Hair growth treatment program/money back guarantee

Insured: Evergreen Rejuvenation Limited – exclusive distribution rights in China & HK market.

Manufacturer background (BIH – Bio Innovation Holistic):

The company’s Head Quarters is located in Hong Kong with subsidiary operations offices in Korea. Its
global distribution network spans more than 30 countries in Asia, Europe and the Middle East. BioCM
treatment range is now used in over 20 countries worldwide through clinics, dermatologists and
aesthetic centres. BioCM – stem cells.

The hair growth treatment and homecare program is gaining an excellent reputation and through high
demand is now being franchised throughout Asia, facilitated by well-known aesthetic clinics and highly
regarded hair spa chains.

Key Person:
1. Ms. Jee Young, Jang Theresa – Founder of Bio Innovation Holistic Limited
2. Dr. Hangrae Cho, MD, PhD – Chairman of Ohkims Dermatology & Hair Transplantation Center
3. Mr. Joseph, Quek – Business Managing Director of Bio Innovation Holistic Limited
4. Ms. Sau Hung, Yue Eva – Chief Trainer & Sales Director of Bio Innovation Holistic Limited

Program:
1. Receive treatment by equipment once a week for 6 months program; and
2. Consume designated amount of shampoo, conditioner and tonic
3. Success – Improvement of hair growth; 5% in quantity/thickness of hair

Business projection:
1. Average HKD90,000 for 6 months, 1,000 clients = HKD 90 mil
2. Projected loss = 10 clients (1%)

Risk mitigation:
1. Pre-requisite hair condition analysis – to avoid ‘hard’/bald cases
2. High-quality training courses for affiliated distributors and professionals. Active ingredients are at
the highest levels and can only be applied by specialists that have attended our certified training
courses.
Exclusion:
1. Fail to attend at least 3 times (cumulative?); or
2. Fail to consume the required amount of shampoo

Trigger:
1. NO RESULT - <5% in growth?

Concerns/Proposed Underwriting queries

1. Provide past 10 years track records – NOP (sales), success/failure rate (with over 10 years, why
require insurance now, if the product is just as successful as proclaimed?)
2. If claims are only expected to be 1% as proclaimed, and we are definitely charging > 1%, they might
as well retain the risk and pay off by themselves. We do coinsurance. Premium as % of total income
(similar to PI?) – propose: 20% of their ROE
3. Provide past 10 years audited financial reports.
4. Active ingredient in the treatment?
5. Can’t control the amount of shampoo/conditioner/tonic that the customer uses.
6. Provide the pre-requisite hair condition analysis risk assessment details
7. Details of training/courses?
8. Fake awards and affiliation?
9. What if in cases of true baldness; once the scalp skin becomes smooth and shiny it indicates that the
follicles have been destroyed. In this instance they are no longer open to stimulation so
pharmaceutical and even sometimes surgical methods are unworkable.
10. Does the product counter acts with DHT (since we do not know what is the active ingredients) ,
which is a chemical by product from androgen and testosterone combining. The effect of DHT varies
between men and women. DHT is responsible for about 80% of hair loss in men and can cause
complete baldness on the crown. If this is the case, we need to know how the product counteracts a
naturally available chemical in the body.
11. Hypothesis on hair growth shown in the form of public sampling or scientific experiment is needed.
Good reads:
https://www.nourishbeaute.com/blogs/news/burst-hair-growth-treatment-serum-fights-hair-loss-with-
stem-cell-technology
https://www.belgraviacentre.com/blog/stem-cell-hair-loss-treatments-may-be-available-by-2020/
https://www.advancedhair.com.au/male-treatments/stem-cell-hair-technology-factors/
https://www.advancells.com/stem-cell-treatment-hair-loss.php
https://www.natureworldnews.com/articles/38741/20170816/activation-of-hair-follicles-stem-cell-for-
faster-regrowth-the-answer-to-baldness-alopecia.htm
http://hairlossdebate.com/hair-loss-cures/
http://www.lifeextension.com/magazine/2014/6/support-healthy-hair-and-scalp-regeneration/page-01