William M Keever

Brentwood, TN (USA)
Role(s):
Founder/Owner/Principal

Nathan & James Group

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Location: Brentwood
Industry: Wholesale
Year Founded: 2007
Number Employees: 1-10 people
Description: The Company was formed in 2007 for the purposes of developing, marketing and selling nicotine delivery devices (NDDs) to consumers. The NDD industry, also known as the Nicotine Replacement Therapy Industry, is currently a $2 Billion dollar per year industry. We have executed a Master Distribution Agreement (the “MDA”) with Ruyan America to market and sell its Ruyan Nicotine Delivery Products. These products include the patented and much touted E-cigarette, the E-cigar and E-pipe, as well as the disposable e-cigarette coming out in 2009 (hereinafter collectively the “Products”). The MDA grants the Company the exclusive right to distribute, market and sell the Products throughout North America in all major marketing channels. The Products have recently been prominently featured in print and television media, including being described as the 7th Best Business Idea by Business 2.0 in August 2007. Forbes and The New York Times each ran articles in May 2008. Much of the media has been spurred on by the ever-growing number of local and state governments that have banned tobacco smoking in public venues such as restaurants, bars, casinos, office buildings, etc. In fact, it is expected that most major US cities will have some form of a tobacco smoking ban by 2010. The Company believes that, as a result of these anti-smoking initiatives, the demand for smoking alternatives will grow significantly. In fact, based on recent studies, management believes the Ruyan Products are likely to become the most widely used nicotine delivery device in North America. The primary basis for this belief is the nature of smoking itself. Ruyan developed the E-Cigarette technology in response to a World Health Organization Study which concluded that traditional NDD’s such as nicotine patches and gums were largely ineffective in reducing the use of tobacco cigarettes. The rationale was simple, patches and gums do not provide the smoker the same level of enjoyment as smoking cigarettes. Smokers associate the enjoyment of smoking with several key attributes: 1) the immediate release of nicotine into the blood stream as a result of smoke inhalation; 2) the oral sensation of using the mouth to draw smoke from a cigarette; 3) the tactile sensation of holding and using a cigarette; and 4) the sensation of inhaling and exhaling smoke from a cigarette. The E-Cigarette was specifically developed to recreate and simulate the process of smoking a tobacco cigarette, while eliminating the harmful effects that come with smoking burning tobacco. The Products use patented technology to atomize pure pharmaceutical grade nicotine into a vapor that can be inhaled into the lungs just like tobacco smoke, thus providing the same immediate release of nicotine into the blood stream as they are accustomed to with smoking tobacco cigarettes. The E-Cigarette is shaped and used like a cigarette, simulating the traditional tobacco smoking experience, and providing all of the key attributes smokers find important. As a result, the Company believes the Products will be the smoking substitute of choice in North America. To that end, the Company has developed several key marketing initiatives, the first of which is the soon to be launched Direct Response Television Campaign (“DRTV”). The Company has partnered with Incredible Discoveries, one of the largest DRTV companies in the world, to produce and distribute a full-length information commercial throughout the U.S. and Canada. The campaign will begin airing in September of this year, and will mark the launch of the Ruyan NDDs throughout the U.S. Following the launch of the DRTV campaign, the Company will market and sell the Products through other major marketing channels, including food service, hospitality, mass merchants, drug stores, supermarkets and via the internet. Both the Company and its DRTV partner, Incredible Discoveries, have projected gross sales to exceed 15 Million Dollars solely from the DRTV campaign. Consequently, in order to meet the projected inventory needs, the Company is raising up to Two Million ($2,000,000) in capital in a private equity placement. The proceeds of the offering will primarily be used to purchase the Products directly from Ruyan, the manufacturer, pursuant to the terms of the MDA.