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17 Camor Court
Toronto, Ontario M1C 4V6, Canada
Tel: 416-618-4622
Web: www.valtx.com
Securing Computers with Absolute Certainty
Accredited Investor Investment Opportunity – Minimum $25,000 per investor
Valt.X Technologies Inc. has developed technology to secure computers
with absolute certainty: Valtx Absolute Security for Windows (MagicSecure).
At Commercialization stage ‐ 21 issued patents and 39 patent applications.
Case Study – LogMeIn (NASDAQ: LOGM) returned profit of 47.75 times Principal
($100,000 investment returned profit of $4,775,000).
The market for endpoint computer security products is large with some 1.3 Billion computers in use
worldwide and over 360 million new computers shipping each year (IDC).
Current investment round $1‐10 million – Investment Options:
1 million Common Shares at $1.00 per share – Total $1,000,000
$10 million Corporate Notes – 1‐3 year term, 15% annual interest
$10 million Convertible Notes – 1‐3 Year term, 12% annual interest, Convertible at $1.50 per share
Contact: Dennis Meharchand C: 416‐618‐4622 E: dennis@valtx.com
Capitalization: Investors have invested $5.7 million in Valt.X to date ‐ Small public float of 9.4 million
shares ($4.7 million Capital) plus $1 million in Shareholder Notes; Founder’s shares ‐ 31.6 million.
The opportunity for investors is to earn substantial returns via an Initial Public Offering (IPO) or
Acquisition by a major public traded computer industry company. We believe our technology, products
and patents may be of interest to major tech industry companies such as Intel, Microsoft, HP, Dell and
Symantec amongst others. The $7.7 Billion acquisition of McAfee, the #2 endpoint computer security
company in the world, by Intel illustrates the potential value increase for shareholders.
OPPORTUNITY: We believe we have an opportunity to achieve a multi‐billion dollar market
capitalization returning a multiple of 20 to 50 times principal to investors. As of Oct 29th 2010 our top
competitor Symantec had a market capitalization of $12.78 Billion and McAfee (our 2nd largest
competitor) is being purchased by Intel for $7.7 Billion.
CASE STUDY: LogMeIn (NASDAQ:LOGM):
LogMeIn provides on‐demand, remote‐connectivity solutions to small and medium‐sized businesses,
information technology (IT) service providers, and consumers in the United States and internationally.
December 5th, 2005 Investors invest in Redeemable Convertible at a price of $0.815 per share
July 1st, 2009 IPO Shares close at $20.02 per share – Gain of 2356% or 23.56 times original investment
12 Month Pre‐IPO Financials: Revenue $59 Million, Net Income $384,000
October 29th, 2010 Shares close at $39.73 per share – Gain of 4775% or 47.75 times original investment
– a $100,000 investment at Dec 5th 2009 returned a $4,775,000 profit in less than 5 years.
Valt.X Holdings Inc.■ 17 Camor Court, Toronto, ON M1C 4V6, Canada■ T: (416) 618-4622
Use of Funds: $600,000 will be used to produce a launch inventory of 100,000 packages of Valtx
Absolute Security for Windows to generate $7.5 million in launch revenue, $100,000 Internet Sales
Licensing Servers and Infrastructure, $300,000 Sales, Marketing, Product Development and General
Working Capital.
TechData, the 2nd largest Computer Products Distributor in the world – with over $20 Billion in annual
sales, will be the first Distributor of Valt.X products – initially in North America. We plan to ink the deal
in the next few weeks while Valt.X prepares initial product shipments. TechData will also configure Valtx
Absolute Security for Windows in computers prior to shipment to Resellers. TechData distributes
computer products to some 125,000 Resellers in 100 countries.
We compete in the endpoint computer security market with Anti‐Virus/Anti‐Spyware software suite
providers such as Symantec and McAfee. These anti‐virus/anti‐malware software suites do not work.
They are unable to stop tens of thousands of new malware attacks each day and also have a high rate of
failure in stopping known malware from infecting computers. In essence ‐ these products are practically
useless with failure rates often exceeding 50%. Valt.X products secure computers with absolute
certainty – eliminating 100% of drive by malware attacking a Valt.X protected boot drive ‐ eliminating
downtime, securing sensitive data and substantially reducing computer maintenance and management
costs.
Valt.X has 21 issued Patents and 39 Patent applications. Patents are very valuable in the technology
world illustrated by recent Patent infringement damage awards such as the $290 million award achieved
by i4i of Toronto against Microsoft for infringement of a single Patent.
We expect the $600,000 initial launch inventory to generate $7.5 million in revenue for Valt.X – each
package costs $6 to produce and Valt.X receives $75 per package in wholesale sales to Distributors and
Resellers. Valtx Absolute Security for Windows retails at $125 per computer. The license is per computer
and is not transferable – we expect that customers will re‐purchase upon every computer cycle refresh.
Gartner, the world's leading information technology research and advisory company, estimates the
endpoint computer security software market to be $13.5 Billion annually. We believe the markets for
products, such as by Valt.X, which actually solve the problem, to be likely much larger.
Key Investment Factors:
9 Valt.X has developed patented software and hardware technologies to secure endpoint
computers with absolute certainty ‐ eliminating 100% of all malware
9 In tests ‐ Competitors – Leading Anti‐Virus Companies – have failure rates up to 68% eliminating
new zero day malware and up to 58% eliminating known malware
9 Valtx Absolute Security for Windows eliminates 100% of all malware securing the system boot
image with absolute certainty; protects data from theft by encrypting and making data drives
invisible to intruders and an Instant Rollback feature allows vulnerability patch and software
updates to be tested immediately upon release and cleanly rolled back in case of failure
9 21 issued patents and 39 patent applications
Valt.X Holdings Inc.■ 17 Camor Court, Toronto, ON M1C 4V6, Canada■ T: (416) 618-4622
9 Large Markets: 1.3 billion computers in use worldwide as of DEC 2009; 360 million+ new
computers ship annually – IDC ‐ Worldwide security market est. at $13.5 billion annually –
Gartner; US creates Pentagon Cyber Command
9 At Commercialization stage
9 Expects to create over $600 million in shareholder value (30X Current Valuation) within 12‐18
months, based on annual sales of over $60 million
9 Excellent exit opportunities within 2‐3 years – likely Acquisition candidate sooner
9 Seeking to place $1 million, to achieve near‐term milestone of $7.5M in revenue
Funding to date:
A total of $5.7 million has been invested in Valt.X consisting of $4.7 million in equity investment and $1
million in Shareholder Loans. Valt.X has developed an extensive Patent portfolio, Valtx Absolute Security
for Windows and The S Chip, an endpoint computer security semiconductor, and related products.
Use of Funds ‐ $1million ‐ Use of funds of $1 million for Phase 1 is as follows: 100,000 Packages of Valtx
Absolute Security for Windows at a cost of $6 per retail package ‐ $600,000, Web Sales infrastructure
$100,000, R&D, Marketing, Sales and General Operations $300,000. We expect to generate $7.5 million
from sale of the 100,000 packages in Canada/USA.
Valtx Absolute Security for Windows Product Launch
We plan to launch Canada/USA sales of Valtx Absolute Security for Windows within 6 weeks of funding to
generate an initial $7.5 million in revenue.
OEM SALES: We plan to partner with leading computer manufacturers such as HP, Dell, Acer, Lenovo,
Toshiba, Sony, NEC and Fujitsu, to deliver the Valtx Absolute Security solutions bundled with their new
computer shipments.
Strategic Partnerships: We plan to engage strategic partners with substantial computer user customers.
The Government of Canada is launching a C$90 million comprehensive cyber security program to secure
Canadian Government computers and is also launching a $40 million program to kick start innovative
Canadian companies by having the Government of Canada purchase Canadian innovative products.
UK government has announced a 500 million Pound Cyber Security Initiative and the US Government has
allocated $55 Billion towards Cyber Security and created a Cyber Command at the Pentagon.
To schedule a call or meeting I can be reached directly at 416‐618‐4622 or via email at
dennis@valtx.com. We would be happy to meet and demonstrate our product and discuss the
opportunity at your convenience.
Dennis Meharchand
CEO, Valt.X Holdings Inc.
C: 416‐618‐4622
E: dennis@valtx.com
Valt.X Holdings Inc.■ 17 Camor Court, Toronto, ON M1C 4V6, Canada■ T: (416) 618-4622