| IPO Company Profile |
| Current Quote | News | SEC Filings | Peer IPO Companies |
| EarthShell Container Corporation |
| 800 Miramonte Drive, Santa Barbara, CA 93109 * (805) 897-2294 |
| The company is engaged in the development, licensing and commercialization of a newly-developed composite material for the manufacture of food-service disposables, such as sandwich containers, cups, plates and bowls. |
| Manager | Tier | Phone |
| Salomon Smith Barney | Lead Manager | (212) 723-7300 |
| CS First Boston | Co-manager | (212) 325-2000 |
| NASNTL: | ERTH | Manufacturing: | SIC 2656 | |
| Type of Shares: | Common Shares | Filing Date: | 10/2/96 | |
| U.S. Shares: | 13,200,000 | Offer Date: | 3/23/98 | |
| Non-U.S. Shares: | 0 | Filing Range: | $17.00 - $21.00 | |
| Primary Shares: | 13,200,000 | Offer Price: | $21.00 | |
| Secondary Shares: | 0 | Gross Spread: | $1.31 | |
| Offering Amount: | $250,800,000 | Selling: | $0.79 | |
| Expenses: | $1,620,000 | Reallowance: | $0.10 | |
| Post-IPO Shares: | 100,045,166 | |||
| Employees: | 6 |
| Issuer's Law Firm: | Gibson, Dunn & Crutcher |
| Bank's Law Firm: | Latham & Watkins |
| Registrar/Transfer Agent: | U. S. Stock Transfer Corporation |
| Auditor: | Deloitte & Touche |
Dollar amounts in U.S. millions except for per share data | |||||
| 9 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 9/30/97 | 9/30/96 | 9/30/97 | ||
| Revenue: | $10.16 | $6.24 | $8.10 | Assets: | $2.73 |
| Net Income: | -$16.95 | -$10.99 | -$12.36 | Curr Assets: | $0.30 |
| EPS: | -$0.26 | -$0.22 | Liabilities: | $42.46 | |
| Prior EPS: | -$2.87 | -$5.35 | Curr Liab: | $42.46 | |
| Cash Flow/Oper: | -$8.04 | $3.17 | $6.37 | Equity: | -$39.73 |
| Cash Flow/Fin: | $8.97 | -$0.05 | -$0.99 | Cash: | $0.27 |
| Cash Flow/Inv: | -$1.18 | Working Cap: | -$42.16 | ||
| Competition |
| Competition among existing food and beverage container manufacturers in the food service industry is intense. At present, most of these competitors have substantially greater financial and marketing resources at their disposal than does the Company, and many have well-established supply, production and distribution relationships and channels. Companies producing competitive products may reduce their prices or engage in advertising or marketing campaigns designed to protect their respective market shares and impede market acceptance of EARTHSHELL products. Recently, a number of paper and plastic disposable packaging manufacturers and converters and others have made efforts to increase the recycling of these products. Increased recycling of paper and plastic products could lessen their negative environmental impact, one significant basis upon which the Company intends to compete. A number of companies have introduced starch-based materials or are attempting to develop plastics that they claim are biodegradable and other specialty polymers as potential environmentally superior packaging alternatives. It is expected that many existing packaging manufacturers may actively seek competitive alternatives to the Company's products and processes. The development of competitive, environmentally attractive, disposable food service containers, whether or not based on the Company's products and technology, could render the Company's technology obsolete and could have an adverse effect on the business, financial condition and results of operations of the Company. |
| Business Plan |
| The Company's objective is to establish EARTHSHELL products as the preferred disposable packaging for the food service industry throughout the world. A component of the Company's strategy is to utilize outside experts to assist in the commercialization of EARTHSHELL products. The key elements of the Company's strategy for attaining this objective are: (I) Create Consumer Demand For Earthshell Products, (ii) License Existing Manufacturers of Food Service Disposables, (iii) Develop Production Capacity, (iv) Develop International Markets and (v) Protect Earthshell Technology. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used for the purchase of manufacturing equipment for lease to licensees or contribution to joint ventures; marketing expenditures associated with the introduction of EARTHSHELL products; repayment of indebtedness to EKI; the company's principal stockholder; patent procurement and protection; construction of an EARTHSHELL product development and commercial manufacturing demonstration facility; payment of accrued dividends; and general corporate purposes. |