September 8, 2018
Some of you 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. I’ve done design research at most major US teaching hospitals (UCSF, Brigham and Women’s, Texas Childrens, UMMS etc). If you’ve ever had a medical imaging scan you’ve likely been diagnosed on equipment I was the lead designer for. I am trained in science and technology innovation.
About a year ago I discovered a new science and technology that took all my focus. Watch this CNN 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 investment firm allowing you an indirect investment in Brilliant Light Power. This investment is only available to accredited investors ($1mi+ in assets outside the home; or hi-income; details of this are available).
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 $1,000,000 than having 10 friends invest $100,000.
Still, I believe that wealth more distributed is a good thing. 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.
We have joined with a professional asset manager to serve as the General Partner and manage operations for this deal. Paperwork, accounting, legal, escrow, reporting – etc these are dealt with by professionals.
Our deal is simple, we return a 3x and after that we split additional returns in our 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 300% (not annualized). Our preferred return is the ideal exit for a VC. That should be a statement of our confidence and skin in the game. We also have skin in the game via our own investments (ask us).
There are no specific guarantees, this is not a bond at 4%. What we are 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 335% overall return, we split 54% to you the Class B investor and 46% to us (Sponsor) the Class S unitholder.
|Return||$100,000||Class B “Investor”||Class S “Sponsor”||Net Return Investor (not annualized)|
Fixed management Fees. Unlike private equity funds which will charge you a 2% fee on assets (which would be a lot of money) we will have a fixed fee. This is a partnership structure (GP and LP). We are raising enough to pay off marketing, legal, contractor, accounting and transaction expenses as well as a success fee for everyone who has worked hard to get here.
Because this device is portable and an easy install, exponential (smartphone like) deployment and growth rates are possible. This could be a trillion dollar cap company faster than any other company in history.
Lastly, there are lottery ticket end-games for you. For example if BLP partners with a major OEM and can strike a good deal we could conceivably hit a 100x in 8-10 years. In that situation, a $100,000 investment would turn into $2.8 million for Class B unitholders. 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 $100,000 investment into $27mi for Class B unitholders. Some advisors to Angel investors said we are being generous not capping at > than 50% IRR. But we are all partners. The lottery ticket is on the table for all – we hope to find good people to work with.
These returns are estimations not guarantees, and your tax payments would reduce these numbers. 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 $1000 in the 90s, to $7000 in 2009, to $40,0000 in 2016. 2014 was their breakthrough moment – explosive energy. Based on their patent book alone we think the shares are worth $400,000 each – this is conservative. How much are the patents for a fuel-source greater than petroleum and a device that can replace the internal combustion engine worth?
All the major go-to-market deals with Berkshire Hathaway (2017), ABM (2017), 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?
We have a term sheet and subscription agremeent you must sign. These are highly confidential materials and we have not posted them online as we work confidentially with a major bank who is the liquidation manager of the hedge fund.
The paperwork takes 10 minutes to fill out. As Class B investors are less than $600,000, Class A investors may bully you out if you don’t move fast. Meaning, a single Class A investor and our deal is done. These guys understand risk reward very very well.
The process to invest is to schedule a 30min meeting to go over our proprietary insights (not available anywhere else), the status of the tecnology and go-to-market plans, and exit strategies. If you have interest let me know asap by phone or text message 647 542 5254. For something this fast moving it is best to discuss on the phone.
All the Best,
Navid Sadikali CEO