Friday, April 8, 2016

Inverine Marine - Offering Summary

EARLY FUNDING INCENTIVE 20%, VENTURE CAPITAL TAX CREDIT 30%
CAN QUALIFY FOR SELF DIRECTED R.R.S.P.
(CHECK WITH YOUR ACCOUNTANT & OTHER ADVISORS)  

“A corporation engaged in the development and operation of a destination tourist resort, a tourist attraction or tourist service, and/or a corporation involved in manufacturing and processing qualifies for the British Columbia Venture Capital Tax Credit Program.  The issuer has yet to apply to the program. The issuer will apply for registration in the program after the appropriate corporation is formed, prior to receiving capital and as soon as it is appropriate. It is mentioned here to bring awareness of this program as an anticipated element in this investment opportunity”
There is a complete prospectus for interested parties, please contact us - 250-819-6950 

This offering is atypical due the application of innovative processes, with established elements; so the risk associated with innovations is minimized. The boat designs are innovative and tailored to the environment and people they are intended for. The Business model is innovative in it approach and scale. The confluence of these two ventures was a product of design rather that happenstance. The market is there and ineffectively served, Inverine Marine is designed to aggressively take market share with a cohesive offering in a market characterized by dispersed and varied actors. Most importantly to investors, is that the build-out is designed to ensure that the greatest part of the invested capital is supported by marketable assets in the form of watercraft. I am excited about this business and confident in a positive outcome in it's development. Please call and allow me to brief you completely on a lucrative business ideally suited to contemporary times.

Capital Introduction

I sent out a project profile and there seems to be interest. My impression is that people want me to provide a structure. This opportunity gives abundant avenues to capital reward. With input from financial industry professionals, government officials and potential participants as of April 5, 2016 I have reconfigured the offering slightly to better suite the various interests at play.
  
The overall capital requirement to purchase assets to satisfy the stated mission beyond seed capital is $19 Million over a five year period. Operational excess cash is projected contribute to the capital requirements over a five year period; the "min" 2nd round offering has been determined to be $10 Million, the optimum and "max" 2nd round offering is $19 Million.  

The critical capital requirement now, is funding the design and build of the Tow Sawyer boat and the subsequent construction of 10 complete boats (the test pod), the 1st Round of $1 Million covers this process; which results in assets with a value at par with capital invested. Given that the proponent is doing the manufacturing as an independent company, an estimated total of $240,000 (8 manufactured boats at $30,000 per unit) of the borrowed funds will be provided by the proponent "in kind" as a shareholder loan to be converted at a later date to shares; this amount can be considered the proponent's contribution to secure seed capital as it is in effect an unsecured loan the converts to shares, holding the conversion contingent on the completion of the 2nd round. 


To some degree this request is for “bridging capital”, in that financing is going to the creation of a functional asset with market value, at the point the assets are completed and the test pod deployed the bridging function ends and some patients is required as the transition to scale takes place. This offers security in the fact that the seed capital is secured by a completed asset inventory. The cost of acquisition of intellectual capacity has been provided by the proponent in the form of services rendered.

The proponent suggests that a standard limited company is formed and shares are issued at $1000 value.  The reason this structure is offered is, it presents an easy vehicle by which to access the BC Venture Capital program, so the first $5 Million in the acquisition of assets for operations would enjoy a substantive tax credit. 

Whereas, it is the intention of the proponent to oversee the creation and operations of the Tourism Company on behalf of the “group” and garner agreeable remunerations for efforts expended. The proponent intends also to hold the manufacturing component of the proposal as his proprietorship; assuming this finds agreement with the “group”; this offers a means to generate revenue for the proponent that is aligned with the overall interest of the venture – appropriate declaration and oversight of price of boats would be welcomed and encouraged of course. It is estimated that at the close of capital acquisition the proponent, through providing boat inventory at a percentage below market and will have contributed $5.4 Million to the asset build out and will hold that as equity along with other shareholder contribution. 

1st Round Capital Reward
In designing a reward for seed capital one needs to recognize that the company in a nascent state, on the one hand and one should avoid the later entry capital from being unduly taxed. The 1st Round Capital will be rewarded at a rate of 20% on the first year of use, contingent on 2nd Round "min" being achieved PLUS, the venture capital program garnering a tax credit of 30%. The 2nd Round capital will only be taxed between (min $10 mil.) 2% or (max $19 mil.) Approximately 1%. 

It is the proponent’s preference to fully capitalize the company as early as possible, so the capital improvements can be scheduled, pursued at scale and managed efficiently as possible. There are massive savings in buying 50 engines relative to purchasing them on a 1 off basis, for example. It is the sense of the proponent also, that a rapid build out supported by aggressive marketing is the best way to achieve critical mass in the market and by extension profitability. 



Use of Funds and Capital Requirements 

Financial Summary











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