GreenSpense
Israel

Overview
Company
Summary of Terms
FAQ
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Technology

The Opportunity

To acquire a stake in an innovative company as it gears up to manufacture and market the only proven gas-free alternative to aerosols.

The Aerosol Market

We all use aerosols in our daily life because they are currently the only way to provide continuous dispensing – the most convenient form of spraying liquid and dispensing viscous materials. Over 16 billion units of aerosols are sold annually (European Aerosol Federation). This market is growing rapidly (at a rate of over 1 billion units per annum), due to rising standards of living in developing countries and because brands continuously develop new aerosol products and applications. The aerosol component market is over $6 billion/annum.

The Need for an Alternative

Aerosols are dangerous, potentially explosive, impact global warming more than car emissions, difficult to fill and transport, and from a brand perspective they offer no packagingflexibility or creativity, since the canister has to be cylindrical and made from a rigid material. For over 70 years there has been no alternative for gas propelled continuous dispensing until now.

The GreenSpense Solution

GreenSpense is the only company offering a gas-free alternative (the “Eco-Drive”) to aerosol dispensers that delivers the performance expected by consumers. This solution also enables exciting new possibilities for brand differentiation, via unique package shapes that can be made from recycled and sustainable materials, both of which are not possible using existing aerosols.

Moreover, GreenSpense-powered refillable dispensers yield a significantly lower carbon footprint, eliminate VOC emissions, provide manycost-saving benefits, and are safeand effective.

Innovative and Proven Technology: The Eco-Drive

Nano-based elastic sleeve technology generating high-pressure for dispensing
Robust flexible bag providing full-barrier properties for maximum product integrity
10 patents and designs, covering the fields of elastomer, nano materials, dispensing technology and packaging

The Company, The Vision, The Team

Aerosol packages are filled with highly pressurized gas that serves as the dispenser’s energy source. This compressed gas is the cause of many limitations and drawbacks: aerosols require rigid cylindrical containers, 90% are flammable and explosive, are classified as HAZMAT, and are harmful to humans and to the environment.

Their hazardous classification requires compliance with special safety measures and increased costs across the entire supply chain (e.g., filling, storage, handling, and shipping, especially by air). With growing consumer demand for eco-friendly sustainable products, the sharp increase in online shopping with overnight transportation of products by air, and increasing environmental and packaging regulations, the need for an alternative to aerosols for continuous dispensing had been obvious for some time, particularly in Europe wherever increasing regulation of aerosols was making the finding of an alternative dispensing mechanism even more critical.

Enter Gadi Har-Shai and Amir Biran, two experienced engineering graduates from the Technion in Haifa Israel,both of themwith many years of experience in leading advanced technology companies. Recognizing the problem and well-versed in the advances of elastomer and nanotechnology, they launched GreenSpense in 2012 with the vision of harnessing these technologies to create a high-pressure, continuous dispensing solution that entirely does away with pressurized gas propellants. After many years of intense research and development, the company has now brought its unique solution to the market.

By pushing the envelopes of both materials engineering and nanotechnology, GreenSpense has created an innovative continuous-dispensing solution with unparalleled advantages. The company’s remarkable inventions, protected by multiple patents, enable the familiar continuous-dispensing experience in simpler, safer, cheaper and more creative packaging.

The Team

Gadi Har-shai Co-Founder, CEO & CTO

30 years of management experience
Holds over 30 patents worldwide
M.S.M. degree from Lesley University School of Management, Cambridge, MA, and B.Sc.Ed. in Mechanical Engineeringand Educationfrom Technion, Haifa, Israel

Amir Biran Co-Founder and Director

30 Years in executive positions andsuccessful M&A activities
Led sales and business development activities
B.Sc. in information systems engineering from Technion, Haifa, Israel

Sharon Cohen CFO/ Operations

25 years of experience in public and private global companies.
Certified Public Accountant (CPA)
MBA from Heriot-Watt University, Scotland, and LL.M from Bar Ilan University, Israel

Maayan Bar, CCO

25 years of multidisciplinary executive management in corporations and startups
Member of the Israel Bar; Solicitor of the Supreme Court, Law Society of England and Wales
MBA University of Bradford, UK, and Law degree (LL.B.) from University of London

Aerosol Market

We all use aerosols in our daily life because they are currently the only way to provide continuous dispensing – the most convenient form of dispensing for liquid and viscous materials. Over 16 billion units of aerosols are sold annually (European Aerosol Federation). This market is growing rapidly (CAGR of 6.7% from 2023 to 2030), due to rising standards of living in developing countries and because brands continuously develop new aerosol products and applications.

Market Size

TAM (aerosol market) – $79B (2022)
SAM (aerosol component market) – $6B

The Need

Aerosol packages are filled with highly pressurized gas that serves as the dis-penser’s energy source. This compressed gas is the cause of many limitations and drawbacks: aerosols require rigid cylindrical containers, 90% are flammable and explosive, they are classified as HAZMAT, and they are harmful to humans and to the environment.

Their hazardous classification requires compliance with special safety measures and increased costs across the entire supply chain (e.g., filling, storage, handling, and shipping, especially by air). With growing consumer demand for eco-friendly sustainable products, the sharp increase in online shopping with overnight transportation of products by air, and increasing environmental and packaging regulations, the need for an alternative to aerosols for continuous dispensing is critical.

The GreenSpense Solution

GreenSpense is the only company offering a gas-free alternative to aerosol dispensers that delivers the performance expected by consumers. This solution also enables exciting new possibilities for brand differentiation, via unique package shapes that can be made from recycled and sustainable materials.

GreenSpense-powered refillable dispensers yield a significantly lower carbon footprint, eliminate VOC emissions, provide numerous cost-saving benefits, and are safe.

Innovative and Proven Technology

Nano-based elastic sleeve technology generating high-pressure for dispensing
Robust flexible bag providing full-barrier properties for maximum product integrity
10 patents and designs, covering the fields of elastomer, nano materials, dispensing technology and packaging

The Alternative: Eco-Drive by GreenSpense

Same aerosol user experience
Safe for humans and the Environment
Sustainable packaging
Simplified operations
- Gas free
- Refillable
- Recyclable
- Low Carbon footprint
- High quality dispensing
- Avoids regulatory restrictions

Eco-Drive – How it Works

Standard filling - No gas
Gas free dispensing

Freedom in Choice of Package Material and Design

Carton
Recycled Aluminum
Recycled Plastic

Financial Highlights 2023 - 2028

Production

Increase from one assembly line in 2023 to 2 assembly lines in 2024 and then gradually to 10 mass-production fully-automated machines by 2028
Actual assembly line capacity – 1 million Eco-Drives/ year
Upcoming fully-automated mass-production machine capacity – 18 million Eco-Drives/ year (comparable to standard industry mass-production machinery)

Sales

Continuously increase direct and indirect sales volume
Unit price will reduce per volume from $0.65 to $0.40 (~30 million units and beyond)

Gross margin (GM)

GM will increase from a negative to positive rate due to several factors:

Simplifying the product - less components and less assembly steps
Manufacturing and assembling Eco-Drive rigid components by a large valve manufacturer
Reducing dramatically labor cost due to fully automated mass-production machines
High-volume purchasing of raw materials

COGS reduction due to all of the above (Cost reduced to $0.23 in mass volume)

Break-even

Achieved in 2027 once the company exceeds 40 million units in production.
Can be accelerated with earlier 2nd machine

Five Years Business Plan – Assumptions and Objectives 2023-2028

Production

Enhance existing semi-automatic assembly line to ensure production of 500,000 Eco-Drives per annum/per shift
Second semi-automatic assembly line built and operating in 2024
Use existing semi-automatic assembly design to design and build a fully automated mass production machine with capacity of 18 million Eco-Drives per annum.

Sales

Continuously increase direct and indirect sales volume
Unit price will reduce per volume from $0.65 to $0.40 (~30 million units and beyond)

Gross margin

Will increase from negative to positive due to several factors:

Simplifying the product - less components and less assembly steps
Manufacturing and assembling Eco-Drive rigid plastic components by a large valve manufacturer
Reducing dramatically labor cost due to fully automated mass-production machines
High-volume purchasing of raw materials

COGS reduction due to all of the above (Cost reduced to $0.23 in mass volume)

Profitability

Achieved in 2027 once the company exceeds 40 million units in production.
Can be accelerated with earlier 2nd fully automatic machine.

Strategic Plan

Developed to provide shareholders with options for enhancing value and/or exit strategy:

Substantially expand production, sales and profitability and continue with a larger organization.
Establish a Joint Venture with operations handled by the international partner (probably in Europe but possibly in North America or China).
Sell the company
Sell the Company’s Intellectual Property
License others to utilize theCompany’s Intellectual Property

Financial Projection

Project Title	Document Title	Action
GreenSpense	SAFE Note	View

Cutting-Edge EcoDrive™ Technology

The GreenSpense continuous dispensing system is based on proprietary nano-based elastomer technologies, yielding a high-pressure, continuous-dispensing solution that entirely does away with pressurized gas propellants and manual pumping.

The Unparalleled GreenSpense Advantages

Our track record speaks volumes about our ability to identify promising opportunities, make strategic investmemts, and nurture the growth of our portfolio companies.

Eco-Drive enables brands to createown unique continuous – dispensing packages in any shape, using recycled materials such as plastic, cardboard, metal and glass.

Eco-Drive delivers high-pressure continuous dispensing with great spray quality and NO need for propellants, compressed air/nitrogen or pressurized containers!

Perfect for continuous spraying of liquids and dispensing of viscous materials of nearly any formulation, supporting natural products while at the same time ensuring no contamination or oxidation of the product.

Effortless, quiet, full-evacuation, 360-degeee dispensing with NO pumping, squeezing or chill effects!

Enables the conversion from pump packaging to continuous-dispensing packaging without changing formulation. Continuous airless dispensing is now possible!

Eco-Drive works with standard 1-inch valves and actuators. Enables the use of standard filling lines and equipment without retooling. Enables brands to establish their own low-cost, in-house filling facility.

Enables the use of reusable, eco-friendly packages that can be made from recycled materials (e.g., rPE), with a much lower overall CO2 footprint.

Packages utilizing GreenSpense’s technology are simple, safe and inexpensive to fill, handle, store and transport.

Propellant-Free Continuous Dispensing for Natural Products

Continuous Spraying for Natural Products
Enables natural products to be dispensed in a high-quality, continuous-spray package without using propellants! Consumers will appreciate protecting the environment, while enjoying the convenience of effortless dispensing – no more pumping, squeezing, chilled metal canisters or worrying about holding the product at a particular angle.

No Preservatives or Antioxidants Required
The GreenSpense solution provides a full-barrier packages and supports “green chemistry initiative.” Delivers brands original products, untainted by preservatives andantioxidants.

Unique, Differentiated Packaging
Enables the brand to market its products in uniquely creative packaging that provides smooth, 360⁰ dispensing, is safe to fill, easy to store/transport and environmentally friendly. Allows the design of creative and economical packaging using simple materials like plastic or cardboard, or high-end, differentiated packages using lavish materials like ceramics or wood or glass!

Go Green!
Consumer preference for green products is growing steadily. Personal health concerns, protecting the environment and passing on a healthy planet to the next generation are compelling reasons for consumers to buy green alternatives when such products are readily available, work just as well and don’t cost more than the conventional versions. GreenSpense technology is a key enabler in support of this trend.

What does the GreenSpense technology do?

GreenSpense’s innovative propellant-free solution for liquid spraying and viscous materials dispensing is based on breakthroughs in elastomer and Full-barrier flexible packaging technologies (Eco-Drive).

Provides the only cost-effective and at the same time eco-friendly alternative to gas-driven aerosols.

What type of Investors can invest?

The offering is being made to a limited number of investors of adequate financial means who satisfy the criteria of an “Accredited Investor” as defined in Regulation D promulgated under the Securities Act.

Does GreenSpense have competitors?

Traditionalgas propelled aerosol packages
Bag on Valve (BOV) packages

Traditional Aerosol	BOV	Eco-Drive
Single compartment – product and gas mixed	Dual compartment – barrier between product and gas	Gas-free, full barrier package
Energy source - gas Butane/Propane) Typical pressure – 3 bars	Energy source - Compressed Air or Nitrogen, Butane/Propane. Typical pressure – 9 bars	Energy source –nano-based elastic sleeve. Typical pressure – 6 bars
Dangerous - pressurized package, explosive, flammable	Dangerous - highly pressurized package, explosive	Safe - gas-free, non-pressurized package
Unsafe - exposure to carcinogens	Nocarcinogens	Nocarcinogens
Classified as hazardous – highly regulated production, shipping and handling	Classified as hazardous – highly regulated production, shipping and handling	Non-hazardous, not regulated
Package – impacts global warming. Pressurized rigid and cylindrical metal	Package – impacts global warming.Pressurized rigid and cylindrical metal. Reduced impact with plastic bottle	Package – sustainable package, lowest impact. Freedom in materials and shaped packaging
Not reusable or refillable	Not reusable or refillable	Reusable and refillable
Good and uniform spray quality	Uneven spray quality	Good and uniform spray quality

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Offering Company: GreenSpense Ltd. , an Israeli company (The “Company”)
US Limited Partnership: GreenSpense USA LLC
Investment Type: SAFE Note
Funding Goal: US $5,000,000 (of which US$1,600,000 committed by existing shareholders)
Units: Class C units
Unit Price: US $0.01
Effective Share Price: US$22.77 per share = same price/shareas previous raise
Minimum Investment: US$20,000
Investment Vehicle: Investors committing a minimum US$500,000 will be given the option to invest directly into the Company. Investors committing less than US$500,000 will invest through a US limited partnership (GreenSpense USA LLC) which will invest directly into the Company.
Target IRR: 25% +
Warrants: Investors who commit prior to December 31st, 2023 and fund in full by January 31st, 2024 will be issued warrants to acquire 2 shares of the company for every share committed and funded on this round.
The warrants may be exercised any time before December 31st, 2028.
Hold period: projected 5 Years
Shares in Issue: prior to the current raise, effective number of shares in issue are 589,753. At share price of US$22.77, the valuation ascribed to the Company is US$13.4 million.

$1,250,000 raised of $5,000,000 goal

Investment Summary

Offering Type: Safe Note
Issuer: GreenSpense
Target Funding: $5,000,000
Min. Investment: $20,000
Money Raised Previously: $9,500,000
Warrants: 2X investment
GreenSpense Pitch Deck
Video Gallery

Documents

SAFE Note

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GreenSpense

The Opportunity

The Aerosol Market

The Need for an Alternative

The GreenSpense Solution

Innovative and Proven Technology: The Eco-Drive

The Company, The Vision, The Team