Invest in DIVERTsessions Pop-Up: COVID safe outdoor Sports and Education facility helps bridge social inequities

As a real estate investor, I think there will be a continued decline in the need for retail real estate. I believe that location based entertainment concepts like DIVERT are a great solution to transition that deteriorating retail real estate into productive and valuable assets.
Given our current climate surrounding COVID and crowd restrictions, people are eager to get outside and try something new or build on the action sports skills they have acquired in the past. Additionally, the introduction of more action sports in the Olympics will bring more eyes on and interest in the world of action sports possibly encouraging people to try new sports or pick up where they left off.
Most importantly, I prefer to invest in entities that I feel good about, companies that are not just looking at the bottom line but also looking for ways to improve the wellbeing of people. I love that DIVERT has an awareness of social inequalities and strives to make the action sports experience available to everyone no matter what their financial situation may be.

Matt Dillon Co-owner and Manager DT Legacy Development LLC
Lead Investor Investing $75,000 this round

I love that your business gives more people the opportunity to pursue these sports who otherwise wouldn't be able to afford the travel time and gear. Now, more than ever, we need something like this to get us excited about staying active in the post-COVID world.

Jessica Duell

Hi Zach and David, I love what you guys are doing as there's a knobel cause element to your effort which resonates with me. I'm a Licensed Clinical Social Worker, Sports Inventor and feel like there's an ever growing need for people to connect face to face in touch with the earth. I'm trying to achieve the impossible by launching Torques~ The Off Court Racquet Sport. It's an Ancient Game with a High Tech Twist played face to face 40 feet apart on the beach, the grass or hard surface. I would enjoy the opportunity to introduce Torques to you guys. We are in Orange County and our IG####@torquessport and YouTube Channel is Torques TV. My name is Scott and here's to us achieving the impossible and inspiring others along the way!

Scott Thomas Peterson

Investor Q&A

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What does your company do?

DIVERTsessions makes Action Sports more accessible and affordable. Action Sports like skateboarding, surfing, and snowboarding are currently out of reach to many because they are too expensive and too far away. What's worse is that most are shut out from the positive life lessons and community benefits that come with being a part of the Action Sports Lifestyle. DIVERTsessions changes this by situating participation facilities near urban metros and dramatically reducing costs to participate.

Where will your company be in 5 years?

In 5 years, our goal is to have multiple DIVERT facilities across the country. Action Sports already have a global presence and we plan to continue its expansion. The DIVERT team currently has an active pipeline of over a dozen projects in and around major US metros and even more abroad. All with active development partners and active financing partners eager to bring DIVERT to their city. With a little help from you, the DIVERTsessions Pop-Up can turn all of these opportunities into a reality.

Why did you choose this idea?

Action sports saved Zach's and David's lives. No joke. As adolescents, both were headed down very negative paths. Individually, they each had the natural intervention of Action Sports, which taught them incredible life lessons that turned their lives around. Now, they're on a mission to inspire and empower others with Action Sports.

So what can I actually do at a DIVERTsessions facility?

At the DIVERTsessions Pop-Up Experience, you can participate in surfing, boogie boarding and bodyboarding on our wave machine; skateboarding, rollerblading and scootering in our skatepark; and skiing, snowboarding, sledging and tubing on our Snow Experience. We leverage technology to elevate our attractions through automated content capture systems that shoot, cut and send clips of you shredding right to your phone. For those who aren’t daredevils, we have creative programming in music, art, photography, videography and more. Anyone can come into DIVERT to hang out, eat and drink from our world-class food and beverage program or catch one of our many events.

How does a DIVERTsessions facility make money?

DIVERTsessions revenue comes from the following key sources: 76% = Ticketing and Memberships 16% = Food and Beverage, Merch and Retail Sales 12% = Events and Venue Rentals 6% = Ancillary Revenue Streams DIVERTsessions’ financial model is based on facility utilization which is how many guests are using the attractions or otherwise occupying the space in non-peak times (like weekdays) and peak times (like weekends). Our utilization assumptions are benchmarked from popular location-based entertainment concepts like Top Golf and other Action Sports facilities and then reduced by 15%+ to remain conservative. Our attractions can hold 100 participants every hour. We can’t share projections, but we can say that if we only have 15% utilization in off peak times (kids are in school) and 50% utilization in peak times (think Saturday afternoon), we make a sizeable margin and exceed break even on our cost to operate the facility providing investors with a sizable and rapid ROI. Even with conservative utilization assumptions, DIVERTsessions projects return that are on par with typical event or pop-up activations.

That seems ambitious. What makes you think you as founders can pull this off?

The founders and executive team have the experience and track record launching, operating and scaling businesses, brands, location-based entertainment concepts and themed attractions that were significantly larger or more complex than DIVERT. Here’s some quick examples: As COO at TopGolf, Zach Shor developed and opened over 40 locations and readied TopGolf for the $4B IPO. As Director of Operations at Universal Orlando, Eric managed a team of over 500 employees, was an operations lead that opened the Wizarding World of Harry Potter, and implemented strategies that earned Universal over $200M. As SVP of Marketing at Disney Channel, Matt Palmer led a global team of over 75 employees, managed a marketing budget of over $100M and oversaw key launches of shows like “Hannah Montana” and “High School Musical” which earned him the title of “Entertainment Marketer of the Year” from Ad Age. As CFO of JESwork construction Co.Steve Frey led the origination of multiple mergers and acquisition to ready the company for a sizable exit acquisition. Following the strategy he set forth, he arranged and scaled the company which he then sold for $400m. … Furthermore, since founding DIVERT, Zach and David are Specialty Consultants to Nike's new business innovation department Nike Valiant labs, where they have helped found and refine the process for how Nike does new business onnovaiton. As DIVERT we have run numerous business experiments to validate different elements of the our business model: DIVERTcollective - To test brand resonance and market interest, we created the merchandise and apparel brand DIVERTcollective. Within the first 5 months of launching the brand, we sold over 45,000 units of merchandise and generated over $300,000 in revenue. DIVERT’s Entrepreneurship Program - To test our ability to create engaging and exciting programming, we created DIVERT's Action Sports-themed entrepreneurship program. The program was picked up by Red Bull and became the centerpiece of a social entrepreneurship campaign that ran on hundreds of college campuses nationwide in the Spring of 2017. Luzo Skatepark - To demonstrate how Action Sports can transform communities, DIVERT led an initiative to repurpose a distressed park by building a new skatepark in San Jose, Costa Rica. In just 6 months, we were able to arrange over $150,000 in value from donors, service providers and major brands like Red Bull, coordinate international logistics for over 65 volunteer builders, design and construct the skatepark and launch programming that is still in place today. To date, the skatepark has served over 100,000 visits and now acts as a safe community gathering space for people of all ages. DIVERTdayz - To demonstrate demand for and our ability to operate the full scope of DIVERT’s envisioned programming in a day we worked with Vans and Element Skateboards to produce DIVERTdayz, an Action Sports and lifestyle event that takes guests of all ages through skateboarding, music production, street art, photography and videography workshops. We were able to staff a team of 30 volunteers to run the event for over 160 guests. ... Between our executive leadership and founder's experience, we're confident that we've put together the best team to make DIVERT a success.

How do I get paid back from my investment?

DIVERT repays its investors no different than any other project, with an extra kicker for our investors. Investors get paid back first from all DIVERTsessions Pop-Up proceeds until they are fully paid back + 10% premium. We then take the entire available profit margin after operating expenses and retained earnings and we disperse the capital 50% to investors and 50% to DIVERTbrands. The disbursements are based on each owner's pro rata amount of the total amount invested.

Why are you crowdfunding your equity versus seeking out venture capital?

DIVERT is built for the community, so it only makes sense that it should also be funded by the community. When people first hear the concept, they immediately want to support, but large legal fees and lengthy agreements tend to be too cumbersome for the average person to be able to contribute. Crowdfunded equity gives the chance for all of those people to get involved in a simple and supportive way. It also ensures that the business is owned and run by those that it is meant to serve. All around it is a big with for the community and DIVERT

What makes you believe your project will be a success?

We believe we have identified the intersection of three major market trends that lead to a massive opportunity. The Action Sports market is significantly underserved. If we are able to make it more affordable and convenient we unlock an audience of 52M people who previously couldn’t access Action Sports. The retail market is in dire need of innovative entertainment concepts like DIVERT. After we prove the first activations is performing inline with educated assumption, we will have a deep pipeline of growth opportunities around the US and the world. Furthermore, we have based our business assumptions in the real world numbers from our team of entertainment, real estate and retail subject matter experts. We have been hyper conservative in our approach to developing our business and financial models so that even if the facility is underperforming according to our performa we are still a profitable and healthy business.

How does your for-profit business have a positive impact?

DIVERT is considered a social enterprise. We have an impact in a handful of ways: Locals Program - For youth who live in a qualifying census tract or meet other qualifications, we will subsidize their sessions through partnerships with brand and local foundations. We retain revenue, the brand and foundations meet their impact goals and it is all around a win-win. School Leagues - For schools who create Action Sports clubs or teams, our partners SnapRaise will lead fundraising to pay for private practice sessions, equipment and safe transportation to/from our facility. Direct Economic Impact - From construction throughout operations, DIVERT will create jobs and create tax revenue for the local community. Commitment to a localized workforce - DIVERT will work with local workforce placement agencies to ensure that, when possible, available positions can be filled by members of the local community. Indirect Economic Impact - Beyond creating jobs and providing tax revenue, the increased attention and foot traffic around DIVERT will bolster surrounding businesses, especially retail, restaurants and hospitality. Community Services - DIVERT is affordably and conveniently bringing new activities and positive pastimes to communities and regions where they previously couldn’t have existed before to educate and provide opportunity to previously underserved populations.

Aren't Action Sports dangerous? Won't you need a unique or expensive insurance policy?

The DIVERT team has already scoped and priced its insurance policy with a leading risk management and insurance brokerage. Our policy is no different than that of a ski resort or similarly programmed attraction and falls in a standard insurance category.

What makes you different from your competitors?

At DIVERT, we have seen this boom coming for the last four years and have been meticulously testing and readying ourselves for this very moment in time. We have validated the brand, developed the programming, proven our ability to build and manage Action Sports facilities as well as the full DIVERT program, forged the partnerships and put together an industry leading team. All of this puts us way ahead of any other competitors who are simply opportunistically entering that Action Sports space. At DIVERT, we obsess over the business and financial success because it enables us to continually grow our impact and positively change lives. At our core, we are a purpose-driven entity that has seen the benefits of Action Sports first hand.

What The Heck Are Action Sports?

Action Sports (also known as Adventure Sports, Alternative Sports, Extreme Sports and other monikers) are sometimes difficult to define. They are typically individual activities that involve some level of risk and coordination at high speeds, heights, or levels of exertion usually involving specialized equipment. There is a seemingly endless list of Action Sports, the most common ones are skateboarding, surfing, skiing, snowboarding and BMX. While these sports are performed individually, there is a beautiful and vibrant community that surrounds it. Of course, you have the athletes, but within the Action Sports community also exists creatives like artists, musicians, photographers and more that are equally as important and create the Action Sports lifestyle. The best part, everyone is welcome, so anyone mis-fit's right in!

COVID-19 has obviously negatively impacted may location based businesses negatively. How does DIVERT plan to ensure that those challenges do not impact the business viability.

The DIVERTsessions Pop-up has been designed in direct reaction to the COVID-19 pandemic in order to create a safe outdoor recreation experience. We have designed the site layout and operational guidelines to support and adhere to 6ft social distancing, mask requirements sanitation guidelines and more. Outdoor recreation is considered the safest form of activity, and in a time and place where people are dying to get outside and do something, those that have been able to offer well managed outdoor recreation activities have found great success. As an innovative concept built for the new normal, DIVERT's outdoor recreation and entertainment offerings is positioned to be a leader of tomorrow.

In regards to COVID-19, why is Spring 2021 the right time to launch the DIVERTsessions Pop-Up?

There are three critical reasons why we believe that Spring 2021 is a perfect, safe and opportunistic time to launch the Pop-Up. First, Because our guest safety is always our priority, we have chose Spring 2021 because according to all of the cdc's projections around COVID, Spring of 2021 will be a safe zone after a potential second wave. (See this article for more information https://www.businessinsider.com/second-wave-of-coronavirus-infections-may-peak-in-fall-2020-5). In addition, it seems that by Spring 2021, a vaccine for COVID-19 will have been developed, which will drastically increase general comfort and sense of safety with going to places like DIVERT. Inevitably this will create an increase in demand for outdoor recreation as people will be confident and comfortable with going out and experiencing these types of experiences for the first time is a year. We will be waiting with top tier operations, supportive staff and and safe environment for them to come out and hang!

Besides COVID, why is Spring 2021 a great time to launch? How do you benefit from the Olympic debut of Surfing, Skateboarding and Freestyle BMX?

We are looking to launch in the Spring of 2021 because there will be a ton of awareness and hype around the induction of Surfing, Skateboarding and Freestyle BMX into the Olympics. The Action Sports that we offer will be represented in the media at a level never seen before. This creates validation in the minds of parents and supports their inclination to spend money and allow their kids to participate. Even though there will be more awareness created by the Olympics, people watching at home will get excited and most will still be unable to participate, except for at one place, DIVERTsessions. Our program will align directly with the Olympics and look to allow those newly interested in the sports due to the Olympic hype the ability to actually come out and try the sports for the first time in a safe, affordable, convenient and comfortable environment.

Action Sports are intimidating, how will the DIVERTsessions Program ensure a safe and comfortable experience for everyone?

Don’t we know it! From being afraid of falling, to not wanting to look stupid, not understanding etiquette and much more there’s plenty of physical and cultural hurdles to overcome when you’re starting out in Action Sports. At DIVERT, we intentionally designed our experience to provide a safe, comfortable and inviting introduction to Action Sports that resolves all of the typical concerns with getting started. We provide all the protective gear to keep you in one piece, instructors to guide you through each session and create a culture that celebrates the thrills and spills that will undoubtedly be a part of progressing through these sports.

Who are the core customer persona's of the DIVERTsessions Experience?

Alternative Lifestyle Kids - They aren’t much for rules and regiment. They love to march to the beat of their own drum, express their individuality, and have as much fun as possible with their friends. Although alternative lifestyle kids used to reside in small pockets, these personality traits have now come to define the majority of the upcoming generations. Rad Parents - In a lot of ways Rad Parents (and caretakers) are just grown up Alternative Lifestyle Kids. These adults love to share their passions with their kids so they can spend time as a family participating in things that they all love. Young Professionals - Young Professionals live for new and exciting experiences that they can share with their friends. They also love to support their community and various causes. If they can spend their time doing things that accomplish both then they’re game! Action Sports Enthusiasts - No surprises here. Action Sports Enthusiasts are shredders of all ages that live to participate in various Action Sports and can’t get enough of the culture.

Still have questions?

Head over to our website www.divertbrands.com for more or reach out directly to the founders directly (Zach@divertbrands.co and David@divertbrands.co).

1	Raised $500k in the first 10 days. Top company on WeFunder. Terms can offer returns in under 1 year.
2	Experts call us mission driven TopGolf for Action Sports like Skateboarding, Surfing & Snowboarding
3	Team is comprised of leaders from TopGolf, Disney, Nike, Universal, Red Bull, X-Games and others.
4	We combat social inequities by providing accessibility to Action Sports and Education
5	Site and operations designed to specifically support social distancing and all COVID safety measures

1	Insufficient Capital. The Company’s capital is limited. Unless future capital is raised in future offerings, the Company may be unable to carry out its business plan. The Company may also be unable to open future locations and carry out its business plan as a result of cost overruns, construction delays or other unforeseen circumstances. If such circumstances occur, there can be no assurance that other funds will be available or available on acceptable terms for the establishment of DIVERTsessions and the other expenses that will be incurred in carrying out the business plan.
2	Non-Liquidation - The Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity.
3	Employees, officers and directors of the Company are a group of highly qualified professionals and are integral to the success of the Company. The Company’s ability to attract and retain qualified, motivated and talented staff contributes to the Company’s success and failure to recruit and retain such persons might have a material adverse effect on the performance of the Company.
4	Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
5	Dilution. To carry out its business plan, the Company will likely need to raise capital in the future in addition to 2020 offerings. Such additional capital may be raised through the sale of securities with a price less than, and rights superior to, those offered to the investors in the Offering. The investors in the Offering will not have any preemptive rights to invest in future securities offerings of the Company. As a result, the Shares may be diluted, perhaps substantially, by other investments in the Company.
6	Reliance on Management Team. The Company is dependent upon the efforts of the members of its management team. If the services of those members cease to be available to the Company, or become available to competitors, this could have a material adverse effect on the business, financial results and prospects of the Company.
7	Some members of the management team have limited operating experience in a project of this nature, such as opening new locations in other cities and other qualities from the Company’s business plan.
8	Potential Conflicts of Interest. Investors should be aware that there may be occasions when the Company, its principals and their affiliates will encounter potential conflicts of interest in connection with the Company’s activities. There may be, for example, a conflict between the interest of the principals to maximize their income from salary and similar payments from the Company and the interest of stockholders of the Company in maximizing the value of their shares.
9	Competitive Marketplace; Industry Risks. The Company generates the majority of its revenue from a single industry and, will be in a single geographic market. An investment in the Company could be considered an undiversified investment with a high concentration of risk. The business of providing location based entertainment of the type contemplated by the Company is competitive. The Company will be competing for market share in that field against other providers, some of whom are more established and better financed than the Company. The market for such experiences may also be subject to negatively impacted by general economic trends, global pandemics, downturns at times of heightened terrorism concerns, and competition from the emergence of new forms of entertainment, among other such risks.
10	Lack of Significant Operating History. The Company has limited operating history. As a result, potential investors may find it difficult to evaluate likely performance.
11	No Assurance of Profit or Distributions; Long-Term Investment. There can be no assurance that the investments of the Company will be profitable or that any dividends or other distributions will be paid to the investors. An investment in the Company is a long-term commitment and there is no assurance of any distribution to the investors prior to or upon liquidation of the Company.
12	Illiquidity. No market in the Company's stock is expected to develop. In light of the fact that the Company's common stock is not tradable, an investment in the Company is an illiquid investment. Investments in the Company's common stock should therefore be considered only by investors financially able to maintain their investment for an extended period of time and who can afford a loss of all or a substantial part of their investment. Investment in the Company's common stock is a long-term commitment, and there is no assurance of any distribution to the investors. The Company has no current plans to be acquired or to sell its securities in a public offering. The Company's common stock has not been registered under federal or state securities laws and is subject to restrictions on transfer contained in such laws.
13	Unequal Dissemination of Information. In the normal course of business, it is anticipated that the Company’s management team conduct meetings, provide reports or otherwise share information with investors and potential investors with varying degrees of frequency and specificity or at various points in time. As a result, certain investors may receive a greater depth of information than others regarding the Company’s activities.
14	Power of Attorney. For the Crowdfunding and related 506c offering to accredited investors from that time - and only those two offering, the Lead Investor will hold an irrevocable proxy and power of attorney to vote the holder’s stock.
15	Redemption. For the Crowdfunding and related 506c offering to accredited investors from that time - and only those two offerings, If an investor holds fewer than 1,000 shares of the Company's common units, the Company may, at any time and from time to time, redeem any or all of the investors' shares of common units at a price per share equal to the fair market value thereof as determined in good faith by the Company's board of directors.
16	Force majeure - There are unforeseen circumstances and external forces that could potentially stall, or halt entirely the development of the DIVERTsessions Pop-Up Experience including but not limited to global pandemics, forces of nature, acts of god and more.

Director	Occupation	Joined
David Monhait	Co-Founder & President of DIVERTbrands @ Self Employed	2019
Zachary Adamson	DIVERTbrands @ Self-Employed	2019

Officer	Title	Joined
David Monhait	President	2019
Zachary Adamson	CEO	2019

$50,000	Permitting & Development = 73%, Go-to-Market = 10%, Staff & Operations = 10%, WeFunder intermediary fee = 7%
$1,070,000	Permitting & Development = 50%, Go-to-Market = 30%, Staff & Operations = 13%, WeFunder intermediary fee = 7%

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we've raised $568,085 since our founding

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THIS IS THE DIVERTSESSIONS POP-UP

DIVERTSESSIONS POP-UP SUMMARY

66M people are interested in Action Sports, yet less than 9% can afford to participate.

Our mission is to make Action Sports, and the surrounding creative lifestyles, more accessible to everyone...

There is already a ton of interest in Action Sports...

...but there are too many barriers for most people to participate.

Thankfully, there are NEW Action Sports technologies...

...and the retail apocalypse is giving us LOTS of space.

...and the DIVERTsessions Pop-Up was designed and developed to thrive in the post-COVID world.

The Opportunity?

We Call It DIVERTsessions.

Semi-Permanent Outdoor Pop-Up

Permanent Indoor Venue

Our team is our unfair advantage.

We are calculated, relentless and back by a lead investor...

Why we're crowdfunding.

How we make money.

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Why Launch DIVERTsessions in Spring 2021?

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