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CIM: How much capital do you need? What will it be used for?
OS: We have approximately $3 million remaining in a $5 million 506c offering. We will use the money for working capital and IP acquisition.
Q
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CIM: How did you arrive at your current valuation? Do you feel it is aggressive, moderate, or conservative?
A
OS: We currently have approximately 15 million shares issued and outstanding and are selling shares at $1 in the current offering, for a market cap of $15. A nutrient company just down the street from us had $3 million in sales and recently sold for $40 million—a factor of 13 times revenue. We believe our current valuation is humble. Our goal is to provide plenty of upside to our investors.
CIM: What is your exit strategy?
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OS: We believe ONIT Sciences will be an attractive acquisition target for a large agriculture technology company or distributor. We are on track to increase the value of the company so that a sale would be appropriate in 18 to 24 months.