PRHB - EXECUTIVE SUMMARY July 2010
PURE H20 BIO-TECHNOLOGIES, INC.
Stock Symbol: (PRHB) Pink Sheets
EXECUTIVE SUMMARY July 2010 Page(s) 1 of 9
Industry: Bio-technology Seeking Financing:
Phase I: $12,500,000 Convertible Debentures
Phase II: $ 6,000,000 Tax Exempt Industrial Revenue Bond Georgia
Phase III: $ 1,250,000 Pilot Program 100 Hospital Systems "Participant Revenue Sharing"
Phase IV: $ 5,000,000 Equity Line of Credit
Visit Web-Site to view the below information: www.pureh20biotech.com
Technical Video of Silver TTO (21min. ) and Written Script of Video
Q & A's produced by Special Report T.V. Jay Crosby
Photo Gallary Manufacrturing Facility, Blairsville Georgia
Pilot Program: "Participant Revenue Sharing"
Technology, Products, Management and Press Releases
Overview: Pure H20 Bio-Technologies, Inc. (“Pure H20” or “The Company”)is a publicly held company (Symbol “PRHB” Pink Sheets) specializing in the manufacturing, design and sale of its unique residential, commercial and hospital point-of-use potable water disinfection systems. These systems are specifically designed to work effectively against water-borne pathogens and remove heavy metals and objectionable biomasses. The Company utilizes the technological advances in micro-biotechnology to improve the safety of drinking water. Pure H20 has systematically and successfully addressed lead and other chemical and toxicological contamination, as well as waterborne diseases. On July 31, 2007, the Company received U.S. Patent Number 7,250,111 from the United Stated Patent and Trademark office, Washington, D.C. for the Company’s invention entitled, “Potable Water Delivery System with Disinfection and Residual Discharge Unit and Method”. Pure H20 Bio-Technologies, has two other patents pending in the area of microbiology and in the area of product engineering design. The Company is currently relocationg its operations and has completed Phase I and II of its new manufacturing single steel arch facility located in Blairsville Georgia.
Page 2 of 9 Corporate Highlights: Pure H2O Bio-Technologies, Inc. has developed a unique approach to drinking water treatment, which addresses metal, pesticide, toxic chemical and pathogenic microbe water contamination. Using a team of experts on pathogenic microorganisms, toxic chemicals, and water purification engineering, the system as developed by the Company is in the final testing phase. The Company is diligently working toward its certification to enable the Company to enter the residential, hospital and commercial markets. The Company has engaged U.S.BioSytsems, Inc., Clancy Environmental Consultants, Inc., and is in dialogue with the Environmental Protection Agency (EPA) and National Sanitation Foundation (NSF), respectively working toward certification. It uses a disinfectant that kills those microorganisms that can breach state-of-the art municipal water treatment and then removes heavy metals, pesticides, other contaminating substances, and the disinfectant (SilverTTOTM) to yield pure water that is safe enough for even the most sensitive individuals. This treatment is designed to protect even those individuals with weak immune systems, those requiring metal-free water for kidney dialysis, and especially unable to fight infections from threat organisms such as Cryptosporidium or E. coli.
All of this development has been made possible because of the experience and expertise of the Company's management team, supported by a top-flight testing laboratory whose expertise includes in-depth experience with pathogenic microorganisms that are emerging threats to safe drinking water. The team’s scientific leader, Dr. Cecil Felkner is a microbiologist, biochemist and toxicologist with considerable knowledge and hands-on experience with water treatment and monitoring solutions to problems in addition to development of patents (approved and pending) relevant to the drinking water industry. He served as principal writer/editor for the US Environmental Protection Agency (“EPA”) Office of Water Report to Congress for Drinking Water Treatment Technologies and was Project Manager/Lead writer for EPA office of Science & Technology/Health and Ecological Criteria Division for Water and Wastewater. The latter project included producing documents for upgrading and developing certain Criteria Documents on Cryptosporidium and newly emerging waterborne viruses. For the American Waterworks Association Research Foundation (AWWARF) he was co-principal investigator on a project, "Evaluation of a Real-time Online Monitoring Method for Cryptosporidium", AWWARF, Denver, CO, 2004. This online/rapid water monitoring system for microbes utilized basic and applied research that he and a physicist had co-developed. He also was Advisor/Consultant to the Water environment Research Foundation (WERF, 2006) Exploratory Team involving those risks attributed to waterborne pathogens and toxicants.
The laboratory of Clancy Environmental Consultants (CEC) performed the testing for disinfectant efficacy on organisms including Cryptosporidium (oocysts), Escherichia coli, Enterococcus faecalis and, Pseudomonas aeruginosa. This laboratory was chosen because of its significant experience and expertise with the EPA , AWWA and various other federal and private entities in the drinking water industry. The president of CEC was co-author of a major review article for AWWA entitled "The Evolution of Microbiology in the Drinking Water Industry", P. Rochelle and J. Clancy, J.AWWA, March, 2006.
Page 3 of 9: Professional engineer, led by Dennis P. Boudreaux, P.E. and COO, Mark Jones, M.S., microbiologist and Joseph P. Doxey, CEO, developed the unique water purification units that purify water at the point-of -entry (POE) and point-of-use (POU) to remove the disinfectant; chlorine, lead, organic chemicals, biomass, chloramines, unpleasant tastes, and odors. In conjunction with granulated activated carbon filtration, the final product, i.e., pure and healthy water is produced for the consumer. Potential uses include, but are not limited to water treatment for the home (under the counter), medical/hospital water, well water, multiple residential complexes, and some industrial processes requiring ultra-pure water.
Although there are other water purification systems available, which employ filtration and can remove organics, metals, etc., our system is a robust system, non-heat reliant that kills waterborne pathogens, viruses and bacteria and removes virtually all water contaminants so that the only thing the consumer gets is pure and healthy water.
For more information on about Silver TTO™ please visit the newly updated website for Pure H2O Bio-Technologies, Inc. at www.pureh20biotech.com .
Marketing Strategy: The Company’s strategy focuses on the Pure H20 systems unique ability to disinfect and provide pure drinking water. Pure H20 intends to utilize direct marketing approaches to effectively market its systems, including: direct mail and cable television to enhance the sales efforts of distributors serving the residential market. The Company will utilize combinations of direct contacts along with consulting enginering groups to approach the commercial, hospital and residential market segments. These markets generally require a professionally designed drinking water system that fits a specific applications and criteria. Under-the-counter and Whole house systems will be marketed primarily through developers and home builders. By offering this product to developers and home builders, home buyers will have the option to purchase an all-inclusive networked water disinfection system included in the purchase of the home. Pure H20 has developed and designed a point-of-use disinfection system primarily for hospital use Model 7000 See Pilot Program: These systems provide the disinfected water necessary as added protection for cancer and other immune-compromised patients.
Pilot Program: Participant Revenue Sharing
Installation Product and Service : W.C. Northcut Corp., North Carolina
Marketing & Sales National Sales Director(s): West Coast: Mike Sember, East Coast: Marsha Marsh, Chemist and former EPA Homeland Security 20 years
International: Enterprise Florida and Georgia Business Development Divisions
Competition: Competitors include: Brita, Culligan, Amway, Ecowater, Pur Plus, Teledyne, Omni, and Cuno. These competitor systems are designed to trap and filtrate water or reduce rates utilizing low volumes, thus have significant limitations as to bacteriostatic opposed to biocidal capacity and do not disinfect the water as our system
Page 4 of 9
does. Brita, the leading brand, controls 60% of the market with sales of $272 million. It has been growing at a double digit rate since the launching of its home filtration point-of-use pitchers in 1988.
Engineering and Financial Feasibility: Camp, Dresser and McKee, located in New York, USA is an independent and certified engineering firm that has performed an indepth feasibility study on Pure H20 Bio-Technologies, Inc. The study analyzed all publically available aspects of the Company’s technology, production, financial, management and marketing plan, etc., resulting in a strong recommendation by the firm to pursue the company’s goals.
Pure H20’s Product Design & Engineering conducted by:
Dennis Boudreaux, P.E.
Todd D. Stong, Ph.D, P.E.
Edward C. West, P.E.
Craig M. Baker, P.E.
Investment Opportunity: There is an enormous market opportunity for products that offer a combination of drinking water purification with advanced technology effectively disinfecting water from prokaryotic and eukaryotic microorganisms, neutralizing organic compounds, and removing undesirable particulates over a range of complex water constituents. Tests confirmed that Pure H2O’s potable water disinfection system achieved kill rates of 8 log and higher against a number of representative bacterial pathogens. Pure H2O has developed a well-defined strategy to implement its business model. Subsequently, the company is positioning itself to be a viable investment opportunity.
Contact: Joseph P. Doxey, President
Email: JDoxeyIntl@comcast.net
Pure H20 Bio-Technologies, Inc. (PRHB) Pink
370 West Camino Gardens Blvd.
Boca Raton, FL 33432
Direct Telephone: (561) 271-4777
Direct Fax:(561) 218-6169 Web-site: pureh20biotech.com
Page 5 of 9: Disclaimer: Safe Harbor Statement, as cautionary note to investors, certain matters discussed in the document may contain forward looking statements within the meaning of the Private Securities Litigation reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including changes in economic conditions, gerneral competitive conditions and factors; and the ability of the company to sucessfully inplement its business modle and strategic plan and the risks described in the company’s Securities and Exchange Commission Information and Disclosure Statement.
Corporate Profile
Name: Pure H2O Bio-Technologies, Inc.
Industry: Biotechnology
Location: Boca Raton, FL
Symbol: PRHB: Pink Sheets
Shareholders as of 06/30/10 _________ Approximately 2,200
Common Stock issued and outstanding 06-30-10 1.6 billion
Public Float approximately 06-30-10 500 million
Common Stock Authorized: 06-30-10 50 billion
Price per share as of 06-30-10: $0.0001 - $0.0002
Price per Share High 06-30-10: $0.16 -$0.18
Seeking: Phase I: $12,500,000 7% Convertible Debentures
Phase II: $ 6,000,000 Tax Exempt I.R.B. - Georgia
Phase III: $ 1,250,000 Pilot Program
Phase IV: $ 5,000,000 Equity Line of Credit
Investment to date: $6.531 million Form 1120
Market Information:
Market Size: 15.44 billion
Target Size: Hospitals, Residential, Commercial & Industrial Facilities, Military Installation, Cruise Ships, Labortories, Nursing homes, Child Care Centers, Schools, etc…
Page 6 of 9 Funding Information: Seeking
Phase I: $12,500,000 Convertible Debentures
Phase II: $ 6,000,000 Tax Exempt Industrial Revenue Bonds - GA
Phase III: $ 1,250,000 Pilot Program 100 Hospital Systems
$19,750,000
Phase IV: ($ 5,000,000) Equity Line of Credit Reserve (not included above or below)
Investment to date: $6.531 million
Use of Proceeds Phase I , II and III See Detailed Spreadsheet, Cost of Sales, Revenues, etc.
Application $Amount
Reporting Status – Form S-1Filing 40,000
Audited Financial Statements 2 years 35,000
NSF Product Certification 125,000
Salaries & Payroll Taxes 462,000
Hospital Disinfection System Model 7000 65units 390,000
Whole House Systems: 100 Units 364,000
Under-the-Counter systems: 5,840 Units 2,482,000
PublicRelations: 3,750,000
Selling &Administration 1,785,000
Reduce Debt 675,000
Tax Exempt Industrial Revenue Bond - Land Acquistion,
Building & Equipment 6,000,000
ManufacturingPlant Fixed Costs, Leases & Office 1,517,000
IRB Interest Expense Reserve 840,000
Debentures Interest Expense Reserve 875,000
Pilot Program: 100 Hospital Systems Model 7000 1,250,000
Phase I, II & III Total Use of Proceeds $ 19,750,000
Pure H20 Bio-Technologies, Inc. (the “Company”) is currently listed on the Pink Sheets - Stock Symbol (PRHB) and is working toward becoming listed as a fully reporting company on the OTC BB.
PHASE I: The Company is seeking to raise up to $12.5million (Phase I) in the form of a Private Placement 7% Convertible Debentures due in 2013. Debenture Holders are offered S-1 Registration Rights with the option to convert both principal and interest into common shares of the Company at a 50% discount to market. Conversion into common shares of the Company will be effected at the earliest, (i)upon receipt of SEC approval as fully reporting (12-G) status, (ii) with the issuance and receipt of a new stock symbol listed on the OTC BB.
PHASE II: The Company has been offered and is currently in discussions to effect a Tax Exempt Industrial Revenue Bond in the aggregate amount of $6million. These funds are allocated for land acquisition, building and equipment. The Company’s president has built and mortgaged a single steel arch building on behalf of the Company that is located in Blairsville, Georgia. Ideal location with major artieries from North Carolina to Atlanta, Georgia.
PHASE III: The Company intends to file a Form D to raise an additional $1,250,000 through the Company's "Participant Revenuing Sharing Agreement" Phase III: See "Pilot Program" on web-site: www.pureH20biotech.com.
PHASE IV: In addition, the Company currently has an offer to effect an Equity Line of Credit up to $5,000,000 subject to filing a Registration Statement S-1, completing a two year financial audit, years ending December 31, 2008 and 2009, respectively, and further receiving confirmation effecting an OTC BB reporting status. This line of credit is reserved for contingencies with a bi-monthly draw down in increments of $100,000 per month for working capital purposes as deemed necessary by the board of directors. Note: these funds are not a part of the Use of Proceeds.
Financial Summary: Pure H2O Bio-Technologies expects to gradually increase its market share and subsequently its annual revenue. Upon the successful completion of the above described financing, management forecasts that revenue would jump from the projected $6 million in Year 2011 to over $15 million in FY12, to more than $57 million in FY15. The improving margins in 2012 and beyond reflect the earning impact of low marginal cost. See: Spread Sheet: Use of Proceeds, Sales and Cost Projections, Cash Flow projections, and Income Statement Projection shall be furnished upon request.
Page 7 of 9
Management Team:
Joseph P. Doxey, Chairman , President and CEO:Founder of Pure H20 Bio-Technologies, Inc. He was senior partner with Joseph P. Doxey & Associates, a financial consulting firm specializing in risk capital financing of high-tech, real estate and medical companies. He was manger of special projects with Palm Beach Associates & Consultant Group, a financial, consultant an international corporate finance company. He was named Who’s Who in Executive & Professionals, edition 2000-2001.
Dennis P. Boudreaux, P.E., Director and COO: Serves as Lead Engineer for product implementation for the Florida division. Previously,he directed, supervised and managed over 50 Remedial Action Plan Implementation involving air stripping, soil vapor, insitubioremediation and thermal incineration. He also held the position of President and General Manager of Oil Center Machine, Inc.
C. Wayne Garkie, CPA, Director and CFO: Serves as a member of the Board of Directors and is the Company’s Chief Financial Officer. Mr. Garkie has over forty years experience in public accounting preparing audit reports and financial statements. Further, he has managed audits of a wide variety and size of commercial and not-for-profit organizations, including manufacturing, wholesale and retail companies, charitable organizations and governmental entities. Extensive experience in preparation of federal and state income tax returns for corporations, partnerships, fiduciaries and individuals. Mr. Garkie has a Bachelor of Science in Accounting with a double major in Business Administration from Truman State University, Licensed Public Accountant in Illinois, is a member of American Institute of Certified Public Accountants and Illinois CPA Society, obtains forty hours of continuing education each year and had employment with Arthur Young & Company in St. Louis before serving in the U.S. Army in Vietnam. Mr. Garkie is married for forty three years with three adult married children and seven grandchildren.
Bruce W. Keihner, P.A., Director: A corporate and finance law attorney in Palm Beach, Florida. Previously general counsel for Southeast Bank. He was associated for 5 years with the law firm of Chadbourne & Park in New York after graduation from Cornell Law School.
Todd D. Strong, Ph.D. : Dr. Strong is a West Point Graduate. Previously Atomoic Demolition’s Assembly/Installation Platoon Leader (Korea), Detachment Commander-Vietnamese city water plant construction. Technical Director, US Army Strategic Defense Command. Assistant Professor, Graduate Business Education, Alexandria, Virginia. He received his Ph.D., Civil Engineering from the University of New Mexico.
Page 8 of 9
Edward C. West, P.E. : Colonel West is a West Point graduate. Director, Engineering and Construction Enerprise/Homestead Planning. Senior V.P., MP Faciliatators. President, Agripost, Inc. MS Civil Engineering, MIT Cambridge, MA. MBA George Washington University, Washington, D.C.
C. Eric Jones, Ph.D: Dr. Jones is a former director and is responsible for corporate communications and planning. Senior Vice President with Oak Ridge National Laboratory-Cancer Reseach Division.
Mark E. Jones, M.S.: Consulting microbiologist, has 25 years experience in technical service with a graduate degree in Biochemistry from Montana State University. He is a member of the American Societies of Microbiology & Pharmacognosy.
Cecil I. Felkner, Ph.D. : Consulting microbiologist, biochemist and toxicologist. He received his Ph.D. in Microbiology, University of Texas, Post-doctoral Fellow, Medical Resaerch Council Mutagenesis Units, University of Edinburgh, Scotland. He brings over 44 years of research, teaching and consulting experience in the fields of genetics, microbiology, toxicology and oncology. His principal research activities include rapid screening of environmental mutagens, genetic toxicology, microbial genetics and carcinogenesis. Currently involved with the development of monitoring disinfecting and sterilizing water. He has significant experience as a risk analyzer for adverse health effects due to both chemical and biological materials. He served as technical director on an EIS for the Life Sciences Test Facility at the U.S. Army Dugway Proving Grounds. He served as the Project Manager for an EPA Office of Science & Technology for Health and Ecological Criteria Division. Lead writer for Water and Wastewater Criteria involving upgrading criteria documents on Cryptosporidium and waterborne viruses. Conducts studies involving the activities of waterborne organisms at the University of Maryland.
Page 9 of 9
