RVES HOLDING BV (the company) was incorporated in the Netherlands in August 2007 and its sole purpose is to develop, protect and market LifeSlide® (the product) worldwide through a network of licensees.
The founder is Baron Coates BV, represented by Paul Monks (CEO) and co-founder is Leon Quaedackers (CFO). Together they hold 10,000 A-shares in the company. After incorporation 4,000 B-shares were issued @ €200 per share to three private investors and the parent of the industrial engineering company, NPK Design BV which is responsible for the product development.
Thereby the company funded the development of the present scale model of LifeSlide® that delivered physical “proof of principle” and to protect the intellectual property (international patents pending). The remaining funds for 2009 are sufficient to prepare pre-marketing materials, develop 3-D presentations of LifeSlide and promote the product to future licensees (e.g. the elevator- and escalator industry, the fire- and safety industry and others) and to potential launching customers.
We now invite business angels, venture capitalist and other investors to participate in RVES Holding BV so that the company can build, test and certify full-sized working prototypes of LifeSlide®. For this second development phase € 5.5 million is needed and as we have received Letters of Intent for €750k as well as an (uncommitted) arrangement for € 1.5 million we are at this stage looking for additional funding in the region of €3 million.
For this purpose the company will issue a further 10,000 B-shares @ €300 per share and a minimum participation of 1,500 shares; this participation represents a 5% shareholding (of a total of 10,000 A-shares and maximally 20,000 B-shares) hence the new shareholder will, fully diluted, hold a so called “Aanmerkelijk Belang” under Dutch corporate tax law.
On the basis of our Discounted Cash Flow (DCF) the company can be valued @ €43.6 million in 2015 given that, according to our most realistic scenario, we succeed to market only the permanent version of LifeSlide®. Given that the company is a royalty vehicle with minor overheads it is more likely that a mid-market sale will generate 4-5 times annual Earnings Before Tax (EBT) which, by 2015 is forecast to reach €24.6 million. Thus an investment of €450k can, fully diluted, be valued @ €2.18 million (DCF) - €4.920 million (4 x EBT) in 2015. However, if we succeed in our more ambitious scenario to market a mobile version of LifeSlide simultaneously the aforementioned estimates can be enhanced significantly.
It's most likely that private investors will prefer to hold shares in the company as a long term investment. If an investor would prefer an early exit, we estimate that the cash flow will allow this five years after the start up.
To those investors who consider participating in the company we shall provide an extensive Investment Memorandum which should be read carefully. If potential investors have any doubts after reading the Investment Memorandum, we strongly suggest they seek independent financial, fiscal or legal advice before they decide to participate in RVES Holding BV.
