Question 1

David- I’m interested. Can you please clarify investment terms? Thsnks jon Sarver

Accepted Answer

Great question Jon, since it isn't crystal clear on the website, and the definitive documents won't be available until the campaign is actually live (this is the Test The Waters phase, where only reservations can be recorded -- money cannot actually be invested yet). When we go live, then you'll want to look at the actual contract before confirming your investment. The structure is remarkably simple, a common form of Revenue Share. The investment is recorded as a loan to Kitsbow, and is repai...

Question 2

This is very interesting and I like what Kitsbow is doing in Old Fort. Will full financials be disclosed when this goes live? Is other debt already in place, and where does this issue rank in priority? Also, I see a fee charged by wefunder to investors. Can you or wefunder con...

Accepted Answer

Good questions. Yes, financials will be disclosed when we go live, but they're being reviewed first so we can't give a date on that yet. Yes, there is other debt in place, and it has priority. As with some other revenue share agreements, there is effectively very little collateral. Kitsbow is charged the fee at the time of investment, only once.

Question 3

Hi David / Kitsbow Team, this is very exciting. A couple of questions on top of the answer you gave Jon Sarver, mostly around risk assessment - (1) In the very pessimistic scenario where revenues are significantly lower than projected, what happens if the last payment #24 does...

Accepted Answer

Jack, great questions. The min is 300k and the max is 1m. Based on the response in the first 48 hours we are anticipate it will fill, but of course who knows. The contract will be available for your inspection when we file, so all discussion of terms will lock then. As drafted, balloon payment would be due on the last payment if we haven’t repaid the capped amount. We are told this is typical and customary.

Question 4

It looks like the 2x pool was increased from 300K to 400K. Can you elaborate on why this was done? (it doesn't seem as though that is beneficial to those who were in the first 300K) Adding an edit since it looks like I can't respond to your response. I think you are wrong that...

Accepted Answer

A smart question Anthony. We increased the pool today, because the intention all long was to involve our loyal customers in the early bird phase. We still have customers just now hearing about it, and wanting to invest. So we increased the pool. It has no effect on the investors in the first 300k as their payback remains the same.

Question 5

Very excited to be a part of such a great company that is doing the right thing for the community/environment/people/RIDERS! Great information below. So I have one question. Is it safe to say that all debtors (us) will be paid in full (2.0x first 400K of us; 1.75 other 600K of...

Accepted Answer

That's a great question, and yes, under the proposed terms the loan is paid in full (with the capped return). A debt is a debt -- it must be repaid. And yes, if revenues are higher than planned (30% annual growth) then it is paid back before payment 24, and if revenues are less than planned over those six years, then there is a balloon payment at payment 24.

Kitsbow Apparel

Purpose-Designed Apparel, Made in the U.S.

Kitsbow Apparel

Quick facts

Team profiles

Ask