Articulated Naturality Web Capital Raise by AP Corporate Finance


Published on

The latest in smartphone and simulated reality technology ("Articulated Naturality Web") from China. A successful capital raise by AP Corporate Finance.

1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Articulated Naturality Web Capital Raise by AP Corporate Finance

  1. 1. MOBILE ARTICULATED NATURALITY WEB OPPORTUNITYThe information contained in this presentation is solely for your information and may not be reproduced or redistributed in whole or in part to any other person. It has not beenapproved by a person authorised under the Financial Services and Markets Act 2000 ("FSMA") for the purposes of section 21 FSMA.This presentation does not constitute, or form part of, a recommendation, invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of anyshares or other interests, nor shall it, or any part of it, form the basis of or be relied on in any connection with any contract or commitment whatsoever.The information contained in this document has not been verified and accordingly no representation or warranty, express or implied, is made as to the accuracy, fairness orcompleteness of the information or opinions contained herein and no reliance should be placed on the accuracy, fairness or completeness of the information contained herein. Noliability or responsibility is accepted for any loss howsoever arising, directly or indirectly, from any use of this document or its contents.The information in this presentation is subject to change without notice and its accuracy is not guaranteed. It is subject to updating, revision, verification and amendment. It maybe incomplete or condensed and it may not contain all material information.By accepting this document and/or attending this presentation, you agree to be bound by the provisions and the limitations specified and to keep permanently confidential theinformation contained in this document.
  2. 2. AP Corporate Finance LLP (“APCF”) and Amalfina Ltd (“Amalfina”) have been engaged by QderoPateo Communications Limited,Cayman Islands, to act as joint mandated lead arrangers and as such have produced this information memorandum.APCF & Alamlfina are managing the fundraising process on behalf of QderoPateo Communications Limited, and as such can becontacted by an interested party with regards to this business venture.Further information on APCF is available as follows:Web: +44 (0) 7791 224 126Further information on Amalfina is available as follows:Email: sunay@amalfina.comTel: +44 (0) 7909 911 199AP CORPORATE FINANCE LLP & AMALFINA LTD AP Corporate Finance LLP is a Limited Liability Partnership Registered in England & Wales Company Number: OC352537  Address: 3rd Floor, 7 Hanover Square, Mayfair, London, W1S 1HQ Amalfina Limited is a Private Limited Company Registered in England & Wales Company Number: 7471520  Address: 3rd Floor, 7 Hanover Square, Mayfair, London, W1S 1HQ Strictly Private & Confidential 2
  5. 5. EXECUTIVE SUMMARY: TRANSACTION DETAILS & OVERVIEWTRANSACTION DETAILS OVERVIEW • A unique opportunity to invest into the creators of a new industryTARGET CLOSING February 2011 and technology revolution. An investor would be investing at the birth stage of a new industry. • QderoPateo Communications Limited (“QPC”) is the founder of the Mobile Augmented Reality & Articulated Naturality Web (“ANW”).INDUSTRY Articulated Naturality Platform • ANW is set to revolutionise the way consumers experience the world Investment into a leading wide web, moving interaction from text and images to full immersion Augmented Reality and into the web using mixed reality technologies.INVESTMENT DESCRIPTION Articulated Naturality technology company. • The ANW revolution is seen to be as large a step as the proliferation of social networking media (i.e. Facebook, Twitter, MySpace, etc).ESTIMATED HOLD PERIOD 36 months • No other competitor has assembled the required technologies (both software and hardware) to run ANW on a mobile handset. • QPC is currently developing a handset series named Ouidoo, a set ofEXIT STRATEGY IPO of the investment vehicle data storage methodologies to support 3G/4G, and a Software Development Kit (SDK) for third party applications. • QPC has obtained (via collaboration and IP acquisitions) severalDEAL REQUIREMENT USD 5 million cutting edge technologies in several disciplines including: Planar recognition and Tracking (SLAM) Object recognition and TrackingEQUITY ON OFFER 7.50% Marker and markerless based AR tracking and mapping 3D Object modeling 3D Visual rendering 3G web data storageIMPLICIT VALUATION USD 67 million • The integration of the above technologies forms the basis of the ANW experience. Strictly Private & Confidential 5
  6. 6. EXECUTIVE SUMMARY: OVERVIEW & THE OUIDOOOVERVIEW (CONTINUED) THE OUIDOO SMART PHONE• QPC has also assembled a working phone, based on a special chip with excellent computational and visual rendering capabilities and low power consumption.  Well positioned for Augmented Reality/ Articulated Naturality technologies on a handset.  One of the lowest power consuming handsets among smart phones.  Raw rated computational power exceeds any competition. The computational power rating actually exceeds most laptop and desktop computers.• QPC’s handset, the “Ouidoo” phone, is the only smart phone available that has the computational power (and low power consumption profile) to host the ANW platform.• For a full understanding of the ANW concept, please view the following 3 minute video (essential for a full understanding): revealed• QPC has received a letter of intent from China National Postal & Telecommunications Appliances Corporation (“PTAC”) for an initial order of 1 million handsets (pending final signature in Feb 2011).• PTAC is a state owned corporation.• When this order is processed, QPC will deliver a USD 165 million EBITDA for this contract alone over 24 months. The Ouidoo handset will be manufactured by Kinpo Group, the world’s second largest OEM plant. Strictly Private & Confidential 6
  7. 7. EXECUTIVE SUMMARY: MANAGEMENT TEAMMANAGEMENT TEAM MANAGEMENT TEAMSteve Chao – CEO & Co-Chairman, QPC Zhou Huan – Chairman, QPC China• Named by Business Week magazine as one of “Asia’s Best • He holds the post of Chief of Science and Technology at the Young Entrepreneurs” in 2009. Bureau of Post and Telecommunication Department, Chairman• The visionary behind QPC, Steve has created the Articulated and President of DaTang Telecommunication Industry Group, Chief of Telecommunication Science and Technology Research Naturality Web, the Institute of Augmented and Articulated Academe of Information Industry Department. Urban Planning (IAAUP), and the Vision Harbour ANW Industry • Professor Zhou holds a number of other senior positions at base in Tianjin China. He is the founder of World ANW Forum. corporations across China.• Steve is the master integrator of mobile marketing, mobile • Professor Zhou is one of the famous “Eight TD men” who technology, augmented reality, mixed reality, mediated reality, helped introduce TD-SCDMA to the commercial market as the mobile internet and next generation vision based application industry’s new standard and was crowned the “Father of TD platforms. Industrialization”.Henry Yau, CFO & Co-Chairman, QPC Charles Yang – COO and Co-CTO, QPC China• Henry has major experience in M&A transactions and • Charles was the Brigadier General of the Communication completed over 300 deals in company acquisitions and Bureau of the PLA (People’s Liberation Army), General Staff department. divestitures (with 8 deals over USD 1 Billion). • He was responsible for the organizing, commanding and• Henry has founded the Head offices of Philips Lighting and KFC management of PLA’s radio communication and as principle, in China, each of which are billion dollar operations in China. participated in the construction of the Mobile Communication• For the past 20 years, Henry has been working with investors in Bureau of General Staff which is in charge of the mobile Greater China and operating the investee companies for the communication planning and construction of PLA. investor. • Starting from 1988, Charles has presided over the planning and• Henry has degrees in Computer Science from Northwestern building of the first satellite communication network, the first pager network and first cluster dispatch network in China. University (completed Ph.D. program course work), an MBA from University of Chicago, J.D. from DePaul University, and a DBA from Renmin University. Henry is a CPA and U.S attorney. George Huang, - Co-Founder, QPC• Henry, as CEO of an Opervesting company, has in the past • George is the founder of Acer and is also currently Vice Chairman of Acer. created one of the top 20 supercomputers in the world. He is also credited with a few key patents crucial to the QPC operation. Strictly Private & Confidential 7
  8. 8. EXECUTIVE SUMMARY: THE ANW VISIONTHE ANW VISION UNLIMITED APPLICATIONS & OPPORTUNITIES• Whilst QPC has assembled and integrated the correct SATELLITE technologies to make ANW a reality, it realises that no single MAPPING corporation or other entity can ever own the entire ANW COMPANIES experience. GAME DEVELOPERS INTERNET• The above is akin to the creation of the world wide web. The SEARCH creators developed the infrastructure and then opened it up to PROVIDERS the rest of the world. Subsequent growth and evolution has been a result of the additions and collaborations of individuals, businesses and governments across the globe.• QPC has created the infrastructure via it’s ANW Software ADVERTISERS ANW Development Kit (“SDK”). This SDK will be made available to information providers, developers and any other interested ANW CAPABLE WEBSITES parties to develop ANW specific products or provide the information required to make the ANW as rich an experience SDK as possible.• The difference to the quoted world wide web example is that INTERACTIVE access to the ANW SDK will be via licensing fees (hence LEARNING generating additional revenues to QPC). In addition, QPC TOOLS maintain control over the environment that the ANW THE WORLD experience is hosted on.• QPC has created the industry, and in the next few years will become a market leader and point of entry into the APPLICATION information interaction revolution. DEVELOPERS Strictly Private & Confidential 8
  9. 9. EXECUTIVE SUMMARY: FINANCIALS & DE-RISKINGFINANCIALS DE-RISKING THE OPPORTUNITYForecast:• Detailed financial model available upon expression of early De-risking factors for an investor: stage interest.• QPC has a letter on intent from China PTAC for 1 million  A condition precedent of equity drawdown will be that the Ouidoo handsets (possibly increasing to 3 million handsets). China PTAC order (1 million handsets) must be signed either• EBITDA from the above order alone (excluding all other prior to, or contemporaneously with, final equity commercial operations) is estimated to be USD 165 million documentation. This provides comfort that the PTAC deal is a over 2 years (this forms the basis of the valuation). certainty prior to (or simultaneously with) QPC drawing down• Total forecasted year 1 and 2 revenue is USD 62 million and on the investor’s funds. USD 466 million respectively for the Chinese operation.• Total forecasted year 1 and 2 EBITDA is USD 11 million and USD  QPC will provide the incoming investor senior ranking status to 154million respectively for the Chinese operation. claims on all dividends to USD 5 million, hence the investor’s cash is returned first. When this is achieved (within 12Use of investment proceeds: months), dividend distributions will revert to pro-rata shareholdings.• USD 3.5 million to fulfill required registered share capital to meet Chinese regulations.• USD 1.5 million for further acquisition of Intellectual Properties De-risking factors for QPC: or low percentage investments into the various AR labs to strengthen affiliation.  Owing to the magnitude of QPC’s achievement, it has attracted offers of equity from several corporations (includingValuation Vodafone).• Current valuation of USD 67 million is predicated on the above PTAC contract only, no other income has been taken into  QPC is hesitant to offer a large corporate a large shareholding account. (owing the resultant control and strategic direction issues).• Upon drawdown of the USD 5 million equity required, the PTAC deal becomes a certainty.  QPC has made the decision to make this tranche of funding (for• Present Value of USD 165 million EBITDA over 2 years (using 7.50%) available to non-corporate investors. 10% as the cost of capital) is USD 136 million (so USD 68 million per annum).  QPC is planning a pilot ANW project in the busiest commercial• Valuation represents a 1x multiple of discounted forecast district in Taipei, Taiwan, which serves as a model ANW site for annualised EBITDA over the next two years. global ANW experience expansions. Strictly Private & Confidential 9
  10. 10. TRANSACTION TEAMAMIT PATELManaging PrincipalAP Corporate Finance LLPT: +44 (0) 7791 224 126E: SHAHCEOAmalfina LtdT: +44 (0) 7909 911 199E: sunay@amalfina.comRAJA PATEL OFFICEDirector 3rd FloorMayfair Commercial Ltd 7 Hanover SquareT: +44 (0) 7811 263 835 Mayfair, LondonE: W1S 1HQCONTACT US Strictly Private & Confidential 10