Featured Company /
SoftLab9 Technologies Inc.
In 1998, Max Appel and his two sons launched OxiClean out of a garage, bringing the world the miracle of cleaning through oxidation. With a successful marketing strategy that even fended off a concerted attack by multi-billion-dollar rival Clorox (NYSE:CLX) OxyMagic, OxiClean grew annual sales to north of $250 million before being acquired by Arm & Hammer parent Church & Dwight in 2006 for $325 million.
For over two decades now, the world has been awaiting the next innovation in cleaning, the next OxiClean, if you will. SoftLab9 Technologies Inc. (CSE:SOFT) (OTCPK:SOFSF), an accelerator of early-stage companies, thinks it has that innovation with the proposed acquisition of Calgary-based CleanGo GreenGo, an FDA and Health Canada approved manufacturer of cleaning products that utilizes the power of emulsification to clean and sterilize.
If Billy Mays, the famous infomercial pitch man for OxiClean, were still with us, he could trumpet, “Move over oxidation, here comes emulsification!”
Not only do the EPA-certified CleanGo GreenGo products strip filth at the molecular level, but they check all the boxes for today’s environmentally conscious consumers by being green, non-toxic, and biodegradable. The products are formulated using patent pending intellectual property.
SoftLab9’s expertise is in taking the revenue-generating company to the next level with strategic marketing plans, while widening the product line in the future similar to the way OxiClean added the Kaboom brand, which ultimately became a category leader amongst toilet cleaners.
SoftLab9 has a great foundation to build upon with diverse distribution channels and customers already in place throughout North America.
The current CleanGo GreenGo product portfolio includes total purpose, fabric and carpet and industrial-strength cleaners, as well as a hand sanitizer gel proven to destroy a multitude of pathogens, including coronavirus. The FDA and EPA approved hand sanitizer comes in 4-ounce tubes and contain a 70% ethyl alcohol base (well above the minimum of 60% recommended by health agencies for effectiveness).
On August 14, CleanGo GreenGo received its Health Canada COVID-19 site license, allowing manufacturing and/or importing antiseptic skin cleansers as an interim measure valid for the duration of the COVID-19 emergency response. The license specifically authorizes CleanGo GreenGo to manufacture, package, label and/or import antiseptic skin cleansers / hand sanitizers, as described in the Product Monograph available at Health Canada's website.
Another new product, a vaporized version based upon its disinfectant, was launched in June. The potent product’s first uses were to disinfect taxis in Calgary, with sales efforts highlighting the effectiveness for cleaning vehicles, aircrafts, gyms, office spaces, commercial areas, hospitals, and many other heavily trafficked spots.
Toxin-free and pet-safe, product applications range from home to industrial settings to combat grease, shower grime, rust, spills, stains, germs and much more.
The COVID-19 pandemic has heightened public awareness regarding sanitization. To date, most stores remain sold-out of basic sterilization goods, such as bleach and isopropyl alcohol. Thanks to the coronavirus panic, demand is surging in the global household cleaning market from an estimated value of $31.2 billion in 2019 to $39.0 billion in 2020.
COVID-19 is expected to have a lasting impact even after a vaccine or drug is commercialized, leading to 5.7% compound annual growth from 2021-2026 for the global household cleaning market. This paints a favorable background for SoftLab9 to follow the playbook of OxiClean with the added benefit of some modern marketing tools.
Against this backdrop, the timing couldn’t be better for SoftLab9 to ratchet up its marketing efforts.
It is not by accident that SoftLab9/CleanGo GreenGo has engaged Harvest Growth, the marketing company that was behind OxiClean’ s wildly successful branding and sales initiatives. Harvest Growth is a clear leader in the industry, launching household names and running ad campaigns for the likes of OxiClean, Planters Peanuts, Bona cleaners, NuWave, GUND plush toys (acquired by Spin Master Corp. (TSX:TOY) for $79.1 million in 2018) and many more.
“[W]e feel that CleanGo GreenGo will be another one of our success stories,” commented Jon LaClare, CEO of Harvest Growth, on the news of the new relationship on July 28. LaClare went on to call the timing of the launch “ideal” because of demand related to COVID-19 disinfectants and the company’s future “bright” by filling a need for environmentally friendly products to support healthy lifestyles.
Further aiding in the marketing efforts, an advisory board was established, with Kalyan Chinnamanthur, an international consumer packaged goods (CPG) branding executive, and Marc Enright-Morin, an investment banking executive, appointed as inaugural members.
Mr. Chinnamanthur brings strong international experience, where serving in various leadership positions, enabled his teams to transform multiple CPG brands over a broad spectrum of categories. A sampling of the brands Mr. Chinnamanthur's worked closely with include Clorox, Henkel, Mondelez, Kraft-Heinz, Hershey's, Nestle, Ferrero, CO-RO, Reckitt Benckiser, and Colgate Palmolive.
Mr. Enright-Morin has more than two decades of experience in the public and private markets, raising capital through various institutions with an emphasis on the U.S. and Europe where he has been instrumental in the development of start-up and junior companies.
There was no such thing as a social media influencer when OxiClean was launched. Today, the influencer pathway has become one of the most successful marketing tools available. In combination with direct-response marketing (infomercials), brand awareness and loyalty can be built at lightning speed through the phenomenon of a viral marketing campaign.
The plan is to become more aggressive with social media marketing, complete a re-vamp of the CleanGo GreenGo website for improved SEO, amplify direct marketing to distributors and wholesalers, forge new partnerships and establish a referral network to grow a large sales team.
While the ad campaign churns, SoftLab9 management plans to widen its distribution footprint and win new health and environment customers.
Currently, CleanGo GreenGo products are sold on various online platforms, including Amazon Prime, as well as through distribution in retail, wholesale, and government agencies.
Led by sales in the hand sanitizer line, Softlab9/CleanGo GreenGo is forecasting 2020 revenue of $11.43 million. Looking forward, management has provided a conservative estimate for total CleanGo GreenGo product sales of $16.02 million in 2021 and $22.49 million in 2022. That is $49.89 million in total revenue through 2022.
The company is expecting high margins, predicting $31.51 million in total revenue after cost of goods sold (COGS).
Investors are rallying behind SoftLab9 with the CleanGo GreenGo acquisition as evidenced by an over-subscribed private placement recently that raised gross proceeds of $2.68 million, while also wiping out about $404,000 in debt during the capital raise.
The company has also caught the attention of TVA Media Group, an 8-time Emmy Award winner that has come on as an early investor. To lend a little color to the value of the importance of TVA Media Group coming on board as an investor and Joint Venture partner in marketing, consider that some of the direct-to-consumer group’s past clients include Marriott, Lexus, Jenny Craig and Qualcomm. Despite receiving 6-8 requests per day for their services, TVA Media Group only works with about 6 clients per year. With the proposed acquisition of CleanGo GreenGo, SoftLab9 can now count itself as part of that very select group.
That is certainly saying something for a company trading at $1.43 per share with a market capitalization of around $25 million.
Corporate Snapshot:
SoftLab9 Technologies Inc.
Stock Symbol:
CNX
Stock Exchange:
CSE
Sector:
Technology
52 Week High:
$1.4900
52 Week Low:
$0.0900
Alt Exchange/Ticker:
OTCPK:SOFSF
Current Stock Quote / Chart / News: Click here
Information as of
August 19, 2020
In 1998, Max Appel and his two sons launched OxiClean out of a garage, bringing the world the miracle of cleaning through oxidation. With a successful marketing strategy that even fended off a concerted attack by multi-billion-dollar rival Clorox (NYSE:CLX) OxyMagic, OxiClean grew annual sales to north of $250 million before being acquired by Arm & Hammer parent Church & Dwight in 2006 for $325 million.
For over two decades now, the world has been awaiting the next innovation in cleaning, the next OxiClean, if you will. SoftLab9 Technologies Inc. (CSE:SOFT) (OTCPK:SOFSF), an accelerator of early-stage companies, thinks it has that innovation with the proposed acquisition of Calgary-based CleanGo GreenGo, an FDA and Health Canada approved manufacturer of cleaning products that utilizes the power of emulsification to clean and sterilize.
If Billy Mays, the famous infomercial pitch man for OxiClean, were still with us, he could trumpet, “Move over oxidation, here comes emulsification!”
Not only do the EPA-certified CleanGo GreenGo products strip filth at the molecular level, but they check all the boxes for today’s environmentally conscious consumers by being green, non-toxic, and biodegradable. The products are formulated using patent pending intellectual property.
SoftLab9’s expertise is in taking the revenue-generating company to the next level with strategic marketing plans, while widening the product line in the future similar to the way OxiClean added the Kaboom brand, which ultimately became a category leader amongst toilet cleaners.
SoftLab9 has a great foundation to build upon with diverse distribution channels and customers already in place throughout North America.
The current CleanGo GreenGo product portfolio includes total purpose, fabric and carpet and industrial-strength cleaners, as well as a hand sanitizer gel proven to destroy a multitude of pathogens, including coronavirus. The FDA and EPA approved hand sanitizer comes in 4-ounce tubes and contain a 70% ethyl alcohol base (well above the minimum of 60% recommended by health agencies for effectiveness).
On August 14, CleanGo GreenGo received its Health Canada COVID-19 site license, allowing manufacturing and/or importing antiseptic skin cleansers as an interim measure valid for the duration of the COVID-19 emergency response. The license specifically authorizes CleanGo GreenGo to manufacture, package, label and/or import antiseptic skin cleansers / hand sanitizers, as described in the Product Monograph available at Health Canada's website.
Another new product, a vaporized version based upon its disinfectant, was launched in June. The potent product’s first uses were to disinfect taxis in Calgary, with sales efforts highlighting the effectiveness for cleaning vehicles, aircrafts, gyms, office spaces, commercial areas, hospitals, and many other heavily trafficked spots.
Toxin-free and pet-safe, product applications range from home to industrial settings to combat grease, shower grime, rust, spills, stains, germs and much more.
The COVID-19 pandemic has heightened public awareness regarding sanitization. To date, most stores remain sold-out of basic sterilization goods, such as bleach and isopropyl alcohol. Thanks to the coronavirus panic, demand is surging in the global household cleaning market from an estimated value of $31.2 billion in 2019 to $39.0 billion in 2020.
COVID-19 is expected to have a lasting impact even after a vaccine or drug is commercialized, leading to 5.7% compound annual growth from 2021-2026 for the global household cleaning market. This paints a favorable background for SoftLab9 to follow the playbook of OxiClean with the added benefit of some modern marketing tools.
Against this backdrop, the timing couldn’t be better for SoftLab9 to ratchet up its marketing efforts.
It is not by accident that SoftLab9/CleanGo GreenGo has engaged Harvest Growth, the marketing company that was behind OxiClean’ s wildly successful branding and sales initiatives. Harvest Growth is a clear leader in the industry, launching household names and running ad campaigns for the likes of OxiClean, Planters Peanuts, Bona cleaners, NuWave, GUND plush toys (acquired by Spin Master Corp. (TSX:TOY) for $79.1 million in 2018) and many more.
“[W]e feel that CleanGo GreenGo will be another one of our success stories,” commented Jon LaClare, CEO of Harvest Growth, on the news of the new relationship on July 28. LaClare went on to call the timing of the launch “ideal” because of demand related to COVID-19 disinfectants and the company’s future “bright” by filling a need for environmentally friendly products to support healthy lifestyles.
Further aiding in the marketing efforts, an advisory board was established, with Kalyan Chinnamanthur, an international consumer packaged goods (CPG) branding executive, and Marc Enright-Morin, an investment banking executive, appointed as inaugural members.
Mr. Chinnamanthur brings strong international experience, where serving in various leadership positions, enabled his teams to transform multiple CPG brands over a broad spectrum of categories. A sampling of the brands Mr. Chinnamanthur's worked closely with include Clorox, Henkel, Mondelez, Kraft-Heinz, Hershey's, Nestle, Ferrero, CO-RO, Reckitt Benckiser, and Colgate Palmolive.
Mr. Enright-Morin has more than two decades of experience in the public and private markets, raising capital through various institutions with an emphasis on the U.S. and Europe where he has been instrumental in the development of start-up and junior companies.
There was no such thing as a social media influencer when OxiClean was launched. Today, the influencer pathway has become one of the most successful marketing tools available. In combination with direct-response marketing (infomercials), brand awareness and loyalty can be built at lightning speed through the phenomenon of a viral marketing campaign.
The plan is to become more aggressive with social media marketing, complete a re-vamp of the CleanGo GreenGo website for improved SEO, amplify direct marketing to distributors and wholesalers, forge new partnerships and establish a referral network to grow a large sales team.
While the ad campaign churns, SoftLab9 management plans to widen its distribution footprint and win new health and environment customers.
Currently, CleanGo GreenGo products are sold on various online platforms, including Amazon Prime, as well as through distribution in retail, wholesale, and government agencies.
Led by sales in the hand sanitizer line, Softlab9/CleanGo GreenGo is forecasting 2020 revenue of $11.43 million. Looking forward, management has provided a conservative estimate for total CleanGo GreenGo product sales of $16.02 million in 2021 and $22.49 million in 2022. That is $49.89 million in total revenue through 2022.
The company is expecting high margins, predicting $31.51 million in total revenue after cost of goods sold (COGS).
Investors are rallying behind SoftLab9 with the CleanGo GreenGo acquisition as evidenced by an over-subscribed private placement recently that raised gross proceeds of $2.68 million, while also wiping out about $404,000 in debt during the capital raise.
The company has also caught the attention of TVA Media Group, an 8-time Emmy Award winner that has come on as an early investor. To lend a little color to the value of the importance of TVA Media Group coming on board as an investor and Joint Venture partner in marketing, consider that some of the direct-to-consumer group’s past clients include Marriott, Lexus, Jenny Craig and Qualcomm. Despite receiving 6-8 requests per day for their services, TVA Media Group only works with about 6 clients per year. With the proposed acquisition of CleanGo GreenGo, SoftLab9 can now count itself as part of that very select group.
That is certainly saying something for a company trading at $1.43 per share with a market capitalization of around $25 million.
Forward Looking Statements
This report includes forward-looking statements that reflect current expectations about its future results, performance, prospects and opportunities. SoftLab9 Technologies Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause SoftLab9 Technologies Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.
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