Rexis Biotech

Rexis Biotech

Growth Stage

Making your drinks taste better, your medicine work better & your drugs more fun

Making your drinks taste better, your medicine work better & your drugs more fun

Overview

Raised to Date: Raised: $508,889

Total Commitments ($USD)

Platform

Wefunder

Start Date

12/07/2023

Close Date

04/11/2024

Min. Goal
$50,000
Max. Goal
$1,235,000
Min. Investment

$100

Security Type

Equity - Preferred

Series

Seed

SEC Filing Type

RegCF    Open SEC Filing

Price Per Share

$1.25

Early Bird Valuation

$10,896,428

Pre-Money Valuation

$12,053,571

Rolling Commitments ($USD)

Status
Funded
Reporting Date

04/29/2024

Days Remaining
Funded
% of Min. Goal
Funded
% of Max. Goal
Funded
Likelihood of Max
Funded
Avg. Daily Raise

$4,071

# of Investors

214

Momentum
Funded
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Year Founded

2022

Industry

Healthcare & Pharmaceuticals

Tech Sector

Biotech

Distribution Model

B2B/B2C

Margin

Medium

Capital Intensity

High

Location

Las Vegas, Nevada

Business Type

Growth

Rexis Biotech, with a valuation of $12 million, is raising funds on Wefunder. The company uses its patented technology to make ingredients for consumer-packaged goods that make them easy to absorb and tasty. Rexis Biotech has cannabis beverages in the market and is market-ready with pharmaceutical-grade therapeutics. The business has signed multi-year revenue-generating contracts with seven brands and is currently projecting 2023 revenues of $14.7 million. Keith Bushfield founded Rexis Biotech in January 2022. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $1.24 million. The campaign proceeds will be used for equipment rollout purchase, product development, additional equipment purchase, operating expenses, and corporate acquisitions.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$191,341

$0

COGS

$100,122

$0

Tax

$0

$0

 

 

Net Income

$-76

$0

Summary Balance Sheet

FY 2022 FY 2021

Cash

$19

$0

Accounts Receivable

$0

$0

Total Assets

$19

$0

Short-Term Debt

$0

$0

Long-Term Debt

$0

$0

Total Liabilities

$0

$0

Financials as of: 12/07/2023
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Analyst Report

Synopsis

Rexis Biotech is carving a niche in the booming consumer-packaged goods market by leveraging its patented nanotechnology to enhance the absorption and taste profiles of ingredients used in beverages and pharmaceutical-grade therapeutics. With a focus on natural, plant-based consumables, Rexis Biotech is not just another player in the healthcare and pharmaceutical space; it is a pioneer aiming to revolutionize how we consume health-related products.

The company's technology addresses a critical consumer demand for products that are beneficial to health and enjoyable to consume. This consumer-centric approach is evident in their line of cannabis beverages that have already hit the market, boasting improved taste and efficacy. Furthermore, Rexis Biotech's readiness to deploy pharmaceutical-grade therapeutics positions the company at the forefront of innovation in a sector where efficacy and user experience are paramount.

With a strategic business model encompassing both B2B and B2C distribution channels, Rexis Biotech has successfully secured multi-year contracts with seven brands, a testament to the market's confidence in its technology and products. This confidence is further bolstered by the company's impressive projection of $14.7 million in revenues for 2024, signaling strong market traction and growth potential.

The use of proceeds from their current fundraising round is well-structured and growth-oriented, with plans for equipment rollout purchase, product development, additional equipment acquisition, operating expenses, and corporate acquisitions. This comprehensive allocation demonstrates Rexis Biotech's commitment to scaling its operations and enhancing its product offerings to meet the demands of a diverse and growing market.

Next Section: Price

Price

Rexis Biotech is currently valued at $12 million, with a revenue multiple of 3.77. This valuation is on the lower end when compared to the industry average. With its patented technology for enhancing the absorption and taste of ingredients in consumer-packaged goods, Rexis Biotech has already achieved market penetration with its cannabis beverages and is preparing to launch pharmaceutical-grade therapeutics.

The company's financials indicate a strong growth trajectory, with multi-year contracts signed with seven brands and a projected revenue of $14.7 million for 2024. This projected revenue level is significant and suggests that the current valuation could offer a substantial upside for investors. The price per share is set at $1.25, which could be an attractive entry point given the potential for the company to scale rapidly within the expansive US Beverage market.

Considering that Rexis Biotech is in the growth stage and has already demonstrated the ability to secure contracts and generate substantial revenue, the exit potential for this startup appears promising. To provide a 10X return to investors on exit, the company would need to continue its rapid expansion, further capitalize on its patented technology, and potentially explore additional markets or verticals. If Rexis Biotech maintains its growth rate and meets its revenue projections, it could be well-positioned for a successful exit via acquisition or an initial public offering (IPO).

Next Section: Market

Market

Rexis Biotech is positioned in the expansive U.S. beverage industry, which boasts a significant addressable market size of approximately $65.39 billion. The company's patented nanotechnology facilitates the creation of consumable products that are highly desirable in taste and potential health benefits. This technology is especially relevant for plant-based consumables, an industry segment experiencing substantial consumer interest due to increasing health consciousness and a shift toward natural ingredients.

The burgeoning interest in cannabis beverages, where Rexis Biotech has already launched products, represents a notable market opportunity. As sectors of the population move away from alcohol towards alternative recreational beverages, this nascent subsegment is poised for growth. Furthermore, the capacity of Rexis Biotech to produce pharmaceutical-grade therapeutics indicates potential for expansion into healthcare applications, tapping into the broader healthcare and pharmaceuticals industry.

While the market potential for these innovative products is promising, it is important to recognize the challenges Rexis Biotech may face. The market for beverages and pharmaceutical-grade therapeutics is known for stringent regulations, and although not specifically high in this case, any product claiming health benefits will need to navigate these carefully. Moreover, market acceptance is currently low, suggesting a need for strategic marketing and consumer education.

The competitive landscape is described as moderately competitive; however, Rexis Biotech's unique value proposition and the signing of multi-year revenue-generating contracts with seven brands seem well-positioned to carve out a niche in this market. By focusing on the unique selling points of taste and health benefits alongside its innovative nanotechnology, Rexis Biotech has the potential to increase its market acceptance and stake a claim in the growing market of natural, plant-based consumables.

Next Section: Team

Team

Rexis Biotech is spearheaded by CEO Keith Bushfield, who brings over a decade of relevant industry experience to the company. Bushfield's background is a blend of scientific expertise and entrepreneurial acumen, having successfully exited two prior ventures. His leadership is instrumental in driving Rexis Biotech's mission to revolutionize the consumer-packaged goods industry with patented nanotechnology that enhances the absorption and taste of products.

Despite the absence of detailed information on the broader team, the small size of seven members indicates a lean operation. However, the success in signing revenue-generating contracts and the projected revenue growth suggest that the team effectively executes its business plan. The lack of venture capital backing and accelerator program involvement implies that Rexis Biotech's progress is primarily driven by the team's efforts and the strength of its technology.

Next Section: Differentiation

Differentiation

Rexis Biotech stands out in the crowded US beverage and consumer-packaged goods market with its patented nanotechnology that enhances the absorption and taste of its products. This technology addresses a common challenge in the industry—creating plant-based consumables that are both health-beneficial and appealing to consumers in terms of taste. The company's focus on hydrophobic molecules with potential health benefits positions it as an innovator where consumers are increasingly looking for products that support their health and well-being.

With its cannabis beverages already in the market and pharmaceutical-grade therapeutics ready, Rexis Biotech has demonstrated its ability to navigate the complex regulatory and product development landscape. The company's multi-year contracts with seven brands and projected revenue of $14.7 million for 2024 suggest a strong market demand for its offerings.

Although the company faces competition from over a hundred direct competitors, its high differentiation in quality provides it with a competitive edge. 

Next Section: Performance

Performance

Rexis Biotech has demonstrated significant growth in its early stages, leveraging patented nanotechnology to create highly absorbable and palatable ingredients for consumer-packaged goods. With a focus on the US Beverage market, Rexis Biotech has successfully entered the cannabis beverage space and is ready to launch pharmaceutical-grade therapeutics. The company has established multi-year contracts with seven brands, a strong indicator of its traction in the industry and its ability to secure recurring revenue streams.

The company's financials reflect a remarkable annual revenue growth, reporting $3.2 million in annual 2023 revenue, representing an exponential increase from the previous year. This impressive growth rate underscores the market's demand for Rexis Biotech's innovative product offerings and the company's effectiveness in capitalizing on this demand. The projected revenues for 2024 stand at $14.7 million, suggesting a continued upward trajectory for the company's financial performance.

Rexis Biotech's performance indicators are strong for a company at its stage, with substantial revenue growth, strategic partnerships, and a clear path to scaling operations.

Next Section: Risk

Risk

Rexis Biotech's development phase is listed as "Pre-Profit," with a substantial projected revenue for 2024. However, the accuracy of these projections is uncertain, and the company may face challenges in achieving these figures.

Another point of concern is market acceptance, which is described as low. This suggests that Rexis Biotech's products may not yet have gained significant traction or recognition within the target market, posing a risk to the company's ability to scale effectively and generate the forecasted revenue.

The competitive landscape is characterized as moderately competitive. While this may indicate room for growth, it also implies that Rexis Biotech must effectively differentiate itself and compete for market share against other established players.

Rexis Biotech's financial health is not fully illuminated, with very limited information on cash and cash equivalents. The absence of short or long-term debt is positive, yet without a complete picture of the company's financial stability, there is an inherent risk in investment.

Next Section: Bullish Outlook

Bullish Outlook

Rexis Biotech has carved out an exciting niche within the beverage industry with its patented technology that enhances the absorption and taste of consumer-packaged goods. Its current offering, cannabis beverages, taps into a growing market with considerable consumer interest. The biotech firm's ability to create products that are both market-ready and desirable for their taste and health benefits provides a strong foundation for growth.

One of the most compelling aspects of Rexis Biotech's business model is its successful signing of multi-year, revenue-generating contracts with seven brands. This demonstrates market validation and trust in Rexis Biotech's technology and provides a stable revenue base. Furthermore, the company's impressive projected revenues in 2024 of $14.7 million underscore the significant commercial potential of its offerings.

Additionally, the company's valuation of $12 million on Wefunder is very reasonable given its growth trajectory and revenue projections, presenting an attractive opportunity for investors.

With a clear use of funds for equipment rollout, product development, operating expenses, and potential corporate acquisitions, Rexis Biotech is well-positioned to execute its growth strategy effectively. The company's strategic focus on creating health-benefitting and addiction-supporting products presents a unique value proposition that could resonate well with a health-conscious consumer base.

Next Section: Bearish Outlook

Bearish Outlook

Despite Rexis Biotech's potential in the healthcare and pharmaceutical industry, considerable bearish factors must be considered. First, the company operates within a market with regulatory complexities, particularly cannabis beverages. The legal landscape around cannabis is both rapidly evolving and unpredictable, which could pose future challenges in market accessibility and compliance costs.

While the company has signed multi-year revenue-generating contracts with seven brands, the sustainability and profitability of these contracts are not evidenced. The projected 2024 revenues of $14.7 million are ambitious and hinge on the successful execution of its business strategy and market acceptance of its products. Given its early stage, Rexis Biotech may face challenges in scaling up production to meet projected demand while managing costs effectively.

Next Section: Executive Summary

Executive Summary

Rexis Biotech is a burgeoning entity in the CPG & Pharmaceuticals industries, leveraging patented technology to enhance the efficacy and palatability of consumer-packaged goods, particularly within the US Beverage market. With a focus on developing cannabis beverages and pharmaceutical-grade therapeutics, Rexis Biotech is carving out a niche in a market that is moderately competitive but marked by low barriers to entry. The company's unique selling proposition lies in its ability to make ingredients that are easy to absorb and enjoyable to consume.

Despite being in the growth stage and pre-profit phase, Rexis Biotech has demonstrated significant traction by securing multi-year revenue-generating contracts with seven brands, including a notable customer, 3CHI. The company's forward-looking financials project substantial revenues of $14.7 million for 2024, signaling a robust growth trajectory from the $3.2 million in revenue at the end of the most recent fiscal year.

Rexis Biotech's fundraising efforts through Wefunder, with a pre-money valuation of $12 million, aim to accelerate this growth. The company intends to utilize the campaign proceeds for various strategic initiatives, including equipment rollout and purchase, product development, operating expenses, and corporate acquisitions. These investments are expected to bolster Rexis Biotech's market position and enhance its product offerings, which are already market-ready and in demand.

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Rexis Biotech on Wefunder 2023
Platform: Wefunder
Security Type: Equity - Preferred
Valuation: $12,053,571
Price per Share: $1.25

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