Protagenic Therapeutics, Inc. · OTC:PTIX
Protagenic Therapeutics — Traffix — Merger or Acquisition (December 2007)
30 slides from Protagenic Therapeutics's merger presentation, Dec 5, 2007
Slide 1: Rule 425 filing cover note
Filed by: New Motion, Inc. Pursuant to Rule 425 under the Securities Act of 1933 And Deemed Filed Pursuant to Rule 14a-12 Under the Securities Exchange Act of 1934 Subject Company: Traffix, Inc. Commission File No: 000-27046 Address of New Motion, Inc. 42 Corporation Park, Suite 250 Irvine, Californ
Slide 2: The Fastest Growing Digital Advertising & Entertainment Network
“The Fastest Growing Digital Advertising & Entertainment Network” Management Presentation New Motion, Inc. This Presentation updates and supersedes a management presentation dated October 12, 2007 (the "October 2007 Presentation"), which was previously filed with the Securities and Exchange Commissi
Slide 3: Company Overview
Company Overview Fast Growing Digital Advertising & Entertainment Network - A leading, US based, mobile entertainment and Internet media company distributing premium content directly to consumers. Cross Media Strategy With the Right Revenue Model– Combine ad supported proprietary content and wide In
Slide 4: Transaction Summary
Transaction Summary Surviving EntityNew Motion will be the surviving publicly trade entity Post-transaction fully-diluted ownership split of 55% / 45% (calculated using the treasury stock method based on an assumed New Motion stock price of $15.50) in favor of existing New Motion shareholders and ot
Slide 5: How Important is Mobile Entertainment and Internet Media?
How Important is Mobile Entertainment and Internet Media?
Slide 6: Cross Media Strategy: Convergence of Mobile Entertainment & Internet Media
Cross Media Strategy: Convergence of Mobile Entertainment & Internet Media Premium billed subscriptions allow us to integrate and leverage two complementary media, entertainment and distribution channels
Slide 7: Company Overview – Direct to Consumer Value Chain
Company Overview – Direct to Consumer Value Chain VAS Provider relationship directly with end consumer. Consumer billed by carrier typically via third party aggregator. Subscription based business creates recurring business model where key operational and competitive drivers are Subscribers, CPA, AR
Slide 8: Company Overview – Direct to Consumer Value Chain
Company Overview – Direct to Consumer Value Chain VAS Provider relationship directly with end consumer. Consumer billed by carrier typically via third party aggregator. Subscription based business creates recurring business model where key operational and competitive drivers are Subscribers, CPA, AR
Slide 9: Company Overview - Value Chain Business Metrics
Company Overview - Value Chain Business Metrics NMI Today NMI - TRFX Combined Standard End User Retail Price (Monthly Fee) $9.99 $9.99 Net Revenue Booked Pre-Reserves and Allowances $6.00 $6.00 Approximate Net Revenue per Billed User Per Month (ARPU) $5.82 $5.82 Third Party Content Costs 2% - 4% of
Slide 10: Projected Revenue Growth Opportunity
Projected Revenue Growth Opportunity
Slide 11: Company Overview – Our Products
Company Overview – Our Products Categories: Interactive Contests, Casual Games, Digital Music,& Lifestyle/ Community. Product strategy geared toward converting online content into mobile subs. Short form entertainment content available ‘on the PC’ or ‘on the Go’. Services expand demographic reach fo
Slide 12: Interactive Contests – Bid 4 Prizes
Interactive Contests Bid 4 Prizes Low bid reverse auction where lowest unique bid wins daily prizes. Users signs up for free or for $9.99 a month to play from mobile with access to also play from the fixed Internet. All subscribers receive points for playing which they can redeem for specific prizes
Slide 13: Casual Games – Gator Arcade
Casual Games Gator Arcade Integrated online & mobile game site that taps into the exploding growth in online casual games. Target audience - female, casual game users who are 28 to 50 years old. First online, premium billed mobile entertainment service creating a new, powerful business model. Custom
Slide 14: Digital Music – Altnet Live
Digital Music Altnet Live The hottest brand in P to P delivered music, TV and film content returns with backing from studios and labels. Integrated PC based music rental and ringtone service sold alongside mobile music club for one single price. Service billed on the mobile phone rather than credit
Slide 15: Community & Lifestyle
Community & Lifestyle Free open access and premium billed mobile communities.
Slide 16: Traffix - Wide, Diverse, & Owned Distribution
Traffix - Wide, Diverse, & Owned Distribution AFFILIATE WEB 18 content websites across verticals 5000 publishers across Hot Rocket network 25 million unique visitors p/m 500+ new publishers per month 50,000+ full registrations per day Exclusive access to key offers COMMUNITY Q121 mobile photo sharin
Slide 17: Traffix connects 3rd party advertisers with Marketing Services
Traffix – efficiently connects 3rd party advertisers with unparalleled Marketing Services Performance Brand Search Affiliate Mobile Marketing Marketing Marketing Marketing Marketing Direct response Ad serving leverages Search Engine Online marketplace Advertisers network allows all major targeting M
Slide 18: Mobile Entertainment & Internet Media Company Competitive Matrix
Mobile Entertainment & Internet Media Company Competitive Matrix Existing Mobile Content Companies Service Emphasis - acquire customers via indirect media buying relationships or via carrier deck for basic services; ringtones, & wallpaper subscriptions within an increasingly crowded space Current En
Slide 19: Mobile Entertainment & Internet Media Company Competitive Matrix
Mobile Entertainment & Internet Media Company Competitive Matrix Existing Mobile Content Companies Buongiorno Dada Mobile Playphone New Motion Acotel Cellfish (Lagadere) Glu Mobile Thumbplay Jamster (Fox) Hands On Mobile
Slide 20: Mobile Entertainment & Internet Media Company Competitive Matrix
Mobile Entertainment & Internet Media Company Competitive Matrix Existing Mobile Content Companies Buongiorno Dada Mobile Playphone New Motion Acotel Cellfish (Lagadere) Glu Mobile Thumbplay Jamster (Fox) Hands On Mobile Ad Networks & Lead Generation Service Emphasis - develop wide relationships wit
Slide 21: Mobile Entertainment & Internet Media Company Competitive Matrix
Mobile Entertainment & Internet Media Company Competitive Matrix Existing Mobile Content Companies Buongiorno Dada Mobile Playphone New Motion Acotel Cellfish (Lagadere) Glu Mobile Thumbplay Jamster (Fox) Hands On Mobile Ad Networks & Lead Generation Azoogle Value Click Blue Lithium Traffix Think Pa
Slide 22: Mobile Entertainment & Internet Media Company Competitive Matrix
Mobile Entertainment & Internet Media Company Competitive Matrix Existing Mobile Content Companies Buongiorno Dada Mobile Playphone New Motion Acotel Cellfish (Lagadere) Glu Mobile Thumbplay Jamster (Fox) Hands On Mobile Ad Networks & Lead Generation Ad Supported Branded Content Azoogle Service Emph
Slide 23: Mobile Entertainment & Internet Media Company Competitive Matrix
Mobile Entertainment & Internet Media Company Competitive Matrix Existing Mobile Content Companies Buongiorno Dada Mobile Playphone New Motion Acotel Cellfish (Lagadere) Glu Mobile Thumbplay Jamster (Fox) Hands On Mobile Ad Networks & Lead Generation Ad Supported Branded Content Azoogle Value Click
Slide 24: Mobile Entertainment & Internet Media Company Competitive Matrix
Mobile Entertainment & Internet Media Company Competitive Matrix Existing Mobile Content Companies Fully Integrated Mobile Entertainment & Internet Media Company Buongiorno Dada Mobile Service Emphasis - Combines digital content, online distribution, & premium billing into a single entity w/ Playpho
Slide 25: Mobile Entertainment & Internet Media Company Competitive Matrix
Mobile Entertainment & Internet Media Company Competitive Matrix Existing Mobile Content Companies Fully Integrated Mobile Entertainment & Internet Media Company Buongiorno Dada Mobile Playphone New Motion New Motion/Traffix Acotel Combined Company Cellfish (Lagadere) Glu Mobile Thumbplay Jamster (F
Slide 26: Summary Financials – Pro Forma and Projected Combined Revenue & Adjusted EBITDA Growth
Summary Financials–Pro Forma and Projected Combined Revenue & Adjusted $ in Millions EBITDA Growth 2008 % CHANGE USD MLN 2005 2006 2007 (est.) (c) (est. range) (d) 2007-2008 Revenues (a) $69 $92 $115 $145-160 26%-39% Adjusted EBITDA (b)(e) $5 $7 $3 - $5 $15-23 AEBITDA Margin 8% 8% 2.5%-4.3% 10%-14%
Slide 27: Future Growth Opportunities
Future Growth Opportunities Surging consumer demand in US for wireless & online entertainment. Increased consumer mindshare online combined with enhanced digital advertising formats. Select international markets with scalable business model for future penetration. New products & applications built o
Slide 28: Forward-Looking Statements
Forward-Looking Statements This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform act of 1995. Forward-looking statements are statements that are not historical fact, are based on certain assumptions and reflect our current belief and ex
Slide 29: Important Additional Information and Where to Find it
Important Additional Information and Where to Find it This communication is being made in respect of the proposed business combination involving New Motion Inc. and Traffix Inc. In connection with the proposed transaction, New Motion Inc. filed with the SEC a registration statement on Form S-4 conta
Slide 30: Thank You
Thank You