The MacLellan Group
Merchant Banking, Technology Assessment & Corporate Development Since 1992
International Markets: Where’s the Next Opportunity?
Mr. MacLellan is currently Chairman of the Audit Committee and a Director of
AMDL, Inc. (AMEX:ADL) and Vice Chairman, Chairman of the Audit Committee
of Edgewater Foods Intl., Inc. (OTCBB: EDWT) and Chairman & CEO of The
Hear from 50+
Mr. Douglas C. MacLellan
American Stock Exchange
NYSE Regulation, Inc
U.S. Securities and Exchange Commissio
3rd Pink Sheets, LLC
Chairman & CEO
Dow Jones Newswires
8324 Delgany Avenue Investors
Centrecourt Asset Management
Chardan Capital Markets, LLC
Playa del Rey, California 90293 Chinamerica Fund, LP
Guerrilla Capital Management and
Hua-Mei 21st Century Partners
Hull Capital Management, LLC
Tel: 310-301-7728 Mediphase Capital Partners
Ramius Capital Group
SUMMIT Best Practices in a Siar Capital
T Squared Partners LLC
Changing Environment: UBS Alternative & Quantitative Investm
As Seen from the Trenches
Belmont Partners, LLC
E-mail: email@example.com Burnham Hill Partners
July 17-19, 2007 Broadband Capital Management LLC
The Princeton Club of New York, New York City Cowen and Company, LLC
URL: www.maclellangroup.com Houlihan Lokey Howard and Zukin
Lazard Freres & Co. LLC
Legend Merchant Group, Inc.
Piper Jaffray & Co.
Morgan Joseph & Co. Inc.
Attend this networking event on
Private Investment in Public Equities and: Edgewater Foods
Find out about the state of the market and emerging trends
• New Market Technology
Learn how to do business in the era of 415
ZIOPHARM Oncology, Inc.
Gain insight on how changing regulation will impact the
Anslow & Jaclin, LLP
Explore key aspects of Registered Direct Offerings
• Haynes & Boone LLP
Katten Muchin Rosenman LLP
Find out how to respond to SEC, DOJ and SRO inquiries and
Kirkpatrick & Lockhart Preston Gates El
Emerging Market & Technologies
Douglas MacLellan is a classical theory economist, venture capitalist,
merchant banker and business incubation expert.
He has built successful businesses in the following industries:
Telecoms, Software, Pharmaceuticals, Aquaculture, Biotech, Retailing,
Agriculture, VoIP/Telco Equipment and Asset Management.
He has been a catalyst for the development and financing of global
businesses in the U.S. and other world markets such as: Bulgaria,
Cambodia, Canada, Chile, China, Hungary, India, Korea, Madagascar,
Russia and Vietnam over the past 15 years.
He has been working in China over 24 years, (since 1983) and is a
recognized authority on joint venture and wholly foreign owned
enterprise (WFOE) structuring.
He has served on the board of numerous publicly listed and private
companies and has acted in the capacity of a management team
member, providing advice and counsel on strategic planning,
operational activities, corporate finance, economic policy, asset
allocation and mergers & acquisitions.
He has helped raise more than $600 million for development stage, start-
up and mid-cap companies and helped emerging growth companies
achieve their corporate objectives.
“U.S. Listed Small-Cap Chinese Technology & Communications Company Universe”, May 2007.
“Proposed Small-Cap SOX 404 SEC & PCAOB Guidance”, February 2007.
“China’s Film Production Industry Overview”, February 2007.
“SOX & Small-Cap Company Compliance”, June 2006.
“Ben Bernanke & the FED”, October 2005.
“Sec Delays Section 404 for Non-Accelerated Filers and Proposes New Filing Deadlines”, August 2005.
“CNOOC’S Failed Bid Unical & Other Thoughts on the Chinese Oil & Gas Industry”, August 2005.
“Independent Corporate Governance, Director Compensation & Stock Option Guidance”, July 2005.
“China’s RMB Revaluation Snapshot”, July 2005.
“Latin America’s VOIP Overview”, August 2002.
“Significant Accounting Reform & Corporate Governance Laws Inacted”, August 2002.
“Overview of China’s State Council Information Group & Industry Statistics”, August, 2002.
Copies of these and other publications can be obtained by e-mailing a request to: firstname.lastname@example.org
Emerging Market &
13 Emerging Market & Technology Companies Co-founded & Built Over the Past 15 Years by Mr. MacLellan.
Company Country Industry Year Founded Liquidity Path
AMDL US/China BioPharma 1992 AMEX
Great Bear Tech. Bulgaria Software 1992 NASDAQ
Chile Telecoms 1993 NASDAQ
Danube Farms Bulgaria Agriculture 1995 Private
PortaCom Telecoms 1995 OTC/VSE
Eastern Europe Asset Management 1996 Private
Strategic East Fund
Asian Am. Telecom China Telecoms 1996 NASDAQ
Sino Am. Medical China Pharma 1998 Private
Datalex Canada Software 1997 MSE
WelCom China Telecoms 1998 Private
AXM Pharma China Pharma 2000 AMEX
BAM & Zinc Networks China/ Latin America Telecom/VoIP Equipment
Edgewater Foods Canada Aquaculture 2005 OTC
Where is the Early Money Going
in the International Space?
The GDP of emerging market countries as a group has been
growing at roughly double the rate of advanced economies.
Growth in developing economies is projected to be at or
above 5.5 percent for 2007.
Follow the activities of the Franklin Templeton Emerging
Market Funds, lead by Mark Mobius, Ph.D. based in
Singapore. Their current focus is on the all emerging
markets including: Asia-Pacific, China, India, Pakistan,
Africa, Latin America, the Middle East, Russia and Eastern
The industry focus of initial early-stage emerging market
investment is typically in large infrastructure businesses such
as: mining, power generation, oil & gas, telecoms, water &
Asia’s Inherent Dominance & Advantages
The fastest-growing economies in the world are in Asia. The region is
becoming a global economic powerhouse, offering investors many unique and
Asia’s dominance as a supplier of goods and services to global markets will
likely remain unchallenged. Its competitive advantages in an abundant low-
cost labor pool and high levels of education suggest that this trend will
continue to strengthen.
Outsourcing has been a key driver of economic development. In
manufacturing, half of the world’s personal computers and almost 70% of the
world’s mobile phones are now produced in Asia and shipped globally.
China, in particular, has emerged as a leader in the manufacturing market,
while countries such as Indonesia and Vietnam have only recently begun to
capture a share of the outsourcing market. India in comparison has benefited
from its highly educated workforce and growth has been centered on the
information-based service sector, particularly IT services, with Western
companies increasingly outsourcing support functions to the region.
Urbanization drives infrastructure spending within Asia, people are migrating
to the cities in record numbers. Considering that infrastructure is still generally
poor in many emerging Asian countries, urbanization and economic
development throughout Asia will likely require massive levels of
infrastructure spending in order to ensure basic services and maintenance of
high rates of productivity.
Piggybacking on China’s
Success and Looking for “the
The Secondary & Tertiary Markets in China
hold enormous potential growth for at least the
next 20 years. They are “the Next China”.
Bankers, Business Builders and Investors need
to travel out of the crowded cities of Beijing,
Tannin, Shanghai, Guangzhou and Shenzhen in
order to locate new candidate companies.
China has 168 key cities with over 1 million in
Lessons Learned and Opportunities
Uncovered in China
Regulations, Laws & Standards are
Limited Experience with Western Business
Master Copiers, with Limited Creative Design
Major Cities are Flooded with Bankers &
Capital Looking for New Deals.
What’s Happening in South
America (Brazil, Peru & Chile)
In spite of new peaks across a range of global stock markets,
Latin American benchmarks still manage to stand out with
impressive gains this year.
The big two markets, Brazil and Mexico, followed by Chile, have
already gleaned double-digit gains less than halfway through
2007. That performance, against the backdrop of booming
commodity prices, has been fueled by better earnings prospects
and cheaper valuations compared with other emerging and
Yet, Latin America has in the past been an absolute loser from
China’s rise in world production. Latin America has much higher
wage levels than China, Thailand, or Malaysia. The region is much
less developed in terms of production technology. The region
needs to overhaul their education system and upgrade its
production technology, in order to catch up with the rising Asia-
How About India?
The three primary attributes that make India unique are:
its Anglophone democracy, strong property and
intellectual rights and a highly entrepreneurial culture.
India and China are frankly complementary to each
other rather than a substitute for each other. China is
better in hardware and equipment development while
India is better in software and services development.
This is may create future collaborative China/India
What’s the Long Term
Potential of Africa?
Nearly half of all international emerging market investors in
Africa are from Europe. France tops the list of investors,
with approximately 20%, followed by the UK at 9%, South
Africa at 7.2% and India 5.6%.
China’s is working on being a lead emerging market
investor in Africa.
The Chinese have been making substantive investments in
various African countries over the past 5-7 years.
China has just announced a US$5 Billion China-Africa
If the Chinese can make their investment work in this
region, it will make it easier for Western investment to
follow in the next 10 years. Let the Chinese take the earlier
market risk out of the equation.
Selected Emerging & Developed Country Chart
Of these 17 selected countries, China still looks the most interesting. China shows significant GDP growth
and low inflation, with rising personal incomes and moderately high taxes. Obviously, India and the other
developing markets of Vietnam, Cambodia, Chile, Peru and Morocco are also enticing emerging markets.
More Investors are Seeing Emerging Markets as a
Long-term Investable Asset Class.
Emerging Market Investors Should Focus on High
Growth Industries, Located in High Growth Markets.
Then Find or Build Individual Companies that can Gain
Listings on U.S. Based Exchanges, where they can
Receive Higher Relative Valuations Compared to Other
World Stock Markets.
Then Financing and Grow these Businesses with the
Most Flexible Financing Structure Available in the
Planet: Private Investments in Public Companies