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Essex Angel Capital: Public Company Exposure To High Growth Private Companies

By Nathan Pearson

Essex Angel Capital (TSX-V: EXC) is a company with an innovative business model that allows investors to benefit from the growth of emerging private companies via a publicly traded common stock. Normally, private companies are unavailable to new investors unless they are included in the original funding ,very close to the management team or are a limited partner in a Venture Capital Fund. Those private company investors are then usually offered very little in the way of liquidity to sell their shares and are subject to dilution in follow-on funding rounds common in high growth early stage companies.

Essex offers the liquidity of a public stock combined with the high growth potential of early stage venture investing. Having completed its qualifying transaction as of last July in 2011, the company is now well on its way to many ground breaking developments via advancement of products they have in their portfolio of private investments. In a press release issued April 13th, 2012, Essex entered an option to acquire up to 60%, adding 40% to its current 19% position in one of the companys portfolio investments, Wellness Indicators Inc.

Wellness Indicators, Inc. is a private company based in Wauconda, Illinois which develops, manufactures and markets a dry urinary wellness test strip called The Health EquaterTM Assessment Profile to employers, insurers and governments.

The Health EquaterTM provides a personalized client report and gives individuals the opportunity to optimize their health and help identify potential future health risks.Although it is not diagnostic for any specific disease, the Health Equater has been likened to a "check engine light" in a car because results can be elevated in response to cardiovascular disease, diabetes, autoimmune disorders cancer, and more . "The Health EquaterTM" does all of this at a very efficientprice point, delivers results in 5 minutes and fits into the wellness programs of most large employers, health insurers and labor unions.

The retail cost of the Health EquaterTM test is about $30 US and is a viable product for insurers to utilize for the assessment and improvement to the insureds wellness. Having a vast market of 90 million plus people under wellness coverage issued by insurers, the Health Equater is very attractive option to an extremely large group of potential customer groups such as major insurance companies, large employers and labor unions.

The potential for growth is strong as this could be used in many other applications, opening a gigantic marketplace to both Wellness Indicators Inc. and subsequently Essex and its shareholders.

Essex Angel Capital announced on June 15th that it has signed a binding letter agreement with Wellness Indicators, Inc., whereby Wellness agreed to grant Essex a quarterly royalty of 2.0% of the gross sales of Wellness in each fiscal quarter. Wellness and the Corporation will enter into a definitive royalty agreement within 20 days of the date hereof. The definitive agreement shall terminate on the date that Wellness completes a liquidity event.

Additionally, Essex agreed to acquire a minimum of US$100,000 and up to US$1,000,000 of 6.0% principal amount of secured convertible debentures of Wellness. The Wellness Debentures will be convertible into shares of voting stock of Wellness at a price of US$1.00 per Share for a period of four years from the issuance date. The grant of the Royalty is subject to Essex acquiring a minimum of US$100,000 principal amount of Wellness Debentures. This is another example of Essex unique investing methods of creating returns while a company is in its high growth stages.

Commenting on the furthered investment from Essex Angel, Frank Lyman, President & CEO of Wellness Indicators remarked. "We are very pleased with the proposed Essex transaction as they have been a strategic and valuable investor to Wellness since their first investment. The Health Equater wellness test is a game changer that we believe fills an unmet need in the wellness services market. We already have large potential clients waiting to buy the product and incorporate it into their mix of wellness initiatives.  We are eager to launch our full-scale sales efforts."  

"From our initial investment last year to the follow-up funding of the clinical trials to this latest infusion of investment cash, our goal has been to see Wellness Indicators through to full commercialization . The shared royalty on gross sales offers participating Essex investors the potential for returns as soon as the product hits the market " reported Rick Galdi, CEO & President of Essex Angel Capital.

This unique noninvasive test panel is not only an industry first, but offers important information to individuals and their insurers about their wellness while potentially removing significant costs from the healthcare system. The Health EquaterTM not only addresses a great market need, it also has a solid intellectual property portfolio with the potential for application in more cutting-edge tests in the future.

Follow Essex Angel Capitals progress at: />
Follow Wellness Indicators progress at: � Essex Angel Capital

720 Ouellette Avenue
Suite 516
Windsor, ON, CA N9A 1C2

Contact Information

as of 4:00pm EST June 28, 2012

Recent Press Releases
From Essex Angel:

Essex Angel Capital Inc. Announces Binding Agreement for 2% Royalty from Wellness Indicators

Essex Angel Capital Inc. is pleased to announce that it has signed a binding letter agreement with Wellness Indicators, Inc., whereby Wellness agreed to grant the Corporation a quarterly royalty equal up to 2.0% of the gross sales of Wellness in each fiscal quarter (the "Gross Sales"). Wellness and the Corporation will enter into a definitive royalty agreement within 20 days of the date hereof. The definitive agreement shall terminate on the date that Wellness completes a liquidity event. Additionally, Essex agreed to acquire a minimum of US$100,000 and up to US$1,000,000 of 6.0% principal amount of secured convertible debentures of Wellness. [...]

Essex Angel Capital Inc. Announces Private Placement of Up to $1,000,000

Essex Angel Capital Inc. is pleased to announce a non-brokered private placement of up to 12,500,000 common shares in the capital of the Corporation at a price of $0.08 per share for gross proceeds of up to $1,000,000. The Common Shares will be subject to a four month hold period in accordance with applicable Canadian securities laws. The Private Placement is subject to the approval of the TSX Venture Exchange. The net proceeds of the Private Placement will be used to identify, evaluate and fund investments and for working capital and general corporate purposes. [...]
 

Wellness Indicators to Launch Commercial Sales of the Health Equater

Essex Angel Capital Inc is pleased to announce that it has been advised by Wellness Indicators, Inc., one of the companies in its portfolio, of the commercial launch of Wellness Indicators new product, the Health Equater� Assessment Profile in July of 2012. The launch date to the U.S. market, previously planned for 4th Quarter of 2012, is being accelerated due to the success of the field trials conducted in the last two months and the positive client feedback. [...]

    

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