Nutritional Growth Solutions (ASX:NGS) Chairman Brian Leedman provides an update on its products and expansion to China.
Thanks very much for your time here this morning or this afternoon. I'm actually in Perth, so it's still morning over here. I want to take the next 15 minutes to talk about Nutritional Growth Solutions. This is a company that we listed on the ASX late last year. It was very well subscribed to. It's three times oversubscribed. The share price was an IPO of 20 cents. We raised $7 million. We were, as I said, three times oversubscribed and the share price, I think, peaked on the day at 38 cents. We're currently sitting around 27.
And it's an exciting product for me. I mean, to those that are familiar with me, I'm a biotechnology healthcare entrepreneur. I've listed a number of companies on the stock exchange, notably OncoSil Medical, Imaging Limited, ResApp Health, City Unlimited, Neurotech International. I'm also now chairman of Neuroscientific. NGS I'm chairman of. And these are all exciting companies.
And NGS is particularly interesting to me because this is a company that came out of Israel and they've got this product, which assist in children to grow taller faster. My initial reaction to this was pretty incredulous. And I thought to myself, why would I want to get involved in that? But they assured me that this product had had extensive clinical trials, published in prestigious publications. So I looked more into it and essentially it's true.
So this product actually assists in children to grow taller faster between the ages of three and nine. And the clinical trial was done on 200 children who all fell in the lowest quartile of growth. That means that they're shorter kids. So the product is clinically proven to assist kids who are in the lowest quartile, but that's 25% of all children liable. And they grew on average 30% taller during the 12 month study than those children in the controlled group who received the placebo, which is remarkable.
This product is now available commercially. It's being sold through Amazon in the United States, and we've just expanded into China. And we'll also be expanding into Europe and some time, hopefully soon we'll be selling in Australia as well. And you can see in front of you, the group of products that we have. So it's the one in the middle, Healthy Height in the big packet, that's the main product that we're expanding into other products to create a platform of products that can be available for sale.
So, as I mentioned, it's unique and scientifically formulated. It was developed at the Schneider Institute in Israel. It's the largest and most prestigious paediatric hospital in Israel. And the clinical study was conducted on 200 Israeli children. And all these children, as I said, are in the lowest quartile of growth. They're all healthy. But the problem with what parents feed their children these days is that they're doing the best they can, but they're actually missing out on certain key nutritional elements to their diet. It's no fault of their own. It's just the way the modern diet works. And this product actually supplements their daily needs and provides them everything that they need in order to achieve their optimal height. And if you don't get what you optimally need, it will stunt your growth, particularly children, if you are in the lower quartile of growth. That's what the clinical studies have shown. And that's why our product is demonstrated.
Now, it's interesting, if you think about the nutritional market, I'm sure you've all been into stores and the supermarkets and pharmacies, and you'll see that there are literally hundreds of products that take up huge amounts of the shelves. I'm talking about Blackmores, Swisse, NatureZone. There hasn't been a single product on those shelves that has had any clinical trials conducted on any of them. They all make fluffy statements like this could assist, or it might assist or things like that. It might be of benefit to you. There's nothing wrong with these products. I mean, they're perfectly healthy. You can't overdose on them. They don't have any side effects, but there are some loose claims that they can make a bout.
And I thought it would be interesting for a company like Nutritional Growth Solutions to be a first, to actually have clinical claims associated with their products. It's an interesting concept is I come from WA, there's an old saying, we say here, don't ruin a good mining tenement by drilling it. And that's because you can do pretty well with a piece of dirt that you go slow on the drilling and things can go well for you if you're a director of that type. I'm not that type of person. I want to show that our products actually have clinical benefits. And I think we can differentiate ourselves in a very crowded market, none of which are actually making any claims around children's height. So I think it's a pretty bold move by the founders of this company to actually do the clinical trials that they've done, and then be able to brand it accordingly as actually a clinically-proven product that assists children to achieve their optimal height.
So in terms of the company, you can see we've got 94 million shares on issue, probably about 27 cents. It's a market cap of $25 mil. We've got plenty of cash in the bank. This company is already generating cash. We're generating sales from My Amazon sales and I'll get into the other platform markets that we're going into, which is really going to be the growth driver for this company. And I'm confident that we'll be generating very large revenues in possibly this year, which would be very exciting for everyone. You can see the board of directors there led by myself. Liron is the MD. She's based in Israel as is Professor Raanan Shamir. Dr Anton Uvarov is co-company director, a friend of mine, who's on the Board of Neuroscientific Biopharmaceuticals with me, and we've got Kinneret and Amir as well, all on board.
You can see our sales, this product has only been around for a couple of years. They actually did a deal with GlaxoSmithKline and sold the rights to India for a large sum of money. That was what generated this company's growth in terms of capital needs to date. And you can say that they've been generating significant sales on a quarter by quarter basis. This company is pretty much already breakeven right now. So with the new initiatives that we're doing through Amazon and Shopify, particularly going to China, we can see these revenues grow significantly.
So the market is very huge. You can see big numbers there in terms of nutritional supplements, but we see it in a very special space. With our infant formula, we're actually four prepubescent teams who do fall into that lowest quartile of growth. It may well be of benefit to children who are outside of the lowest quarter. I can't prove that claim because we didn't have those children involved in those clinical studies, but at the same time, it may well be of benefit to them. It certainly won't hurt them. But as I said to the start, 25% of the global market for children is still a very large market.
So obviously children's heights are a major concern for parents around the world. I would like to say that I think in China, that is a particular concern. And we know that the Chinese parents will do anything to try and help and assist their children particularly over there. That is a major market for us and I can't wait to get into squawking about that.
So we're helping kids grow with confidence, I've already discussed this. So the research, 20 years of research and dozens of publications, this is really the key to the company. It's not just some Blackmores or Swisse or NatureZone with red krill oil or whatever those products are. This thing has been totally researched and published. And it's the publications of these documents which is really the key in terms of being able to promote this company, because it is a point of difference and it will be a point of difference to the huge supplement companies like the Nestles of the world who look to acquire companies like ours once we've actually demonstrated the significant increase in sales that we're showing now.
So what's it made of? It's really just healthy fats and proteins and vitamins and so forth. So it's the combination of them that makes it do what it does. There's nothing particularly special in it, other than it's been formulated in a particular way that actually shows that children grow taller faster without an increase in their BMI index, which is a particularly important aspect.
This is the evidence you can see on the 200 patient study. It was a double-blind placebo-controlled study. And you can see the P values of less than 0.01. So that's the most significant that you could possibly get in a clinical trial. And you can see that the children grew 13.8% to 34% more in height than those that received the placebo without an increase in BMI. And that's across a 12-month period. You can see there for the end of the extension of that phase of six to 12 months. And a two out of patients study is a very significant study. So that's pretty much the basis of this product and the claims that we can make.
So you can see there's the main product. That's less the packaging. That's what you see over in the United States right now with just those selling in pharmacies over there. And there'll be Chinese branding for the sales in China. We also have other products that are in development. The Junior Growth Formula also being conducted in clinical trial trials for children that are 10 years and up. So it's really for kids going through puberty and that product is coming out as well.
And then we also have for athletes as well, is another product also conducting clinical trials.
The Chinese market is a particularly exciting one for us. We already have an agreement with High Hopes Baby, which is a major retailing distribution group in China. And we also set up a Tmall Global store through Alibaba, which is also all part of our ASX announcements in recent weeks. And we're expanding our Chinese distribution, both online and offline. So the online market is the one that I'm particularly excited about and offline will be through pharmacies and we'll see how that goes as well. And so we have a major distribution. We have huge quantities of products that are currently landing in China and more products that are arriving from where we're manufacturing are higher in the United States. And they're on the way in order to fulfill the huge expected demand that we're going to have in the coming weeks. That is because we have this new initiative, which is coming up after this slide.
So also in the United States, we have already distribution through Amazon and our Healthy Height website. That's been the basis of sales that we've had to date, has all come through Amazon sales, but we want to expand these sales, particularly through China.
As I said, we've got new products, new sales channels, obviously going through retail stores, not just through Amazon, and also into China and also new territories targeting South Korea and Europe. And you will see some more news about that in the coming weeks.
There's a road map here you can see. We've also got the Healthy Height Bar launch, which is coming up. We have the Chinese distributor, the sports products and so forth.
So before I get into the Board of Directors, I just want to talk about this China thing. So we have this announcement that we made in respect to Yula and Yula is basically a talent agency for people who have profiles over the internet. And so we made an announcement a few weeks ago that we have an agreement with Yula and they're like the IMG for sports, but this one for people who have internet profiles. So we will be announcing very soon, a particular child who has this huge presence in China. I understand that he's been downloaded over a billion times. He will be the face of Healthy Height in China. And so when that's completed, we will announce who this individual is, and that will drive our sales in China. And I'm expecting huge things from that. If you're going to 10% of his followers actually buy the product, we will have a blockbuster.
I'll just finish off there with those that you can see the profiles of us. Liron is the CEO. I talk to her regularly. She's an excellent operator, very experienced. As well as the balance of the board, including particularly Anton who I've worked with a number of years. I wish I could have questions in this particular format, but I can't. But I will tell you that now, with the COVID disappearing, I'll have the opportunity to actually get out and promote this around Australia. We have a huge following amongst the stock brokers, particularly out of WA, but also we were well invested right across the country. So everyone's waiting for me to get out there and tell them more about this, but watch for the announcements that are coming. There are some very exciting announcements, particularly about the talent associated with Yula and going through the Tmall Global store and also High Hopes Baby in China. That is where you're going to see the huge revenue growth that I expected this company will generate. And with a market cap of $25 million, we could see that particularly increase very shortly.
I appreciate your time and your interest in NGS. And if anybody's got any questions, my number's on the back of every company announcement. You're welcome to give me a call. I think my 15 minutes is up and I appreciate your time. Thank you. Ends