INVESTORS

SUMMARY

30 startups | 12 are entering clinical stage of development now
1 with published clinical data.

Heart & Cardiovascular

Team that developed leading cardiovascular stent graft, first percutaneous heart valve and first heart stem cell therapy has developed 8 cardiovascular and heart-related organ regeneration startups. Second Heart Assist expects to complete first-in-man study in 30 pts by spring and to exit. Only competitor on USA market now reached $21 billion valuation this year. Vascustim is entering U.S. clinical studies for diabetic ulcer treatment. PressureStim is planning clinical studies for blood pressure management in China. AortaCell is ready to launch aorta regeneration studies at U Virginia – core team previously captured world leadership in endovascular aorta repair. BioLeonhardt completed a small animal study at U of Utah and is now moving to large animal studies at Texas Heart Institute for total heart regeneration.

Major Organ Regeneration

12 startups focused on major organ regeneration. OrthoStim is entering clinical studies for knee and joint recovery in the USA. BladderCell is entering clinical studies in Brazil. The incontinence market is valued at over $4 billion with no full recovery solutions at this time. EyeCell completed a grant supported eye regeneration animal study in Utah. LiverCell and KidneyCell are entering animal studies in Pittsburgh. The other startups are in development stage. BioLeonhardt Whole Body is designing a whole body regeneration chamber, a womb for adults, and is filing a National Science Foundation Small Business Innovation Research grant application. Wave is addressing the major women’s health initiative of development and effective treatment for endometriosis. 2 exits are expected in 2019/20.

Cosmetic & Personal Care

7 startups all at clinical stage of development. MyoStim ED published first study this summer with 85% success compared to 0% for placebo group in treating erectile dysfunction. A new study with more signals is underway with target of 100% in target treatment group. HairCell launched clinical trials in South Africa targeting 30% improvement of hair density. Samumed a San Diego based competitor reached $12 billion valuation for 10% hair density improvement. TestiStim has patent issued and pilot data for testosterone management. SkinStim launched clinical trials in the USA and has interested acquirer already. DentaCell has data from numerous centers and is developing a full product pipeline. OrthodontiCell believes it can reduce time for straightening teeth by 2/3rds and his clinical trials now. Align Technology the leading competitor reached $30.9 billion valuation this year. Stem Cell Bra is launching clinical trials in South Africa after achieving 20% to 30% breast fullness volume increase in 4 weeks of treatment in large animals. At least 3 exits are expected in 2019.

Brain

CerebraCell is entering animal studies for brain regeneration at McGowan Regenerative Medicine Institute in Pittsburgh. Team already published matrix brain recovery studies now will study bioelectric stimulation plus matrix.

Cancer

CancerCell is entering animal studies for bioelectric cancer treatment. Multiple patents issued and more pending. Patents for reading cancer tumors and custom delivering therapies. Pulsed Biosciences and Novocure recently reached $500 million and $2 billion valuations respectively with their bioelectric cancer therapies.

Proposed Use of Proceeds

$15 million 506D Part C Shares Offering 2018
Private Placement Memorandum for Leonhardt’s Launchpads by Cal-X Stars Business Accelerator, Inc.

By product groups:

  • Heart & Cardiovascular (9) = $6,000,000 which includes $3 million to Second Heart Assist, Inc.
  • Brain (1) = $1,000,000
  • Cosmetic & Personal Care (6) = $3,500,000
  • Major Organ Regeneration (11) = $3,000,000
  • Cancer (1) = $1,000,000
  • Regenerative Economy (3) = $250,000
  • Offering Cost Expenses = $250,000

2018 GOALS

Business model = accelerate 6 startups each year through first-in-man results and opportunity to seek strategic partner/buyer each year for the next 5 years. Goal is 23X ROI on accelerator shares and 63X on individual startup shares after 5 years.

Investment into the accelerator is 2:1 meaning if an investor invests $30,000 they get $30,000 worth of accelerator shares and also at no additional charge warrant to acquire by Dec. 31 of the year they invested also $30,000 worth of individual startup shares within the accelerator of their choice. They can choose to allocate $1000 each in 30 startups by example, $10,000 each in three startups or all $30,000 of their warrant into their single favorite startup.

Note – By charter we are limited to 30 startups in our accelerator in any given annual portfolio class. In short durations where we may have more than 30 startups we are working towards a merger, sale or a cut to reduce back down to 30. In the case of DentaCell Accelerator we have an accelerator within the accelerator which expands the total number of startups under this sub-accelerator. We are considering merging now VibroCell assets into either Second Heart Assist, Inc. or BioLeonhardt as an example.