11.09.2013 Views

0VERVIEW Magnum Building Products

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.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!