Dobiotech executive summary bio-fuels ENGLISH
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  • 1. Executive Summary Páge 1 of 16Important Note: This Executive Summary is confidential information, and may require the signing of a confidentiality agreement prior to delivery and review. The use of thisdocument is restricted exclusively to direct investment purposes prior and / or subsequent to the IPO. EXECUTIVE SUMMARY INDEX: A.- DOBIOTECH COMPANY B.- CAPITALIZATION C.- INVESTMENTS & BUSINESS PLAN D.- PRODUCTS E.- DBT FOUNDATION F.- FINANCIALS G.- PRINCIPALS H.- FAQ I.- INTERNAL & EXTERNAL EQUIPMENT& COST PRICES COMPARISON A.- DOBIOTECH COMPANY DOBIOTECH is a Dominican Republic based company with a preferred project of installing a series of 2nd Generation High Technology Bio-Fuels Production Plants in the Dominican Republic. DOBIOTECH will be a Public Company listed on the BME on the second half of 2012. DOBIOTECH has a preferential agreement with the Swiss company "New Technology Engineering" for the installation of up to FOUR Bio-Fuels Production Plants in the DR or in the Caribbean area. DOBIOTECH will count with a new high tech revolutionary technology, to enhance the performance of common or standard Diesel fuel engines, by just replacing the common or standard Diesel fuel with a Microemulsion made by the Micro-Encapsulation of Water molecules in to Diesel and/or Bio- Diesel molecules. This industrial development will be the subject of the investment to install and get in to operation the First Phase of the Integral Project, with an investment of 50 million Euros, to install the First Bio-Fuel Production Plant for the production of the Microemulsion. Each of the planned Production Plants will have a very high productive capacity and double efficiency than the largest planned or installed Bio-Fuel plant in the world today because... Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 2. Executive Summary Page 2 of 16For the production of Bio-Ethanol (Ethyl Alcohol), DOBIOTECH will use an OWN Continuous FlowExclusive High Technology Process based among others, on a new way to use the Cellulose fromthe soft vegetable Bio-Masses and transform it without the use of dangerous chemicals or steam, into different anaerobic Fermentable “Sugars”, which will allow DOBIOTECH to get Bio-Ethanolcheapest than any other company on the world.The unique high technology allows DOBIOTECH to obtain spectacular returns and capabilities neverbefore seen in the Bio-Fuel industry. Going from 8-10% to 15% of effective performance in theconversion and production of Bio-Ethanol.COMPANY: DOMINICAN BIO-FUELS & TECHNOLOGIES (DOBIOTECH)www.dobiotech.com - www.dobiotech.esCEO:Claudio Dal Boni H.Ph.: (+57 314) 370 40 97 / (+1 829) 840 78 24E-Mail: CEO@dobiotech.com & dobiotec@gmail.comOperative Company in Dominican Republic:DOBIOTECH S.A.Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos11108 Santo Domingo D.N. - República DominicanaParent Company in USA:DOBIOTEC, LLC8657 Abbotsbury DR.Windermere, FL 34786- USSTEP: EXPANSIONBOARDS OF DIRECTORS: Claudio Dal Boni H. IT (CEO) Chief Executive Officer & President CEO@dobiotech.com Amedeo Bernardi IT (EVP) Executive Vice President EVP@dobiotech.com (FVP) Financial Vice President Carlos E. Espitia COL FVP@dobiotech.com & DBT-Foundation President (CVP) Commercial Vice President CVP@dobiotech.com Ramón A. Rodríguez DR & President 21 St Division, llc (USA) 21divisionllc@gmail.com (OVP) Operative Vice President Raúl V. Laguado P. VEN OVP@dobiotech.com Vice-President 21 St Division, llc (USA) (EVP) Environment Vice President Freddy R. Medina C. VEN EVP@dobiotech.com 2º Vice-President 21 St Division, llc (USA) Rafael A. Perdomo L. DR (CEA) Chief Executive Auditor & Treasurer CEA@dobioech.com (CVO) Chief Visionary Officer CVO@dobiotech.com Eduardo L. García SP & CEO ENAT (ESP) elgarcia@enat.es (NED) Investor Relations Director NED@dobiotech.com Alvin Donovan US & EPF Manager Director donovan@epfundspc.com Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 3. Executive Summary Page 3 of 16B.- CAPITALIZATION:VALUE OF ASSETS OWNED BY PROMOTERS:The Assets Owned by the Promoters could be Valued at the present date, in a Total amount of atleast USD $ 300.0 M (Three Hundred Millions USA Dollars): (1..7): 1. The Executive Global Integrated Project, for a Total Investment Value of USD $ 450.0 M, fully developed with all the studies available and ready to be actuate, by means of which the company will install and start up the Production of N° 4 (Four) different types of New Generation BIO-FUELS Plants all made by green renewable energy sources. Each Global Integrated Project will have or include the following Individual Production Plants: (Mentioned in their respective Startup order)  MICROEMULSION (Environmental Safer Substitute of Diesel Fuel)  BIO-DIESEL (Methyl Ester of Vegetable Fatty Acid - Safer Substitute of Diesel Fuel)  VEGETABLE OIL (Derivate from Castor Oil Seeds or any other type of Oil Seeds)  BIO-ETHANOL (Ethyl Alcohol to be used mixed as a Fuel component for unleaded “Green” Gasoline) 2. The right to buy from NTE (NEW TECHNOLOGY & ENGINEERING S.A. - Provider & Main Contractor), all the Equipment & Machinery under a “Turn Key Job” modality, all included, at a Special & Exclusive Floor Cost Price for all our projects, including in that Price, the per life usufruct-exploitation rights of the Patented High Technology & Engineering that will come included within the different Equipment & Machinery and which will permits to achieve the highest level of efficiency in all the processes at the lowest costs. This Price Difference, between the present Official Prices of NTE (the Prices that they will apply to others for the same Equipment & Machinery) and our Special & Exclusive Floor Cost Price represents approx. USD $ 296.8 M. (Please see the Annex N° 1). 3. Total and deep Knowledge of the Promoters on all the Technology & Engineering that will be applied or used in any Plant and stage of the Project. 4. The Business-Specifics knowledge and all its related benefits (i.e. Marketing, Customers & Logistics) which grant to the Promoters to have all the Production Totally Sold in advance, by contracts & agreements that would be signed as soon as the installation of the Production Plants will start. The presently unsatisfied demand & potential of the USA & Canada markets especially for BIO-ETHANOL is very high. Our main competitor for BIO-ETHANOL within the area could be only Brasil, but they have to pay around 10-12% extra customs taxes to get and sell in to the USA & Canada markets, so, their Selling Prices for BIO-ETHANOL will always be higher than ours, because the products coming from the DR do not have to pay such taxes. Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 4. Executive Summary Page 4 of 16 5. The Promoters have already developed the necessary “lobby” with local Government which granted all the necessary Support & Commitment to facilitate the consecution of the different Permits & Licenses that are needed to operate the Production Plants (Environmental, Bio- Fuels Law for Import & Export Taxes Total Exemption, Special Free Zone Status for the land where the Plant will be located, etc.). 6. The company counts with the permits and the open possibility to install up to N° 3 (Three) additional similar GLOBAL INTEGRATED PROJECT (with 4 Production Plants each) of the same size, in the territory of the DR. 7. Initial Investments already made by Promoters for USD $ 3.9 M.INVESTMENTS CAPITALIZATION ACROSS STOCK EXCHANGE:Special Private Placement Agreement for € 50M.Equity Partners Fund SPC on behalf of International SPAlvin Donovan donovan@epfundspc.com | Managing Director | Equity Partners Fund SPChttp://equitypartnersfund.com/ | #14-94 The Central, 8 Eu Tong Sen St, Singapore 059818Contacts: Joseph B. LaRocco: larocco@equitypartnersfund.com & Henry Mulherin:henrymulherin@mac.com. Telephone: (USA) 203-599-1928 Fax: (USA) 212-918-3434Due Diligence & SPPA Agreement by: http://www.kelleydrye.com/indexKELLEY DRYE & WARREN LLP, Federal ID NO. 13-5335107400 Atlantic Street, Stamford, Connecticut 06901-3229, USA.Kelley Drye and Warren LLP represents Equity Partners Fund SPC.Contact: Clyde Tinnen CTinnen@KelleyDrye.comC.- INVESTMENS & BUSINESS PLANPROJECT DEVELOPMENT STEPS:2013.- The first GLOBAL INTEGRATED PROJECT, will be installed in the Province of Montecristi,on a Land/Lot the Promoters has already optioned, which has an area of approx. 150,000 m2 and islocated very closely to the Peer and Port of Manzanillo. [Google Maps]  The First Plant for the Production of BIO-FUELS that will be installed will be the Plant to produce 30,000 Liters/hour of MICROEMULSION. This Plant, will be the “fastest” starter Plant. We can have it available, installed, Producing and Selling in the DR, independently from all the others Production Plants, in just only 180 days from the date that we will send the first payment to the provider.  The Second Plant for the Production of BIO-FUELS that will be installed, will be the Plant for the Production of 5,000 Liters/hour of BIO-DIESEL.  The Third Plant for the Production of BIO-FUELS that will be installed will be the Plant to process 20,000 Kilos of OIL SEEDS.2014.- The First Step for the BIO-ETHANOL Plant will start also by the end of the year 2013.The BIO-ETHANOL Plant will be built up by stages during approx. 18 months and is expected to beready to start producing by the end of the year 2014. Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 5. Executive Summary Page 5 of 16TOTAL INVESTMENT FOR BIO-FUELS PRODUCTION PLANTS:The Total Required Investment for the Integrated N° 4 Production Plants to Produce BIO-FUELS isthe Sum of USD $ 450.0 M (Four Hundred Fifty Million USA Dollars), from which:  USD $ 354.0 M (Three Hundred Fifty Four Million USA Dollars) will be made during the first 30 months;  USD $ 96.0 M (Ninety Six Million USA Dollars) will be made by Reinvestment of Accrued Revenues/Profits by the end of 2015.BRAKE DOWN USE OF THE PROCEDES: $ 0.5M Working Capital, 2012. $ 4.5M Freeport & Plot on Dominican Republic & Construction Tax, 2012. MICROEMULSION + BIO-DIESEL + VEGETABLE OIL Extraction Production $ 55.0M Plants, all ready and working by the end of year 2013. $ 96.0M Bio-Ethanol Plant 1st Step, end 2013. $ 198.0M Bio-Ethanol Plant 2nd Step, Working at end of 2014. MICROEMULSION Profit Reinvestments + Bio-Ethanol Plant 3rd Step at $ 96.0M 2015. $ 450.0M TOTAL INVESTMENT BIO-FUELS PRODUCTION PLANTSD.- PRODUCTS: BIO-FUELS:  MICROEMULSION: 100% of the MICROEMULSION that will be produced will be Sold to the Local / National Market / Customers, giving its own profitability. It also raises the Profits Re- investment we mentioned for year 2015.  BIO-DIESEL: 100% of the BIO-DIESEL produced will be for internal use/mix to be added as a Raw Material to produce the MICROEMULSION.  VEGETABLE OIL: Produced from the CASTOR OIL SEEDS processing, plus the addition of a small amount of the BIO-ETHANOL (coming from our own Production Plant), will be 100% for internal use/mix to produce BIO-DIESEL.  BIO-ETHANOL: 100% of the BIO-ETHANOL produced will be Sold to Export Markets, giving its own profitability mainly based on external demand of the U.S. and Canada Markets.If we would decide for it, there is the possibility to built at up to N° 3 additional, similar and with thesame value GLOBAL INTEGRATED PRODUCTION PLANTS in the DR. Promoters has alreadychoose and optioned, N° 2 (Two) new additional locations, to possibly install this new ProductionPlants in the territory of the Dominican Republic. Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 6. Executive Summary Page 6 of 16E.- DBT FOUNDATIONThe DBT FOUNDATION will be a completely separate Non-ProfitInstitution of Social Interest that will be connected with DOBIOTECHjust because it will be the responsible for Planting, Cultivate andProduce the CASTOR OIL SEEDS which will be used in the productionprocess of the VEGETABLE OIL that will then be processed andconverted into BIO-DIESEL.The capital investment that is foreseen to perform in to the DBT FOUNDATION shall be of: USD $10.0 M: To activate the Foundation creating the nurseries to grow the mother Production Plants andstart seedbeds for the first 2,500 hectares..Castor Oil Plant’s Market Demand the Castor Oil crop is very attractive mainly because it has thesecharacteristics:  Can be easily planted in non rich fields, upland, hillside, river beds, stream banks, salted land, and even in marginal lands.  Resistant to drought.  Requires low soil fertility.  Requires very low to null soil irrigation (water)  Contains valuable oil properties.  Produces satisfactory yields after a short period (about 140 to 160 days)These qualities are the reasons why Castor Oil Plant production is expanding worldwide. With itsmany advantages and commercial uses, there is no doubt why Castor Oil commands high demandin the international market. For sure, this demand will only grow higher as the uses of Castor Oilcontinue to increase year after year. Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 7. Executive Summary Page 7 of 16F.- FINANCIALSSALES (M$) 2013 2014 2015 2016 2017 2018 2019 2020BIO-FUELS YEAR 01 YEAR 02 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6A) NET TURNOVER 80,3 217,3 650,5 854,8 1009,5 1009,5 1009,5 1009,5 I.- BIO-ETHANOL 102,0 488,0 680,0 826,0 826,0 826,0 826,0 II.- MICROEMULSIÓN 78,0 109,0 132,0 132,0 132,0 132,0 132,0 132,0 III.- BIO-DIESEL 1,4 1,4 6,7 9,4 11,4 11,4 11,4 11,4 IV.- CASTOR OIL 0,8 0,8 4,2 6,0 7,2 7,2 7,2 7,2 V.- YEAST 4,0 19,3 27,0 32,5 32,5 32,5 32,5 VI.- GLYCERIN & Others 0,1 0,1 0,3 0,4 0,4 0,4 0,4 0,4BIO-FUELS 2012 2013 2014 2015 2016 2017 2018 2019 2020NET TURNOVER 0,0 80,3 217,3 650,5 854,8 1.009,5 1.009,5 1.009,5 1.009,5OPERATIVE COSTS 79% 0,0 63,4 171,7 513,9 675,3 811,9 800,5 797,5 797,5PROFITS IRR 19,57% -450,0 15,7 42,5 127,3 167,3 197,6 209,0 212,0 212,0TAX 0% 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0PROFITS IRR 19,57% -450,0 15,7 42,5 127,3 167,3 197,6 209,0 212,0 212,0CASH-FLOW, First 12 month on the next page… Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 8. Executive Summary Page 8 of 16 DOBIOTECH PROJECT: MICROEMULSION - BIO-DIESEL - VEGETABLE OILINITIAL CASH FLOW Months Year 1Values in K USD $ 1 2 3 4 5 6 7 8 9 10 11 12INITIAL CASH (Month) 0 25 27.198 27.046 24.930 24.752 21.637 15.953 17.239 19.504 22.293 25.009INCOMES: Sales 0 0 0 0 0 7.373 9.873 10.467 11.467 12.473 12.924 13.424 Bank Account Incomes 5.000 55.000 0 0 0 0 0 0 0 0 0 0 Loans / Financing 0 0 0 0 0 0 0 0 0 0 0 0TOTAL INCOMES 5.000 55.000 0 0 0 7.373 9.873 10.467 11.467 12.473 12.924 13.424TOTAL CASH AVAILABLE 5.000 55.025 27.198 27.046 24.930 32.125 31.510 26.419 28.706 31.977 35.217 38.433 0 0 0 0 0 0 0 0 0 0 0 0OUTCOMES: 0 0 0 0 0 0 0 0 0 0 0 0PAYMENTS & FINANCING 0 0 0 0 0 0 0 0 0 0 0 0 Constitution Guarantees & 0 0 0 0 0 0 0 0 0 0 0 0 Collaterals & Costs of Procedures 0 0 0 0 0 0 0 0 0 0 0 0 Legalization Documentation Legal Costs 0 280 0 0 0 0 0 0 0 0 0 0 Bonds Certification & Issuance 0 0 0 0 0 0 0 0 0 0 0 0 Costs Fees & Costs Banking 0 100 0 0 0 0 0 0 0 0 0 0 Fees & Financing Costs 0 0 0 0 0 0 0 0 0 0 0 0 Other Costs and Expenses 0 52 0 0 15 0 55 0 0 0 0 0SERVICES & CONSULTING: 0 0 0 0 0 0 0 0 0 0 0 0 Registers Procedures 410 100 0 0 0 0 0 0 0 0 0 0 Attainment Permits and Licenses 270 100 0 0 0 0 0 0 0 0 0 0 Free Zone Declaratory 245 150 0 0 0 0 0 0 0 0 0 0 Advisory & Engineering Services 0 570 0 980 0 0 280 0 0 0 0 2.390 Climatic/Environmental Studies 0 385 0 550 0 0 250 0 0 0 0 0 Legal and Accounting Advisory 0 100 0 50 0 0 80 0 0 0 0 0 Notary & Legal Expenses 30 50 0 55 0 0 0 0 0 0 0 0OPERATIONAL EXPENSES: 0 0 0 0 0 0 0 0 0 0 0 0 Accrued Salaries & Social 0 107 107 122 122 142 143 143 143 143 143 143 Benefits & Leasings Rentals 0 33 25 25 25 25 15 15 15 15 15 15 Public Services & Utilities 0 2 2 2 7 7 9 9 11 12 12 12 Insurances 0 5 2 0 2 2 0 15 15 15 15 15 Travel Expenses 0 65 15 6 6 15 25 5 25 5 25 15 Miscellaneous & Other Expenses 0 10 2 11 2 1 12 2 2 2 2 2SUBTOTAL 955 2.108 152 1.800 178 192 869 189 210 192 212 2.592PURCHASE FIXED ASSETS: 0 0 0 0 0 0 0 0 0 0 0 0 Purchase of Machinery and 0 23.635 0 0 0 0 4.292 0 0 0 0 0 Equipment Purchase Raw Materials & 0 0 0 0 0 8.991 8.991 8.991 8.991 9.491 9.996 10.491 ProvisionsOther Plant Purchase 0 138 0 0 0 1.305 0 0 0 0 0 0 Micellaneous Land Purchasing 2.350 0 0 0 0 0 0 0 0 0 0 0 Costs of Land Adequacies 301 0 0 0 0 0 0 0 0 0 0 0 Taxes and Other Land Payments 71 0 0 0 0 0 0 0 0 0 0 0 Civil Work 1.299 1.925 0 0 0 0 0 0 0 0 0 0 Own Offices Purchase 0 0 0 0 0 0 0 0 0 0 0 0 Purchase Furniture and Fixtures 0 0 0 0 0 0 550 0 0 0 0 0 Purchase Other Offices 0 0 0 0 0 0 350 0 0 0 0 0 ProvisionsVehicles Purchase 0 0 0 235 0 0 365 0 0 0 0 0 Purchase Other Provisons 0 0 0 0 0 0 0 0 0 0 0 0 Purchase of Other Miscellaneous 0 0 0 55 0 0 115 0 0 0 0 0REFUNDS AND PAYMENTS: 0 0 0 0 0 0 0 0 0 0 0 0 Refund Payments for 0 0 0 0 0 0 0 0 0 0 0 0 Loan/Financing Interests 0 0 0 0 0 0 0 0 0 0 0 0 Ammortizations & Depreciations 0 0 0 0 0 0 0 0 0 0 0 2.622 Other Non-Operating Initial 0 20 0 25 0 0 25 0 0 0 0 0 Expenses Taxes & Other Revenue 0 0 0 0 0 0 0 0 0 0 0 0 PaymentsTOTAL COSTS & EXPENSES 4.975 27.827 152 2.115 178 10.488 15.558 9.180 9.202 9.683 10.208 15.705BALANCE & NET CASH 25 27.198 27.046 24.930 24.752 21.637 15.953 17.239 19.504 22.293 25.009 22.728 This Color indicates the Month where the Purchase of the Equipment will be done: Microemulsion - Bio-Diesel - Vegetable Oil Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 9. Executive Summary Page 9 of 16G.- PRINCIPALSCLAUDIO DAL BONI HASENBERG, Founder and Shareholder, is Currentlythe President & CEO of DOBIOTECH. - CEO@dobiotech.com CLAUDIO DAL BONI is of Italian Nationality, born in Rome, Italy, on December 30, 1952, with Residence in Colombia, Italy and the Dominican Republic. CLAUDIO is an Economist, Financial Administrator and MBA in Finance, Chemical Engineer, Civil Engineer and Agronomist. His Specialization and Focus are on Entrepreneurship, Research, Marketing Research & Investigation, International Marketing Strategies and Strategic Alliances. For many years, he has held important positions at the highest level (General Sales & Marketing Manager, Vice President, and the address of several companies and institutions) in different multinational companies and NGO’s, mainly from the USA, as well as from Europe (Du Pont de Nemours, Polymer International, ESPA, AWA, OFA-McKesson, Eurocofarma, etc.), in several countries of the world. In his career development and employment, Mr. Dal Boni has worked in many different market sectors such as Oil, Chemical, Plastic, Pharmaceutical and Agrochemical among others. Besides the above, and concomitant with other positions, was appointed by the Italian Ministry of Foreign Trade, Director - Secretary General of the Italian Chamber of Commerce to Colombia and Italian Chambers of Commerce of the Andean, Caribbean and Central America, where he promoted the Foundation and/or restructuring of these Chambers of Commerce (Venezuela, Ecuador, Costa Rica, Dominican Republic, Honduras and Peru). Charge in which Mr. Dal Boni maintained for many years until he decided to retire, to run his own initiatives directed to create and develop his own businesses and enterprises, initially dedicated to Design, Manufacturing, Construction, Marketing, Sales and Installation "Turn Key Hand" (Turn Key Job) of different Production Plants and equipments for industrial production of different types of Products, Goods and/or Raw Materials. During recent years, Mr. Dal Boni has been mainly dedicated to the development of several new technologies, aimed principally to the Bio-Fuels Sector, Renewable Fonts Fuels and Clean (Green) Energy Renewable Fonts, traveling to many countries, to promote the use of these Clean Technologies and together with its Partners, (especially Europeans), designing, selling and installing production Plants in different countries. By the end of 2009, Mr. Dal Boni and his Partners, decided to create in the Dominican Republic, the Company: DOMINICAN BIO-FUELS & TECHNOLOGIES - DOBIOTECH, in order to bring life to said Project. Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 10. Executive Summary Page 10 of 16CARLOS EDUARDO ESPITIA LOPEZ is currently the Administrative andFinancial Vice President of DOBIOTECH and Member of the Board ofDirectors of the Company. - FVP@dobiotech.com Mr. ESPITIA is a Colombian National, born on July 13, 1965 in Bogotá, Colombia, where he currently has his main residence. Mr. ESPITIA is an Economist, Financial and Philosopher, a graduate of the University of Los Andes of Bogotá, MBA from California Coast University, USA. It also has among others Diplomat, one in Investment Banking of the University of the Andes in Bogotá; Management Styles from the Harvard University Extension School; ISO 9000 and Total Quality Management from the Universidad Javeriana in Bogotá: Activity Based Costing (ABC) from the University of Los Andes in Bogotá. In his over 25 years of professional career, Mr. ESPITIA has been a speaker and professor at prestigious universities in Colombia and in his career, he has accumulated extensive experience in the financial, managerial and administrative field thanks to its proven ability to manage financial risks, managing investment portfolios, participating in strategic planning and rightly advising major corporate important business decision making. Mr. Carlos E. ESPITIA L. is also currently, President and Shareholder of the company XADUA TRADE INC.RAMÓN ALBERTO RODRÍGUEZ FERNÁNDEZ is currently the CommercialVice President of DOBIOTECH and member of the Directors Board of theCompany. - CVP@dobiotech.com Mr. RODRÍGUEZ, of Dominican Nationality, was born on February 26, 1968 in Santo Domingo, and lives since many years in the United States of America. He is Landscape Designer, Architect and Business Administrator, he has served for many years in the Real Estate and Construction sector, lastly has specialized in the marketing and sale of various types of Fuels, raw materials, consumables and different Commodities. Mr. RODRÍGUEZ, also is the President of 21 ST DIVISION, LLC, a USA Corporation, with Legal address in 11564 Mizzon Dr Unit 908 - Windermere FL 34786, and of 21 ST DIVISION SRL, Company duly organized under the laws of the Dominican Republic, with headquarters in Calle Los Profesionales - Res. Maribel II N° 18 - Sector Herrera - Santo Domingo Oeste - Dominican Republic. Mr. RODRÍGUEZ, and his Company 21 ST DIVISION, are Strategic Partners of DOBIOTECH, thanks to the excellent relations that he maintains for many years with the Major Wholesalers Companies of Conventional Fuels and Bio-Fuels of the USA and Canada. 21 ST DIVISION & Mr RODRÍGUEZ will be the responsible to realize the Marketing and Commercialization for most of the BIO-ETHANOL (ETHYL ALCOHOL) that we will go to produce in our Plant of the D.R. Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 11. Executive Summary Page 11 of 16H.- FAQWhy DOBIOTECH decided to settle in the Dominican Republic? debajo deWhy DOBIOTECH can purchase/obtain the Equipment & this Special Technology at a PreferentialPrice? debajo deWhy DOBIOTECH Production Costs are Lower Compared to Other ProductionPlants/Manufacturers Using Conventional Technology? debajo deWhy the Technology of DOBIOTECH & NEW-TECHNOLOGY is more efficient? debajo deWhy aren’t there Other Companies with the Same or Similar Technology? debajo de1. Why DOBIOTECH decided to settle in the Dominican Republic? a) DOMINICAN REPUBLIC has a very STRATEGIC GEOGRAPHICAL POSITION, in relation with the MARKETS which have the largest Consumption Potential of BIO-ETHANOL the USA and CANADA, which offers us the total Exemption on Customs Import Tariffs to reach those Markets (i.e. Brazil, pays 12%). b) We found an ideal location in Manzanillo, Montecristi, where in addition to having the necessary support from the Local Government, there are also already available at least Two very important logistic factors:  A Deeper Bay that allows the Entry and Maneuver of Large Ships;  A Pier already available with Excellent Structure; c) The Stability of the Rules, Laws, Protection and Welcome, that the Dominican Government has historically offered and still offering to the Foreign Investment and/or Investors;2. Why DOBIOTECH can purchase/obtain the Equipment & this Special Technology at a Preferential Price? Mainly because the President & CEO of DOBIOTECH and another of the Directors, (Mr. Bernardi) are in this Business since more than 12 years. In the past as partners in the same old company with the today owners of NTE and actively participated in the Research, Development and Design of the New Technology and many of the patents that are involved and applied in all the Machinery and Equipment that NTE will sell to DOBIOTECH. Mr. Dal Boni and Mr. Bernardi knows in deep details, Designs, and particulars of the Patents and its functioning, the applied High Technology and how it works, and more importantly, the Costs related and involved in the construction of the Equipment and the Machinery. Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 12. Executive Summary Page 12 of 16 For such reasons and as a “compensation agreement” NTE is leaving to DOBIOTECH, the Machinery and the Equipment at the cost level, almost without recharging profit margins, and without charging the cost of royalties for the usufruct of the patents.3. Why DOBIOTECH Production Costs are Lower Compared to Other Production Plants/Manufacturers Using Conventional Technology? One of the main reasons of it is because 95% of the “Latin American” Ethyl Alcohol Producers are Sugar Cane Manufacturers and they are mostly oriented to produce the Sugar and then, as a secondary activity, they enter many years ago in to the business of the BIO-ETHANOL production and their manufacturing process is quite different to ours. Their Sugar Cane cultivation requires to have large extensions of adequate land, and support the all the costs of it. The Sugar Cane Cultivation will give you as a maximum only two harvests or “Zafras” per year. This means that they are not producing on a constant continuous basis but on very big Lots or Batches basis. Once the cane has been cut, if not used will rot, therefore, it can not be stored for long, so which they will fail to use they have to burn it. Their manufacturing process is the same as per to produce the Sugar. They have to harvest the Sugar Cane, Transport many Tons of it to the Sugar Mill, press it at least three times, obtain the Sugar Cane Juice (Guarapo), which has to be clarified using Steam and evaporate the major possible part of the water contents, to obtain a kind of “honey”. At this point, they could decide, how much of this “honey” will go to produce Sugar and how much will go to Fermentation and later produce BIO-ETHANOL. They can’t use the Hyper Fermentation System because they are Fermenting by Lots or Batches. Therefore they production of BIO-ETHANOL is also not constant, because it depends of the contents of “fermentable components” of each Lot of Honey. Finally, they has a 15-20 years older Distillation System or units based mostly on the Old Distillation Concept/Process where the water is evaporated by the use of Steam and by several steps to obtain at first an 85-90% BIO-ETHANOL concentration. After this, they use a Volatile Solvent (Cyclohexane or Benzene) to “break” the “Azeotrope” (water molecularly tied to the BIO-ETHANOL), and finish the Distillation to obtain a 99% purity BIO-ETHANOL. We in DOBIOTECH do not need to do all of that above described Process! We can use any Bio- Masse as Raw material. Our ideal is to use the Bagasse of the Sugar Cane that the Sugar manufacturers could not take advantage of. Our first Step of High Technology is a Set of Equipment that has a Patented process whereby we mill the Bagasse fibers in to a very small and totally dried particles. Therefore we can stock up it for long times and use it all the year on. Then, through a Patented Physical-Mechanical System (without using Steam or Acid or Ammonia and at room temperature), we could separate from the Dry Bagasse Particles, the Lignin from the Cellulose and the Hemicelluloses. Subsequently, by an Enzymatic Process we can Convert the Cellulose in to 100% Fermentable Sugars. In an On Line 100% Continuous Process, 24 hours per day, we send those above mentioned Fermentable Sugars directly to the Molecular Hyper Fermentators units, where we had sent before, directly, also the Hemicelluloses, and all this together; will start the Anaerobic Fermentation Process with the presence and “help” of particular Enzymes and Yeasts. Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 13. Executive Summary Page 13 of 16 The Anaerobic Molecular Hyper Fermentation Process is normally done at room temperature, and/or eventually if necessary, we could use a very small amount of Steam to heat up the broth. Our Molecular Hyper Fermentators units, will count with a special patented System/Software, controlled by a PLC that will automatically measures the temperature, the contents of Alcohol (Ethanol) that will be generated, and the CO2 that is developed during the Fermentation Process. As the Fermentation Broth reaches the desired Alcoholic (Ethanol) level, is Automatically sent to the following phase of the Distillation.4. Why the Technology of DOBIOTECH & NEW-TECHNOLOGY is more efficient? Our Distillation process will be done with the most modern High Technology available in the world in this moment. Our Distillation Equipment, (that also is totally automatic and controlled by a PLC and a Software Program designed specially to perform this Process), will Base it Efficiency, Low Cost, Quality and Productivity, by the use of 3 different New High Technical concepts: a) The CMMD (Catalytic Membranes Molecular Distillation); b) The VDUHPA (Vacuum Distillation Under High Pressure Atmosphere) c) The DVLT (Distillation at Very Low Temperature) By Combining the above mentioned High Technologies, we can obtain among other benefits, the following results: a) We have NO need to "Re-Distill" like the others producers do. This means that our Equipment will handle the Distillation Process in just only one Step or Passage of the Broth through the Distillatory Units, avoiding normal losses caused by the evaporation of an important % of the BIO-ETHANOL; b) We have NO need to use of Expensive & Environmentally unsafe Volatile Solvents, to “break” the Azeotrope. This Operation will be done directly and On Line by the CMMD; c) The VDUHPA and DVLT are giving us the benefit and the enormous advantage to allow us to work closely to the “room” average normal temperature of the D.R.! This means that we will use a very low amount of Steam, and also of Chiller capacity. So the energetic efficiency we will have will give always a very good balance, because we don’t have the need to Spend a lot of Energy to produce Steam and or Chilled or Cold Water, in order to be able to Produce another Energy or Combustible like the BIO-ETHANOL. The above is our full “Balance” explanation and answer to the question. In practice, we will have in average of at least 10-11% against all the “Standard” BIO-ETHANOL Producers and Especially against the Brazilian Producers. In addition and for the same reasons, our Production Efficiency will be at least of 15%. It means that we are able to convert in to BIO-ETHANOL at least the 15% of the Volume of the BIO-MASS that we will introduce from the beginning in to our process. Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 14. Executive Summary Page 14 of 165. Why aren’t there Other Companies with the Same or Similar Technology? This is really a good question! and the answer might be even better or perhaps very simple: Would be almost the same if we ask ourselves why not everyone buys a Ferrari or a Lamborghini? We are convinced that there are many reasons: a) If you will have a look to our chart Named “Internal Equipment Prices Comparison” on our Web site under the Investors password protected area, you will see, that the normal average price for the Equipment and the Machinery that we are getting from NTE is USD $ 562,200,000, so it is not cheap! Without any doubt, the Standard Old Technology is always cheaper than that, and there are not many people are willing to invest such sums of money to replace an old plant that still produces... b) Secondly, the nature of the Technicians, Engineers and the major part of the Advisors Technical Assistants or who normally develops the projects for production of BIO-ETHANOL, come from the "old school", studied about on the old technology, and we all know, that everything new, usually creates in any human being, certain “fears” and traumas. Most people prefer to continue doing what they already know and do not change… c) The major part of the present BIO-ETHANOL producers as we said above are considering the BIO-ETHANOL production as a secondary priority. Their first priority is always to produce Sugar! d) The major part of the present BIO-ETHANOL Production Production Plants, are old and very antiquate. While it is more expensive to make an overall or a technological upgrade to an old plant, than to build a total new one, the major part of the companies prefer go ahead with what they have. e) Finally, the Salesman and the major part of the Machinery and Equipment builders are choosing always the easiest way to do a business. They largely prefer to give to the customer what the customer is asking for… f) So, if you are asking for a Fiat, you will get a Fiat! They will never try instead to sell you a Lamborghini or a Ferrari. Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 15. Executive Summary Page 15 of 16I.- INTERNAL & EXTERNAL EQUIPMENT& COST PRICES COMPARISON (INGLÉS)This is the Equipment Prices Comparison between the NEW TECHNOLOGY & ENGINEERING’s(Bellinzona - Switzerland) Normal Present List Price and our Special Exclusive “Turn Key Job Prices”, asper their Offer/Quotations of September 2011, that are included in our DOBIOTECH Project.NEW TECHNOLOGY & ENGINEERING S.A., has been specializing in the design, construction andinstallation of complete Production Plants for the production of BIO-FUELS, Clean and RenewableEnergies, being entitled to different patents and registries that allow it to claim the use of the highest andmost advanced technologies that can exist in this field.In addition to the above, we have the possibility to acquire and buy at that Same Special Prices, as muchEquipment as we want, to be installed in the D.R., and also if we want, to be positioned in otherauthorized countries different than the D.R. (Colombia, Costa Rica, Puerto Rico, Chile, Peru, Ecuador,etc.).(*) Without Considering: Civil Works Construction Costs, Machinery and Equipment Installation Costs,Personnel Training Costs and other “Turn Key Job” Costs. Equipment Name/Description DOBIOTECH NTE Millions USD $ (*) Special Price Normal List Price Complete Machinery & Equipment for the MICROEMULSION Plant $ 23.63M $ 40.20M Complete Machinery & Equipment for the BIO-ETHANOL Plant $ 237.43M $ 510.50M Complete Machinery & Equipment for the BIO-DIESEL Plant $ 3.20M $ 8.30M Complete Machinery & Equipment for the VEGETABLE OIL Plant $ 1.09M $ 3.20M TOTAL VALUE $ 265.36M $ 562.20MEQUIPMENT COST & PRICES COMPARISIONComparison between Petrobras New Project (partially) & “Others” Brazilian Sugar Cane Derivative BIO-ETHANOL Manufacturers/Producers and our Special Exclusive NTE “Turn Key Job Prices”, that areincluded in our DOBIOTECH Project.This comparison, will take into consideration only the BIO-ETHANOL PLANT and its components, whilein the case of the Others Manufacturers, they are not mentioning or installing any Bio-Diesel, VegetableOil or Microemulsion Processes.We consider that to have a better comparison parameters, it is important to mention here, that the“Others” Brazilian Sugar Cane Derivative BIO-ETHANOL Manufacturers/Producers ProductionPlants/Projects, also if in its overall context/concept could be considered very similar to our DOBIOTECHProject, their Production Plants, do not have some parts of the Special High Technology that we willhave. Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com
  • 16. Executive Summary Page 16 of 16On the other side, they have the possibility to use and base their production only one type of RawMaterial, which will be the Sugar Cane Juice and its derivative Molasses.The Equipment & Machinery of the “Others” Brazilian Sugar Cane Derivative BIOETHANOLManufacturers/Producers Production Plants/Projects in the majority of the situations are or will beManufactured & Built by the famous and well known Brazilian manufacturer DEDINI INDÚSTRIAS DEBASE Group (www.dedini.com.br).The announcement and press release for the New PETROBRAS Biocombustivel Plant/Project, wasmade in August 2011, on all the major media, including the International EFE Press & News Agency. DOBIOTECH PETROBRASS DR PROJECT NEW PLANT Costs of Machinery & Equipment for the BIO-ETHANOL Plant (*) $ 237.43M $ 271.900M BIO-ETHANOL Production Capacity (Liters per Year) 1M 700K COMPARATIVE FACTOR Equipment Costs Vs. Production Capacity $ 0.22.- $ 0.39.- BIO-ETHANOL Production Efficiency 15% 8-10% Juice & Molasses Vinasses Production/Recirculation YES NO Bagasse/Cellulose Conversion Process YES NO Distillation by Membranes YES YES Low Temperature Distillation YES NO Use of Solvents for “Azeotropic” NO YES Continuous Hyper Fermentation YES NO Steam Consumption LOW HIGH Costs BIO-ETHANOL (USD$/Liter) $ 0.76.- $ 0.84.- Need to Crop/Cultivate Sugar Cane NO YESLinks: a) http://www.ideal.es/agencias/20110818/economia/petrobras-anuncia-construccion-mayorplanta_201108180619.html b) http://www.mundo.com/economia-y-finanzas/petrobras-anuncia-la-construccion-de-la-mayorplanta-de-etanol-del- mundo-23325 c) http://www.laprensa.com.bo/diario/actualidad/mundo/20110818/petrobras-anuncia-la-construccionde-la-mayor-planta- de-etanol-del_3902_7080.html d) http://www.mundo.com/economia-y-finanzas/director-de-petrobras-dice-que-america-latina-sigueentre-sus-prioridades- 21509 Calle Hatuey No. 39 Of. C-4 - Los Cacicazgos - 11108 Santo Domingo D.N.- República Dominicana E-Mail: info@dobiotech.com - CEO@dobiotech.com