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
Company Info
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
Investment Highlights
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
Financial
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
Fund Summary Video Gallery
Fund Summary Video Gallery
Documents
| Project Title | Document Title | Action |
|---|---|---|
| GreenSpense | SAFE Note | View |
Investment Location
Technology
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 ProductsEnables 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.
Perks
Frequently Asked Questions (FAQ)
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.
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.
- 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 |
Discussion
Summary of Terms
- 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.
