Here it is. As usual, I'm not liable for any errors in transcription,
nor do I guarentee the accuracy of this data. I am not qualified or
licensed to provide financial advice. I am not currently a
shareholder.
This DD sheet borrows heavily from the IR packet sent to me by Owen
Naccarato, CFO of Kaire Holdings, and SEC filings available on Free
Edgar.
-------------------------------------
Kaire Holdings Inc. (OTC:KAHI)
(formerly Interactive Medical Technologies Ltd)
IR contact: Bruce Barren, 310-312-9652
Website: imt-ltd.com
Description: Kaire Holdings Incorporated is a holding corporation
whose companies provide a diversified range of products, generally in
medical and nutritional fields. Kaire's products are primarily
distributed through MLM or "network" marketing.
Major Acquisitions:
12/9/97 Kaire Internantional
- Stock issued to Kaire Holders = 47% of the then
outstanding shares
3/6/98 Newel Resource Trading Pte. Ltd (35% stake)
(Nanjing Potomac Beauty and Health Care)
- Stock issued to Newel = 25% then outstanding shares
(848,764 shares)
Further Acquisitions are expected which will give Kaire outlets in
Japan and Taiwan. (*)
Fiscal:
Shares outstanding: 3,395,059 (official count 2/27/98)
4,243,823 (est. based on Potomac Acquisition)
Warrants Outstanding: 643,519 (12/97 (split adjusted))
Strike price range: $3.00 - $300.00
Expire Dates: 04/98-05/02
Reverse Split: 75-1 (2/19/98)
Estimated Revenue: FY97 $3 million
FY98 $25-50 million
(unaudited consolidated revenue for Jan,Feb FY98 $5million)
Pre-tax profit margin: 10% (industry average 9-12%)
Estimated Pre-Tax Earnings: FY98 $2.5-5.0 million
Estimated Pre-Tax EPS: FY98 $.60 - $1.20
Forcasted 98 Income including N.America, Australia, New Zealand,
Trinidad, Korea, and Europe, exclusive of China is $2.5 million
Cash:
The company expects to continuously have sufficient cash to meet it's
obligations. No issuance of stock to raise operating capital is
expected.
The most recent SEC 10Q is 11/17/97 and covers 3Q97, which is prior to
the acquisition of Kaire International. This acquisiton made
substantially changes the financial base of the company. Current
financials are being audited, with release expected in Mid-may. This
audit is being conducted in preparation of NASDAQ listing. A formal
S-3 will be filed on the Potomak acquisition when the audit is
completed.
Products: Various. Kaire distributes products for both consumer and
institutional use. All products are health and nutrition related.
Potomak: Kaire acquired a stake in the Nanjing Potomak Beauty and
Health Care Co.,LTd which has existing sales licences in China,
Thailand, Philippines, Taiwan, and Malaysia. The principles of Potomak
have visited Kaire and selected two Kaire products to introduce to the
Chinese market. Potomak has in excess of 300,000 distributors in
Mainland China. Chinese import licences for the two products have been
applied for. The products in question are natural and expected to be
approved without difficulty. Chinese import licences usually take 6-12
months to be granted.
Potomak Snapshot:
Potomak is one of 40 direct sales companies licensed by the
Mainland Chinese government. They have 700 employees and licenses to
operate in 30 different cities. FY97 sales: 100 million RMB FY98 sales
150 million RMB ($10 and $15 million US$?) Potomak has a 9,000 square
meter factory in the Nanjing Jiangpu Industrial Zone. ISO9000 approval
expected May 1998. The factory has the capacity to produce 500 tons of
household chemicals and cosmetics, 50 tons of health foods, and 20,000
sets of shape forming underwear. Potomak is verticaly integrated in
that they both produce and directly distribute product.
Net Income 97 (unaudited) 415,245 $US
Industry Description:
Network marketing is a $20 billion industry. Industry growth has been
20-30% annually. Nutritional supplements generate $13 billion of this
total.
Industry average PE is 15-30. This is usually 1.2-2.8 annual revenue.
Similar companies: NATR,USNA,HERB,AMRI,AAP,ASX,AMW
-------------------
-Tony
(*) Side note: It may be difficult to have distributors in Taiwan and
Mainland China at the same time due to political tensions. I did not
think to ask this when I had the chance. |
