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Sleep Drops | $2 Million Funding Target, Min Of $500,000 Reached!
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Sleep Drops | $2 Million Funding Target, Min Of $500,000 Reached!
Letter from Kirsten
Like all good yarns worth telling, the SleepDrops story starts with a heroine making the BRAVE decision to start her business in a global financial crisis with no money and just sheer guts, blood, sweat and determination to turn her own situation around whilst helping others….
When I started making herbal formulations of sleep and stress remedies for my clients in my naturopathic clinic I didn’t realise what I had opened myself up for! As a single mum struggling to feed her young son I was determined to find a way to provide for us both that was in alignment with my values and met my deep desire to help people. I knew sleep or lack of it was having a huge impact on my previous clients and with the stress I was under in a global financial crisis, I too was lying awake at night worrying and unable to sleep – until I took one of my own remedies.
The rest as they say is history. What started with me making 1 product – every single bottle by hand and printing labels on the home printer – has turned into a committed company with 4 ranges and 20 individual products. All meeting the needs of a growing sleep deprived and struggling human population. Our mission from day one has been to create and produce highly effective sleep and stress remedies for all ages.
In the nine years since this all began we’ve helped raise the awareness of the importance of sleep dramatically in NZ, been featured on ‘60 minutes’ and numerous TV, radio and magazine segments, grown the sleep category in NZ pharmacies by over 20% in our first year, created a whole new range of sleep remedies and learnt a lot about what it means to be a “real player” which is how people refer to you when you reach the top of your field.
Our small team knows how to punch above its weight, delivering excellence in not only the products we make but in our reputation as a company of integrity. We often stop to reflect on just how far we have come, up against multi-million-dollar supplement companies with entire marketing teams and All Black sponsorship! I am often heard saying “imagine what we could do if we had some funding.”
SleepDrops has a team of 10 very talented and loyal people, e–commerce websites in multiple languages, and our own factory. We make it possible for over 90,000 Kiwi’s a year to sleep better every night.
We have a clear strategy. We know what products to develop, manufacture and market, and what channels to put our efforts into. We are more than excited because our dominos are lined up.
The world sleep market is BOOMING and SleepDrops is well placed to become a major player.
When asked what our plans are the answer is simply “global domination”. Good things are worth planning and waiting for. We have spent 3 years getting ready. Now we are ready! We want to take you with us – Let’s go!
What is our Why?
Our Why is we are 100% positive that the world would be a better place if everyone could achieve deep, restorative, rejuvenative, life enhancing sleep.
What we do
SleepDrops has created and produced specialist sleep and stress product ranges, offering a world first for innovative sleep solutions that are highly effective for all ages and lifestyles.
We take sleep very seriously.
Every product we develop is devoted to fulfilling a deep and specialised need for our customers. We meticulously research ingredients and their efficacy in order to develop products that offer something quite spectacular for the user. We aim to impress on many levels. Whether it be superior absorption for ultra fast results, specialised formulations for specific indications, flexibility of dosing, or the ability of our customers to combine products to make their own programme. What we do is create products that result in impactful, life changing sleep.
We are ready!
SleepDrops has spent the last 3 years:
- Consolidating its position
- Readying itself for global expansion
- Building its brand loyalty in it’s home base
- Ensuring for success by taking care of legals (Intellectual Property)
- Building a factory to remove vulnerabilities in manufacturing
- Securing a lease for a long-term home ensuring we can invest in a factory that can ramp up as demand increases
- Open up more channels – supermarkets, practitioners, corporate etc
- Developing products to meet the demand we know exists
What we're raising capital for
Why we're crowdfunding
We decided to do crowdfunding for a couple of reasons. We wanted to give back to our crowd of loyal supporters. Without all the amazing people that trusted SleepDrops with their own sleeping challenges we wouldn’t even be here. As a small NZ company with a big heart and even bigger ambitions we wanted to offer it to our supporters for them to come along on our journey to help the world get to sleep. We want our new shareholders to love the products as much as our customers and we do and be part of growing it by being proud owners and ambassadors of the brand and by telling their friends and family at dinner parties that they should be going to bed earlier and using SleepDrops!
Investing in a great New Zealand health company should not be only for those with deep pockets. We have decided to go with “crowdfunding” to open up the opportunity to everyone. The nice thing about crowdfunding is that it makes it accessible to people who are usually unable to invest or cautious of the complicated stock market.
New Zealanders are a great bunch of people, pioneers and trailblazers. We all have friends and family in big and small corners of the globe and we knew that our crowd would help us with our global domination plan by sharing their good news of becoming shareholders in such a cool NZ company thereby spreading the word.
If you buy shares in Sleep Support System, you are buying shares in SleepDrops.
Sleep Support System Ltd is offering 2,000,000 shares at $1.00 per share to raise up to $2,000,000. The new shares are being issued and the capital is being raised to fund the company’s growth plans. No current shareholder is selling any shares as part of this offer. The minimum subscription level for any investor is 500 shares, or a minimum investment of $500.00. The minimum amount of capital to be raised in this offer is $500,000. The total amount of capital that can be raised under this offer is $2,000,000.
There will be no oversubscriptions offered. To further clarify we are offering up to 20% of the current value which will end up being 16.55 % of the post money valuation because the business will be worth more following the capital raise.
Read our Information Memorandum for more information about our share offer
About our Team
International Business Manager (Operations)
Rufus has had a love affair with numbers all his life. He has a background in business having grown up in a family business environment and, since he was 17, shadowing executives and corporate leaders to learn the ropes. Rufus analyses SleepDrops’ operations and manages its supply chain making sure all the different ingredients, components, labels and packaging come in on time and get made into the important products we sell.
Our Web Developer, E-Commerce Specialist, IT Manager and Engineer at SleepDrops. Before starting at SleepDrops, Valentin spent 10 years leading a New Zealand plastics manufacturing company where he was in charge of designing and implementing new tools and machinery. After a successful career in manufacturing Valentin felt that it was time for a change. He then spent the next 3 years learning best web developing practices from the top developers in New Zealand and around the world. Now at SleepDrops he has the opportunity to utilise his entire skill set from designing to building, from concept to live.
Naturopathic Sleep Specialist
Paige is one of our dedicated Naturopathic Sleep Specialists, here to help all of our customers achieve their best sleep. With over 8 years’ experience in the health industry, first as a nurse and now as a naturopath, Paige has dedicated herself to learning, understanding and educating on the best way to empower health and wellbeing through the life stages. She is passionate about helping people achieve their health goals and believes that poor sleep is often a major block to healing.
China Marketing Coordinator
Mia studied international business in London England. Once back in China, Mia worked at the Agricultural Bank of China (one of the 4 biggest banks in China) as an account manager of corporations. She came to New Zealand after to continue her career in the finance section working as customer service manager of commercial accounts at IE Financial Services Limited. In her personal time she worked as a “Daigou” which is where Chinese people act as personal shoppers for their friends and family in China. This has given Mia strong skills and experience needed for SleepDrops to build this very important channel as first entry step into the Chinese market.
Graphics Designer, Marketing Coordinator
Denny has been in the marketing and graphic design sector for the last 10 years and is passionate about creative graphic design and marketing co-ordinating. He is a fully qualified graphic designer with a Bachelor of Computer Graphic Design and a Bachelor of Art and Design. Denny has been influenced in art and design by his mum who is an artist and an art teacher. He is super passionate about expressing and delivering super -cool designs at SleepDrops every day to communicate how important sleep is to people and to inspire people to prioritise their sleep.
Paul was born in Hong Kong and has been living in New Zealand for 24 years. He has an engineering background and had extensive management experience in multisite operations. He is also equipped with years of experience in the logistics of the pharmaceuticals and cosmetic manufacturing industry. Heaving previously supervised at independent labs we contracted our work to, and now we are very fortunate indeed to have Paul’s level of expertise here every day at SleepDrops.
Our Governance and Advisory
Founder and Managing Director
Kirsten is passionate about sleep, getting people to sleep, improving sleep and making super cool sleep formulations that make people’s lives better. Kirsten wasn’t always such a sleep enthusiast but after being in her Naturopathic clinic for 7 years she couldn’t deny the irrefutable evidence that not sleeping impacts on every single body system. We all know that now because the science has caught up and everyone is going on about it – which is a very good thing. Discovering that sleep is so important, early on and focussing on it so that she could positively impact every aspect of people’s lives driven her to keep going. Kirsten LOVE’s helping people be healthier and happier. She is determined to take SleepDrops to the world so we can help as many people as possible sleep better.
Sleep Scientist - Advisor
I began my career in the field of physiology in 1999, and have since had the privilege to work within public, private, and industry facets of the sleep health industry, both in New Zealand, and within the international community. During this time my focus has shifted from a purely clinical interest to a passion for delivering great health care, and promoting wellness, both in healthy populations, and those with aspirations for improved health and function. Developing services, processes, and innovative measures to not just meet, but exceed these goals is what I thrive on! I’m keen to adopt and develop new technologies as vehicles to meet such objectives, love problem solving and thinking outside the square, and thoroughly enjoy leading teams to success on these fronts. I aspire to work with like-minded individuals and organisations, both in New Zealand, and on the global stage.
Mike Durbin is a General Manager at Manuka Health New Zealand Ltd with responsibility for International sales and marketing. Prior to joining Manuka Health, Mike held a range of strategic business development, sales and marketing positions in Natural Health, FMCG, biotechnology, healthcare arenas. Notable is his five years as National Business Development Manager for Goodman Fielder, where he directed sales and marketing efforts in the Route Food Service Channel. Mike holds a Bachelors’ degree in Microbiology and a PhD from Heriot Watt University in Edinburgh, Scotland. Mike’s greatest strengths are his creativity, drive and leadership. He thrives on challenges, particularly those that expand the company’s reach.
Pharmacy and Health Channel Advisor
Nitin is a Director and experienced distribution business manager at ANZ pharma, SleepDrops pharmacy and health channel partner. Nitin has a strong honest personality making it easy for him to build solid relationships in the natural health and pharmacy channels of New Zealand. Nitin is very good at data analysis which helps to drive company strategy and decision making. Nitin and his team act in the capacity of the SleepDrops Key Account Manager with the responsibility for managing the SleepDrops brand in Pharmacy, Natural Health and Wholesaler Accounts. Nitin has experience in driving business for both ANZ Pharma and SleepDrops in Natural Health, Pharmacy and FMCG with a strong background in sales within New Zealand, Australia and other key markets. Nitin’s greatest strengths are his patience, honesty, straight up “lets fix it” attitude, an open door – open book policy and his passion for helping others both at work and in his personal life. He strives to always create win/win sales strategies to deliver immediate results and foster long term business growth for all stakeholders.
FMCG Advisor - CEO - House of Fine Foods
Brett and his family have been dedicated to the FMCG industry in New Zealand with Brett alone working in the industry for over 21 years. His company House of Fine Foods works with 15 global brands including AFT Pharmaceuticals, Nandos Sauces and Haribo. House of Fine Foods distribute to 426 retailers.
FMCG Advisor - General Manager at House of Fine Foods
Implicit within this, is his proven ability to actively set and drive strategies and activation in line with the commercial and category plan, with a firm handle on owning and delivering financial results . His superior cross-functional knowledge and strong understanding of the impact on the wider business, means that he can offer a business-wide and a more strategic view of growth opportunities. His skills further extend to business negotiation, strategic account development and senior customer engagement.Robin operates with a high level of authenticity and integrity within all business and customer interactions, and is a personable and effective communicator. His core value in managing, coaching and developing people results in high-performing & highly engaged teams that are able to grow brands, business and relationships.
What we've done so far
Kirsten Taylor began developing her own protocol prescribing sleep support remedies in her private naturopathic medicine clinic in 2003. Due to the results her sleep protocol achieved for her clients, Kirsten made them available to the public in 2009 with the launch of SleepDrops for Adults. Since then Kirsten has launched Daytime Revive, Essential Sleep and Stress Nutrients, Delta Sleep CD (now a free download), SleepDrops Menopauzzz, SleepDrops Menzzz, SleepDrops for Kids and SleepDrops for Babies to cater for the growing demand from different customers in the sleep and stress wellness markets. For the first three years, the business operated a direct-to-consumer approach in order to ascertain whether Kirsten could successfully take a naturopathic prescription product and protocol and make it commercially viable on a larger scale.
An overwhelmingly positive response to the products, a high rate of repeat customers and growing demand from retail stores seeking to stock it, led to SleepDrops being made available in retail stores from November 2012 via a national distributor. In just nine months, SleepDrops was available for sale in over 750 pharmacies and health food stores nationwide. SleepDrops is now found in over 1,100 stores nationwide and has been the number one brand in the sleep category for the last six consecutive years. Three products from the SleepDrops range are consistently number one in their sub-categories. SleepDrops for Adults is the number one selling sleep product in NZ, along with SleepDrops for Kids, SleepDrops for Babies and SleepDrops Menopauzzz.
We have successfully registered SleepDrops with the FDA, secured ourselves a partner to act as our legal entity and opened our own brand pages on Amazon.com in the USA. We have a distribution partner in Singapore and started selling into Hong Kong and Kuwait where we are particularly proud to be able to help the children in a war zone sleep better.
We have expanded our range in NZ from three sleep liquids to 5 specific formulations and then in March of 2018 we launched our new 25 ml family spray range into NZ supermarkets after being “core ranged” across all 3 major supermarket brands: New World, PakNSave and Countdown. That’s when their head office category managers instruct that they will be on the shelves.
Our Supermarket 25ml Family Value Spray range offers our award winning and popular liquid remedies in a convenient spray form for ease of use, day and night time and is specifically targeted at our high use families. By ticking all the boxes of location, price, and application we believe this range meets the needs of our consumers who are time poor, on a budget and struggling with themselves or a loved family member not being able to sleep.
Next to come is the launch of our Practitioner Range and our Home Sleep Luxury Collection...
SleepDrops’ practitioner only range:
With Kirsten’s background as a technical consultant Naturopath to one of NZ’s largest practitioner wholesalers, she gained market insight into this often -overlooked channel. With up to 3000 practitioners in NZ seeing between 5 and 60 people a day, these trusted health advisors can act as gatekeepers or ambassadors by opening up more SleepDrops’ customers when prescribing our specialised range to their patients. The formulae are more sophisticated and require a consultation but maintain our company modus operandi of combining products in synergy to create a programme for the individual. We will be doing more research on this product range in the near future. Launch of this range will happen in November 2018.
SleepDrops Home Sleep Luxury Collection:
The sleep specialists at SleepDrops are very happy to introduce a touch of luxury into your nightly wind down routine. A beautiful range of products formulated with the highest quality ingredients specifically for you to ritualise, pause, savour and enjoy the experience for enhanced relaxation. Our Original and Lavender Magnesium Bath Salts offer your body a chance to unwind and soak in a comforting warm bath with relaxation minerals, to soothe weary muscles and refresh the mind, whilst our ‘Divine Sleep’ aromatherapy room and pillow spray is the perfect combination of organic essential oils to create a haven in your bedroom, infusing your space with calm, peace and tranquillity. The luxurious sleep eye masks are made from the highest 100% mulberry silk. Delicate on your skin, this sleep mask offers a simple and effective way to support sleep quality. Our Home Luxury Sleep Collection is an opportunity to find rest and relaxation in preparation to winding down for sleep and to experience luxury at home when and as you like – you deserve it.
Our strategic growth plan
With all the domino’s we have lined up and our anticipated growth we knew we needed to prepare for expansion. Back in April of 2018 we started looking for a larger home for SleepDrops. We have been able to secure the lease on a wonderful new building in Ellice road in Glenfield. Our new building is 5 times bigger than our current location. By securing a long -term home we can invest in a new factory which will increase our output by a minimum of 10 times. Manufacturing control is essential to our ability to control our growth. We aim to also protect and grow our future by working towards and gaining GMP (Good Manufacturing Practice) and TGA (Therapeutic Goods Administration) (If applicable) approval: manufacturing standards required by specific markets. We can seek new revenue opportunities each time we have ironed out the creases and got a manufacturing standard and market supply working well. Slow and steady wins the race!
In the next 5 years
We believe we should concentrate on maintaining the NZ Markets. We believe there is another 15% to be gained from this market. We will be bringing the practitioner range and the Home Sleep Luxury Collection to the NZ public and solidifying our reputation as the trusted sleep advisors both in retail and in the health and safety world. We will be hosting the first ever Integrative Sleep Symposium and have secured NZ’s top sleep scientists, researchers, pharmacists and international experts to speak. We are planning for this event to take place yearly around World Sleep Day in March.
SleepDrops International has been actively investigating the launching into the Australian market since 2017. The first step in launching is to register the range as a medicinal product by the TGA under the Therapeutic Drugs Act. We have determined that the Practitioner Only market is the best market entry point for SleepDrops into Australia. We believe this will be a good healthy revenue stream for SleepDrops. The product formulations are nearly finalised. We have worked with a registered TGA consultant to ensure our products to meet the requirements of the Australian TGA.
Our in-house team has been able to do most of the work needed. As such we don’t need to over -invest to get to the next level of having our products registered. $30,000 has been allocated from capital raising to fund the final steps for proceeding with an application for registration in Australia.
We have already begun microbial testing and will begin clinical research (brain waves ) in the new year with our sleep scientist over seeing this important research. Once this is completed we will be one of the only natural health companies to have undertaken such important work. This scientifically conclusive evidence will certainly help us in gaining the favour of medical practitioners here, in Australia and further around the world.
The Chinese government has spent the last 2 years investigating the sleep habits of Chinese people and in May 2018 they released a documentary called ‘Chasing Sleep’. The survey results show approximately 450 million Chinese people have a sleep disorder.
In 2013 the Chinese sleep index showed people were sleeping 8.2 hours, whereas now, it’s only between 5.5 and 6.5 hours. In June 2018, SleepDrops hired our first Chinese Marketing Co-ordinator. We know the Chinese Community has extra pressures (ageing population, urbanised workforce, long business hours, academic pressure, extracurricular activities, family and cultural pressures, not prioritising sleep) and want to make sure we are taking care of them properly. We will be developing specific products for the Chinese market which address their particular needs. We see opportunities in different demographics of the market:
- Adolescent – Study Market
Plus sleep luxury accessories:
- Room & pillow spray
- Epsom salts
- Herbal teas
- Anti-bacterial dust mite pillow slip, bedding
We are in dialogue with significant market leaders in China to further our relationship and make SleepDrops a major brand in the largest market in the world. There is a clear strategy for this and once our agreement is in place the most significant revenues should begin to come in during the 2nd half of the 3rd year, – late 2021.
$80,000 from the capital raising will be allocated to driving U.S. sales of SleepDrops on Amazon.com and via Facebook in early 2019. Inventory for the launch has already been shipped to the United States, thus the funds will be used primarily for launch activities and promotion. We are working with US consultants to be in a position of control and managing our own agency for the US market. This is very close to being completed.
In addition, SleepDrops’ own US based website, SleepDrops.com, will be updated and go live in early 2019 offering direct sales outside of Amazon.com, Facebook and custom made landing pages to assist in building sales, and driving brand awareness of the SleepDrops range in the United States.
The United States is a very large market for sleep products, accounting for some 65% of all global consumer spending on sleep products in 2014. This share is likely to be maintained with many US publications reporting strong growth in several sleep product areas, including over the counter, natural and medicinal products.
SleepDrops International intends to manage its growth steadily in the United States via direct or internet channels and to not ‘rush to mass market’ via retail stores or outgrow its ability to service its U.S. based customers. We have a very clear strategy and have formulated products specifically for this market.
Risks and Challenges
All businesses face risks and as we plan to be a market leader we anticipate that there will be threats and attacks from other entities who wish to hinder our progress. At SleepDrops we already engage with risk analysis professionals. We look at all aspects of our business to see where we can mitigate risk. We prefer this proactive approach rather than being reactive though should we ever need to be reactive we shall react with clear and concise precision. The following swot analysis summarises what we believe our biggest risks to be.
It’s my absolute pleasure to offer you this opportunity to join the SleepDrops family officially by becoming an owner of this cool little company with BIG dreams. Today I ask you to help me to help more people, with SleepDrops, not just in New Zealand but all around the world. I sincerely thank you in advance for your support. You have my word that myself and my team will work very hard – Thank you again.
THANK YOU SO MUCH FOR YOUR INTEREST IN HELPING US TO HELP PEOPLE SLEEP BETTER AND LEAD HAPPIER HEALTHIER LIVES
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.
Mistake in the Balance Sheet - all sorted now
12:33PM Wed 14/11/18 on SleepDrops | $2 million funding target, min of $500,000 reached!
- Firstly I wish to apologise for causing this confusion in the first place.
- We were alerted to a potential mistake in our balance sheet
- This is a copy of the reply we sent to the cleve person who spotted it to explain why and what had happened.
Thank you for bringing this to our attention. Our chief number cruncher has been away on annual leave and I wanted to triple check with him what was the situation before finally replying. As mentioned in yesterday morning’s reply there is no worries regarding the debt to asset ratio. An item has been added to the suspense account for accounting accuracy. It is a temporary loan the BNZ has lent Kirsten Taylor to buy the new building SleepDrops International will be moving into. It is not a SleepDrops debt. Once the new building entity has been finalised, it will be removed from the accounts completely. Items are added to an organisations suspense account as a temporary allocation until they are finalised to the correct or final account.
· We have now updated the IM with the correct figures, and our financial documents
Comment on this update:
New Zealand natural health company SleepDrops targets Chinese sleeping problems
11:45AM Wed 07/11/18 on SleepDrops | $2 million funding target, min of $500,000 reached!
Introducing SleepDrops China Market Co-ordinator Mia Yang. SleepDrops founder Kirsten Taylor has a short chat to Mia about why we are targeting the Chinese market. Very recently released information from the Chinese government estimates the Chinese market potential for sleeping problems to be massive with lack of sleep affecting 50% of the entire population. With sleep deprivation causing anxiety, depression, cancer, obesity, alcohol and drug abuse, domestic violence, road accidents and other accidents causing injury and lack of productivity the Chinese government know they have a BIG problem on their hands. SleepDrops is developing market specific products and actively focussing on offering solutions to this market.
It's exciting times for SleepDrops.
Invest by pledging today to help us achieve our goals of supporting this important market.
Comment on this update:
|Maximum Shares Offered||2,000,000|
Explanation of valuation:
The valuation was undertaken by the company directors with internal and professional external advice. We have also considered how the target’s fund raise could affect revenue and growth of the business. This valuation which was calculated using various conventional models to determine business value including current revenue, discounted cash flows, future prospective revenues, EBIT and NOPAT. 2018 FY actualised revenue is $1,528,332.58 and takes into consideration non-financial assets the company holds which are essential to future growth and brand protection such as trademarks.
|Prev Year||Current Year||Est. FY 2020||Est. FY 2021|
Company Name: SleepDrops International Limited
Company Number: 800345999
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|Kirsten Taylor||Founder and Managing Director||https://www.linkedin.com/in/kirsten-taylor-1561497/||✔|
Ask a Question (You must login to ask a question)
Are any dividends being paid to share holders that pledge or is it solely pledge money and no voting rights or payments etc just discounted productPosted on 01-11-2018 by Mark
Hi Mark. These are shares. If you pledge above $100,000 you get voting rights. But regardless once dividends are paid out all shareholders will get paid- for sure! Thanks Mark :)
Answered on 01-11-2018 by Kirsten Taylor
Hello, we would like to buy some more shares. Will those shares be bundeled together if it is purchased under same name rather than two separate lots. Thank you AlexPosted on 02-11-2018 by Aleksandar Ivanov
HI Aleksandar, Sorry for the delayed response. I am not certain but I believe that if one name buys 2 lots of 10,000 shares then that one name will be listed as having 20,000 shares. What was it you were wanting to happen? Thanks Kirsten
Answered on 02-11-2018 by Kirsten Taylor
Hi, am I able to buy shares up til dec 3 as long as target of 2 million is not reached, I really want to but am sorting finance , thanks! DinaPosted on 02-11-2018 by Dina
HI Dina, Yes that is correct. As long as we have not reached our 2 million close off the offer stays open for a month. Many people are waiting for their monthly pay days or for other shares they have to liquidate and will then be purchasing. We would love you to join us! Thanks so much for your message. Kirsten
Answered on 05-11-2018 by Kirsten Taylor
I am impressed with your projected forecasts - you are counting on MASSIVE (175% CAGR) in revenue over the next 3 yrs!! And given your last 4 years revenue growth has only been 6% CAGR (and 50% last 8 yrs from start-up) - this looks a bit 'pie in the sky' to me as it is (even though you claim it to be conservative!!??) You obviously have a lot of faith in your product, but are these revenue projections seriously realistic? What's the major basis for the astronomic growth? Also, if revenue growth falls well short of your projections (for whatever reason), how would costs be controlled to ensure a massive loss does not eventuate? i.e. will costs be controlled to revenue so that you would always expect to be profitable, or would you experience a massive loss which could wipe out the equity in the company / cause major cashflow issues? Do you see any issues trying to grow as fast as projected?Posted on 03-11-2018 by James Cameron
Thank you for your questions, James.
Yes we believe they are realistic and feel we have been conservative. Sleep Drops is springing from a relatively low board…
We do have a lot of faith in our Sleep Drops product range and we have a solid strategy to grow the brand, at this stage we cannot see any major reason why we would not achieve them. There is strong demand, we are a loved brand with effective formulations. Exciting market specific NPD ( new product development), leading scientists on our advisory board, scientific research to back up claims (new year) and highly experienced people offering to come on our board, trademarks secured in the right markets, strategic partnerships and we know our market, we know sleep and the sleepless.
All of the above and observing other NZ natural health companies that have grown internationally in the last few years, seeing how they have achieved and grown, and concentrating on having the right Sleep Drops management team and strategy. Looking at the size and demand of the 2 main markets we are concentrating on we have identified it’s not astronomical growth, its achievable for Sleep Drops.
We expect to be profitable and will only manufacture stock to meet market demand, whilst cohesively continuing to create loyalty for the Sleep Drops Brand in the market. We will get payment upfront where we can and will control lead times. We will arrange trade finance with the bank. We will not deliberately do anything that would cause equity to wipe out. I have shares in this company as do my friends, family and staff.
Issues from growth, absolutely. We have faced many before over the last ten years and we have learnt. From running out of labels, bottles, stock supply, having a policy change in one of our markets to simple deliveries being delayed or shipments being stuck at port waiting for customs clearance. Expecting to have lots of issues is part of growth and what is most important for Sleep Drops, is how we approach and deal with them. That’s the good thing about having hit many walls before, as a company we have learnt and adapted and will be preparing to not hit walls and instead we hope to manoeuvre around them. We will be doing this by constantly improving processes, planning, investing in software, improving efficiencies, systems and staff as we grow the Sleep Drops Brand. Employing more skilled people who get things done, having an “A team” around a table and not being afraid to ask for help. I just called one of our advisors to ask for help about an aspect of a China contract I needed clarification about. I am not shy about saying I don’t know something and we encourage our team to do the same. We have worked hard to get to this point and will continue to do the best we can at every stage. We now have a strong “crowd” and have already had lots of interesting, experienced and talented people offer to help. I will be making sure we get all the assistance we need to see Sleep Drops reach its full potential.
Answered on 07-11-2018 by Kirsten Taylor
This isn't a question but I wanted to let you know, that my family & I have been customers of the SleepDrops range for the past 8 years and have already made a pledge to invest in Sleep Drops. I just wanted to tell you, that two days ago I placed my usual order for Sleep Drops for Adults and Daytime Revive, and thought I would give the new Devine Sleep Spray a go.
My order arrived yesterday, so used the Devine Sleep Spray last night - I woke to our Bed & Breakfast guest pottering around in the dining room waiting for me - I was just waking... I jumped out of bed to serve breakfast, feeling refreshed and well rested. My husband also had a great sleep last night, so we compared it on his Apple watch - it showed he had more REM sleep and longer sleep patterns than usual. I'm looking forward to seeing Sleep Drops grow and am glad to be a small part of the growth. Thanks Jennie Bender
Thanks Christopher Walsh! No it wasn't. It's been corrected now and uploaded into the IM. Apologies for the inconvenience. Please feel free to give me a call to chat about any aspects of the Equity offer. Kind regards Kirsten 0800345999
Answered on 12-11-2018 by Kirsten Taylor
Hi Kirsten. Do you plan to notify the current PledgeMe investors of the incorrect financial statements, given the revised statements now state the company has more liabilites than assets, which is inconsistent with the original IM? Thanks!Posted on 12-11-2018 by Christopher Walsh
Hi Christopher. Thank you for bringing this to our attention. Our chief number cruncher has been away on annual leave and I wanted to triple check with him what was the situation before finally replying. As mentioned in yesterday morning’s reply there is no worries regarding the debt to asset ratio. An item has been added to the suspense account for accounting accuracy. It is a temporary loan the BNZ has lent Kirsten Taylor to buy the new building SleepDrops International will be moving into. It is not a SleepDrops debt. Once the new building entity has been finalised, it will be removed from the accounts completely. Items are added to an organisations suspense account as a temporary allocation until they are finalised to the correct or final account.
We have also sent this out as an update so everyone is aware of the situation. Thanks again Kirsten
Answered on 14-11-2018 by Kirsten Taylor
Firstly thanks for your answer to my original question. I'm a little concerned regarding the accounting anomaly - if this was not right, how confident can we be of your other numbers? Also, I assume your forecasts are based on reaching 2M funding? How do you see the forecasts and growth trajectory being affected if say you only reach 1M? Thanks.
HI James, You can be very confident. We have a group of dedicated professional people working with SleepDrops. I think you will be hard stretched to find a single company in the world that has never made a small mistake. The amount that was "out" was not a major amount of money at all and it has been explained and will be further explained in the following Q & A's. If you do wish to know more perhaps you could give me a call? I have nothing to hide and am very happy to talk you through it. Our forecasts are done based on where we believe we can take the business, The business is in a positive position so we are very fortunate that we can put money back into the business to grow it. We have interesting agreements we are working on and these expected sales will further fund things for us. We are completely confident of reaching our forecasts and trajectories as indicated. My number should you wish to discuss further is 0800345999 Thanks so much James. Kirsten
Answered on 15-11-2018 by Kirsten Taylor
Hi there. With regards to your reply;
"An item has been added to the suspense account for accounting accuracy. It is a temporary loan the BNZ has lent Kirsten Taylor to buy the new building SleepDrops International will be moving into. It is not a SleepDrops debt. Once the new building entity has been finalised, it will be removed from the accounts completely".
==> I am confused by this; does this mean the SleepDrops building that has been paid for with a BNZ loan will be owned by Kirstin and not SleepDrops in the long term? Is the building going to be leased back from the owner, who is the owner of the business?
==> TBH I am not concerned about the detail of the BNZ loan/GQ etc, my question is around the existing investors who funded this on the bases that the balance sheet was positive (although it never balanced), but it's negative. And ultimately the business has more liabilities than assets - so quite simply, do you plan to advise these investors of this fact?
==> I emailed PledgeMe three days ago but have not had a reply to this issue, but no reply has been forthcoming.
HI Christopher, I am sorry if we have confused you. But you are mistaken about the balance sheet. The balance sheet is not negative. The business does not have more liabilities than assets so no we do not need to advise people of this fact. We have sent out updates and explained what happened and why. To explain further. A balance sheet is a snap shot of any given moment in a business. In our case we have shown where things were at as of June 2018. So the month before or after may well have shown a different picture. To re-iterate our position as of June 30th 2018 our NET assets were $94,740 = Positive not negative. Pledgeme and the team at SleepDrops have been in regular contact and Pledgeme passed on your inquiry and gave me the opportunity of replying to you which I did and you have acknowledged. We both believed this to be suffice. if there was some pledgeme related inquiry still outstanding please do let the team there know. They are super helpful and will be most willing to help you out. In regards to the building - I have worked with the BNZ and successfully purchased a building with the intention of securing a long term home for SleepDrops. We wanted to develop our factory further to be able to ramp up production but we were worried about investing into building a factory in a building that we didn't have any security or relationship with. This way SleepDrops can be sure they will not get evicted :) All of this was explained in the Information Memorandum and it was clearly stated that SleepDrops had secured a new long term lease and home. We get the keys on January 14th in just under 2 months from now and it will enable us to expand dramatically which is very exciting. Thanks for your questions. I am very happy to answer any of them to the best of my ability. If I don't know something, I will find out or please feel free to give me a call if you would like to discuss these or any other aspects. Thanks again Christopher. 0800345999 Kirsten Taylor
Answered on 15-11-2018 by Kirsten Taylor
Hi there, I have been following since I first heard the ads on the radio about the pledgeme fund and have now decided to invest. I may be wrong, but has one of the investment options disappeared? I wasn't interested in getting any of the products (as I don't have trouble sleeping) and thought I saw an option for shares in the company, which isn't here now. If I invest under say, Level 2 or 3, will I still get paid a dividend each year? Thanks :)Posted on 15-11-2018 by Lisa Grogan
HI Lisa, Thank you so much for your question and your interest in SleepDrops. All pledges are investments and all get shares in the company. The extras are simply special extra gifts to say thank you :) Pledges over $100,000 get voting shares and those below get shares and non voting rights. We are expecting to re-invest all of the profits back into the business for the benefit of growing the business for all shareholders. Then once things are ticking along and the board decide its a good time to pay out ALL shareholders, me, you, my mum and dad - everyone will be paid dividends. I hope that makes sense. Feel free to give me at call if you would like to chat more. 0800345999 Thanks Kirsten
Answered on 15-11-2018 by Kirsten Taylor
Followers of SleepDrops | $2 million funding target, min of $500,000 reached!
2018-11-18 12:32:20 +1300
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"Good luck SleepDrops"
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"Kirsten I have chosen to invest because I have known you for a number of years now ,particularly through our link at the Auckland Chamber of Commerce ,and know that not only do you have the passion to make this work but also the energy and the smarts to execute the strategy. And of course my family and I know this is a great product range that works! Best of luck in the years ahead. Fred Hellaby"
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"I have purchased Sleep Drops on three occasions due to sleep problems. It was enough of a trial for me to realise I want in."
2018-11-10 13:28:43 +1300
"Supporting the team and Kirsten "
2018-11-10 10:02:52 +1300
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"I know how hard you have worked for this and you deserve to reach your target and beyond."
2018-11-08 14:18:38 +1300
2018-11-08 10:34:38 +1300
"Another benefit of better sleep is the improved quality of attention for people during the day, making the world better. Kia ora!"
2018-11-07 23:57:42 +1300
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"Wishing you all the best with your campaign"