I wanted to share something with all of you that will show why most Veterianarian Clinic will be referring their patients to us instead of treating the dog with chemotherapy like they have been doing in the past.
As of December 31, 2019 at Midnight, a new compliant protocol that all Veterinarians, their staff and their facility must have takes effect. They must be in compliance with it by then if not they will be fined and can lose their license. It is called USP <800>. This is specifically for using injectable chemotherapy which is what we use. Any Veterianarian Clinice that plans to use injectable chemotherapy to treat dogs with cancer must make their clinic compliant. The cost of equipment in each facility is around $200,000 or more. So many Vet clinics will not be able to afford that cost. Each of OUR Canine Cancer Centers will be FULLY COMPLIANT. This means more Vet clinics will have to refer their patients to us insuring that we will have a lot of referrals.
How much do you need to fully equip 1 Canine Cancer Center with everything that you need to fit that USP <800>?
If we rent the buildings at first, I have budgeted $600,000 to $750,000 USD for build out and having funds to pay for one year of operating costs including salaries per one clinic. This is accounting for about $300,000 to be fully USP <800> compliant.
If we build or buy the building it would close to $1M to $1.2M USD. Owning the building is better because that is an asset on the balance sheet.
Are you sure that you can comply with all SEC requirements regarding STO? I think many investors will be afraid that you can't. So, you need to ensure them, that everything is fine and the project won't have any problems with SEC.