Daniel Antonovich

Totowa, NJ (USA)
Role(s):
Founder/Owner/Principal

Montpelier Springs Water Company

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Location: Montpelier
Industry: Food Service/Restaurant
Year Founded: 2007
Number Employees: 1-10 people
Description: Montpelier Springs Water Company PROJECT SUMMARY OVERVIEW – Montpelier Spring Water Company (“MSWC”), a Vermont “C” corporation, is a development stage organization that is taking significant measures to enter into the spring water and enhanced (functional) beverage industries. Members of the Antonovich Family, owners of a prolific and historic Spring located in East Montpelier, Vermont, began laying the groundwork a number of years ago to obtain commercialization certification for their Spring from the State of Vermont. Under an agreement to lease this extraordinary pure water source (it served as the water supply, without treatment, for the City of Montpelier for over 100 years), MSWC made the commitment to continue the process leading to certification, to raise capital to establish a business to bottle the Spring’s water, to continue and expand the development of a line of unique functional beverages and to seek public status at the appropriate time in the future. MSWC has secured a 99-year lease to the Spring. Once authorization for commercialization has been obtained (estimated to take in the range of 12 months), we will move to the stage of soliciting the funding required to install an underground pipeline (the purpose of which will be to “transport” the water by gravity flow to our chosen plant site located in East Montpelier) and to erect, equip and staff a bottling, packaging and distribution facility. At that time, we will begin bottling water (still and sparkling and promoted as the Evian/Perrier of North America) and functional beverages with water sourced from our Spring. Reference the latter, functional drinks are defined by the addition of vitamins, minerals, neutraceutucals and other organic and natural ingredients that enhance physical health and/or mental well-being, improve performance, and provide energy, among numerous other desired effects. In the early stages of the implementation of the Company’s business strategy, we anticipate completing the development of a number of functional beverages in cooperation with the marketing and laboratory staffs of the Virginia Dare Extract Company. We have entered into an agreement with this prestigious, international firm that includes involvement in formula development, providing the most desirable flavoring for each beverage and participating with us in focus group studies. It is anticipated that certain of the formulations will be finalized by the end of 2008. It is our intention to select a number of these products, source a Vermont interim top-quality spring water supply (just obtained), employ a sub-contract bottler (currently engaged in discussions with two such operators), and begin market testing and branding activities in early 2009. We are exploring: (i) the development of a European-style health and wellness center Spa in the Montpelier area (any such undertaking would be predicated upon an independent funding by EU investors and would be established as a Company subsidiary – In anticipation of a favorable outcome reference funding, we have optioned a magnificent 95-acre parcel of land with 100 mile mountain views); and (ii) the acquisition of a license to a unique, patent pending system (the “System”) for the home and office delivery of bulk spring and purified water in areas where no spring water sources exist. The System encompasses a method of delivering the water via a specifically designed tanker vehicle and also a specifically designed stainless steel and computer controlled and operated sealed tank installed in the customer’s premises. The water would be delivered an-aerobically (without exposure to airborne contaminants). Further, this method of obtaining drinking and cooking water eliminates the need to deal with five gallon, oil resin plastic and glass, containers that are difficult to handle and the dispensing units into which they are placed, the latter generally containing unhealthy organisms. Should a separate funding (in the range of $1.0 million required to set up the pilot operation and to prepare and implement a franchising program) for this project become a reality, we intend to set up a subsidiary to operate Company controlled territories and to franchise others. BUSINESS STRATEGY – We intend to implement our business strategy in three definitive Phases. The timing of the implementation and the scope of what we can achieve during each Phase will depend upon the amount of funds available to us at any given time. Upon the successful execution of the first two Phases, we anticipate that during Phase III, we will begin to generate revenue from product sales to support operations. Throughout each Phase we will seek to leverage our Vermont heritage. We will do so by promoting the source and quality of the spring water to be used for the functional beverages to be introduced in the intermediate term, and our own spring water once we have received certification and set up the required business components. Further, we will promote, extensively, the Vermont values recognized nationally, and remain true to our core values, including fostering a corporate culture that emphasizes “Green” practices. PRIMARY MANAGEMENT – MSWC’s corporate activities are presently being directed by: (i) its chief executive officer, Daniel Antonovich, who possesses decades of high-level business experience, having built personally one of the country’s largest and most successful fur companies; and (ii) its corporate secretary and finance officer, Peter Green, who has held executive positions, with profit and loss responsibility, for a number of corporations in addition to acting as the managing director of a investment banking consulting firm. Additionally, business guidance is being provided by a highly experienced and talented board of directors and advisory board. Certain of these individuals have had experience in the bottled water and functional beverage industries and in the fields of marketing, corporate brand development and media relations. Further, several members of our team are life-long Vermonters, having built successful businesses in the State and having participated in state and local government. Intermediate term plans call for the hiring of a presidential caliber chief operating officer with a proven record of success in the beverage industry and a plant manager with extensive bottling plant operations experience. Preliminary discussions have been held with a number of potential candidates. CAPITAL RAISES – Phase I – We will use the net proceeds of the $1.0 million received from the initial Offering to implement the initial steps in building our business. Phase II – The ability to execute this Phase of our business strategy will be dependent upon the availability of in the range of $2.0 million. Moreover, to the extent we have not completed all of the elements comprising Phase I, post the closing of the second round, we will seek to complete those items prior to undertaking Phase II activities. Phase III – The Operational Phase – Predicated upon having obtained all required permits and certifications and successfully concluded an Initial Public Offering, we will begin the process of laying the proposed pipeline, building the proposed bottling plant and installing the required bottling equipment. Upon reaching the operational stage, we will begin manufacturing a complete line of products and implementing our marketing and sales programs. Again, our ability to execute our business plan continues to be dependent upon the availability of capital. In that regard we anticipate that we will require in the range of $15.0 million to become self-sufficient and to grow organically, operating our own bottling and distribution facility. On the fund raising front we intend, also, to explore an industrial development bond funding and other funding opportunities with certain Vermont business development agencies and to seek capital from private investors, both domestically and internationally. Although we have established a game plan as it relates to raising capital, the board of directors will entertain any proposals that have the potential to speed up the process of moving the Company toward its established goals. FINANCING - The Company currently is seeking an equity investment for its first round financing of $1,000,000. The Offering consists of 1,000,000 Units. Each Unit consists of two shares of common stock and one common stock purchase warrant entitling the holder to purchase one share of common stock at an exercise price of $1.50 per share at any time up to twelve months from the anniversary date of the close of an Initial Public Offering. (Our Private Placement Memorandum contains complete details). EXIT STRATEGY – The Company plans to provide investors with an exit strategy in the form of an initial public offering, the sale of the business to an appropriate buyer or a buyback of its securities. PRO-FORMA FINANCIAL SUMMARY: For the years one through five, post funding initial public offering – ($000’s) Year 1 Year 2 Year 3 Income $4000 $12,500 $25,000 Total Operating 4500 7500 12,500 Expense (including COG) EBITDA $500 $4000 $12,500 Year 4 Year 5 $40,000 $60,000 18,000 32,000 $22,000 $28,000 *These figures do not reflect cash flow from either the Health & Wellness Center Spa or the Trimega System! CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS – Certain of the statements and financial information included herein constitute forward-looking statements. These statements relate to future events or future financial performance and are identified by such words as “will,” “could,” “expect,” “anticipate,” “future,” “proposed,” or the negative of such terms or other similar words. You are cautioned to read this document carefully because it contains future expectations. The Company believes that is important to communicate these expectations to potential investors. These statements are only expectations and anticipations and as such actual events or results may differ materially. For further information, call: Daniel Antonovich or Peter Green at: [<a href="(URL removed)">send me a message</a>]