Ethique Limited

By Brianne

PledgeMe.Investment

Product,



NZ $499,904 pledged


272 people pledged


Closed


NZ $350,000 minimum target


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NZ$350,000

Max

NZ$500,000

100 100% Complete

Pledges will only be confirmed if the target is reached by: 26/10/2017 at 8:00 PM (NZDT)

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About

Ethique Limited

 

 

 

In 2012, Brianne started making unique solid formulas from her kitchen in Christchurch, New Zealand. With her knowledge of chemistry & biology she wanted to create better cosmetics and wasn’t afraid to do things differently. We’ve quickly outgrown the kitchen and set up in our fancy new lab. So we are now raising investment through our crowd (again) to expand further in New Zealand, Australia and the United States, to improve our e-commerce platform, and research future products.

   

 

Ethique was started because hair and skin care needed a shake up: simple, concentrated and sustainable products that deliver on results, without the unnecessary packaging.

Our core guiding principle remains the same: quality beauty products made with sustainable - naturally derived - ingredients.

 

What does that mean for us?

It’s about ignoring the status quo and doing things our own way.

 

Bars are our answer!

 – no bottles, no harsh chemicals – just good things in high concentration.

 

We’re all about taking beauty products and making them super dense. Each bar is packed full of only good things that will work to bring out the best in your skin and hair. With up to 80% of liquid products being made of water, why not remove it and use the water already supplied in your bathroom?

 

Why bars?

Solid cosmetics have loads of benefits. They last for ages because they’re so concentrated. One Ethique bar can last as long as five bottles of its liquid relative and because there’s no water, they don’t usually need preservatives. ‘First do no harm’ is our priority, we can do that by making solid formulas that are vegan, crueltyfree and sustainably sourced.

Ethique is certified cruelty-free by PETA, SAFE & Choose cruelty free. We don’t test on animals, or use ingredients that are tested on animals.

 

What have we done so far?

In FY17 alone we saved the world from over 200,000 plastic bottles. We also established third party warehousing in the USA, moved into a larger, custom built lab and manufacturing facility, grew our team and brought on operational and manufacturing expertise, and secured online distribution in the USA and Australia.

 

 

What's next?

We are looking to raise up to $500,000 through our crowd, and an additional $500,000 from wholesale investors.

 

 Our share offer:

 

We are issuing up to 62,500 non-voting shares at $8 each which will equate to a total of 4.3% of the shares in Ethique Limited.

Our pre-money valuation is just over $10million ($10,009,200 to be exact) and was completed by the board and validated by our accountant and an investment banker. This valuation is based off our silver forecast at a 4.5x multiple of our current years revenue.

The minimum individual investment is $504 for 63 non- voting shares at $8 each.

 

The non-voting shares do not give the holder the right to vote at meetings of shareholders. In very limited circumstances (to ensure the shareholder’s core rights are protected) each non voting share gives the holder the right to one vote. This only occurs where there is a proposal or resolution:

• that will affect the rights attached to the Investor Shares

• to put the company into liquidation

• for the disposal of the whole, or a material part, of the property, business and undertaking of Ethique Limited

 

Non voting shares will give the holders:

• The right to an equal share in dividends and other distributions made by Ethique Limited (subject to the rights of any other class of share)

• The right to an equal share in the distribution of surplus assets of Ethique Limited.

The constitution sets out other terms that will apply to any shareholding in Ethique Limited. You should read the constitution before pledging for shares.

 

All shareholders will receive wholesale price on all products purchased through our website. 

Our Team

Brianne - Founder & Formulator Extraordinaire

Brianne started Ethique in 2012 out of frustration with the disgraceful amount of packaging produced by the cosmetics industry. A quali ed scientist, Brianne formulates all our products and runs the show. Brianne has started and sold two other small companies but is now devoted to ridding the world of cosmetic plastic bottles.

Fave bar: Pinkalicious

 

Janette - Alchemist
Janette is Brianne’s Mum and came on board in February 2015. Janette is our alchemist and produces up to 5000 bars a week in our lab. She brings a wealth of administrative and bookkeeping experience and keeps the lab looking tip top. Janette has a background in manufacturing & quality control & practises re exology in her downtime. 

Fave bar: The Perfector

 

Ella - Formulator-In-Training
Ella is our Formulator Extraordinaire in training! She is learning the ropes from Brianne and Janette whilst also working full time as a lab technician. 

Fave bar: Saving Face Serum

 

Jacqui - Lab Lady

Jacqui is our multi-talented lab assistant who also helps out in the warehouse at times. She’s learning the manufacturing ropes and ensures everything runs smoothly.

Fave bar: Pinkalicious

 

Helen - Lab Lady

Helen is our dedicated production assistant and has been us since the very beginning. She ensures our bars are spick and span and dressed in their best before being shipped around the world.

Fave bar: The Perfector

 

Danella - Lab Lady

Dee is one of our production assistants. She moulds, trims and wraps to ensure our bars are perfect each time. 

Fave bar: In Your Face

 

Gen - Marketing Coordinator

Gen handles our social media, content creation and works on our website to keep you updated with our new products.

Fave bar: Saving Face

 

Ange - Dispatch Queen

Ange is our warehouse manager and all round dispatch queen. She gets to drive our shiny new forklift and runs the warehouse like a well oiled machine.

Fave bar: Bombshell

 

 

Bryan - Chair of the Board

As a company director, investor and consultant strategist, Bryan Pearson draws on more than 20 years experience in chief executive and governance roles in Australia and New Zealand. He has held a number of governance positions including Chairman of Macpac independent director of J. Ballantyne and Co. Ltd and is currently a trustee of several third party private entities and Chairman at Lane Neave. In his capacity as consultant strategist he supports a range of public and private sector organisations in developing strategic direction, resolving strategic issues and mentoring leaders. 

Fave bar: Tip-to-Toe

 

 

Our Financials

 

  

 

Our assumptions underpinning the forecast include:

Revenue assumptions:

  • Wholesale NZ - $220,000 per month based on 400 customers each spending $500 per month on average. This could be higher as current average sits higher.
  • Wholesale AU - Assumption made that we will onboard 200 pharmacies in AU, each spending $500 per month plus continue with AU Online distributor @$50k per month.
  • Wholesale USD - Amazon subscription of 140m, converting 0.05% of that base (70,000 subscribers) each spending $50 per month.
  • Wholesale OTHER - Planned entry into Japan market

Please review our full financials (including a current balance sheet) in our investment memorandum. Note to the financials.

 

 

Our Risks (and how we'll mitigate them)

Copycat brands:  At this point, we have decided not to patent our products as the costs will outweigh the benefits. There is the potential for this to change with new innovative products in the future. We have to rely on developing a great world-leading brand, great products and our customers loyalty.

Cashflow: As we expand into international markets and distribution models, cashflow will be impacted. We are mitigating this by negotiating extended terms with our suppliers and favourable payment terms with our distributors. Whilst we will always exhibit caution and forward planning with budgets, we would consider a further capital raise in the future if necessary.

Manufacturing premises disabled: The possibility of our Christchurch lab being disabled by a natural disaster is low risk as it is a new building built on stable land. Our plant and fittings are all easily removed (or replaced) to quickly equip another premises. Our secondary facility is also a good redundancy should something happen to our primary facility such as a fire.

Distance to market: New Zealand is one of the most remote countries on the planet, but manufacturing here does have the benefit of stamping ‘NZ made’ on the product. We expect we will open further manufacturing facilities in the future, in Europe and possibly North America to keep up with the demand.

 

Unusual product line: Whilst having an unusual product line has advantages, it is also a confusing concept for new people who come across it. Consumer education will form a very large part of our PR and marketing plan, in particular when rolling out into new markets. This will provide excellent content to provide value and interest. 

Note from PledgeMe

We have completed a Veda check on the company and their directors, as well as a google check. There were no adverse findings.

 

 

Updates 1

You need to pledge to see this update.

    Details

    Offer Details

    Current Valuation 10,009,200
    Raise Minimum 350,000
    Raise Maximum 500,000
    Share Price 8.00
    Maximum Shares Offered 62,500
    Explanation of valuation:

    Our pre-money valuation is just over $10million ($10,009,200 to be exact!) and was completed by the board and validated by our accountant and an investment banker. This valuation is based off our silver forecast at a 4.5x multiple of our current years projected revenue.

    Financial Summary

    Prev Year Current Year Est. FY 2022 Est. FY 2023
    Revenue NZ $972,550 NZ $2,266,982 NZ $5,379,000 NZ $10,551,832
    Operating Expenses NZ $556,801 NZ $1,428,969 NZ $2,207,890 NZ $2,303,982
    EBITDA -NZ $71,640 NZ $44,659 NZ $1,771,531 NZ $5,718,680
    Net Profit -NZ $71,121 NZ $44,659 NZ $1,321,607 NZ $4,117,406

    Company Details

    Company Name: Ethique Limited

    Company Number: 3152626

    Company details are currently being synced with the Companies Office, please wait.

    Company Documents

    Documents no longer available to download, as this campaign has closed

    Director Details

    Name Role Profile URL Invested?
    Brianne West Managing Director https://www.linkedin.com/in/brianne-west-791a2a49/
    Bryan Pearson Chair https://www.linkedin.com/in/bryan-pearson-ab9a238b/

    Questions 4

    Ask a Question (You must login to ask a question)


    Hi Brianne, is the constitution uploaded yet? I cant see it on the list at the moment. Thanks

    Posted on 29-09-2017 by Klara Bedggood-Nimmo

    Hi Klara, I've just uploaded that for you! Anna from PledgeMe (on behalf of Brianne)

    Answered on 29-09-2017 by Brianne


    It looks like from the PledgeMe website that you need to be a NZ resident (unless a wholesale investor) to be able to invest - is that correct? Thanks

    Posted on 29-09-2017 by Kate Marsh

    Hi, how would I sell my shares at a later date? Are there any restrictions on this? Is Ethique planning to pay dividends?

    Posted on 29-09-2017 by Susannah Bailey

    In the update your said that the final shares would be released in late October. I have not had any contact what so ever from ethique regarding my investment. When should I expect to hear from you?

    Posted on 20-11-2017 by Michelle Windle

    Pledgers 272

    Susan Ratcliffe
    2017-09-28 22:28:42 +1300
    LarsThomsen
    2017-09-28 21:59:26 +1300
    Kate Jones
    2017-09-28 21:50:02 +1300
    Melissa Johnson
    2017-09-28 21:44:16 +1300
    Jane Mulcahy
    2017-09-28 21:42:59 +1300
    Kate Hay
    2017-09-28 21:41:52 +1300
    Gabriella Gordon
    2017-09-28 21:40:50 +1300
    Jean Young
    2017-09-28 21:26:19 +1300
    Christopher
    2017-09-28 21:23:36 +1300
    Joe Byrne
    2017-09-28 21:23:11 +1300
    Chris
    2017-09-28 21:21:20 +1300
    Lisa Jankowska
    2017-09-28 21:19:03 +1300
    Tina Nicol
    2017-09-28 20:55:10 +1300
    Abby Thompson
    2017-09-28 20:29:35 +1300
    Julian O'Neale
    2017-09-28 20:17:33 +1300
    Shelley Beasley
    2017-09-28 20:13:23 +1300
    Alison Keay
    2017-09-28 20:07:56 +1300
    Philippa Farmer
    2017-09-28 20:04:02 +1300
    Dennis Taylor
    2017-09-28 19:45:29 +1300

    "Exciting times for Ethique!"

    Peter Higham & Alison Dixon
    2017-09-28 19:37:48 +1300
    Kylie Thomson
    2017-09-28 19:36:28 +1300

    "Great to get behind this... our family are believers....# lets get others to give up the bottle!"

    Alix Bachmann
    2017-09-28 19:27:49 +1300
    Scott Parlane
    2017-09-28 19:22:17 +1300
    E Wallace
    2017-09-28 19:18:56 +1300
    Laura McConchie
    2017-09-28 19:18:55 +1300
    Kathleen Edge
    2017-09-28 19:15:42 +1300
    Yulya
    2017-09-28 19:12:53 +1300
    Jane Cunnington
    2017-09-28 19:07:28 +1300
    Lyn Evans
    2017-09-28 19:06:51 +1300

    "Looking forward to continuing a great business!"

    Jess Ducey
    2017-09-28 19:03:45 +1300

    Ethique Limited

     

     

     

    In 2012, Brianne started making unique solid formulas from her kitchen in Christchurch, New Zealand. With her knowledge of chemistry & biology she wanted to create better cosmetics and wasn’t afraid to do things differently. We’ve quickly outgrown the kitchen and set up in our fancy new lab. So we are now raising investment through our crowd (again) to expand further in New Zealand, Australia and the United States, to improve our e-commerce platform, and research future products.

       

     

    Ethique was started because hair and skin care needed a shake up: simple, concentrated and sustainable products that deliver on results, without the unnecessary packaging.

    Our core guiding principle remains the same: quality beauty products made with sustainable - naturally derived - ingredients.

     

    What does that mean for us?

    It’s about ignoring the status quo and doing things our own way.

     

    Bars are our answer!

     – no bottles, no harsh chemicals – just good things in high concentration.

     

    We’re all about taking beauty products and making them super dense. Each bar is packed full of only good things that will work to bring out the best in your skin and hair. With up to 80% of liquid products being made of water, why not remove it and use the water already supplied in your bathroom?

     

    Why bars?

    Solid cosmetics have loads of benefits. They last for ages because they’re so concentrated. One Ethique bar can last as long as five bottles of its liquid relative and because there’s no water, they don’t usually need preservatives. ‘First do no harm’ is our priority, we can do that by making solid formulas that are vegan, crueltyfree and sustainably sourced.

    Ethique is certified cruelty-free by PETA, SAFE & Choose cruelty free. We don’t test on animals, or use ingredients that are tested on animals.

     

    What have we done so far?

    In FY17 alone we saved the world from over 200,000 plastic bottles. We also established third party warehousing in the USA, moved into a larger, custom built lab and manufacturing facility, grew our team and brought on operational and manufacturing expertise, and secured online distribution in the USA and Australia.

     

     

    What's next?

    We are looking to raise up to $500,000 through our crowd, and an additional $500,000 from wholesale investors.

     

     Our share offer:

     

    We are issuing up to 62,500 non-voting shares at $8 each which will equate to a total of 4.3% of the shares in Ethique Limited.

    Our pre-money valuation is just over $10million ($10,009,200 to be exact) and was completed by the board and validated by our accountant and an investment banker. This valuation is based off our silver forecast at a 4.5x multiple of our current years revenue.

    The minimum individual investment is $504 for 63 non- voting shares at $8 each.

     

    The non-voting shares do not give the holder the right to vote at meetings of shareholders. In very limited circumstances (to ensure the shareholder’s core rights are protected) each non voting share gives the holder the right to one vote. This only occurs where there is a proposal or resolution:

    • that will affect the rights attached to the Investor Shares

    • to put the company into liquidation

    • for the disposal of the whole, or a material part, of the property, business and undertaking of Ethique Limited

     

    Non voting shares will give the holders:

    • The right to an equal share in dividends and other distributions made by Ethique Limited (subject to the rights of any other class of share)

    • The right to an equal share in the distribution of surplus assets of Ethique Limited.

    The constitution sets out other terms that will apply to any shareholding in Ethique Limited. You should read the constitution before pledging for shares.

     

    All shareholders will receive wholesale price on all products purchased through our website. 

    Our Team

    Brianne - Founder & Formulator Extraordinaire

    Brianne started Ethique in 2012 out of frustration with the disgraceful amount of packaging produced by the cosmetics industry. A quali ed scientist, Brianne formulates all our products and runs the show. Brianne has started and sold two other small companies but is now devoted to ridding the world of cosmetic plastic bottles.

    Fave bar: Pinkalicious

     

    Janette - Alchemist
    Janette is Brianne’s Mum and came on board in February 2015. Janette is our alchemist and produces up to 5000 bars a week in our lab. She brings a wealth of administrative and bookkeeping experience and keeps the lab looking tip top. Janette has a background in manufacturing & quality control & practises re exology in her downtime. 

    Fave bar: The Perfector

     

    Ella - Formulator-In-Training
    Ella is our Formulator Extraordinaire in training! She is learning the ropes from Brianne and Janette whilst also working full time as a lab technician. 

    Fave bar: Saving Face Serum

     

    Jacqui - Lab Lady

    Jacqui is our multi-talented lab assistant who also helps out in the warehouse at times. She’s learning the manufacturing ropes and ensures everything runs smoothly.

    Fave bar: Pinkalicious

     

    Helen - Lab Lady

    Helen is our dedicated production assistant and has been us since the very beginning. She ensures our bars are spick and span and dressed in their best before being shipped around the world.

    Fave bar: The Perfector

     

    Danella - Lab Lady

    Dee is one of our production assistants. She moulds, trims and wraps to ensure our bars are perfect each time. 

    Fave bar: In Your Face

     

    Gen - Marketing Coordinator

    Gen handles our social media, content creation and works on our website to keep you updated with our new products.

    Fave bar: Saving Face

     

    Ange - Dispatch Queen

    Ange is our warehouse manager and all round dispatch queen. She gets to drive our shiny new forklift and runs the warehouse like a well oiled machine.

    Fave bar: Bombshell

     

     

    Bryan - Chair of the Board

    As a company director, investor and consultant strategist, Bryan Pearson draws on more than 20 years experience in chief executive and governance roles in Australia and New Zealand. He has held a number of governance positions including Chairman of Macpac independent director of J. Ballantyne and Co. Ltd and is currently a trustee of several third party private entities and Chairman at Lane Neave. In his capacity as consultant strategist he supports a range of public and private sector organisations in developing strategic direction, resolving strategic issues and mentoring leaders. 

    Fave bar: Tip-to-Toe

     

     

    Our Financials

     

      

     

    Our assumptions underpinning the forecast include:

    Revenue assumptions:

    • Wholesale NZ - $220,000 per month based on 400 customers each spending $500 per month on average. This could be higher as current average sits higher.
    • Wholesale AU - Assumption made that we will onboard 200 pharmacies in AU, each spending $500 per month plus continue with AU Online distributor @$50k per month.
    • Wholesale USD - Amazon subscription of 140m, converting 0.05% of that base (70,000 subscribers) each spending $50 per month.
    • Wholesale OTHER - Planned entry into Japan market

    Please review our full financials (including a current balance sheet) in our investment memorandum. Note to the financials.

     

     

    Our Risks (and how we'll mitigate them)

    Copycat brands:  At this point, we have decided not to patent our products as the costs will outweigh the benefits. There is the potential for this to change with new innovative products in the future. We have to rely on developing a great world-leading brand, great products and our customers loyalty.

    Cashflow: As we expand into international markets and distribution models, cashflow will be impacted. We are mitigating this by negotiating extended terms with our suppliers and favourable payment terms with our distributors. Whilst we will always exhibit caution and forward planning with budgets, we would consider a further capital raise in the future if necessary.

    Manufacturing premises disabled: The possibility of our Christchurch lab being disabled by a natural disaster is low risk as it is a new building built on stable land. Our plant and fittings are all easily removed (or replaced) to quickly equip another premises. Our secondary facility is also a good redundancy should something happen to our primary facility such as a fire.

    Distance to market: New Zealand is one of the most remote countries on the planet, but manufacturing here does have the benefit of stamping ‘NZ made’ on the product. We expect we will open further manufacturing facilities in the future, in Europe and possibly North America to keep up with the demand.

     

    Unusual product line: Whilst having an unusual product line has advantages, it is also a confusing concept for new people who come across it. Consumer education will form a very large part of our PR and marketing plan, in particular when rolling out into new markets. This will provide excellent content to provide value and interest. 

    Note from PledgeMe

    We have completed a Veda check on the company and their directors, as well as a google check. There were no adverse findings.

     

     

    You need to pledge to see this update.

      Offer Details

      Current Valuation 10,009,200
      Raise Minimum 350,000
      Raise Maximum 500,000
      Share Price 8.00
      Maximum Shares Offered 62,500
      Explanation of valuation:

      Our pre-money valuation is just over $10million ($10,009,200 to be exact!) and was completed by the board and validated by our accountant and an investment banker. This valuation is based off our silver forecast at a 4.5x multiple of our current years projected revenue.

      Financial Summary

      Prev Year Current Year Est. FY 2022 Est. FY 2023
      Revenue NZ $972,550 NZ $2,266,982 NZ $5,379,000 NZ $10,551,832
      Operating Expenses NZ $556,801 NZ $1,428,969 NZ $2,207,890 NZ $2,303,982
      EBITDA -NZ $71,640 NZ $44,659 NZ $1,771,531 NZ $5,718,680
      Net Profit -NZ $71,121 NZ $44,659 NZ $1,321,607 NZ $4,117,406

      Company Details

      Company Name: Ethique Limited

      Company Number: 3152626

      Company details are currently being synced with the Companies Office, please wait.

      Company Documents

      Documents no longer available to download, as this campaign has closed

      Director Details

      Name Role Profile URL Invested?
      Brianne West Managing Director https://www.linkedin.com/in/brianne-west-791a2a49/
      Bryan Pearson Chair https://www.linkedin.com/in/bryan-pearson-ab9a238b/

      Ask a Question (You must login to ask a question)


      Hi Brianne, is the constitution uploaded yet? I cant see it on the list at the moment. Thanks

      Posted on 29-09-2017 by Klara Bedggood-Nimmo

      Hi Klara, I've just uploaded that for you! Anna from PledgeMe (on behalf of Brianne)

      Answered on 29-09-2017 by Brianne


      It looks like from the PledgeMe website that you need to be a NZ resident (unless a wholesale investor) to be able to invest - is that correct? Thanks

      Posted on 29-09-2017 by Kate Marsh

      Hi, how would I sell my shares at a later date? Are there any restrictions on this? Is Ethique planning to pay dividends?

      Posted on 29-09-2017 by Susannah Bailey

      In the update your said that the final shares would be released in late October. I have not had any contact what so ever from ethique regarding my investment. When should I expect to hear from you?

      Posted on 20-11-2017 by Michelle Windle
      Susan Ratcliffe
      2017-09-28 22:28:42 +1300
      LarsThomsen
      2017-09-28 21:59:26 +1300
      Kate Jones
      2017-09-28 21:50:02 +1300
      Melissa Johnson
      2017-09-28 21:44:16 +1300
      Jane Mulcahy
      2017-09-28 21:42:59 +1300
      Kate Hay
      2017-09-28 21:41:52 +1300
      Gabriella Gordon
      2017-09-28 21:40:50 +1300
      Jean Young
      2017-09-28 21:26:19 +1300
      Christopher
      2017-09-28 21:23:36 +1300
      Joe Byrne
      2017-09-28 21:23:11 +1300
      Chris
      2017-09-28 21:21:20 +1300
      Lisa Jankowska
      2017-09-28 21:19:03 +1300
      Tina Nicol
      2017-09-28 20:55:10 +1300
      Abby Thompson
      2017-09-28 20:29:35 +1300
      Julian O'Neale
      2017-09-28 20:17:33 +1300
      Shelley Beasley
      2017-09-28 20:13:23 +1300
      Alison Keay
      2017-09-28 20:07:56 +1300
      Philippa Farmer
      2017-09-28 20:04:02 +1300
      Dennis Taylor
      2017-09-28 19:45:29 +1300

      "Exciting times for Ethique!"

      Peter Higham & Alison Dixon
      2017-09-28 19:37:48 +1300
      Kylie Thomson
      2017-09-28 19:36:28 +1300

      "Great to get behind this... our family are believers....# lets get others to give up the bottle!"

      Alix Bachmann
      2017-09-28 19:27:49 +1300
      Scott Parlane
      2017-09-28 19:22:17 +1300
      E Wallace
      2017-09-28 19:18:56 +1300
      Laura McConchie
      2017-09-28 19:18:55 +1300
      Kathleen Edge
      2017-09-28 19:15:42 +1300
      Yulya
      2017-09-28 19:12:53 +1300
      Jane Cunnington
      2017-09-28 19:07:28 +1300
      Lyn Evans
      2017-09-28 19:06:51 +1300

      "Looking forward to continuing a great business!"

      Jess Ducey
      2017-09-28 19:03:45 +1300
      This campaign was successful and got its funding on 29/09/2017 at 5:22 PM.

      This campaign has closed, but this company may choose to do more equity raises on PledgeMe in the future. If you're interested in investing in Ethique Limited, you can sign up to be notified when a new equity campaign from this company is published.

      Notify Me

      Investor Perks

      Let's Sweeten The Deal

      NZ $504.00+

      All shareholders will receive wholesale price on all products purchased through our website.

      Disclosure Statement:

      An associated party of PledgeMe holds an interest in this company, the interest is as follows:

      Note: PledgeMe associated people Anna Guenther, Nicholas Lewis, and some of our minority shareholders own small shareholdings from the first equity crowdfunding round.

      Warning statement about equity crowdfunding

      Equity crowdfunding is risky.

      Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative and carries high risks.

      You may lose your entire investment, and must be in a position to bear this risk without undue hardship.

      New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision.

      The usual rules do not apply to offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.

      Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.