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The company owns three thoroughbred race horses, two of which were homebred on Annestes Farm in Versailles, Kentucky. We believe these horses provide investors with diversity and opportunities for breeding as well as on-track excitement. The portfolio is led by home-bred Max Player, a well-bred five-year old son of Honor Code. The Company owns 100% of Desert Dalliance, a three year old Filly by Cairo Prince out of Dellarosa (by Candy Ride) and 100% of an unnamed home-bred Colt by Midnight Lute out of Indyannestasia (by AP Indy). Ownership in Annestes Thoroughbreds gives investors the opportunity to be part of the Thoroughbred Racing experience.
The company will purchase additional interests in Max Player, homebred on Annestes Farms by K&G Stables LLC. Max Player, a five-year old colt by Honor Code colt out of Fools in Love (by: Not For Love), is the winner of the G1 Jockey Club Gold Cup at Saratoga, the G2 Suburban Stakes and the G3 Withers Stakes, third place finisher in the G1 Belmont Stakes and third place finisher in the G1 Travers Stakes. Max Player competed in the classic races of 2020 and was the only horse to run in all three legs of the Triple Crown. Max Player also competed in the world’s richest horse race, the $20M Saudi Cup, and the $6M Breeders Cup Classic in November 2021. Desert Dalliance is a three year old Filly by Cairo Prince out of Dellarosa (by Candy Ride). She had her maiden race on January 30th at Gulfstream Park and finished 5th tiring down the stretch. She has been training well under Kelly Breen and we have high hopes for her on the track and as a broodmare. The Portfolio also includes an unnamed two year old Colt by Midnight Lute out of Indyannestasia (by AP Indy) bred on Annestes Farms.
The Company previously owned 9.41% of Swingman who was injured while training and retired from racing. In late September 2020, the Unnamed Filly by Munnings previously owned in part by Annestes Thoroughbreds was sold for profit, and Annestes Thoroughbreds realized its pro rata share of the proceeds.
The company capital raise is being done at $100 per share with a minimum purchase of two shares. The Company will also purchase additional interests in horses for racing and breeding .
HOW DOES IT WORK?
Annestes Thoroughbreds intends on raising capital to grow its roster of bloodstock and support its operations. The majority owner of Max Player, will contribute interests in exchange for cash and stock. Pro forma for the minimum offering size, interests in Max Player will comprise a majority of the non-cash enterprise value of the company. Use of proceeds from the offering may be to buy producing mares and fund stallion fees. Progeny can be sold or raced. At the September 2020 Keeneland Yearling sale, the Company sold its interest in an unnamed Munnings Filly for a profit.
Money raised from this offering will also be used to purchase additional interests in racehorses for racing and breeding in addition to paying expenses arising from the training, care, and other typical expenses necessary to manage a horse. If applicable, the remaining offering proceeds will be used to build the company’s cash reserves. Investors are entitled to a share of revenue from racing, breeding, and all other sources of revenue generated by each horse. Additionally, excess cash received from purses may be used to make distributions to shareholders and/or purchase additional horses.
Led by George E. Hall and farm manager, Dale Holly, Annestes Thoroughbreds has had a long history of success breeding horses on Annestes Farms and monetizing their values in the auction ring and campaigning them on the racetrack. Of the 89 horses bred, 60 were winners (67.41% versus the industry average of 45.33%), 7 were winners in Stakes Races (7.86% versus the industry average of 2.63%), and 5 were winners in Graded Stakes Races (5.61% versus the industry average of 0.77%). Notable homebred runners include: Pants on Fire out of Cabo De Noche (by: Jump Start) who won the Grade 2 Louisiana Derby, started in the Kentucky Derby, placed in the G1 Breeder’s Cup Dirt Mile and earned $1.6 million, and stakes winners Calamity Kate ($621k earnings), My Adonis ($531k earnings), and Max Player ($1.4 million life to date earnings). Notable yearling sales include Seahenge (sold for $750k), Guarded Secret (sold for $450k), Babeau (sold for $400k), and Capetown Lady (sold for $300k).