Investor Presentation
Safe Harbor Statement Certain information set forth in this presentation contains forward-looking information, including future oriented financial information and financial outlook, under applicable securities laws (collectively referred to herein as forward-looking statements). Except for statements of historical fact, information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the Company; (ii) completion of, and the use of proceeds from, the sale of the shares being offered hereunder; (iii) the expected development of the Company s business, projects and joint ventures; (iv) execution of the Company s vision and growth strategy, (v) completion of the Company s projects that are currently underway, in development or otherwise under consideration; and (vi) future liquidity, working capital, and capital requirements. Forward-looking statements are provided to allow potential investors the opportunity to understand implied risk and management s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as a factor in evaluating an investment in the Company. Investor Update These statements are not guarantees of future performance and reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forwardlooking statements. Although forward-looking statements contained in this presentation are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that these statements will prove to be accurate and could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements and should consider the implied risk prior to making an investment in the Company.
Investment Thesis Strong Market Position in the 5G Space utilized for Smart City development Owns Patented Small Cell Technology related to 5G Small Cells Has effectively aligned Industry Partners for major citywide carrier deployments Highly Experience Management Team in carrier and small cell technology Investor Update S-1 SEC Registration Filed and Effective on 10-17-17 Has Engaged Investment Banker Drexel Hamilton for acquisition opportunities
Company Overview Wytec was founded in 2011 and started with five patents related to delivering advanced mobile broadband technologies. In October of 2017, the sixth patent, the LPN-16 was approved by the United States Patent and Trademark Office. The LPN-16 technology will enable tremendous economic growth for cities; specifically, the enterprises, and small and mediumsized businesses encompassed by offering tools to take advantage of dramatic leaps forward in productivity, profitability and innovation. In November of 2017, Wytec officially spun off from its parent company, CCI and became its own public entity with permission from the Securities and Exchange Commission to trade its common shares on the open market. In August of 2018, Wytec secured its investment advisor, Drexel Hamilton, LLC, with heavy emphasis on project financing and business development. Wytec is valued at $38.61 per share and is seeking to list its shares on the NASDAQ or become acquired by a larger player. Through it s three subsidiaries - Wytec Business, Wytec Enterprises, and Wytec Cities, Wytec International delivers services and solutions to address critical problems in each market segment, which allows Wytec to help pave the way for Smart Cities, future 5G network development, and the evolving technology needs of the market. With its patented technology, the LPN-16 Small Cell, Wytec International is leading the way in 5G network and small cell technology to help offer smart cities access to the tools and technology that drive economic expansion. Investor Update 5G Could Be The Single Biggest Investment of 2019 with an estimated 29 billion devices hooked up creating more than $1.46 trillion in market value to investors. Profitable News
Wytec s Small Cell Solution Introducing a A NEUTRAL HOST ARCHITECTURE The LPN-16 Small Cell
The Wytec Patented LPN-16 Small Cell: A Radical New Architecture in 5G Wytec s LPN-16 small cell is made unique by its combination of remarkably powerful proprietary technology and a platform-agnostic approach. The vital technology Wytec brings to the table is its LPN-16 (Light Pole Node), a unit referred to as an outdoor small cell. The LPN-16 breaks through the current constraints (political, economic and engineering) in existing network planning with a radical new architecture mass deployment versus single/surgical deployment that decreases costs and delivers dramatic increases in network capacity. A critical differentiator is that the LPN-16 is built to provide a neutral host and shared infrastructure solution. Multiple telecommunications operators can leverage it to provide a wide variety of services. The neutral host/platform-agnostic capability provides transmission and network services for up to 16 carriers. Investor Update The LPN-16 is easy to quickly add to a city s infrastructure, too. Since there are thousands of utility poles available to mount the LPN-16 infrastructure on in most cities, an LPN-16 unit can be installed in hours. This allows Wytec to quickly roll out comprehensive network coverage virtually anywhere with equipment that features lightning speed, extremely low latency and ultra-high reliability. Moreover, the LPN-16 is cost-effective, upgradeable and futureproof. That means Wytec deploys quickly and the LPN-16 can easily accommodate continually advancing technology. Speed is a critical differentiator for the LPN-16, and its performance is reflective of gigabit speed requirements. When Wytec received its first LPN-16 prototype, it was set it up on a utility light pole in downtown San Antonio for testing. Wytec was able to produce download and upload speeds at 388.5 Mbps, with a latency of three milliseconds. By comparison, a popular cellular network produced 35.73 Mbps with a latency of 61 milliseconds.
Building the LPN Network (The Neutral Host Network)
Demographic Analysis utilizing the LPN-16 To support the carriers 5G build-out the LPN is best suited in three critical environments: DENSE URBAN URBAN SUBURBAN
Hypothetical Value ($ Millions) Potential LPN-16 : Value $6,000 $5,216 $5,000 POTENTIAL VALUE OF $4,580 $4,000 $5.2 Billion $3,531 $4,021 $3,000 by 2034 $2,390 $2,722 $3,100 $2,000 $1,247 $1,421 $1,618 $1,843 $2,098 $1,000 $123 $164 $246 $370 $554 $832 Today 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
50,000 45,000 Total Potential Wytec Revenues Organic Revenues $119,120,035 40,000 35,000 30,000 25,000 20,000 $119 Million Total Sales by 2023 $94,768,022 $106,248,624 15,000 10,000 5,000 0 $84,527,946 $48,903,510 $3,260,351 2018 2019 2020 2021 2022 2023
Potential Equity Value ($, Extrapolated from 2020) Wytec s Pre-IPO Stage $2,000,000,000 $118 $140 Venture Initiative (LPN-16) $120 $1,500,000,000 Pre-IPO Stage $84 $100 Organic Growth Business (Above) $70 $1,000,000,000 $44 $52 $60 $80 $60 Per Share (Fully Diluted, Capitalized Through the Second LPN-16 Trial with 3,000 Sites) $500,000,000 $31 $31 Pre-IPO Stage $19 $9 $30 $31 $37 $40 $20 Per Share (Currently, Using Discounted Cash Flow Method, Expected Participation 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Complete Valuation- Completed Wytec Public Trading Forecast Road to NASDAQ Exercise Warrants - Currently in progress Select Underwriter/ Market Maker- Currently negotiating File S-1 Select Participating Dealers Complete Valuation Select Underwriter Select Market Maker Commence Aggressive Product Marketing Exercise Remaining Warrants Initial Public Offering (IPO) Begin Trading on NASDAQ
Management Team William H. Gray CEO, Founder Bill has more than 30 years of experience in corporate and business development, investment management, acquisitions and mergers. He has been extensively involved in the telecommunications industry for more than 25 years. His business history includes holding a Series 7 SEC license while employed as a registered representative for Underwood Neuhaus. Bill performed his services as a fixed income specialist with some of the largest bank and insurance clients in the U.S. As a fixed income specialist, he managed the purchase and sale of multiple types of structured securities for institutional portfolios in excess of $1 billion. He is known for his structuring of hybrid equity and debt securities and one of the first testers on the Bloomberg Portfolio analytics software system. Bill develops, designs and structures the company s business case modeling for Wytec International s future merger and acquisition strategies. Robert W. Merola Chief Technology Officer Investor Update Robert has been a leader/innovator in the field of wired and wireless technology for 25+ years. Mr. Merola has been involved in multiple startup companies and was founder/president of Mariel Technologies, a voice/data & Fiberoptic Networking company, and AirNetConnect, a fixed wireless company. Bob has vast experience in the wireless infrastructure field include having designed thousands of microwave links across the country for city, state and cellular carriers. He has also designed, and installed multiple wide area wireless networks, including city wide fiber to the pole and wireless to the home/business fixed wireless network. Bob is the author and inventor of Wytec s patented LPN-16 small cell technology and spearheads Wytec s Smart City initiatives utilizing the LPN-16 small cell node, along with Wytec s Smart Building product lines involving G.fast, and cellular enhancement product lines. Angus Davis Chief Strategy Officer Angus has been a senior executive and strategic advisor across a variety of industries for over 15 years. In his early career he worked as a consultant with a boutique firm where he helped secure millions of dollars for early stage projects and worked in the development of new ventures focused on senior housing, real estate, and resort projects as well as providing operational guidance to struggling businesses. Angus is a US Army Veteran and was honored to extend his consulting skills to help launch a privately funded financing program to assist service-disabled veteran contractors to open a new practice area focused on delivering policy analysis and contract compliance for construction and security firms working with the Department of Homeland Security, the U.S. Air Force, Army Corp of Engineers, Department of Defense, and municipal economic development agencies. His diverse background provides a unique vantage point for identifying trends and opportunities related to the Company s intelligent community strategy, brand development, and public and private partnership
Advisory Board J. Randolph Luening Randy has been an important contributor to the transformation of the wireless telecommunications industry over the past two decades, as an influential industry insider then as an analyst. He is an expert in mobile operator economics, a widely published author, and an invited speaker at events in Europe, North America, and Asia. His areas of focus include the economics of next generation mobile networks, indoor and street light small cells, emerging business models, and consumer behavior. His consulting clients include mobile operators, major infrastructure manufacturers, industry associations, venture capital / private equity investors, and technology pioneers. He co-authored The Dollars and Sense of Broadband Wireless, a 1000-page qualitative and quantitative analysis of the economics of deploying next generation wireless infrastructure in 65 countries around the world Previously, Mr. Luening was a Senior Director at Vodafone, at the time the world s largest mobile operator, with operations across Europe, Asia, and Africa. His roles included strategic planning, emerging product space initiatives/investments, and streamlining distribution channel economics. Education: Bachelors of Science in Electrical Engineering, Duke University, Masters of Engineering in Electrical Engineering, Cornell University, and an MBA in Marketing, Wharton School of Business. Investor Update Mrs. Suvi Linden Suvi is the former Minister of Communications for Finland (2007-2001). She previously served as Finland s Minister of Culture (1999-2002) and as a Member of Parliament (1995-2011). Suvi holds positions of trust in a number of internationals organizations. They include: Commissioner and Special Envoy for the United Nations Broadband Commission for Digital Development; Member of the United Nations Advisory Board of the Digital Health Initiative; Member of the Advisory Board of Walsh University Institute for the Study of the Intelligent Communities; Strategic Adviser for the Global Partnership Forum; Member of the Concero Connect, and; Chair of the Ubiquitous Information Society Advisory Board for the Government of Finland. The Intelligent Community Forum named Mrs. Linden as Visionary of the Year for 2011 for her commitment to ensuring affordable broadband access to every citizen of Finland. She has been a keynote speaker in numerous international seminars hosted by governments and international organizations in different countries. She was also Member of GSMA Government Mobile Excellence Awards Judging Panel 2013. The GSMA represents the interest of mobile operators worldwide spanning more than 220 countries and territories and hosts the Mobile World Congress. Mrs. Linden holds a Master of Science degree in Information Processing Science from the University of Oulu.