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Companies => Off-the-shelf companies => Neon Cricket => Topic started by: Neon Cricket on March 06, 2018, 09:36:43 PM

Title: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Neon Cricket on March 06, 2018, 09:36:43 PM
We've all been there, dreaming of launching our own cricket company until the stark reality of the costs/difficulty involved truly hits home. Well having been in that position myself, I'm delighted to be able to make this investment proposal to you all.

This is your chance to own your own piece of a boutique brand looking to do things a little differently. For what is almost a nominal fee, you can not only become an official legal shareholder, but also a part of something bigger. To take Neon to the next level, I'm looking for between 5 and 25 like-minded cricketers to join the Neon Cricket brand and have a real input into the future of the company. Your opinions consulted, and your voices heard in the future of the Neon Cricket brand.
If this sounds like something that'd be of interest to you, then I invite you to take a browse of the investment opportunity presentation linked below.

In short, from a minimum investment of just £350 you can not only become an official legal shareholder of Neon Cricket Limited, but also receive the following benefit which is likely of most appeal to you all;

COST PRICE FOR LIFE. No gimmicks. Simply cost price Neon Cricket equipment for life.

Naturally in such a public forum the actual nature of cost prices and terms can't be discussed, but I invite you all to read through the document in the first instance. Having had a browse, if this is something you'd be interested in being a part of then simply contact me on investors@neoncricket.co.uk for an initial expression of interest form. Full details will be made available to interested parties at a later date.

Investor presentation link:

https://view.publitas.com/neon-cricket/neon-cricket-investor-presentation-2018/
 (https://view.publitas.com/neon-cricket/neon-cricket-investor-presentation-2018/)

If anyone has any queries, then please feel free to email me on investors@neoncricket.co.uk and I'll aim to respond within 24hrs. Please note completion of an expression of interest form is as described and does not constitute a binding agreement in any form. At the current time this is only being advertised to CBF members, but will be extended out to the full Neon Cricket subscriber list in due course.
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Ayrtek Cricket on March 06, 2018, 09:55:33 PM
Good luck Adam 👍 interesting concept that I’ve considered in order to get a “traditional” helmet to market.

If I hadn’t just built an office and have a second baby who’s already 4 days overdue I’d love to invest....do you accept Nectar points as payment?
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Neon Cricket on March 06, 2018, 10:00:41 PM
Thanks mate - as tempting as Nectar points I'll have to pass ha (I've somehow managed to rack up £40s worth as it is, can't bring myself to spend them!)
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Neon Cricket on March 06, 2018, 10:03:55 PM
Just a quick message to thank those who've emailed so far, I'll respond to you all tomorrow so please bare with me!

Just to clarify for those interested, the investment will be a combination of both a % share in the company and the cost price for life benefit - the share cost will effectively pay for itself after a years worth of gear, so the % share is almost a bit of a bonus!
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Ayrtek Cricket on March 06, 2018, 10:03:55 PM
Haha i always spend mine through eBay, good luck with the process I’m sure you’ll fulfil your quota as the kit looks great and your business acumen will be invaluable in seeing the growth of neon continue.
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Kulli on March 06, 2018, 10:12:18 PM
Does that value the company at £35k?
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Neon Cricket on March 06, 2018, 10:21:50 PM
Does that value the company at £35k?

Effectively yes, however the 'cost price for life' element does carry a certain weighting so it's not as straight forward as a simple valuation of 1% x 100 in that respect :)
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Ayrtek Cricket on March 06, 2018, 10:23:06 PM
Presumably the cost price for life aspect limits the volume of kit any particular shareholder can “purchase” per annum?
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: addu84 on March 06, 2018, 10:25:24 PM
Hi mate,

Sounds attractive. Keen to understand how you reached your valuation? Happy to discuss privately.

Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Neon Cricket on March 06, 2018, 10:36:24 PM
Presumably the cost price for life aspect limits the volume of kit any particular shareholder can “purchase” per annum?

Correct, the limit is set at a max spend of 1k per annum based off the RRP of the equipment in question (it's on the PDF somewhere!). This figure would also be revised each year to take into account any outside influences (price increases if applicable etc).

Just as an aside should any investor spend the full 1k RRP limit year 1, then whilst I can't discuss specific %'s on a public forum, lets just say they would receive a discount well over the actual share cost...


Hi mate,

Sounds attractive. Keen to understand how you reached your valuation? Happy to discuss privately.


Please drop me an email on investors@neoncricket.co.uk and I'll be more than happy to discuss any queries further.
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: InternalTraining on March 06, 2018, 10:40:49 PM
We've all been there, dreaming of launching our own cricket company until the stark reality of the costs/difficulty involved truly hits home. Well having been in that position myself, I'm delighted to be able to make this investment proposal to you all.

Great idea!

How much influence would shareholders wield in the product design and decision making process?
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Neon Cricket on March 06, 2018, 10:52:41 PM
Great idea!

How much influence would shareholders wield in the product design and decision making process?

Thanks @InternalTraining, good question - whilst obviously I'd still hold the majority share, the idea would be for all shareholders to have a real say. Regular contact would be kept, especially for consultation on new designs/ideas, with the idea being that everyone has a chance to give their input for any new ranges.

With the way things work the 2019 range is already under development as a few on here have seen (I'm aiming for a full launch Oct/Nov as per last season), so it's likely the first real community-designed range would be for the 2020 UK season - but there will still be good opportunity for input even in the first few season!
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: InternalTraining on March 07, 2018, 12:15:01 AM
Thanks @InternalTraining, good question - whilst obviously I'd still hold the majority share, the idea would be for all shareholders to have a real say. Regular contact would be kept, especially for consultation on new designs/ideas, with the idea being that everyone has a chance to give their input for any new ranges.

With the way things work the 2019 range is already under development as a few on here have seen (I'm aiming for a full launch Oct/Nov as per last season), so it's likely the first real community-designed range would be for the 2020 UK season - but there will still be good opportunity for input even in the first few season!

Ok.

Let me think about this.

You (Neon) and @JK Lewis have a unique opportunity to do things differently addressing real needs of the customers and not beholden to the "conventional" limitations every equipment manufacturer complains about.
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: edge on March 07, 2018, 06:24:53 AM
Crowdfunding seems to be everywhere at the minute! Invested in a brewery last week, wish they'd offered me cost price beer ha. Unusual idea for a cricket company, hope it goes well for you mate @Neon Cricket !
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Northern monkey on March 07, 2018, 07:38:22 AM
Great opportunity to get involved in the industry we all love
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: FattusCattus on March 07, 2018, 08:38:41 AM
I'll respond to you all tomorrow so please bare with me!

I'd at least want you to buy me dinner first!  :(
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Neon Cricket on March 07, 2018, 09:00:41 AM
For you Brucie I'd make it a candlelit picnic ;)
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: WalkingWicket37 on March 07, 2018, 09:04:55 AM
For you Brucie I'd make it a candlelit picnic ;)

Don't forget the ham & quaver sandwiches!
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: leatherseat on March 07, 2018, 10:14:42 AM
Interesting proposal. I have sent you an expression of interest via email.

A more tax efficient approach may be via an Enterprise Investment Scheme (EIS), if you qualify. Perhaps some other forum members may be able to give a little brief guidance, given the broad collective knowledge on here.

Best of luck,

David
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: velvetsky01 on March 07, 2018, 10:22:59 AM
All over my head this - but best of luck with it all Adam

For any protential investors - Adam is a top chap and knows his onions! So im sure you will have a great experience doing so
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: richthekeeper on March 07, 2018, 12:22:14 PM
Dropped you an email.
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: moonball on March 07, 2018, 12:58:55 PM
Very interesting indeed.... Having looked at the presentation, I have sent an e-mail. I'd like to hear more.
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Buzz on March 07, 2018, 02:29:24 PM
I think being a little clearer about what you are getting and needing from investors might be important here.

On the one hand having cheap kit sounds good.
On the other, as a shareholder will you be a companies house director?
Will you have any liability on the company?
Are you expecting an investor to act as an agent and sell your kit?
Will you provide profit share to the investors?
What is the position if someone makes an offer on your business?
Do your accounts match the justification for your business valuation?
What are you using the fund raising for?
What are your current stock levels?
The are loads if other questions too...

Now I realise that you are only asking for a relatively small amount of cash, but if I invest my cash and you do a Brimble (not saying you would, this is an example) will I get creditors knocking on my door asking to be repaid?

I am posting this as a reminder to members that you are signing up to something be aware if what that is.

@Neon Cricket , please this isn't personal or a criticism, but I am trying to help members understand what they might be signing up for.
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Churchy1989 on March 07, 2018, 02:51:07 PM
Typical Admin .............






(http://www.pic4ever.com/images/www_MyEmoticons_com__fishing.gif)
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Neon Cricket on March 07, 2018, 03:18:36 PM
On the one hand having cheap kit sounds good.
Who doesn't love cheap kit, there really is no catch - cost price for up to 1k RRP for life

On the other, as a shareholder will you be a companies house director?
No, any investors would be shareholders and not directors of the company.

Will you have any liability on the company?
Shareholders are only liable to the nominal value of a share as with any limited company. In this case the nominal fee is £1 per 1% so even a 5% shareholder could only ever be liable for £5. The Director(s) are the liable party (Me)

Are you expecting an investor to act as an agent and sell your kit?
No expectation or binding agreement of any type, although a commission based scheme is due to come available for 2018/19 anyway which investors would be free to join if they wished - further details in due course provided privately

Will you provide profit share to the investors?
All shareholders will receive the appropriate % of any dividends paid (as with any shareholding)

What is the position if someone makes an offer on your business?
Same with any Ltd Company, shareholders decide whether to sell their shares or not. Any sale of my own shares would have no impact on anyone elses unless they want to also sell - this is all very hypothetical (I have zero intention of ever selling the majority share for the record).

Do your accounts match the justification for your business valuation?
Happy to disclose detailed financials once NDAs have been agreed

What are you using the fund raising for?
As above

What are your current stock levels?
As above

Now I realise that you are only asking for a relatively small amount of cash, but if I invest my cash and you do a Brimble (not saying you would, this is an example) will I get creditors knocking on my door asking to be repaid? Absolutely not, shareholders only have liability as above - any creditors etc are purely the Directors' problem.


Please see answers in red above, if anyone has any specific queries then the best option is to drop me an email - again with it being such a public forum there's only so much I can put up on here (not hiding anything, but certain questions are verging on NDA territory that's all :)).
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: peristocle on March 07, 2018, 03:29:41 PM

Very Interesting
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Yorkershire on March 07, 2018, 04:38:08 PM
Yup has me intrigued... just out of interest, how many people have approached you so far...
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Neon Cricket on March 07, 2018, 04:54:07 PM
Feel free to get in touch :)

Without putting a number on it, let’s just if everyone actually wanted to invest then there’d be a down-selection exercise needed!
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: WalkingWicket37 on March 07, 2018, 05:01:48 PM
Yup has me intrigued... just out of interest, how many people have approached you so far...

https://twitter.com/vicenews/status/886230625589444608
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Seniorplayer on March 07, 2018, 05:12:31 PM
Good luck with the venture Adam can  visulise plenty of investors signing up.
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: LateBloomer on March 07, 2018, 05:49:05 PM
Great idea, best of luck with it and to all that invest
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: JK Lewis on March 07, 2018, 06:14:16 PM
It does sound interesting. One question from my side, is a shareholder at liberty to sell his shares at a time of their choosing, and to whomever they please? If so, is the offer of cost price kit transferrable?
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Neon Cricket on March 07, 2018, 07:44:06 PM
Thanks Justin. With regards to the sale of shares, the details are one for off-forum (feel free to email) however in short I wouldn't have any issue with shares being sold but naturally there's specific processes to follow as with anything (it's all detailed in the shareholders agreement which will be disclosed upon signature of an NDA).

As for the cost price kit benefit, this will be tied to the shares. Should the 1k limit have already been reached for that accounting year, then the new shareholder would need to wait until the following accounting year for the benefit to kick in for them (For reference, the end of my accounting year is July).

Hope that covers it for the most part mate.

Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: tim2000s on March 09, 2018, 09:07:11 AM
Just a note, as a responsible admin member who is regulated by the FCA (and sorry if people think this is a downer)

Please read the following (borrowed from Crowdcubehttps://www.crowdcube.com/pg/risk-36 (https://www.crowdcube.com/pg/risk-36)) - as this is an investment and anyone considering it needs to be aware of the risks of equity investment.

Risk Warning
To help you understand the risks involved when investing in shares, please read the following risk summary.  Please #investaware and diversify your investments.

The need for diversification when you invest

Diversification involves spreading your money across different types of investments with different risks to reduce your overall risk. However, it will not lessen all types of risk.  Diversification is an essential part of investing. Investors should only invest a proportion of their available investment funds and should balance this with safer, more liquid investments. 

Risks when investing in equity or funds

Investing in shares (also known as equity) does not involve a regular return on your investment. 

Please bear in mind the following particular risks for equity and fund investments:

Loss of investment or tax relief

The majority of start-up businesses fail or do not scale as planned and therefore investing in these businesses may involve significant risk.  It is likely that you may lose all, or part, of your investment.  You should only invest an amount that you are willing to lose and should build a diversified portfolio to spread risk and increase the chance of an overall return on your investment capital. If a business you invest in fails, neither the company will pay you back your investment.

Tax relief may also be lost due to your personal circumstances or due to the activities of a company.

Lack of liquidity

Liquidity is the ease with which you can sell your shares after you have purchased them. Buying shares in businesses pitching through crowdsourcing cannot be sold easily and they are unlikely to be listed on a secondary trading market, such as AIM, Plus or the London Stock Exchange.  Even successful companies rarely list shares on such an exchange. In addition, if you purchase B Investment Shares, these are non-voting shares and may not be attractive to potential buyers.

Rarity of dividends

Dividends are payments made by a business to its shareholders from the company’s profits.  Most of the companies pitching for equity via crowdsrourcing are start-ups or early stage companies, and these companies will rarely pay dividends to their investors. This means that you are unlikely to see a return on your investment until you are able to sell your shares.  Profits are typically re-invested into the business to fuel growth and build shareholder value. Businesses have no obligation to pay shareholder dividends.

Dilution

Any investment in shares made through crowdsourcing may be subject to dilution in the future. Dilution occurs when a company issues more shares. Dilution affects every existing shareholder who does not buy any of the new shares being issued. As a result an existing shareholder's proportionate shareholding of the company is reduced, or ‘diluted’-this has an effect on a number of things, including voting, dividends and value.

Some businesses who pitch for equity investment through crowdsourcing offer A-Ordinary Shares, which may include pre-emption rights that protect an investor from dilution.  In this situation the business must give shareholders with A-Ordinary Shares the opportunity to buy additional shares during a subsequent fundraising round so that they can maintain or preserve their shareholding. Please check a pitch, and the Articles of the company to see if the shares you are buying will have these pre-emption rights. Most companies do not offer pre-emption rights for B Investment Shares.

Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: WalkingWicket37 on March 09, 2018, 09:46:29 AM
Just a note, as a responsible admin member who is regulated by the FCA

How much of an impact have you found MiFID II to have had on your day to day tasks @tim2000s?
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: Buzz on March 09, 2018, 10:24:54 AM
Lots for poor Tim, especially around transaction reporting...
Title: Re: NEON CRICKET - UNIQUE INVESTMENT OPPORTUNITY
Post by: tim2000s on March 09, 2018, 10:24:59 AM
How much of an impact have you found MiFID II to have had on your day to day tasks @tim2000s?

One for PM.