $839,000 $950,000 $1,123,000
BUSINESS DEVELOPMENT $150,000 $200,000 $300,000
SALES MANAGER $120,000 $310,000 $450,000
MARKETING $80,000 $250,000 $500,000
SALES FORCE $650,000 $1,500,000 $3,000,000
RESEARCH & DEVELOPMENT $200,000 $250,000 $1,000,000
TRAVEL & ENTERTAINMENT $300,000 $800,000 $2,500,000
OCCUPANCY COST $180,000 $200,000 $250,000
IT MANAGEMENT $70,000 $120,000 $120,000
COST OF GOODS (CREAM) $187,200 $624,000 $936,000
TOTAL EXPENSE S $2,776,200 $5,204,000 $10,179,000
PROFIT/LOSS $1,207,800 $14,716,000 $26,341,000
GROSS MARGIN 30% 74% 72%
($ CAD)
21B USINES S O PERAT I O NS M O D E L
Y E AR 1
Cumulative Cumulative Revenue generated
Number Leasing from Cream
Year 1 monthly number Monthly Rental Cost of cream
of Units Leased Commission (based on $35/wk/avg
of units leased Income 4wk/month)
JANUARY 15 15 $3,000 $22,500 $2,100 $180
FEBRUARY 35 50 $10,000 $52,500 $7,000 $600
MARCH 45 95 $19,000 $67,500 $13,300 $1,140
APRIL 65 160 $32,000 $97,500 $22,400 $1,920
MAY 85 245 $49,000 $127,500 $34,300 $2,940
JUNE 100 345 $69,000 $150,000 $48,300 $4,140
JULY 115 460 $92,000 $172,500 $64,400 $5,520
AUGUST 130 590 $118,000 $195,000 $82,600 $7,080
SEPTEMBER 140 730 $146,000 $210,000 $102,200 $8,760
O CTOBER 150 880 $176,000 $225,000 $123,200 $10,560
NOVEMBER 160 1040 $208,000 $240,000 $145,600 $12,480
DECEMBER 160 1200 $240,000 $240,000 $168,000 $14,400
TOTALS 1200 1200 $1,162,000 $1,800,000 $813,400 $69,720
($ CAD)
22B USINES S O PERAT I O NS M O D E L
Y E AR 2
Cumulative Cumulative Revenue generated
Number Leasing from Cream
Year 2 monthly number Monthly Rental Cost of cream
of Units Leased Commission (based on $35/wk/avg
of units leased Income 4wk/month)
JANUARY 180 1380 $276,000 $270,000 $193,200 $16,560
FEBRUARY 200 1580 $316,000 $300,000 $221,200 $18,960
MARCH 220 1800 $360,000 $330,000 $252,000 $21,600
APRIL 250 2050 $410,000 $375,000 $287,000 $24,600
MAY 280 2330 $466,000 $420,000 $326,200 $27,960
JUNE 310 2640 $528,000 $465,000 $369,600 $31,680
JULY 330 2970 $594,000 $495,000 $415,800 $35,640
AUGUST 370 3340 $668,000 $555,000 $467,600 $40,080
SEPTEMBER 410 3750 $750,000 $615,000 $525,000 $45,000
O CTOBER 460 4210 $842,000 $690,000 $589,400 $50,520
NOVEMBER 480 4690 $938,000 $720,000 $656,600 $56,280
DECEMBER 510 5200 $1,040,000 $765,000 $728,000 $62,400
TOTALS 4000 5200 $7,188,000 $6,000,000 $5,031,600 $431,280
($ CAD)
23B USINES S O PERAT I O NS M O D E L
Y E AR 3
Cumulative Cumulative Revenue generated
Number Leasing from Cream
Year 3 monthly number Monthly Rental Cost of cream
of Units Leased Commission (based on $35/wk/avg
of units leased Income 4wk/month)
JANUARY 500 5700 $1,140,000 $750,000 $798,000 $68,400
FEBRUARY 500 6200 $1,240,000 $750,000 $868,000 $74,400
MARCH 500 6700 $1,340,000 $750,000 $938,000 $80,400
APRIL 500 7200 $1,440,000 $750,000 $1,008,000 $86,400
MAY 500 7700 $1,540,000 $750,000 $1,078,000 $92,400
JUNE 500 8200 $1,640,000 $750,000 $1,148,000 $98,400
JULY 500 8685 $1,737,000 $750,000 $1,215,900 $104,220
AUGUST 500 9135 $1,827,000 $750,000 $1,278,900 $109,620
SEPTEMBER 500 9540 $1,908,000 $750,000 $1,335,600 $114,480
O CTOBER 500 9880 $1,976,000 $750,000 $1,383,200 $118,560
NOVEMBER 500 10135 $2,027,000 $750,000 $1,418,900 $121,620
DECEMBER 500 10290 $2,058,000 $750,000 $1,440,600 $123,480
TOTALS 6000 10290 $19,873,000 $9,000,000 $13,911,100 $1,192,380
($ CAD)
24B USINES S O PERAT I O NS M O D E L
3 Y E A R PROJEC T I O NS
Revenue Generated
Year Projections Units Leasing Comission Total Revenue Cost of cream Net
from Cream
Y 1 $1,500 $1,820 $3,320 $156 $3,164
YEAR 1 1200 $1,800,000 $2,184,000 $3,984,000 $187,200 $3,796,800
YEAR 2 6000 $9,000,000 $10,920,000 $19,920,000 $936,000 $18,984,000
YEAR 3 11000 $16,500,000 $20,020,000 $36,520,000 $1,716,000 $34,804,000
1 SAM Pro 2 Capital Cost is $2850
Unit will lease for 30 months
Unit will be paid off as well as commission in 22 months, providing an 8 month profit
Lease cost $200 per month
Profit for completing agreement $1500
Profit for lease company over 30 months: $1650
Each Unit will require an ongoing supply of Tropical Medical formulary Cream
Cost for Tropical Medical formulary Cream: $3
Resale Value of cream: $35
Estimated Revenue from 1 unit inclusive of leasing commission and Cream: $3,320
($ CAD)
25RE F E R EN C ES
1 https://www.fda.gov/Drugs/DrugSafety/ucm451800.htm
2 https://www.persistencemarketresearch.com/mediarelease/osteoarthritis-market.asp
3 https://www.cdc.gov/arthritis/basics/osteoarthritis.htm
4 https://www.marketwatch.com/press-release/tendinitis-treatment-market-is-expected-to-be-worth-us-75250-million-by-2023-2018-05-16
5 https://www.drdavidgeier.com/statistics-overuse-injuries-youth-sports/
6 https://www.uptodate.com/contents/overview-of-running-injuries-of-the-lower-extremity
7 https://www.bls.gov/news.release/pdf/osh2.pdf
8 https://www.researchandmarkets.com/research/lvmvpk/global_soft?w=5
9 http://www.aofas.org/footcaremd/conditions/ailments-of-the-ankle/Pages/Sprained-Ankle.aspx
10 https://emedicine.medscape.com/article/86143-overview
11 https://www.marketsandmarkets.com/PressReleases/sports-medicine-devices.asp
12 https://globalnews.ca/news/4316749/sports-injuries-hospitalizations-canada/
13 https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/licensed-producers/market-data.html
14 Langer MD et al. SPIE. June 2015; Langer MD et al. Human Research Program Investigator’s Workshop: Integrated Pathways to Mars. Galveston, TX, 2015; Langer MD et al. World Confederation of Physical Therapy Congress. Singapore. May 2015
15 Mattern CO et al. American College of Sports Medicine. Boston, MA, June 2016; Draper DO et al. NATA Annual Convention. St. Louis, MO, June 2015
16 Best TM et al. The Physician and Sportsmedicine Draper DO et al. World Confederation of Physical Therapy Congress. Singapore, May 2015Moorman CT et al. NATA Annual Convention. St. Louis, MO, June 2015
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