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Page 1: Teaser Document · Web view2016/11/22 · 1. Go Epic possesses the IP and control of J. Robert Cade’s product formulations created after he formulated Gatorade. It is a marketer’s

Project: Go EpicTeaser Document May 2016

Confidential - Do Not Distribute

Cholesterade®2016 – Go Epic Health, Inc.

This confidential document was prepared for informational purposes only and is intended only for the designated recipient. It is neither intended, nor should be considered, as (1) an offer to sell, (2) a solicitation or basis for any contract for purchase of any security, loan or other financial product, (3) an official confirmation, or (4) a statement of Go Epic health, Inc. (“Go Epic”) or any of its affiliates. With respect to indicative values, no representation is made that any transaction can be effected at the values provided and the values provided are not necessarily the value carried on the books and records of Go Epic. The recipient of this document is advised to undertake an independent review of the legal, tax, regulatory, actuarial and accounting implications of any transaction described herein as Go Epic does not provide legal, tax, regulatory, actuarial or accounting opinions. Any offer will be made only through definitive agreements and such other offering materials as provided by Go Epic or appropriately licensed affiliate(s) prior to closing which contain important information regarding, among other things, certain risks associated with any transaction described in this document and should be read carefully before determining to enter into such a transaction. The information in this document was compiled by Go Epic Health, Inc., from sources it believes to be reliable. Go Epic makes no representation or warranty as to the accuracy, reliability or completeness of such information, and the information should not be relied upon in making business, investment or other decisions. Projections or forward-looking statements are

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subject to risks and uncertainties, and actual results may differ substantially from those indicated.

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SUMMARY OF BUSINESS

Go Epic Health, Inc., (“Go Epic” or “the Company”) Go Epic Health is a nutritional product holding company which owns the intellectual property and worldwide manufacturing and distribution rights to Cholesterade®, a natural cholesterol reducing product created by the late Dr. Robert Cade, creator of Gatorade®. 

Wholly owned subsidiary, American Retail Alliance, markets and distributes Cholesterade® as well as other new and innovative consumer goods through the nation’s largest retail pharmacy chain stores, independent drug and health food stores, multi-level organizations and product specific catalogs.

Wholly owned subsidiary Eagle Labs, is a product and contract manufacturing company specializing in manufacturing food, cosmetics, dietary supplements, liquid bottling and product formulation.

Go Epic is the owner-producer, IP, formula and trademark-holder of multiple, clinically-proven, unrivaled, ingestible health products, two of which were created and formulated by legendary Dr. J. Robert Cade, the inventor of Gatorade®.

Unbeknownst to the world, Dr. Cade also formulated 2 other remarkable products, owned exclusively and controlled by Go Epic: specifically Cholesterade®, and Go Energy Recovery Shake ®. Go Epic’s Independent formulator created Go Energy Recover Bar ® mimicking that taste and the ratio of carbs to protein that exists in Go Energy Recovery Shakes®.  

GO Epic will soon be marketing their flagship product “Cholesterade®”.  Cholesterade® provides a natural, delicious and economical solution to help meet NIH (National Institute of Health) requirements for therapeutic lifestyles changes using non-drug intervention to lower cholesterol prior to consideration of statin intervention.

After creating Cholesterade®, Dr. Cade conducted an 8-week clinical study and the results were significant. Without making any other lifestyle changes, the following results were achieved in only 8 weeks.

Triglycerides -50.0% * Total Cholesterol (TC) -17.9% * LDL Cholesterol (LDLC) -21.4% * HDL Cholesterol (HDLC) +12.9% * HDLC/LDLC Ratio +44.0%

Obesity, diabetes and high cholesterol are growing at unprecedented rates in all age groups, as are the associated cost issues. Cholesterade®, Go Energy Recovery Shakes® and the Go Energy Recovery Bars® have been specifically formulated to combat these same issues. These remarkable products enable the health, medical and wellness community to deliver significant enhancements to the health and energy of clients in a short amount of time without significant lifestyle changes. This positions those clients (from children to seniors) to be more likely to participate in medical

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wellness programs and realize success. 

In addition, Go Epic is launching their proprietary drink called Recuperade® after the successful launch of Cholesterade®. Recuperade® is an all natural and organic high protein, high fiber drink. It is the intent of management to expand the Go Epic line to a variety of organic and natural products including natural drinks and energy bars that will target specific functions and/or remedy certain ailments in the human body.

Note: "Gatorade® is a registered trademark of Stokely-Van Camp, Inc. GO EPIC is not affiliated with Gatorade® or Stokely-Van Camp, Inc."

Go Energy (Recovery) Shakes and Bars—are two delicious products that provide energy while hastening muscle recovery for anyone (of any age) on a physical fitness program. More than 120 NCAA, professional and Olympic Medalists and teams have used our products with tremendous success. The significant nutritional benefits of Go Epic’s products make them valuable across several critical vertical markets.  There is an analysis by the Director of Sports Nutrition at Texas Tech, which can be supplied upon request.  In addition, a Yale Study conducted by the Heads of the Yale, Stanford, University of Texas, Navy Seal Research Chief compared the replacement of glycogen after complete body glycogen depletion using the Yale cyclist team with the conventional wisdom of carb loading.  The Go Shake was more than 50% faster in glycogen replacement than carb loading.  The Yale Study is also available. 

Each product has unprecedented and unequaled clinical studies substantiating all claims (will be submitted upon request).

At Go Epic, we strive to be a leader in any category that we operate in.  Our cutting edge management team is always on the look out for additional opportunities and product lines that make sense on both a business and personal level.

PRODUCT AND COMPANY HISTORY

Go Epic is the 2016 re-launch of the original Go-Healthy Corporation. Shortly after it’s initial launch in the spring of 2008, Go Epic raised an initial $600,000 which allowed Go-Healthy to build the product line (i.e. initial runs of product) and to market and distribute Go Energy Recovery Shakes and Bars to more than 120 major colleges and universities; products that were used in their varsity athletic programs with great success—among them Penn State, Michigan State, Alabama, Texas and Duke—entities that reordered the product until it no longer became available due to financial and production constraints.

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The product line met with approvals by Wal-Mart, Walgreens, The Sports Authority; Aramark wanted to take the products worldwide; but the company lacked the funds and capabilities to produce more products and fulfill orders.

Of those entities in receipt of the products, there was not a source that didn’t experience the great taste coupled with the performance of Dr. Cade’s formulations. At the time, Shaquille O’Neal agreed to a non-profit division; Don Shula, the NFL’s most winning coach; along with actor/health-crusader Kevin Sorbo agreed to be spokespersons. Billy Davis, 2 times Super Bowl Champion from the Dallas Cowboys (a health consultant for 10 years with Abbott Labs) was another celebrity endorser and evangelist for the Go-Healthy line of products. Additionally, (and as evidenced herein) pricing and margins made the Go-Healthy line very competitive.

Over the past 8 years, the market has only changed for the better, as evidenced below in TRENDS FOR ACCEPTANCE AND COMPETITION, and due to it’s recent acquisitions of a product manufacturer and product distribution and marketing company, Go Epic has in place the needed elements to move forward expeditiously with production, marketing and fulfillment.

Corporate GovernanceThe Board of Directors of Go Epic set very high standards for the Company’s employees, officers, consultants, and directors. Implicit in this philosophy is the importance of sound corporate governance. It is the duty of the Board of Directors to serve as a prudent fiduciary for shareholders and to oversee the management of the Company’s business. To fulfill its responsibilities and to discharge its duty, the Board of Directors follows the procedures and standards that are set forth in these guidelines. These guidelines are subject to modification from time to time, as the Board of Directors deems appropriate in the best interests of the Company or as required by applicable laws and regulations.

GENERAL INFORMATION

Go Epic Health, Inc., was incorporated in 2015 under the laws of the State of Nevada. Our principal executive office is located at 2979 West Bay Drive, suite 6, Belleair Bluffs, Florida 33770. Our telephone number is (727) 581-1500. Our corporate website is www.goepichealth.com additional Cholesterade® information can be found at www.gocholesterade.com; information on our websites does not constitute a part of this document.

MARKET TRENDS FOR ACCEPTANCE AND COMPETITION

The trends for acceptance of Go Epic's unique products are compelling:

From Euromonitor International (current report)The USA Report: Sports and Energy Drinks:

COMPETITIVE LANDSCAPE The Gatorade Co Ltd continues to hold a commanding lead in sports and

energy drink sales with a 46% market share in 2013. Gatorade was the

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first major brand of sports drinks, and has maintained its lead through continuous product introductions, offering different flavors and formulations to appeal to different consumer groups.

PROSPECTS

Manufacturers of sports and energy drinks are expected to see growth but face challenges in terms of proving their safety and health to consumers. They also face difficulty in broadening their appeal to more consumer groups

Sales of sports and energy drinks are expected to grow by 15% in off-trade value terms between 2013 and 2018, to reach US$17.9 billion.

1. Go Epic possesses the IP and control of J. Robert Cade’s product formulations created after he formulated Gatorade. It is a marketer’s dream. The efficacy and resulting studies evidence that Go Epic’s shakes and bars have very little competition as the market for such product continues to grow: From $565 million in sales in 2005 to $1.189 billion in sales in 2014 (and anticipated sales of $1.275 billion in 2015).*

* http://www.statista.com/statistics/235816/us-retail-sales-of-energy-bars/

2. Go Epic’s products are all-natural and possess extensively lab, clinical and market testing. All our products are produced in FDA approved and certified facilities. The ATP III report evidences the need for soluble fiber in the management of cholesterol; along with AMA dietary guidelines that stress the importance of fiber in controlling blood pressure.**

** https://www.nhlbi.nih.gov/files/docs/guidelines/atglance.pdf

3. Notwithstanding the resurrection of our college and retail distribution market and the extensive medical testing undergone: it is a fact that the aging of the US population in concert with an increased emphasis on nutrition has greatly expanded the potential market for our products beyond that of our competition. Socio-economic changes vis-à-vis the devastated 2015 health care market (and beyond) will further enhance the need for nutritional, nature product answers to maintaining health.

Cholesterade® was never brought to market; and the opportunity to market the product has never been more

advantageous in view of the adverse publicity regarding the health impact of statin drugs***

*** There are a wide ranging number of class action lawsuits against Pfizer re Lipitor.   They focus on causing Type 2 Diabetes, muscle and liver damage, and many others.  Here is one lawsuit website that particularly addresses women.

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http://www.acostawilliams.com/lipitor-lawsuit/  Consequently, when Cholesterade®—as the Compliance Vehicle for the ATP III soluble fiber—is on the market and the new and growing army of 1099 pharmaceutical reps inform the medical community of the benefits and safety, the doctors then have the choice of recommending our unique products while in the process receiving a rich financial benefit therefrom, rather than immediately suggesting statins with the inherent potential side effects.

Health Risks Associated With Lipitor:

These are the most common, and often dangerous, side effects of using this medication

Stomachache often associated with excessive cramping and lack of bowel movement.

Muscular pain, especially in the joint areas. Increased pressure in the eyes. Improper liver function, causing liver damage. Urinary tract infections. Kidney stones. Abnormal heart rhythms Onset of Type II Diabetes, especially in women over the age of 63

POWERFUL MARKETING COMBINED WITH ESTABLISHED VERTICAL MARKETS AND CELEBRITY INFLUENCERS

“The reason big-name brands use celebrity endorsements and top influencers…is because it’s just good business. As revolutionary, useful or trendy as your product may be, having a tastemaker sing your praises has a built-in exponential effect. STATISTICS SHOW that recommendations made by influencers result in 6 times (!!) more traffic, and twice the conversions companies have without the endorsement.”

2014 Spinnakr Corporation

MARKET AND DISTRIBUTION OPPORTUNITIES

Approximate Pricing and Margins:

Cholesterade® (COG)s $5.00 in reasonable volumes) (620 grams – 45 servings) (Powder) Wholesale $20.95; Retail $34.95

Go Recovery Shakes® (COGs $0.60 in reasonable volumes) (12 oz.) Wholesale $1.25; Retail $2.49

Go Recovery Bars® (COGs $0.45 in reasonable volumes) (65 gram) Wholesale $0.99; Retail $1.99

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DISTRIBUTION OPPORTUNITIES:

In addition to retail distribution via our wholly owned subsidiary American Retail Alliance:

  Sales to schools and PTA groups, Medical**, and Independent Sports

Associations like USSSA at retail: 30% (10% discount to buyer, 15% commission to doctor, PTA, USSSA,

etc., and 5% to sales person (pharmaceutical rep, sports rep, PTA rep, etc.) via direct shipment or pickup at local site. 

By Example: a Go Bar that retails for $1.99 would sell net of all fees at $1.39 vs. $0.99 wholesale, thereby doubling pretax margins to about $0.60 a bar vs. $0.30 a bar.  Similar margins exist on other Go Epic products.

**Medical Distribution Model

In today’s health environment, doctors are seeking additional income sources. Go Epic products especially Cholesterade® can provide a significant source of revenue; while allowing the medical professional to follow the ATP III recommendations of 10-25 grams a day of soluble fiber (along with other dietary and exercise considerations). The recommendations further suggest that doctors put patients on Therapeutic Lifestyle Changes (TLC’s) for 12 weeks prior to the consideration of statin intervention. Cholesterade® has 8 grams of soluble fiber per serving.  Dr. Cade's results were spectacular, and he instructed all participants in the study not to make any other changes in their diet or exercise.

Similarly, pharmaceutical independent reps are constantly looking for new products meeting health considerations with substantial margins i.e. it is Cholesterade® that provides doctors with the appropriate compliance product per ATP III recommendations. 

In California alone, there are 100,000 doctors.  In the consolidation underway in the pharmaceutical industry, many of the better reps have become independent (1099 reps) who understand the medical and legal issues, and who already call on the doctors. They have no upside limit on commissions, and are available by the thousands.

Pro-Forma Projections

REVENUE 2016 2017 2018Cholesterade (in 000) 3,000, 40,000, 200,000,Go Shakes (in 000) 0 2,000, 10,000Go Bars (in 000) 0 2,000, 5,000,Subsidiaries (in 000) 1,000, 3,000,

10,000,Totals (in 000) $4,000, $47,000, $225,000,

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* Note: 2016 Pro-Forma estimates are based on initial rollout sales of Cholesterade® in the United States only. Introduction to the Go Epic Shakes, Bars and new products in development will increase the overall Revenue figure. We are estimating introducing the Go Epic Bars and Shakes in 2017 after receiving strong market penetration with Cholesterade®. In addition, plans for international distribution of Cholesterade® will begin in late 2016.

Management

The Management team has extensive experience building startup businesses in both domestic and international markets.

James Price, President/CEO - has a 28-year track record as a financial advisor, entrepreneur and business owner. He and his team have been able to identify opportunities and successfully negotiate the complex markets for his investors to share in the success of their projects.

Woody Junot, COO - is a proven Successful Financial/Managerial executive whom through his 30-year plus career has extensive experience as a business owner, financial planner, investor and public relations expert and real estate and mortgage broker.

Brett Phillips, President of American Retail Alliance - has 30+ years of contract manufacturing and distribution/marketing experience in the nutraceutical and pharmaceutical industry as well as the health food and nutritional supplements category.

Mike Molloy, President Eagle Labs - earned his B.S. degree in Food Science and Human Nutrition from the University of Florida and has 20+ years experience in product manufacturing and has worked as a Product Development Chemist specializing in Nutritional Supplements.

Larry Wilcox, Director of Marketing - an American actor, best known for his role as Officer Jonathan "Jon" Baker in CHiPs, an American television series. Mr. Wilcox is a decorated Marine veteran, television and motion picture producer and an accomplished marketer and businessman. Mr. Wilcox has a long and successful history of developing major product rollouts throughout multiple media and promotional outlets.

Don Tolman. Chief Formulator and company spokesperson - is a nutritionist, world-renowned healer, spokesperson, author, and nutritional advisor to Titleist, inventor and developer of organic nutritional products. Mr. Tolman has a worldwide following of millions of people seeking his guidance in remitting and preventing disease naturally.

Product Formulator and Inventor

James Robert Cade (September 26, 1927 – November 27, 2007) was an American physician, university professor, research scientist and inventor. Cade, a native of Texas, earned his bachelor and medical degrees, and became a professor of medicine and nephrology at the University of Florida.

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Although Cade engaged in many areas of medical research, he is most widely remembered as the leader of the research team that formulated the sports drink Gatorade.[1] Gatorade would have significant medical applications for treating dehydration in patients, and has generated over $150 million in royalties for the university and untold millions for its inventors.

FINANCING SOUGHT AND USE OF PROCEEDS

Go Epic recognizes that the strength of its product line provides a variety of possible rollouts, financial structures, and relationships. Based on the successes of its initial rollout in 2008, in concert with the potential increase in market share, Go Epic is raising an initial $3 million via a common stock offering. The following represents the use of proceeds:

Sources of Funds Amount Percentage Offering Proceeds $ 3,000,000 100%

Use of Proceeds Amount PercentageInventory Expenses/Production $ 1,000,000

33.33%Clinical Trials $ 150,000 5%Promotion/Marketing Expenses $ 700,000

23.33%Accounting, Legal, Filing Fees $ 100,000 3.33%Bridge Loan $ 550,000 18.33%Working Capital $ 500,000 16.66%

TOTAL $ 3,000,000100.00%

Contact Information James Price, CEOGo Epic Health, Inc.(858) [email protected]

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This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The comments in this summary are based upon Go Epic Health, Inc., preliminary analysis of publicly available information. The content of this document is made available on an “as is” basis, without warranty of any kind. Go Epic disclaims any legal liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Go Epic reserves all rights to the content of this document.