0VERVIEW Magnum Building Products

INVESTOR
PROSPECTUS
Magnum
Building
Products

A FUTURE
BUILDING
PRODUCT
FOR TODAY’S
DESIGN
STANDARDS
SUSTAINABILITY
The building services industry is today interested in the application and
creation of long lasting and true to form sustainable design. From asset
value creation to LEED Certification, Magnesium Oxide Panels (Magnum
Boards) are the next building product for environmentally concious and
cost efficient design.
The use of Magnum Boards is sustainable in
many ways for both builders and end users.
Here are a few ways in which Magnum Boards
will be used and marketed as a superior
building product:
• Cost Saving - The use of Magnum
boards as an OSB and drywall substitute in
interior construction and framing has been
shown to lower cost of construction by over
40%
• Water/Mold Resistant - Due to
an increase in worldwide exposure to the
effects of global warming, flooding has
been happening at an alarming rate across
the globe. Building officials in many of tese
locales (including Alberta) have required that
replacement buildings be constructed with
water resistant materials.
• Multi Uses - The use of Magnesium
Oxide in construction is not limited to drywall
replacement, but also cladding, backer board
and subflooring.
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MARKET SIZE
The worldwide gypsum market includes sales of
over $10 Billion annually.
Due to environmental considerations, cost
increases in source materials, and an increase in
flood resistant building requirements we expect
the market for alternative building materials to
capture 20% of this market by 2020.
Magnum Boards provide:
• Non-Toxic internal and external sheathing and
flooring
• Less maintenance due to wear and tear
• Protection from toxic mold and moisture
buildup
FURTHER INFORMATION
Magnum Boards provide Fire Protection
standards which are equivalent to two
layers of competing products - this
provides cost savings to the builder of 40%
of more. Depending on the application,
Magnum Board may offer savings of 50%
to 200% over competing products. EG: A
Single12mm Magnum Board product offers
-/120/120 fire protection. This example
uses 200% less material than competing
products.
• Magnum Boards are non-nutrient to
mould or fungus and do not support insect
life. Providing superior moisture resistance
in high humidity areas and combats the
growth of mould and mildew.
• Magnum will not disintegrate when
immersed in water or exposed to freeze/
thaw cycles for prolonged periods of time.
• Magnum Boards can be finished with
any traditional drywall construction
compounds, materials and finishes.
• Standard production material is very
smooth one side and sand textured on the
other allowing instant finishing by the hired
contractors
• Either solvent based oil paint or water
based latex paint can be used. If the panels
are to be directly exposed to rain and
weather, apply a prime coat of acrylicsiloxane
waterproofing sealer, followed by
oil based paint.
• Standard edges are square and tapered.
Special edges and sizes are available.
Interior / Exterior:
• Where MgO Corp Board is to be used as a
mounting surface for ceramic tile, such as in
a bath or shower enclosure, solvent mastic
is recommended.
• Magnnum Board recommended
assemblies consist of exterior wall, interior
wall, shaft wall, steel column, staircase,
ceiling, floor and roofing.
Applications Include:
• Residential homes & Apartment
Complexes
• High Density Commercial & High rise
buildings
• Office Buildings
•Educational Facilities
• Hotels & Hospitality
• Airports
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GOALS
Our 2013/2014 goals are easily attainable based
on our current trajectory. These include:
Capturing Alberta Flood Reclamation Projects
Over $5 Billion dollars of damage was done to
Calgary during the flooding of May 2013. The
building officials association, with which we are
actively engaged, has demanded that rebuilding
projects use materials other than gypsum in the
40,000 homes which were damaged during the
flooding. This represents a potential market,
for which we have an exclusive distribution
agreement, of over 100 Million Dollars. We are in
direct contact with Alberta Min of Municipal Affairs
Safety Services div who manage all building code
issues for Alberta. Director James Orr has samples
and full test data that his staff are analysing for
approval as a reccomended building material.
Finishing Development of Magnumclad
One architect made us aware of the decision
made by Panasonic to pull their quite successful
integral rainscreen commercial grade fiber
cement cladding from the NA market. We have
been able to reverse engineer Ceraclad using
15mm Magnum board providing a product
with superior characteristics and similar pricing.
Depending on when we can supply the finished
product, November 2013 is the target, we
may assume part of $2 million in orders for
projects that included Ceraclad as part of the
Development Permit application.
Creating Multi Level Retail Distribution
Through a partnership with Mitten, a 26 store
retail outlets for building supplies, we look to
create retail distribution and increase direct
education of architects and engineers of our
Magnumclad offering.

STEPS TO MARKET
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Finish Development of Magnumclad
Provide fire testing results to BC and
Alberta building officials for conditional
approval.
Fulfill existing orders and increase
supply to meet increase in volume and
frequency of expected orders
Develop Relationships with Mitten
and Timbremart, a combined 800+
store locations, to provide customer
education and market awareness of our
line of products and their many uses.
Continue Trade Show presentations,
these include Buildex, BCBOA, and IBS
in Las Vegas.
Make strategic hire of the head of
North American Ceraclad distribution
in Seattle. This would provide Magnum
the oportunity to develop upon
existing relationships with Ceraclad
users and introduce our new product.