HyperSciences, Inc

HyperSciences, Inc

Harnessing the power of extreme velocity

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Security Type
Preferred Stock
Categories
Energy
Min Investment
$1,000
Location
Spokane, WA
Offering Date
July 03, 2018
Target Raise
$2.50M-$10.00M
Deal Notes
  • Security Type: Preferred Equity
  • Share price: US $3.8400
  • Pre-money valuation: US $25,000,000
  • Option pool: 10.0%
  • Liquidation preference: 1.0x
  • Minimum investment: US $1,000
  • Target Minimum: US $2,500,000
Valuation
$25,000,000

Company Description

HyperSciences is a technology company that has created an innovative hypervelocity propulsion system for major industries such as fast tunneling, energy drilling, and aerospace. We believe we have developed one of the world's fastest simplest, and cheapest commercial projectile launch system, which can robotically accelerate objects at velocities greater than Mach 5 speeds. We have already created a portfolio of patented and patent-pending hypervelocity technologies to solve some of the most challenging problems in energy, terrestrial transportation, and materials production. Each major industry we plan to tackle (tunneling, energy drilling, and aerospace) is ripe for a revolutionary change in efficiency and economics. We believe our precision robotic accelerators that utilize Artificial Intelligence are the answer. We first applied this disruptive solution to drilling with our HyperCore technology. HyperCore uses low-cost chemical energy to robotically load and then accelerate projectiles to hypersonic velocities, allowing projectiles upon impact to break and pulverize hard rock faster, deeper, and through a wider range of conditions. HyperSciences is commercializing its robotic HyperCore tools for HyperDrill which is designed to allow low-cost access to deep energy, including both conventional oil and gas use as well as our "Energy Anywhere" geothermal system power generation. Our technology is designed to drive projectiles through tough environmental conditions to quickly and efficiently reach untapped geothermal resources. By reaching these deep geothermal deposits in the earth, we will be able to conduct this heat energy towards the surface and convert it into electrical energy. This electrical energy, once generated back to the main power grid in the scale of Megawatts, we think will be a significant paradigm change in renewable, clean energy. We are using this same technology to create the Hyper Tunneling Boring and Mining system (HTBM). This system replaces two conventional tunneling methods, the first involves drilling and then using explosives to remove material, the second involves rotary tunneling which typically is slow and cost tens of millions of dollars per machine. Finally, as a platform technology development company, Hypersciences has been able to take the key components of HyperCore, namely the automated launch system and acceleration method, to launch objects to high-altitudes (up to 100km in height, which is almost 10 times the altitude that commercial jets fly, and on the boundary line to space). We are developing this into our HyperDrone product which we believe will be game-changing for USA government contracts in the aerospace community, such as the Department of Defense and NASA .

Perks

$50,000 (“Bronze”) – Free t-shirt and deal replica projectile and plaque to commemorate this offering.
$150,000 (“Silver”) – All of the above, plus participation in regularly scheduled quarterly call with HyperSciences senior management.
$300,000 (“Gold”) – All of the above, plus arranged, paid airfare (domestic or domestic equivalent airfare towards international) to a HyperSciences location for in-person investor tour and a one-time dinner with management. Also includes invitation to annual updates (dinners, calls, etc.) with the HyperSciences senior management team.

Key Deal Facts

Entered into $1mm research partnership with Shell who provided funding for development and testing
Accomplished CEO who has a Masters Degree from Stanford University in Aero/Astro Space Engineering, led the crew capsule program at Jeff Bezos' Blue Origin
Key strategic investors include Mike McSherry — founder of Boost Mobile and former CEO of Swype
Over 500 test fires conducted on our drilling, tunneling, and aerospace equipment
Externally validated hypersonic performance by an outside laboratory

Use of Proceeds

  • 26% Pay and expand team
  • 24% Deploy HyperCore unit
  • 16% Debt payment
  • 15% Deploy HyperDrill and HTBM
  • 11% Joint industry testing
  • 5% Manufacture one HyperCore unit
  • 1% Working capital

Management Team / Advisory Board Bios

Mark Russell
Founder and CEO
Mark is the founder and CEO of HyperSciences. Mark has a Masters from Stanford in Aero/Astro Engineering, is the former lead engineer for Blue Origin, and has a long history of family mining development and operations for some of the world's largest mines. Mark provides both the vision and technical expertise to lead the world's first company focused on hypervelocity applications.

Deal Notes

  • Security Type: Preferred Equity
  • Share price: US $3.8400
  • Pre-money valuation: US $25,000,000
  • Option pool: 10.0%
  • Liquidation preference: 1.0x
  • Minimum investment: US $1,000
  • Target Minimum: US $2,500,000
Amount Raised : $8,331,152
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Security Description

Preferred securities are a type of investment that generally offers some sort of preferred treatment through a dividend or preferred treatment in a liquidation.

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