Liberty Diversified Holdings, Inc. (OTCBB: LDHI)
Liberty Diversified Holdings, Inc. (OTCBB: LDHI) is focused on aggressive growth and diversification through acquisitions, mergers and joint ventures in all areas of health, wellness and fitness. Liberty is moving quickly to become a thriving and successful conglomerate that owns and controls a variety of companies in the multi-billion dollar industries of health, wellness, weight loss and fitness. Liberty’s revenue model currently consists of four components: (1) Cellubike; (2) Better Bodies Wellness Centers; (3) weight loss and nutritional supplements; and (4) iridology and wellness.
Subsidiary – Better Bodies, Inc
Better Bodies, Inc. contains a licensing agreement and marketing rights for “CelluBike,” a revolutionary product which integrates cardio-vascular exercise with modern infrared technology to assist in weight loss and the reduction of cellulite and inches. CelluBike also offers numerous additional potential applications for the health and wellness and medical professions, as well. Better Bodies, Inc. was formed in 2006 to import and operate CelluBike locations throughout the U.S. and eventually worldwide. Locations are currently operating in the Southern California, Utah, Texas and Las Vegas, Nevada areas. The locations have been a success and are producing revenues. Better Bodies also markets CelluBikes to Day Spas, Wellness Centers, Nutrition Centers and to celebrities.
The CelluBike is revolutionary in that it uses two different technologies in one unit — infrared heat integrated with a recumbent bike. While the user is peddling the recumbent bike to get their heart rate up to 60-70% of their maximum heart rate, CelluBike simultaneously employs an array of infrared lamps to direct infrared heat directly to the body. This combination of exercise and infrared can increase the number of calories burned in a 40-minute session to as high as 2,400, compared to approximately 200-500 calories for a typical exercycle. Each 40-minute session allows the body temperature to rise about 3 degrees Celsius, causing the user to create a deep sweat, first from their sweat glands and then after continued use, from their sebaceous glands. This deep sweat functions as “the body’s cleanser” and is sometimes referred to as the “third kidney” because it plays a very important role in expelling wastes from the body, including toxic substances such as dioxin, lead and other heavy metals that do not melt in water but dissolve in the fat in the body. Whereas normal sweat comes out through sweat glands, these built-up toxic substances are ejected only through the sebaceous glands.
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Products
CelluBike
Unlike invasive liposuction or over-the-counter anticellulite treatments, the CelluBike engages the bodies own force to actually eliminate, not disguise or forcibly remove cellulite, from the body. While peddling the recumbent bicycle at 75% of your maximum heart rate, the Certified Technician will position the array of infrared lights onto your problem areas. The length of the infrared ray (in microns) will vary with each session, based on your personally formulated program and the intensity of the cardio activity will be appropriate to your fitness level.
Infrared energy or thermal energy, without which life could not exist on this planet, penetrates the surface of the skin up to 1-1/2”and warms and softens the hardened cellulite. Then, very simply, the increased cardio activity of the bloodstream combined with the accelerated metabolic processes of vital organs and endocrine glands flushes the cellulite away through the digestive system and through the elimination system. You will see these residues leaving your system through the sweat glands as well as your excretion system within several hours after a session. As you can see from the wave length chart, this is very different from UV rays, which are harmful. In addition to aiding in flushing cellulite from the body, infrared helps in ridding toxins from the body that are stored in the fatty tissue.
Benefits
The deep cleansing afforded by the combined exercise and infrared treatment of the CelluBike may also result in the following additional benefits:
* Detoxifies the body of narcotic drugs and hormone disrupting chemicals
melted in the body fat and internal organs
* Detoxifies the body of heavy metals, hydrocarbon residues, alcohol,
nicotine, sodium and cholesterol
* Stimulates endorphins of the brain and kills unwanted organisms like
bacteria and parasites
* Helps relieve pain associated sprains, muscle spasms, muscle soreness and
joint stiffness
* Decreases or eliminates the amount of soreness, swelling and lactic acid
normally created through exercise
* Enhances circulation and oxygenates the tissues
* Increases the body’s metabolism and relieves stress
* Decreases blood sugar levels
* Sharpens senses and relieves stress, leaving the user feeling refreshed and
rejuvenated
* Improves skin tone and elasticity
* Helps reduce scars, burns, and other unsightly or irregular skin conditions
* Increases blood circulation and stimulates deep cleansing of impurities in
the bloodstream
* Improves the immune system by increasing the immune power the
leukocyte, macrophage, NK cells and activates T cells (the immune power is
strengthened over 200 times by raising the body core temperature up to
3.5 degrees C).
Customer Profile
Better Bodies, Inc.’s target market includes Day Spas, Wellness Centers, Med Spas, Nutritional Centers, weight loss centers and other centers that specialize in the health and well being of the body. There are thousands of these centers across the country and more are being started everyday. They are all looking for new innovative products and services for their customers. Some of these customers are currently using our competitor’s products and would be prime targets for our sales team. The customers are being educated on our product through press releases and advertising that is creating customers for the bike and customers that want to use the bike. We will do an infomercial for the home unit next year and this will air all over the country starting with California.
A partial list of customers includes:
* Low Cost Weight loss Center
* ProActive Wellness Center
* Inner Active Nutrition
Research and Development
In response to demonstrated needs of our market, new products are being developed which include the home unit. This unit will incorporate the existing technology and a new, patented process that we feel will enhance the effectiveness of the CelluBike. The new bike will be using infrared and a new source of radiant heat that will increase the bike’s effective ability to promote the loss of inches. These new products are especially useful to older clients who can use the bike for loss of inches, and a full cardio workout without over exerting the heart. With the combination of infrared and the new radiate heat it will also relieve sore muscle pain and help with the pain from arthritis along with other aches and pains. The new bike will be the most profitable for the company because of the higher volume of units that can be sold.
Launches are planned for April , 2007 and June , 2007.
Market Analysis
Cellulite afflicts 85% of women over the age of 18. This problem has been identified by the medical, pharmaceutical and beauty industries as one of their greatest potential profit areas. There are creams, shoes and other devices that claim to reduce the appearance of cellulite. However all of the claims that have been made to date show marginal success or no success in reducing the appearance of cellulite.
Cellulite has created a market for a number of products that have tried to address the problem. However none of the products have had any real success. The CelluBike has been on the market in Europe for the last six years with documented success in addressing the cellulite problem. What is Cellulite? Cellulite is fat that is trapped beneath the skin and shows as ripples in the skin this is commonly referred to as “cottage cheese”. This “cottage cheese” is prominent in women because fat cells under the surface expand pushing against vertical bans of connective tissue. The pressure causes the bands to pull down on the top layer of the skin creating a dimpled effect. Doctors now believe that cellulite forms when the skin begins to thin, allowing fat to rise to the surface. As women experience hormonal changes associated with puberty, pregnancy and menopause, fat cells clump together and accumulate in columns. The columns, separated by vertical connective bands called septa, act like stitches in a quilt: they pull down on the skin, causing it to pucker even as the fat puffs out like stuffing. Men typically don’t get cellulite because their skin is thicker and they lack these vertical bands however men still have the problem of fat. All fat is made up of the same substance and the treatment of the problem for men is the same as with women. Dr. Jim Gilmore, a Dallas plastic surgeon who is president-elect of the American Academy of Cosmetic Surgeons, stated in a recent article in Health regarding cellulite “You can make some improvements, but if there was a magic bullet, somebody would be very rich.” Another of his quotes states that one of the best ways to fight cellulite was to get fit.|
The CelluBike not only address the problem of cellulite but the problem of other fat that accumulates on and around the body. This is the reason that we can promote the loss of inches from the body and re-sculpt the body into the shape that not only is very appealing but is also healthier.
Market Definition
The cellulite and weight loss market is growing rapidly. The market for these products amounted to over $33 billion in 2005-representing a 22% growth over $27 billion in 2004.
According to the Philadelphia Business Journal the percentage of people who are obese rose from 16.1 percent in 1995 to 21.4 percent in 2001, according to the Centers for Disease Control. The national average for obese adults is 20.9 percent. Obesity is defined as having a Body Mass Index, BMI of more than 30, calculated by dividing a person’s weight in kilograms by height in meter squared. And fat more and more equates to money, whether it’s growing enrollments in health clubs, medial procedures or simply healthier lifestyles. The overall market for the cellulite and weight loss industry nationwide is projected to be over $100 billion by the end of 2010.
The area of biggest growth in the cellulite and weight loss market is in the area of fitness, dieting or portion control and new technologies for the reduction of cellulite and reforming the body.
Currently, the market is shared by companies like Ikon, Life Cycle, Sport Trac and products such as VelaSmooth and procedures like Mesotherapy. Also in this group are companies like Weight Watchers, Jenny Craig and Nutrisystems.
In the next one to two years it is estimated that there will be more than 3,000 CelluBikes sold by Better Bodies, Inc.. The market potential for the spa model of the CelluBike in these quantities – with a current retail price of $44,500 per unit – is approximately $133 million. This translates to Better Bodies, Inc.’s market share of..02% of the overall market by 2008.
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