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Greenkote Clean coating Technolgy

Arie Laor Thu, 2011-05-05 11:34

Arie Laor · Thu, 05/05/2011 - 11:34

Business

Business Overview: 

Overview
Greenkote plc (“Greenkote” or the “Company”) has developed a breakthrough technology for surface metal coatings. Its patented processes are demonstrably superior to the current alternatives based on their efficacy, cost and environmental benefits.

The initial market being targeted is for the protective coating of small–medium size parts in the automotive and construction industries. Longer term potential markets include the aerospace and specialised coatings industries.

Industry: 
Project Location: 
Wuxi, 32, 778900-6
China
What are your future milestones, and how much capital will you need to achieve each of the milestones outlined?: 

Sign a JV with Wuxi, invest a total of 3 Million USD, for establishing 4 JV's in china in 3 years, first one as soon as we have the funds, our customers from Europe are already waiting for the first China JV.

What is your total and operating cash burn (the amount you're spending) per month? : 

0

How many future rounds of financing do you project? : 

1 more through an IPO

Services Desired: 
Capital Broker/Dealer
Who is the Customer?: 

VW, Bulten, Sogemi, Magna, Audi, Daimler.

What is the Customer Pain that you are solving?: 

Quality, small supply due to regulations REGARDING ENVIRIOMENTAL ISSUES, COSTS.

Names of any current or recent customers: 

AUDIת DAIMLERת VW

What is the Target Market?: 

AUTOMOTIVE AND CONSTRUCTION

How big is the Target Market in terms of Annual Sales?: 
$2B-$5B
Sales/Marketing Strategy: 

Rollout of Greenkote Strategy in China consists of several revenue sources, revenue models and service models.
Powder Sales
The bulk of the powders kits for consumption in China will be mixed primarily in Israel and sell it to Greenkote China at 15% discount later to be mixed in China with pre mixed concentrated addition made in Israel.
Offering the Greenkote Process from Joint Venture Plants
This is expected to be the main route to market in the next two years. A joint venture achieves control over production and quality control while leveraging off a partner’s business infrastructure in a given territory. Partners are expected to be third Tier coating companies that offer top coating capabilities as a process subsequent to the Greenkote p

Provide use cases : 

Stage Greenkote Partner
Secured order by customer/s US$200,000 US$200,000
Production US$100,000 US$100,000
Ramp UP US$100,000 US$100,000
Full Production US$100,000 US$100,000
Total US$500,000 US$500,000

Competition: 

CURRENT COATING TECHNOLOGIES SUCH AS PLATING HOT DIP GALVANIZINGץ

One-line Pitch: 

Ecologically, Economically - We’ve Got You Covered

Business Model: 

The company is using its base of European and American customers with plants in China to generate the first orders for the planned JV’s in China, while working on expanding its customer base with local metal parts manufacturers for the Automotive and construction industry.

The Company will seek to have 2 joint ventures in production during 2012 and will progressively grow its base of JV partners.
The following potential rate of expansion is believed to be achievable:

2011 1 Joint Venture in the Shanghai area
2012 3 further Joint Ventures: one in the Shenzhen area, one in the Beijing area and an additional JV in the Shanghai area.
2011-2013 6 further Joint Ventures: Getting to 3 in the Shanghai area, 3 in the Shenzhen area, and 3 in the Beijing area, and one in Tianjin. With 10 more in South East Asia served by Greenkote China.

Product/Services Overview (what does it do): 

A COATING TECHNOLOGY LOWER COST BETTER PERFORMANCE AND ECOLOGICALLY FREINDLY

Technology

What makes the technology/business unique and have a defendable competitive advantage?: 

IP PROTECTED AND KNOWHOW ALREADY BEST CHOICE BY LEADING OEM

Describe in detail the technology used in the Project - Address the innovation in significant detail : 

Greenkote has developed, patented and sells an environmentally sound and low cost coating technology, (the “Greenkote Process”). This is a thermal diffusion coating process (thermo-chemical surface modification or “TCSM”), which modifies and improves the basic surface characteristics of metals.
The Greenkote Process enables it to produce coatings that are cheaper and more effective than the existing competitors and that more effectively address the new mandatory European Union (ELV, WEEE, RoHS) and North America (EPA) environmental standards.The ease of using the Greenkote Process to co-deposit more than one material using the same equipment also positions it effectively to develop new coatings to meet customer requirements. We therefore believe that it has significant potential applicability across a wide range of industries and applications with the result that the JV has an opportunity to capture a significant share

What are the principles of the technology? : 

• Dry coating process
• No gas released during the process
• Minimal solid wastes (less than 1% of treated parts weight)
• Some of solid wastes may be reused or recycled; otherwise it is a neutral waste.
• All rinsing liquids are recycled in a close loop no water are or other liquids released to the sewage system
• This liquid does not contain heavy and dangerous metals, Nitric etc,

Replaces with an improved performance and no pollutants at all the following contaminating processes:

• Old generation Zinc flakes coatings containing Hexvalent Chromium (manufactured by Dacral, Magni, Dorkens, and others.)

• New generation Zinc flakes coatings containing some Hexavalent Chromium and Trivalent Chromium (manufactured by Dacral, Magni, Dorkens, and others.)

What, if anything, has been proven (and how far is this from a commercial scale)? : 

2 PLANTS IN THE US 1 IN ISRAEL ONE IN MEXICO 6 LICENSES WORLD WIDE

What challenges/risk does the technology face for commercialization?: 

NONE

Patent Numbers (Filed/Approved): 

Patents Granted
US patent 7 241 350 B2.
Patents Pending
EP 03812254.5; JP 2004-556727; PCT/IL04/00631; US11572137
Patents Submitted
US 60/886,960

Team

NameTitle
JIM THOMSONCFO
DAN RITERCTO
TONY HALLVP
ITZHAK ROSENTHULVP
ROBERT HIRSCH
DAVID AZAGURY
PHIL STERN
Current Investors: 
CSS

Financials

Amount Sought: 
$3,000,000
If raising funds, what shall the funds be used for?: 

JV (CAPITAL INVESTMENTS) AND MARKETING

Pre-Money Valuation: 
$20,000,000
Funding Received to Date: 
$10,000,000
Amount invested by Founders: 
$2,000,000
Funding Stage: 
Growth
Internal Rate of Return (IRR): 
25%

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