Question 1

The EBITDA Ground Freight & Logistics valuation multiple is 8.84. Obviously this number is not a sole variable in computing a company's valuation, but I'm calculating WR's multiple at over 14 ($22.5M investment terms / $400k revenue per quarter * 4 quarters). How are you c...

Accepted Answer

Hello Collin, great question! We're basing our valuation cap using a discounted cash-flow model. Our current revenue run rate is around $2.1mm without any further investment. A $3mm infusion allows us to scale into a footprint that is 5x the size of our current facility. Projected EBITDA (based on our current operations) will be $3-4MM annually, which allows us to self-fund further expansion and grow the enterprise value beyond $25mm. Based on the BGSA index, which tracks 62 publicly traded s...

Question 2

I was looking for financials and don't see any.

Accepted Answer

Hello Jaspreet, please see the below link to our unaudited, operational P&L statement from 2020. This P&L is presented on cash basis accounting. Thank you! https://docs.google.com/spreadsheets/d/1_g_N5JJ268MtMWDTOLaoB79-GSezsoMJihYqD0FQ0SM/edit#gid=1683621888

Question 3

Service looks great, team! Good luck with the raise!

Accepted Answer

Thank you!

Question 4

Hi, when do you anticipate the SAFEs converting, and when they do, will they convert into common or preferred equity? Also, are you all an LLC for tax purposes, and if so, do you plan on maintaining that structure? I like the pass-through business structure!

Accepted Answer

We anticipate the SAFEs converting within the next year or two. They will convert into preferred stock. We are set up as a C corp and plan to maintain this entity structure.

Question 5

Since 3PLs are traditionally designed to suite only a couple customers with a 2-3 year ROI on their automation. How do you design your warehouse with 10's of customers in mind and what are your product constraints?

Accepted Answer

The primary investment for this expansion is a much more efficient racking system and the machines required to operate within that setup. You're right about our customer load vs traditional 3PLs. We are solving for the high activity by stitching together our ever evolving technology stack. Our biggest service constraint is not having enough physical space to continue growing. Which is why we're raising this capital :-)

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