This offering was another significant extension of the DPO
experience. For one, it was a test of how small a truly "public" offering could
be and still be cost-effective. Secondly, it recognized that the company's customer base
was not going to be large enough to support the necessary investment -- other affinity
groups would need to be defined and reached.
Michael Quinn, a registered pharmacist,
had a lifetime belief in homeopathy. He had started a pharmacy, connected to the
well-known Hahnemann Clinic in Berkeley, California. (Many hospitals and clinics had been
named after Dr. Hahnemann, who founded homeopathy 200 years ago.) The pharmacy made its
own remedies and Michael wanted to begin a pharmaceutical laboratory, in compliance with
FDA standards, in order to have nationwide distribution.
The marketing challenge was to find and communicate with
people who were true believers in homeopathy. We operated on the assumption that the only
investors would be those who had personal experience with homeopathic remedies and
believed homeopathy would be a growing part of the health care industry. Michael mailed
announcements to the customers of a homeopathic bookseller and a homeopathic software
company. Professional organizations members were told of the offering in newsletters,
magazines and more mailed announcements.
Regulation A Offering Circulars were mailed as requests
came in from these announcements. A total of $467,000 in shares was purchased, by 242
investors. Hahnemann Laboratories held its first shareowners' meeting a
few months after the offering was over. The main event was a tour of the new manufacturing