gelstat corporation is a publicly traded company...
TRANSCRIPT
May 2014
Presented by:
Larry Gershman
Gerald Kieft
GelStat Corporation is a publicly traded company trading under the symbol (“GSAC”) that is engaged in research, development,
marketing and branding of innovative over-the-counter (OTC) consumer healthcare products addressing very large markets.
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Disclaimer
THIS PRESENTATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE ANOFFER OR SOLICITATION. FURTHERMORE, ALL INFORMATION CONTAINED IN THIS PRESENTATIONCONSTITUTES CONFIDENTIAL INFORMATION OF THE COMPANY. ANY REPRODUCTION ORDISTRIBUTION OF THIS PRESENTATION, IN WHOLE OR IN PART, OR THE DIVULGING OF ANY OF ITSCONTENTS WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY IS STRICTLY PROHIBITED
THIS REPORT MAY CONTAIN FORWARD-LOOKING STATEMENTS, PARTICULARLY AS RELATED TOPRO FORMA FINANCIAL STATEMENTS, EARNINGS ESTIMATES AND BUSINESS EXPECTATIONS,WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933 AND SECTIONS 21E OF THESECURITIES EXCHANGE ACT OF 1934, AND ARE SUBJECT TO THE SAFE HARBOR CREATED BY THESESECTIONS. ANY STATEMENTS THAT EXPRESS OR INVOLVE DISCUSSIONS WITH RESPECT TOPREDICTIONS, EXPECTATIONS, BELIEFS, PLANS, PROJECTIONS, OBJECTIVES, GOALS, ASSUMPTIONS,FUTURE EVENTS, OR PERFORMANCE ARE NOT STATEMENTS OF HISTORICAL FACT AND MAY BE"FORWARD LOOKING STATEMENTS." FORWARD LOOKING STATEMENTS ARE BASED ONEXPECTATIONS, ESTIMATES, AND PROJECTIONS AT THE TIME THE STATEMENTS ARE MADE THATINVOLVE A NUMBER OF RISKS AND UNCERTAINTIES WHICH COULD CAUSE ACTUAL RESULTS OREVENTS TO DIFFER MATERIALLY FROM THOSE PRESENTED HEREIN.
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Overview
Public Company Trading on OTC (Symbol:GSAC)
Proven Management
Effective Products
Solid Clinical Data
Robust Product Pipeline
Very Large Markets
Officers and Directors
Larry Gershman, CEO and Chairman of the Board
Gerald N. Kieft, Chief Financial Officer, Director
Adrian Goldfarb, Director & Head of Audit Committee
William Colucci, Director
Paul Bucha, Director
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Collectively, the aforementioned own over 50% of the company
and are currently receiving minimal cash compensation.
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Leadership – Officers
Larry Gershman has been one of the most successful people in the world of advertising,integrated marketing, promotions, direct response and digital media. He has won the covetedPromotion of the Year Award an unprecedented 6 times and was Promotion Man of the Yeartwice. His long and varied client list includes: Revlon, Gillette, Ford, Mazda, Citigroup, Kraft,Pepsi, RC Cola, Burger King and McDonald's to name but a few.
Larry's management skills have been proven repeatedly during his career having owned, built ormanaged some of the most successful marketing companies in the World, including Ogilvy &Mather, Integrated Communications Group, Marden Kane, The Howard Marlboro Group,Integrated Marketing & Promotional Solutions ("IMPS") among others.
Larry GershmanChairman & CEO
Gerald N. Kieft, Chief Financial Officer and Director
Mr. Kieft was the interim CEO for GelStat Corporation from June of 2008 until June of 2013. Mr.Kieft began his career as an analyst for the Loan Source in 1991, providing debt-funding sources forsmall businesses through Small Business Association (SBA) loans. Subsequently, Mr. Kieft hasfounded, built and managed a number of successful companies as well as worked as a buy-sideanalyst for a hedge fund, a sell-side analyst for a boutique brokerage firm and as a consultant tohigh net worth individuals and emerging growth companies at a number of financial institutionsincluding Prudential Securities, Legg Mason Wood Walker and Raymond James & Associates.Throughout his career in the finance industry, Mr. Kieft has helped numerous emerging growthcompanies obtain financing and investors. Mr. Kieft is a graduate of Eastern Illinois University,where he earned a Bachelor of Science in Business degree, majoring in Finance, as well as a Bachelorof Arts degree, majoring in Economics.
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Leadership – Advisors/Consultants
Roger Cady, M.D, Chief Medical Advisor
Dr. Cady is the founder of Headache Care Center, Clinvest, and Primary Care Education. He is a graduate of the Mayo Medical School, and is Board Certified by the American Board of Family Practice. His board certification in Headache Medicine was awarded by the United Council for Neurologic Subspecialties, and he holds a Certificate of Added Qualification through the National Board of Certification in Headache Management. He is a member of multiple medical associations, including the American Medical Association, the National Headache Foundation, the American Headache Society, the American Academy of Pain Management, and the American Academy of Family Physicians. Dr. Cady is best known in the medical community for his pivotal contributions in the field of headache and migraine management. He was the co-recipient of the prestigious Wolff Award in 2000 from the American Headache Society for his research entitled "The Spectrum of Headache". He is well-published and has presented countless lectures and seminars around the world on headache, migraine, and other chronic disorders, and continues to be the principal investigator in numerous multi-center research studies. Dr. Cady currently serves on 12 Advisory Boards and is a member of the Board of Directors for the National Headache Foundation.
Tim Sweeney, Consultant – Branding and Marketing
Tim Sweeney is a senior management executive with over 25 years’ experience in marketing and sales. He started his career in advertising with Best Foods International’s Hellmann’s Mayonnaise and Skippy Peanut Butter brands. Over the last 15years,he has concentrated on the Direct Response (DR) advertising of natural supplements as well as health and beauty aids working as in-house marketing consultant for the clients of Vita Quest International, the largest private label natural supplemental manufacturer in the U.S. This vast experience as enabled him to steward products from basic concept to national retail expansion of direct response developed brands such as H57 Hoodia, George Foreman’s LifeShake, and the Quick Trim Diet Plan with the Kardashian sisters.
Initial Opportunities – U.S. Market
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• GelStat Migraine - Decision Resources, one of the world’s leading research and advisory firms for pharmaceutical and healthcare issues, expects that the market for migraine therapies to increase from $3.3 billion in 2011 to $5.8 billion in 2021 in the United States, France, Germany, Italy, Spain, the United Kingdom and Japan.
• Chews 2 Lose – According to Marketdata Enterprises, Inc. , a leading independent market research publisher of “off-the-shelf” studies about service industries since 1979, an estimated 75 million dieters spent $2.7 billion in 2010 on diet pills and meal replacements.
• All Natural Speed – According an article published by Companies and Markets.com, the US energy drinks market is estimated to have increased by 60% over the past four years, hitting an estimated value of $12.5 billion in 2012. The industry is expected to continue this growth path, by rising to a valuation of $21.5 billion by 2017.
• GelStat Sleep - The total over-the-counter market for sleep aids alone reached $604 million in 2008, an increase of 9 percent over 2007, according to Packaged Facts, a division of Rockville, Md.-based Market Research Group.
Opportunity - Products
GelStat® Migraine Benefits of Product
Used as abortive product with fast onset of action
No reported side effects
Cost effective migraine relief
Available OTC, without a prescription
Pre-measured, single-dose dispensers are convenient, safe and effective
Unique sub-lingual administered product
Prevents risk of rebound headaches
Clinically validated effectiveness
3rd party validation of effectiveness
Vast amount of testimonials
Patented product
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Patent # 7,192,614 on GelStat Migraine (compositions and methods of treatment to alleviate or prevent migrainous headaches and their associated symptoms).
www.TeriRobert.com
www.migraines.org
Clinical Support
Migraine
Two clinical trials have been conducted on GelStat® Migraine, both yielding positive results. The first was an open label study that was performed by Roger K. Cady, M.D. and Curtis P. Schreiber, M.D., both of ClinVest, the research division of the Headache Care Center in Springfield, Missouri.
The second was a double blind study performed by Dr. Sheena K. Aurora. Dr. Aurora is a co-director of the Swedish Headache Center in Seattle, a specialty headache clinic that treats more than 3,000 patients each year. She is also board-certified in neurology and electro-diagnostic medicine as well as has additional qualifications in clinical neurophysiology.
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Testimonials
Migraine
“As an very active person and a professional ski patroller I need quick relief from migraines and find that Gelstat provides quick relief without the side effects that prescription medication causes. I highly recommend it to migraine sufferers.” - Susie M.
"This is a great product. I have had migraines since I was 8. It works and let's me get on with my day. I wish I would have known about it sooner.” – Rachelle
“I have tried every product available for my migraines. Nothing works. Even prescription medications from my doctor didn’t help. I’m tired of using Advil & Motrin. I finally found the answer to my problem - GelStat.” – Roxanne, New York
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Opportunity - Products
Chews 2 Lose
Innovative Appetite Suppressant Gum
Designed to work with ALL diet plans
#1 reason diets fail is cheating
Easy to use, just simply chew gum
75 Million American Dieters Annually
Custom formulation buying direct from manufacturer delivers significant margins
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NEED
IMAGE
Opportunity - Products
All Natural Speed
All Natural Energy Product in Capsule Form
Enormous Market Size - 5-Hour Energy alone reported over $1 billion in retail sales 2012
Enormity of category opens opportunity to address specific quick fix energy user groups
Edgy Product Targeting College Students and Gamers
Highly Specialized Irreverent Advertising Campaign
Available OTC without a Prescription
Custom formulation buying direct from manufacturer delivers significant margins
Expected to be Available in the 2nd Quarter of 2014
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Opportunity - Products
GelStat® Sleep
Reduced Time to Fall Asleep
Increased Quality of Sleep
No Drowsiness or “Hangover Feeling” the Following Day
Available OTC without a Prescription
Numerous Testimonials
Significant Margins
Large Market Size
Potential usage for professionals with irregular sleep patterns (pilots, nurses, machine operators, military personnel.)
Expected to be Available in the 3rd Quarter of 2014
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Objectives/Timing
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• Launch marketing efforts for Chews 2 Lose in Q2 2014.
• Launch All Natural Speed in Q2 2014.
• Launch GelStat Sleep in Q3 2014
• Build product pipeline through licensing agreements and acquisitions.
• The overall objective is successfully launch 10 products over the next 3-5 years that each generate $10 million plus in revenue.
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Timeline & Goals For 2014
1st
Quarter2nd
Quarter3rd
Quarter
- Complete packaging and initial commercial production run for Chews 2 Lose (Done)
- Complete website landing pages and test creative for Chews 2 Lose ad campaigns
- Engage Public Relations firm to build brand recognition and drive PR campaigns
- Complete packaging and initial commercial production run for All Natural Speed
4th Quarter
- Complete creative tests on Chews 2 Lose and then launch full ad campaigns
Reinvest cash flows into ad spend and
drive revenue growth.
- Redesign website for GelStat Migraine (Done)
- Design and launch Migraine Advocacy website - www.migraineadvocate.org (Done)
- Engage distributor for GelStat Migraine (Done)
- Engage distributor for Chews 2 Lose
- Engage distributor for All Natural Speed
- Re-launch GelStat Sleep
Marketing Strategy
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The Hybrid Direct Response Retail Support (HDRRS) campaign is the best approach for any brand GelStat has an interest in bringing to retail. The HDRRS principle is simple; combine a direct response sales and branding campaign with strategic rollout into select retail locations.
Why follow this approach? Because there have not been any brands successful at the retail level that have first failed in Direct Response (DR); however, there have been several hugely successful Health and Beauty Aid (HBA) retail brands that were cultivated from Direct Response campaigns.
To that end, our primary marketing strategy for our current and future products is to begin with a direct-to-consumer campaign and then move into select retail markets over time.
Internet Commerce – GelStat Migraine
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Capital Structure
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Common Stock:
500,000,000 Shares authorized300,000,000 Shares issued and outstanding 3/27/201455,000,000 Shares in market at CEDE
Preferred Stock: None IssuedDebt: None
Raise and Use of Proceeds
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The Company is currently seeking up to $2,000,000 in funding from accredited investors via subscription agreement at $.035 per share of Common Stock.
The funds with be used:
• To fund advertising campaigns• To purchase inventory• To fund synergistic acquisitions• For general working capital needs
Investment Considerations
A full portfolio of fully developed products
Two clinical studies yielding positive results on GelStat Migraine
GelStat Migraine is supported by leading consumer advocacy groups
Positive feedback from customers
Significant existing inventory that can be used to generate cash flows
Low monthly “over head” burn rate
Investor friendly business model and management team
Fully developed website/e-commerce platform
Low investor entry point
Very large markets
Unlimited potential with branding/distribution strategy
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3545 SW Corporate Parkway
Palm City, FL 34990
(772) 283-0020 (Tel)
(772) 219-3579 (Fax)
Websites:
www.GelStat.com
www.GelStatMigraine.com
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