Major New Initiative and New Clinics to Drive Growth Higher
Today we are issuing a research update on fast-growing pure play that should enjoy substantial growth in 2015 based on three factors:
As a result, we plan to release updated pro forma financial projections in early 2015.
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Leadership Is Key to Success
A quick overview of the entity's three management experts demonstrate tremendous success in experience in related fields which should translate into similar success for the future BioCorRx-owned management subsidiary.
Mr. Ohanesian has over two decades experience serving as Chief Executive Officer of multiple companies including Bosley, Inc., Cosmedica, LLC, and Aderans Research Institute, Inc. Mr. Ohanesian spent twenty years as President & CEO of Bosley, the world's largest and most experienced hair restoration expert, which has been widely considered the preeminent direct-to-consumer, advertising-driven, retail medicine organization. Mr. Ohanesian coordinated the sale of Bosley to Aderans Co., the world's largest wig manufacturer and distributor, along with the acquisition and merger of MHR, the second largest US-based hair restoration enterprise. Under Mr. Ohanesian's leadership, Bosley became a nationally recognized, household brand. The Company believes that Mr. Ohanesian's experience brings the leadership, financial, and operational skills required to drive the Start Fresh model.
Mr. Corvino is a seasoned media and marketing executive who has launched and led four direct marketing agencies. He is also considered an expert in understanding and evaluating health related lead generation companies. He was Co-Founder and President of Integrated Media Solutions, one of the nation's largest direct response media agencies whose clients included Bosley, Inc., Cancer Treatment Centers of America, Clear Choice Dental, and Laser Spine Institute. In 2011, Integrated Media Solutions was acquired by MDC Partners Inc. (MDCA). Prior to his experience with Integrated Media Solutions, Mr. Corvino was president and a founder of two specialized marketing companies with combined billings over $650 million. In 1996 Mr. Corvino and his partners sold these two companies, Media Incorporated and Media Direct Partners, to Interpublic Group of Cos. (IPG). After the sale, Mr. Corvino joined Interpublic and co-founded Western Trading, which became the exclusive media-trading arm of Initiative Media, a global media agency. Over the course of his career, he has built and sold a total of four companies and has managed over one thousand employees in those combined companies. He has also worked closely with over 200 companies, many of which relied on him to restructure and streamline their operations.
Mr. Volpe has twenty years of experience in the direct-to-consumer self-elective medical procedures marketplace and most recently served as Principal and COO of Integrated Media Solutions. Mr. Volpe has also been directly involved with the growth of four major businesses; Lexi International/AEGIS, 800 Direct/CYBEREP, GB Data Systems, Journal of Longevity and Integrated Media Solutions. The Company believes that Mr. Volpe's expertise in the areas of conversion strategy development and integration by media channel, data mining for new customer acquisition and retention, increasing conversion rates, increasing profitability, and company culture oversight will be highly beneficial to the Start Fresh Brand.
Key Terms of the Agreement
EROI, LLC has been providing services to the Company relating to locating and acquiring a medical management company since early December. EROI will assist the Company in presentations and promotional opportunities and in managing the operations of the medical management company, once acquired. As compensation for the services, the Company has agreed to issue a total of 9,000,000 shares of the Company's common stock. The shares will be issued in tranches, as the milestones designated in the Agreement are met. As certain milestones are met, the group will also receive an ownership interest, not to exceed 15%, in the medical management company. For services provided in managing the operations of the medical management company, the medical management company will pay $30,000 per month.
At this stage, we project that a medical management company could be acquired or formed in 1Q15 with meaningful Start Fresh Program® revenue to occur mid-year 2015. Once a deal is executed we will produce a pro forma model reflecting both the current clinic model and the new subsidiary. These figures will likely represent much greater revenue growth than our current model, along with a faster path to overall profitability, even if ownership in the new entity requires future financial contributions to be reflected below the operating line. With the aid of this new venture, BioCorRx's Start Fresh Program is well-positioned to emerge as the go-to addiction treatment program of choice.
Core Business Hitting On All Cylinders
Separately, BICX's core business is performing well. In fact, as of early December 2014, 10 clinics now offer the Start Fresh Program® as compared with one for all of 2013. The new clinic is strategically located in Oklahoma City, is owned and operated by multiple, wholly-owned subsidiaries of Start Fresh Midwest Holdings, LLC, which consist of common majority owners of Fresh Start Private Midwest, LLC who purchased the territory in a transaction completed in June 2014. The group currently operates a Start Fresh clinic in Nebraska.
The population of Oklahoma is nearly 4 million people, with around 600,000 residing in Oklahoma City alone. The city is also within a short driving distance to many parts of Texas including Dallas, which boasts a population of approximately 1.2 million people. According to the Centers for Disease Control, Oklahoma ranks as one of the highest states for prescription drug overdose deaths in the nation. Therefore, bringing the Start Fresh Program to this new area should positively impact many families while creating a broader revenue stream for BioCorRx, Inc.
Clinical Territories and Reach Continue to Expand
To date, BioCorRx's unique program can be found in the following locations:
Renewed Clinical Interest in Varied Alcohol Addiction Treatments
In our view, BioCorRx® could benefit from a renewed clinical desire to promote the use of varied treatments for alcohol addiction beyond the traditional 12 step programs. In fact, a just released article in The Wall Street Journal highlights and promotes the use of prescriptions such as Naltrexone as an adjunct to current treatment options. http://www.wsj.com/articles/a-prescription-to-end-drinking-1418687580?mod=WSJ_hp_EditorsPicks
Investors should note that the Company's Start Fresh Program® used by the clinics above already includes an outpatient surgical implantation of Naltrexone in combination with the Company's life coaching program in order to maximize results. Therefore, as more attention on the treatment of alcohol addiction to millions of Americans occurs, this pure-play's innovative approach should enjoy broader awareness and attention as well.
Recent Trading History For BICX
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Rob Goldman founded Goldman Small Cap Research in 2009 and has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.
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