Customized Natural Remedies and Wellness Solutions Blended With Precision – At Home.
Altopa has pioneered the first consumer device capable of precision blending of essential oils and other botanical extracts for use in home health and wellness applications. It’s called the Oblend. It’s about the size of a coffee maker and as easy to use as a printer. The technology that powers the Oblend was originally developed for industrial use and has evolved substantially over the past 20 years but the Oblend represents its first consumer-controlled application.
The Oblend and its underlying technology platform address a critical consumer challenge and barrier to entry in the nation’s emerging Cannabis Industry – slow mainstream adoption driven in part, by a lack of product reliability and predictability. The Oblend Platform has been designed to deliver an unprecedented level of confidence to current and prospective consumers – confidence that with the platform, anyone can find the right formulation for their need, experience predictable effects, and reliably customize and replicate proven cannabinoid and essential oil based solutions for a wide range of health and wellness benefits. Altopa gives you the power to feel how you want to feel.
Mainstream consumers are increasingly interested in natural remedies, with Cannabis-sourced botanicals representing one of the fastest growing areas of Naturopathic Health.
North Americans spent more than $7BN on legal cannabis products in 2016 and with a projected 31% compounded annual growth rate, industry revenue is projected to exceed $22BN by 2020. Revenue is driven by an estimated 38M (and growing) active cannabis consumers, of which >50% are primarily medically focused and 75% of those spend an average of $4,800 or more on cannabis products annually. Medical cannabis is currently being used in the treatment of over 50 diseases and disorders including pain, anxiety, sleep apnea, seizures, cancer, ADD, Parkinson’s, depression, Alzheimer’s, arthritis, anorexia, and migraines (pharmaceutical sales related to these health challenges exceeded $950Bn in 2016).
To confirm our understanding of the unmet needs of our prospective customers, Altopa hired a Seattle-based research firm, GMA Research, to conduct an independent market study. GMA surveyed nearly 1,500 US cannabis users residing in legalized cannabis states. Surveyors included at least 300 respondents in each of the following categories: consumers who used cannabis for: (1) medicinal purposes only; (2) recreational purposes only; and (3) both medicinal and recreational purposes in order to achieve results that are representative of the US population of cannabis consumers within a +/-2% error rate.
The responses were overwhelmingly positive, and more importantly, were highly valuable to our understanding of the unmet consumer need. Of note is the fact that, when asked how likely they would be to purchase an Oblend today, on a scale of 1-10, 40% of the respondents responded with a 10.
Ingredients include essential oils and extracts of legal herbs such as echinacea and lavender.
Adjusting ingredients like CBD to customize your blend is as easy as moving a slider up and down.
Using the Oblend App, recipes from experts and friends are easy to find, easy to make, and easy to share.
Enjoy greater predictability and more consistent results through precision blending.
Machine Learning will improve the Oblend platform with every use.
The Oblend mobile app enables consumers to find, create, customize, and share personalized botanical extract-based products for a variety of health and wellness uses. The underlying platform technology supports formulation, consumables management, social and crowd-sourcing of content, a personalization engine, and partner and supplier Web-based interfaces.
Like Amazon’s Alexa and other Internet of Things connected devices, the Oblend will be equipped with sensors to gather data both from usage and from its environment. The platform will collect a wide variety of data about user behavior and usage including search terms, intended benefit, type of product being made, ingredient use, dispense frequency, time of day and more. Altopa will use machine learning to identify patterns to inform future improvements. This accumulated knowledge will also be valuable to the ongoing research of plant-based medicine.
Consumer Benefits of the Oblend Platform:
The Oblend Platform’s unique value proposition provides ALL of the following capabilities:
Access to a database of recipes with crowdsourced ratings and reviews
Find recipes being used by other consumers with similar needs
Ability to save and share favorite recipes with friends or the Oblend community
Research tool providing education on medicinal benefits of ingredients and formulations
Access to clinical trials, articles, and other publications to support medical efficacy of blend formulations
Ability to create precise and consistent blends of botanical oils
Ability to add, increase or eliminate active ingredients, such as CBD or THC, in blends to meet individual needs or to treat specific symptoms - “Precision Medicine”
Ability to add dispensed blends to existing personal care products (e.g., face creams, bath oils, massage oil, cooking oils)
Flexibility to create a variety of products, including inhalants, topicals, and edibles
Enables microdosing: small dispense quantities supporting consumer self-titration
The Oblend blends from replaceable cartridges filled with ingredients just like a printer.
Our financial model assumes an Oblend average sales price of $599 which includes a set of starter cartridges filled with ingredients and takes into consideration sales promotions and incentives. The Oblend includes 24 replacement cartridges which will be priced from $20 and up depending on specific contents.
The Oblend and ingredient cartridges can be sold nationally, through our website or online marketplaces. However, if consumers desire to make blends with THC (the only ingredient that is not federally legal), these cartridges will be available for purchase at dispensaries from our pre-approved, state-licensed processors who will fill and distribute our chip-locked cartridges. (Altopa doesn’t touch the plant or any cannabis-sourced ingredients).
Our marketing strategy will be social media-centered but coupled with a retail-focused education and promotions. We’ll begin to prime sales channels by investing in a preliminary ecommerce capability and will soon kick off a brand and product awareness campaign to build an engaged community followed by a Kickstarter campaign to generate pre-sales.
It’s important to recognize that the Altopa platform is directly relevant to several other adjacent health and wellness verticals. The core technology in the Oblend can be scaled up or down in size and complexity to fit other uses. Future applications might include industrial versions of the device for dispensaries and researchers. Multiple vertical expansion opportunities exist, including nutraceuticals, dietary supplements, aromatherapy, esthetics, culinary, and nicotine (licensing only).
Meet Altopa's Leadership Team
Altopa has attracted a world-class management team. Each member brings a history of success and deeply relevant leadership expertise with early and growth stage companies in consumer software, Internet, consumer products, and medical device industries. Together, this team is uniquely qualified to bring the Oblend technology to market.
Altopa is currently raising a $5M Preferred Series A round. The Company has authorized up to $2.5M of this raise be done in the form of convertible notes and has remaining capacity, though limited at this point, to take smaller investments in the form of these notes. The convertible notes carry a 10% interest rate and will convert into the Series A at a discount to the Series A price.
We will use these funds to complete a final round of engineering changes focused on cost reduction, product durability and manufacturability, to test two possible go-to-market strategies and to support our assumptions around consumer usage. These funds will also be used to transfer our inventory build process to contract manufacturing in preparation for a Spring, 2019 commercial launch.
The Series A round represents Altopa’s second round of financing. In 2016, Altopa closed a $1.4M Preferred Series Seed equity round. This financing enabled the company to build Altopa’s team, develop a beta-ready Oblend device, develop the Oblend app, file 26 patent applications (one patent has been granted), develop our supply chain and sales channels, and to perform critical market research.
Altopa, The Ideal Investment
Multiple Sources of Recurring Revenue with High Margins
Decades of Experience in Healthcare, Technology, Health & Wellness
Targeting Fastest Growing Industry with Disruptive Product
Oblend App Collecting User Data (Long-Term Value)
“Hands-Off” Operating Model (we don’t touch the plant)
Cash Flow Positive 18 Months Post Commercial Launch
Multiple Platform Expansion and Exit Opportunities
CES 2018 Innovation Award Winner
Selected as 1 of 9 Companies Featured on National TV Series
Oblend Device & App Ready for Beta Testing
26 Patent Applications Filed; 1 Patent Issued
Initial Supply Chain and Sales Channels Identified
Key Strategic Partnerships Formed