The year is 2016 and Med-X, Inc. is one of the very first companies qualified to accept small investors via the new Regulation A+ Crowdfunding initiatives created by President Obama’s JOBS Act and regulated by the SEC. Part of Med-X’s plan is to break into the highly competitive pest control industry via its Nature-Cide line of proprietary and highly effective all-natural, eco-friendly commercial pest control products. And Nature-Cide is not only a pesticide products division. Nature-Cide simulatively started its own pest control service division in Southern California practicing and proving what it preaches about the Nature-Cide products.
It is a daunting road ahead with stalwarts like Rollins and Terminix having dominated the pest control industry for decades. Yet in just a few years with the support and backing of Med-X and its thousands of investors, Nature-Cide pest control service and products divisions started flowing revenue. Med-X reported over $800,000 dollars in revenue for 2019 and surpassed $1 million for 2020. Now, with the current positioning, both Nature-Cide Service and Nature-Cide Products divisions are positioned for rapid acceleration.
How is Med-X going to further ramp-up Nature-Cide?
Moving forward, while Med-X is internally growing its own Nature-Cide products and service sales as per the past couple of years, the Company is also going to rely on a roll-up strategy to further bolster the rapid spread of the Nature-Cide products and the bottom line of Med-X.
Over time, it has been demonstrated that roll-up strategies can be highly effective within industries or marketplaces with a large quantity of smaller businesses that operate independently and stick to their own markets. The largely fragmented pest control industry meets these criteria. In 2020, the pest control service industry had close to 30,000 different businesses in operation in the United States and many of these were small single-market businesses. Med-X sees huge potential here for the Nature-Cide Service division.
Med-X management believes that these smaller profitable operators could be acquired throughout the country and will create a network of pest control companies that are using Nature-Cide’s proprietary products and branding the Nature-Cide name. Nature-Cide’s goal is to combine smaller companies who use and promote eco-friendly products and practices together under one umbrella, yet keeping the acquired company’s management and personnel intact to run and grow within their marketplace.
Early discussions have proven to Med-X management that such a proposal may be very attractive to a smaller pest control company owner as a new exit strategy rather than just selling to the traditional large corporate operators and letting them take over operations as they see fit.
Unlike the traditional and typical pest control industry acquisition, a partnership with Nature-Cide actually gives a small pest control operator the chance to participate in what Med-X management has planned for the long haul and for all of its divisions. As explained by Med-X management, by partnering with Nature-Cide, a pest control operator will continue to run and grow their business under a similar compensation as they had previously, yet they will now also be owners is not just all of Nature-Cide Service & Products, but also in the Med-X and all of its divisions. The potential return from this position could be exponentially greater than the traditional method of simply selling to one of the large pest control companies.
As a start to this process, Nature-Cide already has hundreds of pest control service companies throughout the country from Hawaii to New York plugged into their Nature-Cide Certified Partner Program. Management strategy in creating the Partner Program was to initially strengthen and solidify the Nature-Cide brand while adding value to its customers and certified partners by generating service leads through the Nature-Cide partner network. Now, since the network is growing organically, the opportunity to find pest control service partners to acquire and operate under the Nature-Cide Service umbrella has seemingly presented itself on a national basis.
A large part of Med-X’s Nature-Cide acquisition strategy relies on keeping as much of the infrastructures within these potential acquisitions intact and rewarding each new pest control partner management and personnel with a blend of cash and stock for their growth and dedication under Nature-Cide. Med-X will also be providing necessary investments to support growth within each new infrastructure and anticipates some economies of scale will make each Nature-Cide Service partner more efficient and profitable.
So what’s in the future for Nature-Cide and Med-X?
For Nature-Cide Service, breaking into the Top 100 list of pest control companies in the USA is a must in the company’s ambitions. Management feels strongly that the service aspect of the business should mirror the trajectory of the Nature-Cide product sales growth. To this extent, management has multiple service company acquisition targets in their sights. In addition, Med-X has opened acquisition discussions with some of Nature-Cide’s suppliers as well as other all-natural and eco-friendly product manufacturers with complimentary green solution products and who match Nature-Cide’s mission.
Med-X is engaged with multiple investment bankers as well as an investment accelerator with hopes of finding a large scale investor to position the Company to carry out the acquisition strategy and eventually list on the Nasdaq with their reserved symbol “MXRX.” Part of Med-X’s continued next level of growth will also be to onboard more high-level sales staff members and to focus on roadshows and other events bringing their products to even more users than the thousands of loyal customers that depend on them now.
An end-goal will also be to position the Company and its brands on an international level as well. With relationships already with the top pest control companies in places like India, Australia, Hong Kong and Singapore, this thinking is not too far-fetched. Med-X has ambitions to not only break the Top 100 pest control companies in the United States, but to become a force in the world for the industry, and create real change, giving peace of mind around the world. With expert business decisions and strategies within the company ranks, this is less of a crazy dream and more of a long-term goal they are well on the path to achieving.
Med-X is open to queries and interest in the company and its products. Do not hesitate to call 818-349-2870 or to visit their website, www.medx-rx.com, for more information on this rising giant of pest control.
This article is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. Med-X, Inc. Cautionary Statement Regarding Forward-Looking Statements
There may be statements in this article that are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and, therefore, subject to risks and uncertainties, including, but not limited to, statements regarding Med-X, Inc. To learn more about the risk factors in Med-X, Inc., please review Med-X, Inc.’s Regulation A+ offering circular.