Equity
13 Days left

Rebuilding Cartilage to Prevent Joint Pain

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anonymous 3 days ago

If round is successful, where are the stocks stored after that?(Invesdor Ownersportal, Bookentry system, Shareholder list)

Virpi Muhonen
Askel Healthcare Oy
2 days ago

Good that you asked: the shares will be stored in Invesdor's Ownersportal.

JKL 5 days ago

Hello,

What is the plan if you are not able to raise minimum (500k EUR) till end of January? Currently I am seeing this quite big risk.

Thanks Juha

Virpi Muhonen
Askel Healthcare Oy
5 days ago

Hi Juha and thank you for the important question. While planning the campaign, and the work that the round will finance, we have carefully considered a variety of alternative routes to reach our key milestones. Whatever we reach between to min and max target, we have a subsequent plan to follow. If we reach the minimum target, i.e. 500 000€, we will cut some expenses off and expedite certain deliverables above others. The main target – starting the clinical trial with human patients in 2021 doesn’t change regardless of the output of the campaign. We’ll reach that with 500k€ investment, too. Of course, more money does make some matters easier and swifter to execute – and expand the runway, thus giving more “peace” to the team to deliver all the milestones in the near future.

Virpi Muhonen
Askel Healthcare Oy
5 days ago

Rule no 1 - read the question carefully ;) I'm sorry, Juha, but I read your question completely wrong (i.e., what's the plan if we raise the minimum)! To answer your real question: raising the minimum is extremely important for Askel. Bootstrapping and other capital-minimizing actions carry us only so far, and basically mean that we're not able to do what we want to do in the time frame we wish to do it. This means raising at least the minimum will keep us on the path to our key target - starting the clinical trial in 2021.

anonymous 7 days ago

In the 2017 you projected the 2019 revenue as high as 4 655 000€ whereas now you state that it's going to be only 7 945€. What went wrong and what did you learn from that?

Virpi Muhonen
Askel Healthcare Oy
6 days ago

Thank you for the prompt question. There has been a strategic change, and the company has decided to pursue the human use of COPLA earlier than it was thought in 2017. As a small team, this focus has shifted resources from veterinary side to the human development.

Major learning has been that veterinary data is sparser and more difficult to obtain compared to human medical data. After three years, we have a much better hands-on understanding of the Animal Health market and COPLA’s position in it. We’ve decided to focus on one species and one indication first (dog OCD), and to collect strong clinical evidence from this specific patient population. With this evidence, it is planned to enter licensing and partnership negotiations with larger players in the Animal Health sector being a major value driver for us in the near future.

Best wishes, Virpi

anonymous 7 days ago

In 2017 Askel Healthcare raised 450 024€ on the Invesdor platform. That time you valued the company at 2 100 000€ with 1 share being 196.26€. Why is the value of 1 share today 3,20€ even though you value the company at 5 008 393€? Share price dropping from almost 200€ to 3,20€ is quite significant, how have the existing share owners reacted to this?

Virpi Muhonen
Askel Healthcare Oy
6 days ago

Good that you pointed this out, this might be in other’s minds too. After the first crowdfunding campaign, Askel had 14 018 shares. Before subsequent rounds, the shares were splitted, meaning that the share amount was increased 100 times, resulting with total of 1 401 800 shares. If a shareholder has had 100 shares, after the splitting she/he had 10 000 shares.

This means that the share price – taking into account the share split - has grown from 1,96 € at Q2 2017 to 3,20€ at the present round.

Kind regards, Virpi

anonymous 16 days ago

Dear Askel Board Members, I am impressed by your business plan and baed on that there is a significant market potential for your products. I am slightly concerned about the cash flow projections. Based on the financial projections your cumulative EBITDA for period 2020-2022 is negative €4.1m. This assumes that your veterinary product sales grow from practically from zero to €600.000 in less than 3 years. Assuming average product sells for €600, you are expecting to sell roughly 1.000 products in 2022. That’s not unrealistic. It feels to me that the plan to raise funds from this funding round (up to €1m), value-add investors (~€2m) and EIC/Business Finland (€4.5m), totalling up to €7.5m, is reasonable but represents a significant cash-flow risk if the funding doesn’t materialise as planned. My concern concern regarding the cash flow projection is threefold: a. if the sales growth for some reason does not materialise as planned your EBITDA will be more negative and it will make it harder to raise the €2m from your value-add investors; b. if I understand correctly, the EIC/Business Finland funding is leveraged agains the €2m from value-add investors’ investment, and if that does not materialise then you can not raise the €4.0-4.5m from EIC/Business Finland; c. if you can’t raise the above funding, based on the EBITDA projection, you will run out of cash before 2022. My questions are: a. how secure is the value-add funding? Have potential investors been identified already? if the sales are not growing to plan how much are you prepared to dilute the shares in order to raise the necessary funds from the value-add investors?; b. would you be able to give some more details on the sales growth of the current product? what is the plan to achieve the projected sales in 2022?; c. when are the patents expected to be in place? — Please feel free to correct me if I have misunderstood something. I am looking forward to hearing from you. Many thanks, Joni Sairanen, TidalStone Ltd. (UK)

Virpi Muhonen
Askel Healthcare Oy
15 days ago

Thank you, Joni, for the kind words and good questions. I’m happy to answer. I try to be concise, but if needed, feel free to ask more details. If you wish to have a chat, I’m always available for a call (+358 40 489 3840).

In general, I understand well your concerns regarding our near future cash flow. As an early stage med tech start-up, your concern is most likely the most common one. And thus, needs a careful planning, good nerves and flexibility to undertake.

What comes to your concerns; a) Underperforming sales would negatively effect on EBITDA as you well point out, and of course would somewhat increase the need for external financing. However, based on the investor feedback we don’t see a risk of lowering sales much affecting investors’ appetite to participate the planned €2M round as the value drivers are clearly more based on our capabilities to produce the ready product with superior properties and clinical evidence on veterinary patients and our plan to leverage the experience towards huge human opportunity.

b) What comes to the EIC/Business Finland funding it will be preferred - as planned - to have a stronger equity base (i.e. the €2M financing round in place), but it is not a prerequisite for their funding decisions based on the dialogue and feedback we’ve got from them.

c) Concern on running out cash before 2022 is correct based on the plan and without no additional equity financing. However, we always have alternative plans to adapt operations if needed to ensure we can reach the milestones, even though taking more time. Then we’ll put lots on efforts on keeping major investor candidates well updated and being ready to adapt financing plan for alternative or lucrative rounds if that would be beneficial for Askel and our present owners.

And then to your questions: A) How secure is the value-add funding? Have potential investors been identified already? If the sales are not growing to plan how much are you prepared to dilute the shares in order to raise the necessary funds from the value-add investors? Extended preparations have been made to secure the value-add funding and potential investors (private investors, family funds, VCs and CVCs) have been identified and we are in dialogue with selected ones. We target to follow-up our long-term value creation plan and have competing investors in the loop to ensure the valuation will be ‘fair market value’. If we’d be underperforming, we recognise the risk of too much dilutive rounds, which we of course try to avoid, but potential offers will be together evaluated by owners if the case would occur. We’ll fight to always find a way to bring Askel to long-term success.

B) Would you be able to give some more details on the sales growth of the current product? What is the plan to achieve the projected sales in 2022? Our sales estimates are moderate and based on the experience and feedback gathered from our veterinary clients. Our approach has been to tackle first only one species and indication, that is dog OCD, and prove COPLA’s capacities as cartilage regeneration device before “going big”. After gathering strong clinical evidence and pull from the field, we believe COPLA is a lucrative target for global distribution with a top-tier partner(s). This would include other indications and species (horse). Our plan to build a center of excellence network (explained in the pitch material) is our next step in building more revenue-generating veterinary business. It is good to bear in mind, that the company’s core focus is to start the human clinical trial in next year – this will take a major share of the company’s resources. It is important to notice that the revenues from veterinary business are not enough to cover the expenses generated in order to bring the COPLA to human clinical use. However, the potential in the human side is much larger than the veterinary business opportunity.

C) When are the patents expected to be in place? The patents come from three “sources”: 1) PCT application is pending for COPLA Shuttle. The deadline for national patent applications is at Q4/2020 and by then it will be decided how to move forward. 2) We’re entering into co-operation with one of the leading European patent offices and with their senior partner we’re reviewing COPLA’s patentability. Patent application will be drafted and submitted during the Q1-Q2/2020. 3) RESTORE-project will create new IP, also regarding COPLA, and the IP will be co-protected with the consortia and relevant IP will be transferred to Askel.

I hope I have answered your questions adequately and you’ll feel inspired to invest in Askel!

Br, Virpi CEO