24 May 2013
Chief Executive Officer''s Address to Savoy Equities Limited AGM 23 May 2013
Introduction
Before I get into the detail of our business progress, I would like to
acknowledge and thank the board, shareholders and especially Garry Wells for
giving me the opportunity to lead this company. I look forward to working
with what I consider to be a talented board with a wealth of commercial
experience.
Benefit Arthritis
In essence, Savoy Equities Ltd, through its subsidiary Benefit Healthcare Ltd
and Benefit Arthritis, is in the business of manufacturing and selling a
product that will assist with joint ailments. Our current product arthRemTM
sits in the integrative medicine space. It can be used on its own or also
used as a complimentary treatment in conjunction with other traditional non
steroid anti-inflammatory drugs. The feedback from end-users has been
overwhelmingly positive. My own 11 year old son has been taking 2 capsules
per day for the past 12 weeks. During the Christmas holidays the juvenile
arthritis in his knees was so bad that he was reduced to no activity and
spent most of the holidays with his legs elevated on the couch. This
Saturday he will be playing his 4th game of rugby at 100% health, in other
words a full recovery. I didn''t join this company because it had a product
that assisted people with arthritis. It was a total coincidence. But what
it does highlight is that most people either suffer from some form of
arthritis or are closely related to someone that does.
As you can see, I''m passionate about this product. Our financial position is
improving as we gain traction in creating a consistent and growing income
stream. If you put all the various pieces together, we feel our company is
on solid ground.
Sales for the month of April/May have been very positive. We recently
negotiated a distribution deal with Pharmabroker Sales Ltd. Through them we
have been retailing our product through independent pharmacies and chemists
around New Zealand.
Currently arthRemTM is stocked in over 100 pharmacies nationwide. Sales to
date, which include all distribution channels, exceed that recorded for the
full 2012 financial year.
Enhanced Website Functionality
Shareholders and customers may have noticed our new website that went live on
the 6th of May. Michael Stace, a local website developer and who is with us
today, has built the new site. Michael not only has a vast knowledge of
building websites that are able to convert views into sales, but also has
business experience in pharmaceutical and nutraceutical industries in the US.
Under the current platform users are able to purchase on-line through PayPal
and direct credit into our bank. Users will be able to make purchases with
their credit card by the end of the month.
Product awareness in New Zealand has been largely driven by word of mouth and
some local media exposure. With the increase in working capital resources we
may review this strategy, but in the interim we will continue with a more
organic approach by providing samples, working with pharmacies, and using
Google ad words.
Canine Trials
We have recently finished the 4th stage of our 46 dog Canine Trial, which has
provided us with a written report including validations from a registered
statistician. The trial has provided some very positive results. We are
awaiting a further peer review by other professionals before releasing the
full findings publically. I can report that within the treatment group, 81%
of the dog owners recorded an improvement in their dog''s mobility.
We are also modifying the delivery system of our extract to canines. The
product used for the canine trials was effective, but we feel needs some
adjusting before it is ready to be marketed over the counter. The
modifications must take into account that dogs, unlike human beings, taste
most things using the sensory of smell of a particular food. Their digestive
tract is also different to that of human beings, and the artemisinin must be
protected in order for it to be absorbed. Our product is all natural, so
it''s important that the delivery system is as well.
Private Placement
The company recently placed 20,000,000 shares with New Plymouth based
business man Tom Brankin. Tom is with us this afternoon and shareholders will
have the opportunity to meet with him at the conclusion of proceedings.
Stock Levels
We enjoy healthy stock levels for the continued supply of our product
arthRemTM. There is a very small manufacturing cost involved in converting
the extract into capsule form together with packaging for the market. Based
on current turnover, we have over a year''s stock of extract at our disposal
here in NZ.
On top of the manufacturing stock that we have here in NZ, we also have a
large amount of dried leaf sitting in Tanzania ready for extraction. We are
working towards planting another crop in Tanzania this year.
Concluding Remarks
Overall, I''m very pleased with the prospects for growing this company. We
are financially sound, the board of directors fully understands and endorses
our direction, and the growth potential is substantial. I look forward to
reporting to the shareholders on our progress over the next 12 months.
For further information please contact:
Mr. Malcolm Johnson, on (04) 479-3377
ENDS
End CA:00236640 For:SVY Type:ADDRESS Time:2013-05-27 08:30:34