Hilco Streambank is actively seeking offers to acquire the business and assets of Genius IP Limited (In Administration).
On behalf of the Joint Administrators, David Hudson and Geoffrey Rowley, of FRP Advisory Trading Limited, Hilco Streambank is actively seeking interested parties to acquire the business and assets of Genius IP Limited (In Administration) (“Genius IP” or the “Company”).
Genius IP is an engineering design business founded in 2012. The Company designed and manufactured the “Quadsaw”, a drill attachment that it marketed as creating consistent, perfectly square-shaped holes for power outlets, data outlets, and light switches in walls. Genius IP marketed the Quadsaw was the world’s first tool that could drill a square hole, and the Company advertised it as capable of cutting plasterboard four times faster than alternative methods, thereby generating significant time savings for trade professionals. The Quadsaw was designed to be hard-wearing and used repeatedly by professionals on construction sites. The Company stated that its product was capable of drilling through double layers of drywall of up 1” thick. Multiple iterations of the Quadsaw were developed, with the latest launching at the end of 2020.
The Quadsaw retailed for $199.99, including one blade pack. The Company had also developed a dust extractor that retailed at c. $34 and which approximately 9% of customers purchased as an add on product. The Company sold the Quadsaw and its dust extractor online and through international distributors and wholesalers.
Manufacturing of the product was subcontracted, with the Quadsaw made by a UK plastics manufacturer and its blades made by two suppliers in China. The Company had conducted significant marketing in relation to the Quadsaw brand, which had begun to gain recognition among its target customer base on social media and had been featured in several trade publications. Prior to the Company entering Administration, its Management were in discussions with a number of large retailers in relation to sale of the Quadsaw internationally.
In the first four months of FY2021, the Company generated revenues of c. £15,000, with a small gross loss and a net loss of c. £50,000. In FY2020, the Company generated revenues of c. £160,000 with a gross loss of c. £110,000 and a net loss of c. £640,000.
The sale presents a unique opportunity for an investor or trade party to purchase the intellectual property assets that underpin this established, revenue-generating business. A small number of finished and prototype Quadsaws are available as part of the sale and a potential purchaser is likely to be able to quickly pick-up the Company’s existing links with its manufacturers.
Goodwill in Corporate Brand
The Company’s corporate brand ‘Genius IP’ has likely generated goodwill via its association with the Quadsaw product on the Company’s website and through its general marketing.
Goodwill in Product Brand
The Company’s products are marketed under the Quadsaw brand. The Company has conducted marketing campaigns in relation to this brand, which is supported by social media accounts on Facebook, Twitter, and YouTube.
Registered Trade Marks
The Company has 29 registered trade marks, consisting of both figurative marks and word marks in key territories including the USA, UK, Europe and Japan. A trade mark schedule is available on request.
Trade Mark Applications
The Company has two pending trade mark applications for ‘Quadsaw’ in the US and Canada. A trade mark schedule is available on request.
The Company has a portfolio of domain names relating to its Quadsaw product. These domain names include Quadsaw.com; Quadsaw.au; Qua4dsaw.com; Qu4dsaw.co.uk; and Quadsaw.tools.
The Company has collected certain customer and supplier data, which is stored within its CRM systems. The Company’s email marketing database contains in excess of 1,000 records.
The Company holds rights in a set of design registrations relating to long and short iterations of its blade product.
The Company has developed a bespoke e-commerce website hosted at www.quadsaw.com. The Company’s website contains information on the benefits and features of the Quadsaw product, features e-commerce functionality, and is linked to the Company’s social media accounts.
The Company holds rights in two families of granted patents that relate to the Company’s Quadsaw product. These patents had been appraised and were insured by a well-known third-party IP insurer.
The Company holds rights in two families of patent applications relating to inventive claims used in versions of the Company’s product.
Inventory & Prototypes
A small number of Quadsaw units and prototypes are available as part of the sale.
The Company’s equipment, including moulds and tooling, is available as part of the sale.
All expressions of interest and bids are to be directed to Hilco Streambank in writing. A Bid Submission Form is available on request. Please contact Hilco Streambank to gain access to a virtual data room of further information on signing of a confidentiality agreement.
KEY TERMS & CONDITIONS
The Joint Administrators act as agents of the Company and without personal liability.
The bidder acknowledges that Hilco acts as an agent for the Joint Administrators of the Company who offer for sale only what right, title and interest (if any) the Company possesses in the assets. Such sale will be without any warranties, expressed or implied. Neither Hilco nor the Joint Administrators have verified the information provided, and bidders are deemed to have carried out their own due diligence.
VAT, if applicable, at 20% will be added to the price. A buyer’s premium of 10% applies to this sale. A non-refundable deposit of 20% will be payable by the buyer within 48 hours of bid acceptance. Legal completion to occur within 5 business days of bid acceptance. Hilco Streambank’s full Terms and Conditions apply.