You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
INVESTOR<br />
PROSPECTUS<br />
<strong>Magnum</strong><br />
<strong>Building</strong><br />
<strong>Products</strong>
A FUTURE<br />
BUILDING<br />
PRODUCT<br />
FOR TODAY’S<br />
DESIGN<br />
STANDARDS<br />
SUSTAINABILITY<br />
The building services industry is today interested in the application and<br />
creation of long lasting and true to form sustainable design. From asset<br />
value creation to LEED Certification, Magnesium Oxide Panels (<strong>Magnum</strong><br />
Boards) are the next building product for environmentally concious and<br />
cost efficient design.<br />
The use of <strong>Magnum</strong> Boards is sustainable in<br />
many ways for both builders and end users.<br />
Here are a few ways in which <strong>Magnum</strong> Boards<br />
will be used and marketed as a superior<br />
building product:<br />
• Cost Saving - The use of <strong>Magnum</strong><br />
boards as an OSB and drywall substitute in<br />
interior construction and framing has been<br />
shown to lower cost of construction by over<br />
40%<br />
• Water/Mold Resistant - Due to<br />
an increase in worldwide exposure to the<br />
effects of global warming, flooding has<br />
been happening at an alarming rate across<br />
the globe. <strong>Building</strong> officials in many of tese<br />
locales (including Alberta) have required that<br />
replacement buildings be constructed with<br />
water resistant materials.<br />
• Multi Uses - The use of Magnesium<br />
Oxide in construction is not limited to drywall<br />
replacement, but also cladding, backer board<br />
and subflooring.<br />
3
4<br />
MARKET SIZE<br />
The worldwide gypsum market includes sales of<br />
over $10 Billion annually.<br />
Due to environmental considerations, cost<br />
increases in source materials, and an increase in<br />
flood resistant building requirements we expect<br />
the market for alternative building materials to<br />
capture 20% of this market by 2020.<br />
<strong>Magnum</strong> Boards provide:<br />
• Non-Toxic internal and external sheathing and<br />
flooring<br />
• Less maintenance due to wear and tear<br />
• Protection from toxic mold and moisture<br />
buildup<br />
FURTHER INFORMATION<br />
<strong>Magnum</strong> Boards provide Fire Protection<br />
standards which are equivalent to two<br />
layers of competing products - this<br />
provides cost savings to the builder of 40%<br />
of more. Depending on the application,<br />
<strong>Magnum</strong> Board may offer savings of 50%<br />
to 200% over competing products. EG: A<br />
Single12mm <strong>Magnum</strong> Board product offers<br />
-/120/120 fire protection. This example<br />
uses 200% less material than competing<br />
products.<br />
• <strong>Magnum</strong> Boards are non-nutrient to<br />
mould or fungus and do not support insect<br />
life. Providing superior moisture resistance<br />
in high humidity areas and combats the<br />
growth of mould and mildew.<br />
• <strong>Magnum</strong> will not disintegrate when<br />
immersed in water or exposed to freeze/<br />
thaw cycles for prolonged periods of time.<br />
• <strong>Magnum</strong> Boards can be finished with<br />
any traditional drywall construction<br />
compounds, materials and finishes.<br />
• Standard production material is very<br />
smooth one side and sand textured on the<br />
other allowing instant finishing by the hired<br />
contractors<br />
• Either solvent based oil paint or water<br />
based latex paint can be used. If the panels<br />
are to be directly exposed to rain and<br />
weather, apply a prime coat of acrylicsiloxane<br />
waterproofing sealer, followed by<br />
oil based paint.<br />
• Standard edges are square and tapered.<br />
Special edges and sizes are available.<br />
Interior / Exterior:<br />
• Where MgO Corp Board is to be used as a<br />
mounting surface for ceramic tile, such as in<br />
a bath or shower enclosure, solvent mastic<br />
is recommended.<br />
• Magnnum Board recommended<br />
assemblies consist of exterior wall, interior<br />
wall, shaft wall, steel column, staircase,<br />
ceiling, floor and roofing.<br />
Applications Include:<br />
• Residential homes & Apartment<br />
Complexes<br />
• High Density Commercial & High rise<br />
buildings<br />
• Office <strong>Building</strong>s<br />
•Educational Facilities<br />
• Hotels & Hospitality<br />
• Airports<br />
5
6<br />
GOALS<br />
Our 2013/2014 goals are easily attainable based<br />
on our current trajectory. These include:<br />
Capturing Alberta Flood Reclamation Projects<br />
Over $5 Billion dollars of damage was done to<br />
Calgary during the flooding of May 2013. The<br />
building officials association, with which we are<br />
actively engaged, has demanded that rebuilding<br />
projects use materials other than gypsum in the<br />
40,000 homes which were damaged during the<br />
flooding. This represents a potential market,<br />
for which we have an exclusive distribution<br />
agreement, of over 100 Million Dollars. We are in<br />
direct contact with Alberta Min of Municipal Affairs<br />
Safety Services div who manage all building code<br />
issues for Alberta. Director James Orr has samples<br />
and full test data that his staff are analysing for<br />
approval as a reccomended building material.<br />
Finishing Development of <strong>Magnum</strong>clad<br />
One architect made us aware of the decision<br />
made by Panasonic to pull their quite successful<br />
integral rainscreen commercial grade fiber<br />
cement cladding from the NA market. We have<br />
been able to reverse engineer Ceraclad using<br />
15mm <strong>Magnum</strong> board providing a product<br />
with superior characteristics and similar pricing.<br />
Depending on when we can supply the finished<br />
product, November 2013 is the target, we<br />
may assume part of $2 million in orders for<br />
projects that included Ceraclad as part of the<br />
Development Permit application.<br />
Creating Multi Level Retail Distribution<br />
Through a partnership with Mitten, a 26 store<br />
retail outlets for building supplies, we look to<br />
create retail distribution and increase direct<br />
education of architects and engineers of our<br />
<strong>Magnum</strong>clad offering.
STEPS TO MARKET<br />
1<br />
2<br />
3<br />
4<br />
5<br />
6<br />
Finish Development of <strong>Magnum</strong>clad<br />
Provide fire testing results to BC and<br />
Alberta building officials for conditional<br />
approval.<br />
Fulfill existing orders and increase<br />
supply to meet increase in volume and<br />
frequency of expected orders<br />
Develop Relationships with Mitten<br />
and Timbremart, a combined 800+<br />
store locations, to provide customer<br />
education and market awareness of our<br />
line of products and their many uses.<br />
Continue Trade Show presentations,<br />
these include Buildex, BCBOA, and IBS<br />
in Las Vegas.<br />
Make strategic hire of the head of<br />
North American Ceraclad distribution<br />
in Seattle. This would provide <strong>Magnum</strong><br />
the oportunity to develop upon<br />
existing relationships with Ceraclad<br />
users and introduce our new product.