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DesignStone LLC

DesignStone LLC

DESIGNSTONE is a hurricane and fire-proof wall system for residential and commercial construction.

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Deal Type

Convertible Note

Funding Goal

$200,000

Current Reservations

$0

Minimum Reservation

$5,000

Deal Stage

Seed

Interest (% per year)

5.00%

Term Length (Months)

12 months

Valuation Cap

$21,000,000

Conversion Discount (%)

33%

Warrant Coverage (%)

N/A

Open Date

12/31/1969

Maximum Reservation

$200,000

Closing Date

02/29/2020

Deal Exemption Type

3

Elevator Pitch

Natural disasters are increasing in severity resulting in record breaking billion-dollar catastrophes. DesignStones patented building technology presents a unique opportunity to reverse the status quo

KPIs

2 Issued Patents
6 Employees

Company Overview

The Business

DesignStone LLC, a U.S. building materials & construction methods start-up is launching their high-performance disaster resilient modular building system. The DesignStone building system is architecturally beautiful, easy & fast to install, hurricane-fire-flood resilient & is price point competitive to traditional systems & more affordable than resilient systems.

Proof of concept has been established in Australia boasting 50 years of successful placement in extreme climatic regions frequented by cyclones.The company now plans to locall manufacture & distribute DesignStone`s patented resilient building technologies in the state of Texas & eventually via a mix of direct sales & IP licensing options throughout North America & beyond.

DesignStione LLC

The Market

Weather-related events such as floods, hurricanes, windstorms & forest fires are increasing in frequency resulting in record breaking billion-dollar catastrophes. As a result, new technologies & improved methods are now forcefully demanding attention exposing current techniques as inadequate or too expensive in today`s markets & climate shaping a deadly scenario which places human life & infrastructure in harm’s way.

DesignStone presents an opportunity to reverse the status quo by leveraging proven USP`s & price differential`s. Builders, contractors & architects being the target customer focusing on deadly weather regions.

Progress/Proof

  • 50+ years product development & placement in Australia.
  • Developed strategic relationships with national and global corporate entities.
  • Expanded our operations & BD teams in the U.S & Asia.
  • Developed 2 x U.S. patents to support existing IP portfolio.
  • Currently setting up 1st U.S. manufacturing product line in San Marcos Texas.
  • Launching product demonstration centre in San Marcos at the start of 2020.
  • Specified for a $100mm USD coastal resort in The BVI.
  • Working closely with a developer in Asia on a large-scale urbanization project to locally produce approx. 106,000,000 ft2 of product over 10 years.
  • Build 1st DesignStone model home in Texas which will be a collaboration initiative supported by our supply partners.

Objectives/Future

Launching in Texas, DesignStone aims to be the go-to high-performance building method for architects, engineers, builders, contractors & developers in disaster-prone regions across the U.S.

The seasoned DesignStone team plan to challenge & disrupt current trends within the lagging building methods sectors, our aggressive, yet calculated business model proposes several upside strategies beyond the launch state of Texas. In year 5, DesignStone plans to be operating in Texas, Florida & Gulf Coast regions.

Additionally, the company is negotiating international opportunities, strategic corporate partnerships with national & international building material company`s all of which will enable the company to greatly exceed its current projections.

Scale/Revenue

DesignStone`s business model is designed with scale in mind. The two primary materials being light gauge metal framing components & small form concrete cladding will all be sourced by via licensed producers with established national distribution webs. This enhances roll-out speed & eliminates the expensive manufacturing establishment costs allowing DesignStone to quickly scale.

Primary revenue shall be generated via direct sales & IP licensing however, the company`s business model accommodates many subsidiary revenue generators & upside opportunities within different markets & via aggressive product innovation advancements some of which are already conceptualized – our technology is wide-ranging with scope for substantial profit margins.

Highlights

  • Texas launching pad established, ultra-experienced management team…
  • Manufacturing plant set-up in Texas, model home programmed for mid-2020…
  • Proof of concept with multiple award-winning projects in Australia...
  • Specification status on a $100+ mm BVI resort currently being designed…
  • Patented technology, unprecedented global upside opportunities…

Team Overview

Seasoned construction ecosystem professionals with over 200 years of combined experience in the construction & building materials industry and close to 100 years of working specifically with the DesignStone building system and associated technologies.

With reach into the U.S., Australia, Asia and the UK, DesignStone`s team possess a holistic understanding of what is required to grow and scale a building materials company.

Bolstered by national material supplier, architectural, engineering & construction industry partnerships DesignStone has the external resources at hand to successfully distribute at scale & to grow its brand exponentially all the time cultivating potential future M&A transactions.

Traction

  • Specified for a $100mm USD coastal resort in The BVI.

    October, 2019
  • Expanded operations & business development teams in the U.S & Asia.

    August, 2019
  • Developed strategic relationships with national and global corporate entities.

    December, 2019
  • Developed 2 x U.S. patents to support existing IP portfolio.

    November, 2019
  • Collaborating with a developer on a large-scale ASEN urbanization project to locally produce approx. 106,000,000 ft2 of product over 10 yrs.

    October, 2019
  • Established 1st U.S. manufacturing product line in San Marcos Texas. Manufacturing equipment landed in Texas, set-up 80% complete.

    February, 2020
  • Building 1st DesignStone model home in Texas, currently in the design phase, construction mid-2020.

    April, 2020
  • 50+ years product development & placement in Australia including multiple industry award winning projects.

    January, 2020
  • Invitation to attend the “Disaster Reduction and Digital Health, Global Education and Technology” symposium at Windsor Castle.

    February, 2020

Pitch Deck

Press Mentions

Key Customers & Partners

Heldenfels Enterprises, Inc LNV, Inc CDBS JSSR Holdings Ltd D.A. Burke Builders Pty Ltd

Testimonials

Robert Wong
Robert Wong
Developer
"In 2017 hurricanes Irma & Maria destroyed the Caribbean including my own personal home in the BVI. I have selected DesignStone as the primary material of choice due to its proven Hurricane resilience, beautiful aesthetic appeal, thermal properties & ease of installation (to name a few benefits). This is an important combination of benefits for me from a construction, operational & ultimately weather resilience viewpoint especially in today’s age where the threat of hurricanes is ever increasing."
Mike Sander
Mike Sander
Structural Engineer
"I personally have designed and been involved with a number of DesignStone projects and have been able to see the features and benefits of the system first hand. The projects have been located around Western Australia in some of the most severe environmental conditions, including the highest design wind speeds required on the Australian mainland."
Jon Jessop
Jon Jessop
Developer
"The DesignStone Walling System is a cost effective, strong & attractive alternative masonry system that is user-friendly & suitable for builders & owner builders alike. The speed of construction using the DesignStone Walling System is a proven way of keeping tight construction deadlines."
Ian Molyneux
Ian Molyneux
Architect
"Fast, dry and clean erection, reduced scaffold hire, early lock-up and finishing, all reinforce major economies in hoisting and handling. This can mean substantial savings of interest on bridging finance, of rent for temporary accommodation, as well as through earlier commencement of income flow from investment properties."
Jason Curtis
Jason Curtis
Commercial Client
"We decided to use the DesignStone product as the material of choice for our business' new commercial offices and warehouse facility in Waroona, Australia. The finished product exceeded all expectations, aesthetically and from a zero maintenance viewpoint, plus having peace of mind knowing our investment will stand up to bush fires and extreme winds reaffirms our decision to use DesignStone."
Martin Barnett
Martin Barnett
Residential Client
"I have built 2 homes using DesignStone and the finished products were amazing. The process far exceeded our expectations in all aspects, from the fast construction time to the fantastic visual appearance of the homes. Once we moved in, the comfort levels were exceptional due to the product itself & the building methodology used. Testament to the quality and acceptance of the product was the fact that both properties sold within four weeks of being listed, for prices far in Excess of what we were expecting."

Frequently Asked Questions

Do you have a detailed business plan and financial model?

Yes, we have significant supporting information available and will release upon registration of interest.

How will you make money?

Primarily through direct sales and IP licensing models to strategic partners. Additionally, DesignStone’s technologies are comprehensive with scope for substantial profit margins. The company`s business model accommodates many secondary revenue generators & upside opportunities within different markets & via product innovation advancements some of which are already conceptualized.

Can you describe your product and the problem you have solved?

DesignStone is an affordable, high-performance, hybrid wall system that enables residential housing & commercial buildings to be constructed in a manner similar to a traditional light framed building, yet have the same load carrying & resisting capability as a full masonry or concrete facade system. Distributed as a complete wall assembly, the DesignStone building product consists of two distinct segments, an external envelope (facade) & a supporting structural framework. Both segments integrate exclusively to form the patented DesignStone Wall Assembly described as a layered combination of small form precast concrete cladding panels attached to a light gauge metal framework (structural) that is reinforced by concrete core-filling, backed up by internal linings, & multiple insulation combinations. DesignStone solves the urgent need for affordable, yet beautiful disaster-resilient communities on a global scale.

Who are your competitors?

DesignStone`s price-point affordability allows it to compete with most traditional, non-resilient building methods however from a resilient product competitor position, DesignStone`s closest competitor is Insulated Concrete Forms (ICF). The Insulated Concrete Form Market is expected to hit $1.6bn by 2025. The global Insulated Concrete Form Market share from the commercial application is expected to achieve over 6 percent CAGR from 2019 to 2025 driven by economic growth in developing countries, favorable FDI policies on commercial construction, and enhanced focus on energy conservation.

Generally, how do you differ from your competitors?

There are two major building systems; concrete buildings that provide excellent protection against wind and fire, but are expensive, do not have much design flexibility, and are usually best suited for large commercial buildings. The other system is "stick built" structures, with wood or metal stud framing. These buildings have excellent design flexibility and are economical, but provide very poor resistance to high winds, flooding, and fire. DesignStone offers the advantages of both systems without the disadvantages.

Explain your go-to-market plan?

In contrast to the previous due diligence periods, 2020 will be a discipline conversion year delivering a string of tangible major milestones for DesignStone LLC & our partners. The DesignStone model home will be the first U.S. center piece & shall articulate why the DesignStone product is better for the builder, the installer & ultimately the homeowner delivering a high-performance resilient home that is cost effective, beautiful & superior across all key disciplines. The model home shall be a strategic joint initiative in partnership with DesignStone`s key partners & shall be used to train installers, educate builders, contractors, architects, engineers and developers whilst generating sales. To support the 2020 vision personnel training shall commence immediately across all disciplines ensuring internal groundwork operations are coordinated effectively & extending externally to strategic partners. Additionally, the company shall focus on product adaption, compliance & pending international opportunities.

What opportunities outside of the U.S. are you working on?

CARIBBEAN | DesignStone has been specified as the primary external façade material for the Drakes Landing coastal resort development in Tortola, the British Virgin Islands. In addition to this, the DesignStone team will project manage A&E services which has commenced & construction works. Reclamation & marina works are underway & resort construction will commence within 14 months. The revenue cycle for this project will span 4 years. MALAYSIA | Large urbanization project accommodating a diverse variety of mixed infrastructure. DesignStone`s ASEAN business development team is currently working with the owners to develop local pricing, finishes and home designs (due-diligence period). It is estimated that the revenue cycle for this development will span 10+ years.

With a foothold in the US, what are the significant upside opportunities available from international markets and product innovation?

INTERNATIONAL MARKETS | DesignStone has already begun exploring international markets with notable traction in the Caribbean and the ASEAN region. DISASTER RECOVERY EFFORTS | DesignStone will develop strategic relationships with recovery agencies to support post disaster recovery efforts. RESILIENT HOME IN A CONTAINER | DesignStone will design a series of small home designs to be sold in kit form and supplied inside a single shipping container. AFFORDABLE HOUSING DEVELOPMENTS | DesignStone will develop an alternative product line to support large project developers in creating high-volume low-cost affordable housing projects. WALL-TO-ROOF SYSTEM | DesignStone will develop an integrated, resilient roof system to complement its existing technology ultimately offer superior protection for the end-user and enhancing the company`s revenue stream.

What is your IP strategy?

DesignStone currently holds 2 x U.S. patents. Beyond this, the company shall commercialize many IP cases (some of which are already conceptualized) as it progresses the product through the Americanization and compliance period. Additionally, the company shall further develop other technological advancements, for example, a “roof system” to compliment the wall assembly system. All innovation advances shall be born of similar resilient technology and shall contain stringent IP strategies. The company shall select and diligently research geographical regions prior to filing beyond preliminary material.

Risks & Disclosures

(SEE TERM SHEET)

Documents

Confidential

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