Australia-based PREPD, a new hydration-boosting drink, is seeking a $AU2 million (US$1.4 million) capital injection ‘to expand and grow market share’.
The company originally raised more than AU$500,000 in seed capital from angel investors in June 2018 to market the formula to endurance athletes. PREPD also teamed up with IRONMAN Oceania to launch the drink.
Preserve Health, a Flinders University spinout in South Australia developed the new PREPD range. It now aims to raise $AU2 million in Series A capital to fund the growth and commercial roll-out of PREPD nationally across Australia, to launch a new powder product range, and move towards future international expansion.
With an initial launch of PREPD in November 2018, the drink reportedly met with ‘swift acceptance in the marketplace’. Sales leapt 134% over the hot month of January 2019 in Australia.
Preserve Health CEO David Vincent said, “While there are many sports drinks on the market, PREPD is completely different and really sits in a new sub-category of its own. The hydration enhancing benefits of PREPD arguably represents the biggest advance since sports drinks were invented over 50 years ago. With no direct competitors, we have a global vision for PREPD and the potential is enormous.”
Vincent said Preserve Health has a full Information Memorandum available to investors under non-disclosure agreement – via the website prepdhydration.com.au – and is taking expressions of interest by email until 5 April 2019.
PREPD is backed by more than 20 years of research conducted at Flinders University and Yale University. The team note that fluid loss of more than 2% body weight from dehydration is common in most popular sports, which can reduce performance by up to 30%.
“PREPD is not a replacement for sports drinks, but actually makes them work more effectively,” continued, David Vincent. “PREPD is a two-step hydration enhancer consumed 6-18 hours before, and then immediately after exertion, and is designed to boost the absorption of any electrolyte drink or water, helping athletes perform at their peak longer.”
PREPD works by using proprietary resistant starch formulations. These trigger hydration in the gut. Co-inventor Professor Graeme Young from Flinders University explained, “While the human body can’t store water in reserve, the unique resistant starch in PREPD unlocks the largely unused hydration potential of the large intestine to absorb up to 5 litres of fluid per day.”
Clinical trial results published last year showed a hydration boost with AFL players using PREPD compared with consuming leading sports drinks only. Since launching in November, PREPD has been used behind closed doors over the Australian summer by elite level cricketers, footballers, supercar and UCI pro cyclists during the Tour Down Under.
PREPD ambassador Tim Reed, 2016 IRONMAN 70.3 world champion, said “The first time I used PREPD I performed significantly better in my controlled sub maximal cycling tests. I didn’t quite believe the improvement so I retested many times over two months until there could be no doubt whatsoever that the hydration enhancing effects of PREPD are very real and [it] was absolutely improving my performance.”
PREPD is sold online at prepdhydration.com.au, and is also stocked in 25 specialty sport retailers mainly in South Australia and also in Victoria, Queensland and New South Wales.