OVERVIEW | Equitech Int’l has created game changing technology through development and validation of our in-line process control systems. These systems are capable of measuring color and chemical concentration in a myriad of manufacturing industries, utilizing the UV-Vis region of the electromagnetic spectrum, in-the-process and in real-time, which has benefits and significant cost savings in multiple applications and industries. The company is publicly traded on the OTCBB, thereby providing ease of liquidity during exit and because of its reorganization a $10MM carry forward loss exists, which may serve as an enhancement to potential investor value.
THE PROBLEM | An estimated ninety percent of today’s manufacturing industry utilizes “sample based” quality control systems where a sample is taken from the manufacturing process and transported to a laboratory for analysis. Once the lab tests are completed, necessary adjustments can be made to the process, but this practice is time consuming and inconsistent, resulting in a significant waste of time and money. With recent shortages in raw material, this waste has become magnified and presents a tremendous problem to be solved
THE SOLUTION | Equitech’s “In-line” Dual Probe, UV-Vis Spectroscopy systems, utilizes proprietary software and fiber optic hardware, to provide continuous process measurement and control of precise color, chemical concentration, film thickness, and numerous other related variables, delivering consistent real-time solutions. Manufacturers in more than forty different industry segments are now able to capture comprehensive, real-time, analytical results, which allows them the immediate benefit of adjusting their process variables to significantly reduce or even eliminate their “off-spec” product and associated waste. Furthermore, they can make corrections even before any “off-spec” products is made, allowing an even greater understanding of their overall process behavior. Through Equitech’s ongoing advancements via Automated Intelligence (AI) and the “Internet of things”, the company is advancing towards a full self-correcting production line with leaders in the manufacturing line industry.
COMPETITIVE ADVANTAGE | Using Equitech’ systems, companies can reduce waste and cut rework time by monitoring and adjusting manufacturing processes in real time. In contrast to laboratory instruments that require samples and are kept in laboratories with controlled environmental conditions, Equitech products can measure in-line and real-time (24/7), without samples, directly in the manufacturing process. In some processes, these measurements are possible at temperatures up to 400°C and pressures up to 5,000 psi. The accurate flow of instantaneous product information allows customers to enjoy a level of consistent quality control unattainable from conventional (“sample-based”) laboratory analysis. Through Equitech’s unique competences that combine research-grade capabilities (necessary for laboratory-like results) with the ruggedness required to sustain manufacturing process environments. Any competitor willing to spend the time and money to develop opto-electronic devices capable of measuring in-line and in real time to compete head-to-head with Equitech’s technology will be looking at 5+ years and many million dollars in R&D. Manufacturers are beginning to realize the advantages Equitech’s Systems provide in allowing them to provide these significant increases in quality control and overall efficiencies. They have allowed clients to typically realize a rapid break-even payback on their investment and provide Equitech an extremely strong competitive advantage. Consequently, we have already achieved market sales penetration within multiple fortune 100 and 500 companies, along with high levels of customer adoption and ongoing satisfaction. So much so, that our gross sales have increased over 50% on average, over the last three years
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THE MODEL | Equitech has recently formulated our
Keiretsu (Affiliated Group), which encompassed the acquisition of, and majority ownership interest in, CompSOL USA. This acquisition, along with associated ownership in Optoniks and M&M Technology (MMTI) through the acquisition, has helped the company secure increased cash flow, and has provided the company capabilities of producing opto-electronic devices, printed circuits and more, while also delivering specialization skills and in innovative software, hardware, and embedded system solutions to be used for the in-line measurement of key processing variables and many other manufacturing processes which the company did not have previously. Along with the advantages manufacturers can realize with single and multiple plants with many production lines, our projected initial sales and repeat business is large. Collectively with penetration of even a small portion of our strategic market sectors, in combination with a twelve million dollars carry forward tax loss the company has available, there is significant advantages to the company’s existing and future shareholder’s. As a result of our conservating model projections reaching over $17M in sales by the end of 2023
OUR PROMISE | Equitech’s promises to provide a sensible growth path for investors who seek a solid investment, blended with the advantage of owning publicly traded shares which can be liquidated after an 18-month sale restriction, to deliver a built-in exit strategy for investors
THE REQUEST | Equitech Int’l seeks an investment of four million two hundred thousand dollars $4,200,000, in exchange for 442,105shares of common stock, resulting in a 17.92% ownership interest in the company, and thereby securing any individual investor’s with the largest single shareholder position in the company.
COMPANY INFO | Equitech Int'l Corporation South Jersey Technology Park, Suite 107 Gilbreth Pkwy, Mullica Hill, NJ 08062
www.equitechintl.com PRINCIPAL | Jaime Gomez President and Chief Executive Officer
[email protected] Tel 609.352.0120
INVESTOR RELATIONS | David Tingley, Vice President of Corporate Relations of Equitech President and CEO of First Financial Solutions, LLC
(239)-216-1250
[email protected] TEAM INTRODUCTION |
Equitech President & CEO – Jaime A. Gómez, PhD, MBA 30-years of industry experience includes plastics, specialty chemicals, materials handling and analytical instrumentation—industries where he has conducted basic and applied research, evaluation and acquisitions of technologies and companies, international business development, and corporate strategic planning. Dr. Gómez is currently President of the Society of Plastics Engineers. Dr. Gómez has a BS in Chemical Engineering from Universidad Pontificia Bolivariana in Medellín, Colombia, an MS in Organic Chemistry from Wichita State University in Wichita, Kansas, and a PhD in Polymer Science from the University of Connecticut in Storrs, Connecticut. In addition to his technical training, Dr. Gómez received an MBA from New York University (Stern School of Business) with concentration in International Business, Finance & Marketing.
CompSOL USA President & CEO – Majid Babaie, MS, PE Majid Babaie is the cofounder, CEO and VP of Sales of M&M Technology, Inc., CompSOL USA and Optoniks Corporation. He created M&M Technology, an electronic product design & manufacturing company from ground zero and developed it to a multi-million-dollar corporation. Majid started CompSOL to develop advanced electronics and helped created Optoniks to develop precision quality control products. He is a registered engineer with North Carolina Board of Examiners for engineers and surveyors since 1991, has a B.S. and M.S. in Electrical Engineering, and a M.A. in Statistics, all from the University of Akron, in Ohio.
Vice President of Innovation & Implementation – Joseph C. Golba, Jr. PhD Dr. Joe Golba has 40 years’ experience in the plastics industry where he has made contributions in the areas of process monitoring and polymer materials engineering. He has led efforts in materials and process development for medical devices, high performance specialty polymers and state of the art feeder technology and has been awarded fifteen patents. Joe received a B.S.E. in Chemical Engineering and an M.S.E. and Ph.D. in Engineering Materials from the University of Michigan.
CompSOL and Equitech Director of Finance – Anh Nguyen, MA, MBA Focus on planning and budgeting, Mrs. Nguyen has been instrumental in assisting the company to determine and prioritize their financial objectives, including advanced budgeting, financial modeling, investor relations and other key planning efforts necessary in preparation for the company's aggressive growth initiatives. Mrs. Nguyen is also fluent in English and Vietnamese. Anh received her B.A. from Washington State University and M.B.A. from Western Michigan University.
CURRENT STATUS | Equitech’s has achieved significant progress through its new leadership beginning in 2019 by consolidating the company stock through a reverse split and complying all prerequisites for full compliance with OTCBB, thereby allowing a relaunch of the stock with completed financial reports for Q3 which will include the acquisition of CompSOL, driving the revenues up from $93K to over $1M and numerous other recent achievements. The company has also signed agreements recently with Aguilar & Pineda in Barcelona Spain, for exclusive representation in Europe and is entering into two additional business sectors (profilometry and film thickness) which helps position the company as a world leader in the
in-line process measurement technologies. Finally, the company has terminated a previous Licensing Agreement with Colvistec in Germany, which will now enable the company to secure markets worldwide without conflict.
HISTORY AND INVESTMENT | Equitech Int'l Corporation was incorporated in November of 1995 in the State of South Carolina. In March of 1996 NuStar Corporation, a publicly held shell company, acquired Equitech, then a development stage company, in an exchange for stock. The company then became a Nevada corporation, headquartered in South Carolina. Thereafter, NuStar adopted Equitech’s name. Over the past twenty-three years the company has had sales in each year of its operation since its foundation. The company raised over $20 million in capital to support the initial research, development, and engineering of early prototypes as well as the initial writing of about 20 patents, most of which have now expired.
FUDING & USES REQUEST |
Purpose |
Investment |
| Costs Associated with Reverse Split | $25,000.00
| OTC Compliance | $25,000.00
| SEC Compliance | $100,000.00
| Sales Manager + Marketing Efforts (2 years) | $500,000.00
| Company Operation (3 years) | $445,000.00
| Commercialization Readiness Projects |
| Particle Size & Particle Size Distribution Software Module | $300,000.00
| LED Illumination Development & Software Interface | $280,000.00
| Film Thickness Product Development | $200,000.00
| Commercialization Readiness Profilometry | $200,000.00
| Development & Commercialization of Close Loop Control for Extrusion | $250,000.00
| EquiColor Platform Software Migration + RTD Software Module | $250,000.00
| Inventory for specific projects | $950,000.00
| Growth Initiative (personnel) | $300,000.00
| M&M (Test Systems, etc.) for Equitech & CompSOL | $250,000.00
| Equitech Lab Equipment & Software | $100,000.00
|
Net Proceeds (1) |
4,175,000.00
TIMELINE | Half the investment is planned to be spent in the first two quarters following funding and the remaining funds are planned for deployment over the next two quarters. Funding will satisfy OTCBB compliance requirement, embrace recruitment of key personnel, implement sales initiatives, purchase inventory and supplies required to fulfill pending orders. Additionally, funding for final commercialization requirements will be deployed for key product updates slated for release. Exact Return on Investment (ROI) will be determined at time of actual exit, although approximately three years is projected as a possible timeline.
COMMUNITY IMPACT | The inconvenience and time wasted on the commuting became a reality during the pandemic and many people got used to working from home. This created a dual problem. First, houses are in general not equipped to function as permanent offices. Second, millions of square feet of commercial buildings are now empty. The transformation of commercial real estate into living dwellings will be a major trend in years to come and will drive manufacturing production levels, especially relative to plastics. Furthermore, the cost savings achieved by our clients will result in additional revenues for companies who may in turn can use these saving to create new jobs and/or expand and help boost their local economies.
ENVIRONMENTAL | As concern over climate change grows, more people are becoming concerned with the implications of environmental issues like waste and pollution. In years to come, there is no doubt that environmental factors will continue to be on the forefront of the manufacturing industries concerns, especially in the plastics. Similarly, a growing number of organizations look for local solutions to reduce transport costs and increase their flexibility in the supply chain. Equitech’s waste and cost savings attributes of its product line helps achieve these global initiatives and helps make the world a better place.
EXIT STRATEGY | The anticipated exit strategy for investors would be through liquidation of their stock via the public stock exchange. Based upon Equitech’s projections to achieve $17,856,574 million in gross sales and $3,071,602 million in EBIDTA and using a multiplier of 14 (based upon like kind business) presents a potential exit strategy in 2023, of an estimated (ROI) of 125% and approximately 41% annualized.