COMPANY EXPANSION PLAN

Company Expansion Plan

Company Expansion Plan

Thesis Statement

Hologic Company wants to expand internationally with a 10% market penetration, £16 million in revenue by year three and £1 million in private seed capital in the first six months.

Objectives

The principal objectives of Hologic, Inc. are as follows:

To achieve a 10% market penetration in the endoscopic variceal ligation market by year three.

To achieve £16 million in revenue by year three.

To raise £1 million in private seed capital in the first six months.

To win low interest loans and grants from the government of Puerto Rico totaling £1.2 million in year one.

To license its technology for the obliteration/suction/irrigation market for £1 million dollars in year one.

Start-up Summary

The key elements in the Start-up plan for Hologic, Inc. are:

The legal expense for filing all patent applications.

The establishment of Corporate Identity.

The location and place of doing business.

Funding of additional capital raising alternatives.

Salary for the two key managers and founders.

Formulation of Strategic Plan. Costs of raising capital through private placement.

£215,000 was raised from the initial two investors for these purposes. This funding came in in early 1998 and these tasks have either been completed successfully or are in the final process of completion. These are treated purely as start-up expenses by this plan.  £128,000 is treated as cash-on-hand as of the start of this plan on January 1, 1998. The remainder of the start-up capital required as well as capital required for the continuation of operations in the first six months will be provided by selling the shares in the private placement. The capital obtained from these sales is expected to total an additional £850,000 and the plan calls for this cash to be infused in May and June, 1998. (See Appendix)

Products

Hologic, Inc. will initially market three distinct products.

The Visi-Band, a disposable device that is used in endoscopic variceal ligation procedures.

The Visi-Gator, a partially disposable device that is used to remove blood clots during various endoscopic surgical procedures.

The Visi-Lyser, a suction/irrigation device for laparoscopic procedures.

The technology used in these products is the subject of seven patents in the application process.

These three product areas may be more generally defined as follows:

Endoscopy Devices--used for esophageal variceal ligation, hemorrhoidal ligation.The Visi-Band: Consisting of ligating bands with greater stretchability and grip (Super-Elastic bands incorporated into a multi-band dispensing device).

Endoscopy Devices--used for lysis (tissue dissolving). The Visi-Gator: Consisting of a rotary cutting tool to clear fundal pools of blood in the stomach.

Endoscopy Devices--used for suction/irrigation and tissue removal.The Visi-Lyser: Consisting of a suction/irrigation tool to remove tissue effectively.

Product Description

A detailed and technical description of the Hologic, Inc. initial product line follows:

Multiple Ligating Band Dispenser: The Visi-Band

Application is endoscopic variceal ligation which is a rapidly growing surgical procedure quickly replacing sclerotherapy for the removal of polyps in both upper and lower gastro-intestinal exploration.

Scope: This innovation applies to the internal technology of ligating bands independent of the dispenser or delivery ...