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Disclaimer This document is intended for information purposes only. This document does not purport to be allinclusive or to contain all of the information that a prospective investor may desire. This document focuses on the proposed business of Intelimax. Neither this Plan, nor its delivery to any prospective investor, shall constitute an offer to sell any securities of Intelimax or of related parties. This Plan contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties. Actual results may differ materially from those projected by management. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The forward-looking statements contained in the Plan are made as at the date hereof and management of Intelimax undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise. Readers should not place undue reliance upon such forward-looking statements. 2
Intelimax Executive Summary The Company The Opportunity Intelimax Media, Inc. (OTC: IXMD) (CNSX: IMD) is a digital entertainment company focusing on fantasy sports for the Web, social media and land-based vendors. The company is incorporated under the laws of British Columbia, Canada. The company s proprietary platform, DraftTeam.com, generates multiple revenue streams, complemented by innovative product development and plans for international expansion. The ever-growing popularity of major leagues like NFL, NBA and MLB has spawned a legion of devoted fantasy fans. With more than 36 million participants spending on average $500 annually and lifetime participation often projected upward of 20 years, fantasy sports enthusiasts are some of the most loyal consumers. This highly engaging pastime caters to social gamers looking to demonstrate their sporting intellect while playing for cash and prizes. The industry is estimated to be worth more than $5 billion annually. As the core structure of the IXMD software platform continues to evolve, the deployment of new products and features will be less restricted by costs and time. This will allow the company to efficiently release future brands into target markets that prove to be financially beneficial. IXMD is poised to prosper in this under-serviced vertical with its customer-facing Web site, DraftTeam.com and its leading edge, multi-device, proprietary gaming software that can act as a platform for other operators looking to enter this burgeoning space. 3
Investment Highlights Proprietary Daily Fantasy Sports Platform Identifying Key Opportunities in Daily Fantasy Sports Sector New Product Development for Golf, MMA, NASCAR Future Plans for International Expansion Participating in $5 Billion Industry Sector Near-Term Positive Cash Flow Anticipated CNSX & OTCPink Listed Moderate Liquidity 4
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Fantasy Sports Sector Fantasy Sports Overview A Fantasy Sport is a game where participants act as owners to build a team that competes against other fantasy owners based on the statistics generated by the real individual players or teams of a professional sport. Probably the most common variant converts statistical performance into points that are compiled and totaled according to a roster selected by a manager that makes up a fantasy team. These point systems are typically simple enough to be manually calculated by a "league commissioner." More complex variants use computer modeling of actual games based on statistical input generated by professional sports. The industry is estimated to be worth more than $5 billion annually. Even media giants like Yahoo and CBS Sports offer season-long contests for prizes and the formation of the Fantasy Sports Trade Association (FSTA) in 1999 is a testament to the legitimacy and growing nature of the vertical. Fantasy Sports Market Stats It's estimated by the Fantasy Sports Trade Association ( FSTA ) that more than 40 million people age 12 and above play some form of a Fantasy Sport each year in North America. Participation has grown more than 30% annually the past four years with 19% of all males in the U.S. playing fantasy sports. Fantasy Sports is estimated to have a $4 billion $5 billion annual economic impact across the sports industry. Over 36mm people in N.A. competed in fantasy sports in 2010 - Ipsos 2011 $5bln industry sector annually and over $800 mm spent on advertising and media Average Yearly FS player spends $467/year Ipsos 2009 Over $24 million combined investments in Daily Fantasy Sports YTD 6
DraftTeam.com In September 2012, IXMD launched DraftTeam.com, a unique daily fantasy sports platform that allows players the opportunity to engage in daily and weekly fantasy sports contests rather than play over a complete season. Members can compete in many of their favorite sports including football, baseball, hockey and basketball with more to come. The platform offers dozens of daily contest options from two to 200 players, and entry fees from zero to $500 dollars. Members can form their own private leagues with friends or challenge other users for bragging rights. Prize payouts range from a few dollars to tens of thousands in this very lucrative and exciting game. This unique approach has revolutionized the industry. Players can now play as often as they want and for entry fees to fit any budget. It also enables DraftTeam.com to collect fees on a daily basis rather than just once a season. Another exclusive feature of IXMD s proprietary platform is its network approach to fantasy sports. The company can cater to other businesses looking to join this exploding vertical by offering a white label software solution which will co-mingle traffic from many Web sites. The advantage is the instant liquidity for brands just getting started, which immediately overcomes the daunting critical mass challenge facing upstarts. Finally, the DraftTeam.com daily fantasy sports platform is well-positioned for this rapidly growing sector by using leading edge technologies for pc, tablet and mobile. The wide spread use of smartphones and tablets aligns perfectly with IXMD s second-screen gaming features. Users can play games on any device with an Internet connection and receive real-time updates on the status of their teams even when they are watching the games live on TV. DraftTeam.com offers a new and exciting way of playing fantasy sports. The dynamic nature of the daily contests maintain players interests by providing instant gratification, the ability to play more often, and for a range of entry fees & prizes that fit anyone s desires. The games are targeting millions of greenfield sports enthusiasts and 36+ million season-long fantasy sports participants who have yet to learn of this new option by offering a leading edge platform for desktop, tablet and mobile users. 7
Technology Draft Team FS Platform Proprietary Daily Fantasy Sports Platform Launched September 2012 Web Application Framework - Ruby on Rails (RoR) Database - MySQL Hosting & Redundancy Rackspace & Arizona Bay Responsive Website & App (2 nd Screen Experience) Affiliate Software HasOffers.com Tracking Software KissMetrics.com One stop shop for technology product development Strategic guidance, software design, development and management Arizona Bay Jeff Natland Jeff Natland - Advisory Board Member Co-founder of Neteller, used by 80% of online casinos in 2005 Co-founder of Quirky, FeeFighters, Skillz and dozens more 8
Fantasy Sports Network IXMD s fantasy sports software system allows users to play in a daily game as opposed to being committed to the game for an entire season. The current model requires participants to pay an entrance fee and enter their team. The winner or winners collectively receive an average of 90% of the prize pool immediately following the completion of each game or tournament. This creates a small initial investment for the player and a consistent revenue stream from management fees for IXMD. IXMD has gone under significant upgrades to its proprietary daily fantasy sports and social gaming platform. These upgrades allow the company to easily introduce a wider variety of fantasy sports leagues, new game options, contests and tournaments. With these upgrades, IXMD has additional revenue opportunities by offering white label services to new vendors looking to enter the daily fantasy sports sector with their own brand, giving them immediate liquidity by having access to the existing IXMD fantasy sports gaming network. Major upgrades went live in early September and the addition of new functions and features will continue throughout 2013. The company offers the four major sports: NFL, MLB, NHL & NBA. IXMD kicked off its fall marketing campaign to coincide with the upcoming NFL season, followed by NHL, NBA and MLB with PGA to follow soon after. Over the next few months, IXMD will introduce other popular sport leagues and new fantasy sports games to DraftTeam.com, to be determined by customer feedback and demand. 9
Revenue Model To capture its market share of the $5 billion fantasy sports sector, IXMD has established a comprehensive revenue model that supports its financial projections. Use strategic marketing initiatives to drive related traffic to web properties Maximize membership conversion by offering leading technology and quality FS entertainment Charge management fees on all contests and qualifiers Sell product placement and advertising inventory to monetize all site traffic White Label Agreements Marketing Strategies: Strategic Marketing - Ad Rolls & Re-targeting Social Media Facebook, Twitter, Contests Viral marketing Loyalty Programs, Referral Fees & Residuals Affiliate Networks & Partner Distribution Search Engine Marketing (SEM) PPC, Google, YouTube Search Engine Optimization Proprietary Databases Mobile Marketing CPA, Apps Print Media 10
The Market Opportunity Global Social Gaming Revenue (1) Global Online Gambling Revenue (2) (US$bln) $10.0 (US$bln) $50 $7.5 $5.0 $40 $30 $20 $2.5 $10 $0.0 2009 2010 2011 2012E 2013E 2014E $0 2009 2010 2011 2012E 2103E 2014E Social Gaming Revenue Makeup (1) Online Gambling Revenue Makeup (2) Others 20% Advertising 20% Sales of Virtual Goods 60% Other Gaming Lotteries 11% 9% Poker 13% Casino Games 24% Sports Betting 43% 1. Source: Bank of America Merrill Lynch 2. Source: H2 Gambling Capital 11
Use of Proceeds & Financial Projections 12
Use of Proceeds Raised ~C$6 million to date to facilitate Phase I business objectives Various software and product development, marketing, system hardware and hosting, management and consulting fees, general and administrative, listing fees, and legal and accounting Completed recent financing for Phase II business objectives, including new product development, customer acquisition and growth strategies. Use of Proceeds - C$1.25mm Raised Item Cdn $ General Working Capital 29% Transaction Fees 10% Use of Proceeds - Phase II Product Development 19% Product Development $ 240,000.00 19% Marketing & Promotion $ 450,000.00 36% System Hosting, Maintenance & Support $ 75,000.00 6% General Working Capital $ 360,000.00 29% Transaction Fees $ 125,000.00 10% Total $ 1,250,000.00 System Hosting, Maintenance & Support 6% Marketing & Promotion 36% 13
Financial Projections Summary Pro Forma Financial Projections (C$mm) Revenue EBITDA (%) 50 100% 40 75% 30 $25 50% 20 10 $9 $20 25% 0 $2 $6 $0.5 2014E 2015E 2016E Members 11,482 25,279 71,272 0% 14
Management Team & Capital Structure 15
Management IXMD has assembled an experienced management team with diversified and extensive business experience in the entertainment, social media, internet marketing and finance sectors. IXMD personnel have a proven track record in finance, growth and development of successful companies in the Internet and Entertainment sectors. Michael Young, President, CFO & Director Throughout his career, Michael Young has served on several company boards and has extensive experience working with both private and publicly traded companies as an independent consultant, providing services and direction for corporate development in the areas of finance, marketing, public relations and implementation of business strategies. Young has more than 18 years of experience working as a financial advisor, while providing investment strategies and solutions to individual and corporate clients. He is a graduate of the Certified Financial Planning Education Program from the Financial Advisors Association of Canada and the British Columbia Institute of Technology where he studied Business Administration. - John Buttedahl, CEO & Director John Buttedahl brings more than 20 years of sales and business management experience working as a consultant and director for a variety of high volume industries. He has extensive knowledge of internet marketing and developing strategies to acquire customers and increase revenues. Buttedahl attended The University of British Columbia and Carleton University where he received his Bachelor of Arts degree. 16
Management (Cont.) Richard Skujins, Director Richard Skujins is founder and director of Intelimax. Skujins has more than 16 years of experience as an independent business owner and serves on the board of directors of several private companies in the construction, IT and restaurant sectors. Paul Larkin Director Paul Larkin has more than 40 years of experience in corporate finance and capital markets. He is currently president of New Dawn Holdings Ltd., an independent consulting firm providing administration and financial advisory services to a number of private and public companies. Larkin is also the CEO and president of Tyner Resources Ltd., president and director of Gstaad Capital Corp., and a director and audit committee member of LNG Energy Ltd., U.S. Geothermal Inc., Westbridge Energy Corporati0n, Kenai Resources Ltd, Kazax Minerals Inc. and Condor Resources Inc., all public resource companies. Kyle Johnstone Internet Marketing and Product Development Prior to joining Intelimax, Kyle Johnstone was the director of business development at CloudCopy Inc., which specializes in developing viral marketing software. With his wealth of knowledge in viral marketing and social media platforms, Johnstone s goal is to use this experience to maximize DraftTeam s presence on other platforms and create excitement around our own interactive fantasy sports community. Through proven internet marketing strategies and new innovative industry trends his goal is to establish DraftTeam as The Fantasy Sports Destination. 17
Share Structure Current Shares Outstanding 86,650,625 Warrants Outstanding 50,383,287 44,377,000 @ $0.10 & $0.15 1,788,700 @ $0.30 4,217,587 @ $0.60 to $0.75 Options Outstanding 4,775,000 3,750,000 @ $0.18 525,000 @ $0.23 500,000 @ $0.38 Fully Diluted Shares Outstanding 141,808,912 18
Thank you for your interest in Intelimax Media Inc For More Information: Michael Young, President & CFO Tel: 604-742-1111 Email: myoung@intelimax.com John Buttedahl, CEO Tel: 604-742-1111 Email: jbuttedahl@intelimax.com 19
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