September 8, 2018
Some of you know from southern Ontario know I’ve been working on something extremely transformative. A new type of science and a new technology that we believe is on par with the airplane and the internet.
Since this letter is a business opportunity for you, and you probably only know me personally let me tell you more about my work history. I have led innovation for Canon Medical, and design at Agfa Healthcare. If you’ve ever had a medical imaging scan at St.Catharines General, Credit Valley or Sunnybrook hospitals you’ve been diagnosed on equipment I was the lead designer for. Technology I design is in every hospital in North America. I am trained in science and technology innovation.
About two years ago I discovered a new science and technology that took all my focus. Watch this CNN video first to learn more.
Randell Mills solved what Einstein could not and then started to make energy from that insight. 26 years later, on January 28th, 2014 Brilliant Light Power was able to create explosions from water in front of their investors.. According to the old theory of Quantum Mechanics this explosion is not possible from water and metalic oxides. Watch the blast here.
Explosions are good, in fact that is how a car, a plane, and all intensive industry is powered – powered by explosive hi-density fuels. The net result, water can be an explosive fuel more powerful than any other fuel known to mankind. You can compare hydrino energy to other chemical fuels here. It took an unparalleled genius to predict this was possible, then convince $120mi in private capital to fund him, and then spend a better part of his life making it happen. Mill is that genius.
We are investors in this new incredible energy source. Other investors include Berkshire Hathaway’s Pacificorp, Mexican private equity firm Fusion De Ideas (Carlos Slim is connected), family offices, hedge funds, and many very hi-networth investors. Go to market players include Berkshire Hathaway’s TMI Climate Solutions for industrial furnaces. In electricity players include Enextra Energia in Mexico, ABM ($5bil revenues) in US, Paragon Power in Canada, and Applied Research Associates (Defense contractor with $200mi in revenues) for the Department of Defense.
You can invest in our company, which is purchasing shares in Brilliant Light Power through the secondary markets (a liquidation). We are a small private equity firm allowing you an indirect investment in Brilliant Light Power. This investment is only available to my direct friends and family (not parents brothers, sisters, children that I don’t know), or accredited investors ($1mi+ in financial assets; or hi-income).
Our firm is mostly focused on the United States and talking to Family Offices. Family Offices are private investment firms of families that have $100mi+ in capital. For a Family Office, a $1,000,000 investment is not a big consideration. For us it is easier to convince a Family Office to invest $500,000 than having 10 friends invest $50,000.
Still, I believe that wealth more distributed is a good thing. Also, you are becoming a shareholder of End Of Petroleum. If I call on you to help out with a couple hours of your skilled time, you’ll be inclined to help. The more people invested, the greater the network effect. If you are successful, maybe you’ll donate to charity. I’m looking for leverage and power for good outcomes, versus only helping a $200mi Family Office get to $300mi. which is rather “meh.”
What are the returns?
The top 5% of venture capital firms in the world return 3x on invested capital – which means return of capital and 200% return on top.
Our deal is simple, we return a 2x in 3 years, or a 4x in 6 years; and after that we split additional returns in managements favor. The standard preferred return is 8% in private equity. A preferred return means you get paid before management gets paid. Our preferred return works out to 100-300%. This is not interest (it is a guaranteed payment plan given we have funds to pay). Our preferred return is the ideal exit for a VC. That should be a statement of our confidence and skin in the game. There are no specific guarantees, this is not a GIC at 2%. What management is telling you is that you’ll be paid lucratively for taking on a venture investment and then we’ll be paid. We don’t get paid till you get paid like a VC would. We have structured this deal for the retail investor – you get immediate returns and far more safety, but management takes the majority as we hit it out of the park.
To understand this more: suppose Brilliant Light Power is sold to General Electric in 4 years and we have an exit (we are forced to sell). If the sale price results in a 8x, then that means you the investor get a 408% overall return, we split 64% to you the Class B investor and 37% to us (management) the Class A shareholder.
|Scenario: Dividends Paid After Year 3|
|Return||$35,000||Class B “Investor”||Class A “Management”||Net Return Investor (not annualized)|
No Fees. Unlike private equity funds which will charge you a 2% fee on assets (which would be a lot of money) we will have no fees on the size of the investment. We are raising enough to pay off marketing, legal, contractor, accounting and transaction expenses.
Lastly, there are lottery ticket end-games for you. For example if BLP partners with a major OEM we could conceivably hit a 100x in 8-10 years. In that situation, a $35,000 investment would turn into $1 million for Class B shareholders. Brilliant Light Power has the technology and if they can execute we see it as a real possibility. A more aggressive multi-country expansion would result in a 1000x which would turn a $35,000 investment into $9mi for Class B shareholders. These returns are estimations not guarantees, and your tax payments would reduce these numbers significantly. Because this device is portable and an easy install, exponential (smartphone like) deployment and growth rates are possible. It is important to advise you there are no guarantees in all investments and our models are not financial advice. We are not financial advisors.
What is the worst case scenario?
The share price of Brilliant Light Power rose from $500 in the late 90s, to $7000 in 2009, to $40,0000 in 2016. All the major deals with Berkshire Hathaway, ABM, and more have happened since. None of this factored into the share price. There are no market transactions since the shares aren’t being sold. BLP told us directly (see slide 82) some major OEMs are visiting Brilliant Light Power as of July 2018, as well as Sovereign Wealth Funds. These are the big big boys looking to make money and take this technology to the world. All venture investments are risky, but we think a new energy source is far more attractive ownership position than betting on an internet company – the next Facebook – or virtual coins. In fact, energy is even more fundamental and stable than real estate (SHOCKER – yes interest rates will rise one day!). For more worst case details see our FAQ.
What are the next steps?
Are securities lawyer is Barbara at Bax Securities. Barbara worked at the Ontario Securities Commission and in my experience and by her own admission she is on the conservative side.
We have a term sheet we will share with you which describes the offering. If you want to lock in and proceed, Barbara has drafted a subscription agreement. (the minimum subscription of $100,000 is lowered for friends). The paperwork takes 5 minutes to fill out can be signed and scanned; but of course getting to a decision for most people is very hard as they are naturally afraid of the unknown.
All the Best,
Navid Sadikali CEO