Company Overview FULL NAME OF COMPANY: Hyperbaric Oxygen Services Limited (HODS) DATE OF INCORPORATION : 25 December 2006 AREA OF INDUSTRY: Accelerated healing of humans & animals using hyperbaric oxygen therapy (HBOT) NUMBER OF STAFF: 4. HEAD OFFICE: 9 Humphreys Drive, Ferrymead, Christchurch with sites in Auckland, Tauranga and Nelson. MARKET CAP BASED ON LATEST THIRD PARTY TRANSACTION: NZD$2,362,251 (3,525,749 shares on issue at NZD$0.67c)
Company Overview The company has two existing wholly owned subsidiary businesses, O 2 Health and O 2 Vet. All equipment and intellectual property is owned by the parent company, HODS - the operating aspects of the business are handled by the subsidiaries. O 2 Health/O 2 Vet offers Hyperbaric Oxygen Therapy (HBOT) treatments to humans and injured animals. HBOT is a proven and highly successful, non-invasive treatment method in which patients breathe pure oxygen inside a pressurised chamber. During treatment the blood plasma becomes saturated with oxygen which promotes a wide range of healing responses in the body. Human treatment centres are currently available in Mapua (Nelson). O 2 Vet has three chambers deployed in Nelson, Tauranga and Auckland and is commercialising a innovative new computer-controlled chamber for volume production. The company has received media and industry coverage in New Zealand for successfully treating a number of high profile cases including patient recovery from long-term medical issues, accelerated healing for sports personalities, rehabilitating a wild albatross with a broken wing , accelerating healing for rare birds such as a Takahe and a little blue penguin.
Company Overview EDGE: O 2 Vet has developed a unique new veterinary hyperbaric chamber that is relatively light weight, portable and highly user friendly featuring fully computer controlled operation. Existing technology is cumbersome to use and requires specialist installation and oxygen supply. O 2 Vet’s new chamber meets a large and growing demand for specialised treatment for animals that is backed up by strong research and empirical data. USP: A unique profit generation and service differentiation opportunity for vets from an extraordinary proven healing treatment that uses technology to reduce labour costs and maintain high profit margins for users. The company plans an IPO or trade sale to a medical devices company within three years.
Hyperbarics in the news BBC News (UK): 9 th Jan 2004 “ England football captain David Beckham received treatment at a hyperbaric oxygen chamber before the last World Cup when he broke his foot...” NZPA News: 9 th Feb 2010 “ ...New Zealand All Black Ali Williams is using a hyperbaric chamber to help with his ruptured ankle injury...” http://news.bbc.co.uk/2/hi/uk_news/wales/3384551.stm http://www.aliwilliams.co.nz/index.php
What is hyperbaric technology? Hyperbaric Oxygen Therapy (HBOT) is a proven and highly successful, non-invasive treatment method in which patients breathe pure oxygen inside a pressurised chamber. During treatment the blood plasma and tissues becomes saturated with oxygen which promotes a wide range of healing responses in the body. The benefits of HBOT are internationally recognised by the medical and veterinary community, as well as elite athletes and the military. The efficacy of HBOT is validated in New Zealand through its acceptance by the ACC, District Health Boards, and various insurance companies.
Patients wear a comfortable hood which delivers the oxygen supply
Once at the required pressure it’s as easy as relaxing and breathing
Duration 60-90 minutes, several treatments
Accelerates the body’s natural healing
Uptake of oxygen by tissues Under increased pressure, the amount of gas which dissolves into a liquid is increased. William Henry, circa 1803 By breathing only oxygen, in a pressurised environment, allows additional oxygen to dissolve in to the blood and be transported to the tissues of the body Promotes and accelerates healing, reduces swelling, kills bacteria.
Hyperbaric treatment (humans): Site Normal Air Normal O 2 ChamberO 2 Ambient 159 760 1824 Arterial 100 550 1,450 Subcut 30-50 90-150 250-500 Chest 67 450 1,312 Mid-foot 63 280 919 Ref: Dooley 1997 Chamber pressure = 2.4 ATA
Animal hyperbaric treatments are well established in Auckland, Nelson and Tauranga
Research is paramount in furthering the development of veterinary hyperbaric medicine
O 2 Vet supplies both the protocols, technical support and hyperbaric chambers
Finance can be arranged for purchasing equipment
O 2 Vet is committed to supplying a safe and effective treatment modality to the NZ veterinary community
New generation chambers will be launched in 2010 using latest cutting-edge technology
Existing technology - “pressure cooker”! Historically, the equipment currently available has been adapted from recompression chambers more commonly seen in the worldwide diving industry and unfortunately has the appearance to match i.e. large, cumbersome, expensive and very heavy “old school” steel containers which require highly trained personnel to operate. Copyright 2005: IHTC
O 2 Vet has developed and commercialised new, state-of-the-art hyperbaric treatment chambers for use in veterinary clinics. These are small, compact, user friendly and fully computer controlled enabling operation by veterinary staff with minimal initial training. Initially available across New Zealand, the company will realise the large export potential across countries worldwide including USA, Asia, and Europe etc. O 2 Vet: Designing the future! Rollout of the technology will lead to a highly profitable, multi-faceted NZ based export business by establishing a major international market in the veterinary sector and accessing previously untapped demand for specialist human chambers .
Partnership with VSG A key partner for the business is the Veterinary Specialist Group in Auckland (VSG). VSG are the largest specialist vet in NZ and have been so encouraged by the improved outcomes from using HBOT that they have published a research paper and are speaking to many other vets about the project. This has led to patient referrals, validation of the opportunity and creation of demand for hyperbaric chambers from other practices around the country. HODS continually aggregates all clinical data from the users of its products, which is creating a proprietary and highly valuable pool of knowledge accelerating further R&D and refinement of treatment protocols, which can then be provided to existing users via a software update. This will lock clients into a compelling value network in which their use improves the products’ effectiveness.
(optional upgrade to include oxygen self-generation system)
Veterinary clinics supporting welfare of animals in zoos
Town veterinary clinics
Commercial operators who use animals in competition
Pet insurance companies
General public who own animals as pets
Our IP search shows that no other company currently supplies this state-of-the-art equipment therefore a definite market exists in this area.
Revenue for vets (equipment lease) Lease: $1500/mth Charge per treatment: $150ea Break even point: 10 treatments/mth Typical treatments per animal: 5 Additional staff required? $nil Consumables (oxygen) $10/treatment All prices NZD All figures estimated
Project target revenue All figures NZD estimate in 000’s Cost per unit (domestic): $90k +GST (basic model) Cost per unit (export): $100k+GST (basic model) net of distribution costs Year 1 Year 2 Year 3 Year 4 Units Sold 10 / 0 10 / 20 0 / 50 0 / 100 Domestic 900 900 0 0 Export 0 2,000 5,000 10,000 Total $ 900 2,900 5,000 10,000