1. G.E.M., L.L.C.
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1. Executive Summary
In today’s world, we are faced with many assaults on our
environment. Ozone depletion, poor soil conditions for croplands,
contamination of existing water supplies and a lack of adequate
clean water are real challenges which impact our ability to produce
food, our standard of living and the earth’s sustainability. Global
Environmental Management, LLC (G.E.M.,LLC) seeks to be an ally
in the effort to reverse the damage to our critical resources and
improve land production capabilities through the use of G.E.M.
products. Sustainable, environmentally safe and chemical free,
G.E.M. products offer viable, affordable and effective solutions for
land owners, farmers, business owners and public entities, who
seek higher yields and/or decreased costs in concert with
environmentally responsible practices.
1.1 Microbial History
A microbe is a minute living organism, such as a bacterium,
yeast, or fungus. The first commercial applications of
microbes date back to around 1750 BC, when the ancient
Sumerians used yeast to brew beer. Microbes were used for
centuries to produce bread, wine, vinegar and other
common products—without anyone knowing the scientific
basis for the ingredient. The systematic study of microbes
began in the 17th century with the work of scientists like
Antonie Van Leeuwenhoek and Robert Hooke. However, the
discipline known today as microbiology was not established
until the late 19th century through the work of pioneers like
Louis Pasteur, Robert Koch, Martinus Beijerinck and Sergei
Winogradsky. The technology related to microbial production
of metabolites such as ethanol, lactic acid, butanol,
riboflavin, etc. and enzymes such as protease, amylase and
invertase were developed as early as the first few decades
of the 20th century. Large-scale production of the antibiotic
penicillin from Penicillium fungi was perfected during World
War II and the microbial production of other antibiotics,
amino acids, nucleotides, enzymes and such soon followed.
Today, genetically engineered microbes are used for the
commercial production of nonmicrobial products such as
insulin, interferon, human growth hormone and viral
vaccines. Microbes are also used to produce energy (e.g.,
biodiesel and bioethanol) and to clean up environmental
pollutants such as sewage and oil spills. As the active
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2. G.E.M., L.L.C.
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ingredient in biofertilizers and biopesticides, microbes
contribute to increasing agricultural productivity, and
microbes form the basis of cost-effective methods of mining
and metallurgy
1.2 Business Opportunity
Sustainable products are being looked at as the largest
economic opportunity of the 21st
century. The microbial
products market was worth more than $114 billion in 2012
and is expected to be more than $130 billion in 2013 and
$174 billion by 2018, a CAGR of 6%. The Agricultural
Inoculant market alone will be worth $431 million by 2020. (
MarketsandMarkets – Global Trends and Forecasts to
2020) Many investors who made their money during the
dot-com boom are now looking to invest in alternative fuels
and environmentally friendly products. While most of the
investments are being made in fuel alternative
technologies, the need to reclaim the earth and water from
chemicals is being looked at also.
Agricultural inoculants or bio-inoculants are preperation
containing beneficial living cells of efficient microbial
strains, artificially multiplied, and able to colonize the
rhizosphere or the interior of the plant. When applied on
seed, soil, or plant surfaces, they promote growth by
increasing the supply or availability of nutrients on a form
easily assimilated by plants. They also improve the quality
of soil, enhance the growth of crops, and increase the yield
of crops.
Agricultural inoculants are formulations of beneficial
bacteria or fungi and are used for remdiation and
enhancement of the productivity of agriculture. They also
help in improving the plant uptake of nutrients and increase
the efficiency of crop protection against chemicals, diseases
and pests. (MarketsandMarkets – Agricultural Inoculants
Trends and Forecasts to 2020)
Our objective, by entering into or extending our presence, is
to provide sustainable and affordable products, and to
educate and train those involved in fertilization, oil
remediation, wastewater treatment and pond management,
making environmental safety the key issue. This will lead to
the use of natural microbes, bacterium and enzymes,
instead of synthetic chemicals, as the way to grow crops
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3. G.E.M., L.L.C.
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and naturally clean the water, preserving the environment
and renewing the earth.
The need to be a part of the solution in preserving the
environment and saving the earth is the contributing force
behind creating this opportunity.
1.3 Products and Services
G.E.M. product line consists of products designed to be
environmentally safe. These products are naturally
occurring living microbes that produce enzymes to carry out
the biological functions of rebuilding soil organic matter,
improving soil tilth. The products also provide nutrients to
plants in the most economical and ecological way to provide
sustainable agricultural results. These results create a
more productive, healthier, balanced environment requiring
fewer chemicals, less fertilizer and better utilization of soil
nutrients and water.
The last two products are specific to septic and wastewater
cleaning and oil remediation. G.E.M. Wastewater / Septic
Tank Treatment is an organic stabilized bio-stimulant
catalyst containing an oxygen delivery system that provides
the right conditions for naturally present bacterial colonies
to develop a balanced aerobic eco-system in wastewater
lagoon or septic system. G.E.M. acts in” conjunction with
the natural bacteria that are present in any waste lagoon or
septic system.
Environmental remediation has stimulated the use of
bioremediation as a part of the clean –up process for many
projects. G.E.M. onlyuses naturally occurring microbes that are in
a state of dormancy. G.E.M. increases the number of microbes
that occur naturally to quickly handle the remediation work at
hand.
1.4 The Market
Our company has set out to capture 1-3% of the North American
market in agriculture, golf courses, cities and Independent School
Districts (I.S.D.’s). This translates into 46 million acres of cropland,
1,767 cities and I.S.Ds and 1000 golf courses.
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Approximately 500,000 new septic systems are built each year in
the United States and Canada, (E.P.A.). There are currently
more than 29.5 million septic systems in the United States and 3.5
million in Canada. We will be working to acquire a 1-3% share of
this market.
The United States Environmental Protection Agency predicts
about 14,000 major oil spills per year. Pairing that fact with spills
that occur at trucking companies, motor pools, fueling stations, or
oil storage facilities, the need for an environmentally safe cleanup
alternative is growing. The EPA uses and recommends
bioremediation as an alternative cleanup method. We will work
towards capturing 1-3% of this market with the intent of
reeducating the public to the need of this alternative cleanup and
therefore increasing the market share.
Key participants in the supply chain of agricultural inoculants are
raw material suppliers, government bodies, distributors, and end
users such as farmer cooperatives and associations. Upstream
players which offer agricultural inoculants to other manufacturers
which are involved in organic fertilizer production to offer inoculant
based organic fertilizers; associations of organic fertilizer and
pesticide are noted. BASF SE (Germany), E.I. Du Pont de
Nemours and Company (U.S.), Bayer CropScience (Germany),
Novozymes A/S (Denmark), and Verdesian Life Sciences, LLC
(U.S.) are the leading players. The other players which offer
agricultural inoculants include Advanced Biological Marketing, Inc.
(Ohio), BrettYoung (Canada), Precision Laboratories, LLC (U.S.),
Queensland Agricultural Seeds Pty. Ltd. (Australia), and Xitebio
Technologies, Inc. (Canada).
In terms of insights, research has focused on various levels of
analyses industry analysis, and company profiles, which together
comprise and discuss the basic views on the competitive
landscape, emerging & high-growth segments of the global
agricultural inoculants market, high-growth regions, countries, and
their respective regulatory policies, government initiatives, drivers,
restraints, and opportunities.
Our goals can and will be achieved with an aggressive advertising
and marketing campaign along with adding the appropriate
number of distributors.
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1.5 Financial Potential
The current business plan, prepared by the company, shows that
the business will generate gross revenues of $385K in year one,
$677k in year three and up to $930 in year five.
Income Year 1 Year 2 Year 3 Year 4
Year 5
Agriculture $250,000.00 $287,000.00 $330,000.00 $380,000.00 $437,000.00
Cities/I.S.D’s $5,000.00 $7,500.00 $11,000.00 $16,000.00 $20,000.00
Golf Courses $25,000.00 $75,000.00 $125,000.00 $144,000.00 $165,000.00
Retail T & G 0 0 0 0 0
Septic Clean $5,000.00 7500 $11,000.00 $16,000.00 $20,000.00
Remediation $100,000.00 $150,000.00 $200,000.00 $250,000.00 $288,500.00
** $385,000.00 $527,000.00 $677,000.00 $806,000.00 $930,500.00
** This is a very, very conservative estimate of gross revenues.
1.6 Current Business Position
G.E.M., LLC. is a Wyoming LLC corporation which consists of an
experienced management team from diverse backgrounds. Nick
Oprea will be responsible for general management, marketing &
inside sales. Nick has 12 years experience in microbial inoculants
consisting of operating a business, sales and marketing. Daniel
Holley (microbial brewmaster) will be responsible for manufacturing
and outside sales. Daniel has six years experience in brewing
inoculants, sales and marketing. Patricia Oprea will be responsible
for tracking invoices, payouts and daily financial accountability.
Patricia has over 20 years experience in operating a business with
over a $2mil budget and over five years in IT in Project
Management. Between the three executive managers we have over
40 years of executive business management, 18 years in the
microbial products industry.
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6. G.E.M., L.L.C.
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1.7 The Request
G.E.M.LLC., is requesting $500,000 to provide expansion and
working capital, to purchase more equipment and lease a larger
production plant, expand the marketing plan, buy insurance and
pay salaries for more employees.
The officers have already put in over $50K of their own monies and
are looking to take the company to the next level. They have
clients in the golf course industry dairy industry, olive industry and
parks and recreation. They are also part of a 63,000 acre
agricultural project on the Yucatan pennisula in Mexico.
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7. G.E.M., L.L.C.
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1.7 The Request
G.E.M.LLC., is requesting $500,000 to provide expansion and
working capital, to purchase more equipment and lease a larger
production plant, expand the marketing plan, buy insurance and
pay salaries for more employees.
The officers have already put in over $50K of their own monies and
are looking to take the company to the next level. They have
clients in the golf course industry dairy industry, olive industry and
parks and recreation. They are also part of a 63,000 acre
agricultural project on the Yucatan pennisula in Mexico.
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