Company wants to raise two-and-a-half mill by January…
Five months ago, the Australian crowdfunding site, Equitise, announced it would soon open the door to everyday surfers being able to buy a slice of DHD, a company whose boards have underpinned ten world titles.
Well, today that door is wide open.
Crowdfunding, of course, is a roundabout sorta way to raise cash for your biz without the expense and legalities of an IPO (initial public offering, where companies jump into the stock market, pieces of the company or stocks/shares offered etc).
For as little as $250 you can buy ten $25 shares of a biz that’s been around for thirty-five years, ever since Darren Handley flew the coop from Murray Bourton’s Pipedream Surfboards. In a similar play, Darren’s ghost shaper Jason Stevenson split after four years at DHD to start JS Surfboards.
If you’re into gambling your shekels on a biz that I think we can all agree is a creator of fine work, you can read the prospective here.
The company bought Jack Perry’s accessory company Modom, giving it a piece of the leash, soft board, tailpad market.
Handley owns 35 percent of the biz; Matt Bailey, director and chief marketing officer, owns 38.
The company turned over six million bucks in 2017-2018 (almost double its earnings four years earlier) for half a mill in profit.
Handley gets a $120,00 salary plus whatever dividends the company delivers.
The offer closes January 18.
And the usual caveat on these things:
• Crowd-sourced funding is risky. Issuers using this facility include new or rapidly growing ventures. Investment in these types of ventures is speculative and carries high risks.
• You may lose your entire investment, and you should be in a position to bear this risk without undue hardship.
• Even if the company is successful, the value of your investment and any return on the investment could be reduced if the company issues more shares.
• Your investment is unlikely to be liquid. This means you are unlikely to be able to sell your shares quickly or at all if you need the money or decide that this investment is not right for you.
• Even though you have remedies for misleading statements in the offer document or misconduct by the company, you may have difficulty recovering your money.
• There are rules for handling your money. However, if your money is handled inappropriately or the person operating this platform on which this offer is published becomes insolvent, you may have difficulty recovering your money.
Obviously, these things tend to go one of two ways.