Overview

• Alaris is a lower risk, defensive investment.
• Alaris provides cash returns to its investors that are uncorrelated with the stock market.
• The royalty structure is based on "top-line" financial performance of the portfolio companies Alaris holds.
• Alaris' royalty revenue is a low percentage of the free cash flow of their Private Company Partners. This greatly reduces the event of default from a portfolio company.
• Alaris has strong protective covenants in place to protect its financial position.
• Alaris' revenue stream is built across stable industries and is diversified throughout Canada
• Royalty payments to Alaris are set for 1 year at a time based on a "top-line" financial metric. This makes Alaris' revenue stream highly predictable well into the future.
• Alaris receives monthly financial reporting from each of its portfolio companies. This creates visibility beyond a 12 month period.

Alaris' structure is highly efficient and scalable;

• By structuring our transaction as "top-line" minority investments, Alaris simply needs to monitor the portfolio company, not actively manage it.
• With such a scalable structure Alaris can pass nearly 90% of its revenue to stakeholders through monthly dividend payments.
• The current structure is so scalable that Alaris can more than double its revenue base with the current platform of management it has in place.

Set royalty payments allow Alaris to increase dividends, decrease their payout ratio and reduce risk immediately with each new investment.

Growth Strategy

Alaris hopes to grow its portfolio by investing in companies that are "old economy" with consistent profitability and a track record of free cash flow. Alaris will target companies that are family controlled and are typically a poor fit for traditional private equity, with owners that will use the proceeds for growth or partial liquidity. Alaris plans on focusing the majority of deal generation in Canada but will consider the opportunity to do a U.S. based deal under the right circumstances.

By using disciplined investment criteria, Alaris will find proven performers with attractive operating histories to add to its portfolio. These companies will have to show a history of growth and strong future opportunities or Alaris cannot invest in them. Another key criterion Alaris looks for is management continuity with no change of ownership following the transaction. This ensures the portfolio company is still run by the capable management and ownership teams that made them such a great investment opportunity for Alaris. Companies with low leverage and capital expenditure requirements will also continue to be key criterion Alaris uses to screen potential investments.

Benefits of the Alaris Structure to private businesses:

• Maintain full operational control of their business
• Maintain business legacy
• Achieve liquidity and financial diversity
• Gain access to lower cost of capital
• Participate in future growth of their company because Alaris only participates in "top-line" growth.
• Extremely tax efficient