Revvies Energy Strips Ltd

The Revvies Energy Strips story

Crowdfunding Type of Offer
$250 Minimum Investment
Minimum $250,000 Maximum $450,000 Size of Offer
$1,750,000Pre-money Valuation
Fully Funded

$265,220

Raised

13.2%

Equity

233

Investors

 

Please consider the offer document and general risk warning before investing.

Retail investors are entitled to a 5 day cooling-off period.

OnMarket's fees are 7.5% of the funds raised, paid by the Company.

Highlights

  • Founded in 2012, Revvies has developed an innovative, fast dissolving mouth strip that delivers 40 mg of caffeine 
  • Provides athletes, students and busy people with the ability to have a faster, sugar-free, safe and consistent caffeine boost anywhere, anytime
  • Valued at $1.75 million, the company is aiming to disrupt the multi-billion dollar energy drink and sports nutrition markets
  • They have sold over 100,000 packs, generating over $200,000 in revenue
  • Stocked in 475 stores across Australia including Chemist Warehouse, Australia’s largest pharmacy group
  • Supplies 6 national sports teams, 20 professional clubs and Olympic athletes from Australia, New Zealand and the UK
  • Commenced export trials to Singapore and Malaysia
  • Early discussions underway with distributors in China and Japan with plans to expand into the Americas
  • Planned exit via trade sale or IPO within 2-5 years
  • Invest as little as $250 and up to $10,000 and own shares in Revvies

Detailed below is a summary of the Offer. Please see a full overview of the Company and the Offer in the Offer Document, available under Company Releases.

Background

Revvies Energy Strips are the brain child of husband and wife team, Jacqui and John Nolan-Neylan. They developed Revvies as they wanted a faster acting caffeine boost without sugar, but nothing on the market met their need.

     Revvies Founders: Jacqui and John Nolan-Neylan

 

Revvies’ unique format provides athletes, students and busy people with the ability to have a faster, sugar-free, safe and consistent caffeine boost anywhere, anytime, as the Revvies 5-pack fits in any pocket, purse or gym bag and can be taken without water.

Caffeine is perhaps one of the most researched and widely used sports performance ingredients with strong evidence showing caffeine masks fatigue, increases alertness, assists in the conversion of fat to energy and assists blood flow.

Since inception, the founders have focused their energy on refining the sales and marketing approach and to prove demand, focusing on the Australian market. Now having sold more than 100,000 packs, generated revenue over $200,000 and built an enviable following amongst professional sporting teams, the company is looking for funds to accelerate growth.
 

So who is using Revvies?

Revvies already supplies 6 national sports teams, 20 professional clubs and Olympic athletes from Australia, New Zealand and the UK.  Revvies athlete ambassadors include Dual Olympians Eloise Wellings and Jessica Trengove, and they currently sponsor the NSW Waratahs in Super Rugby, and Wellington Phoenix in the A-League. Other teams that use Revvies include the Australian Cricket Teams, Brisbane Lions, St Kilda and the Paramatta Eels.

Revvies are also used by recreational runners, cyclists and everyday people to give them the edge they need.

 Revvies are official suppliers to the NSW Rugby Waratahs, Parramatta Eels and Olympic Team athletes

 

 

Unique Selling Points

Revvies Energy Strips differentiate from traditional caffeine sources in five key ways:

  • Faster - Users report feeling the boost in seconds and they are also much faster to consume than established caffeine sources such as energy drinks, gels, shots and coffee.
  • More convenient - Revvies are more convenient to carry due to their small size and weight.
  • Sugar-free - Revvies are sugar-free and less than one calorie.
  • Great value - With an RRP of $4.50 for five strips, a serve costs just $0.90.
  • Better for Sports - Revvies are ideal for consumption immediately before or during exercise because they contain no liquid and little mass, so they won’t slosh around or cause a stitch.

Revvies are also gluten free, suitable for vegans and can be taken without water.

Offer Overview

Revvies Energy Strips (Aus) Limited has a pre money valuation of $1.75 million.  The Company is looking to raise a minimum of $250,000 and a maximum of $450,000 via this equity crowdfund offer (the Offer).  

 

The funds raised will be predominately applied to:

  • Marketing – Increasing the marketing spend, raise brand awareness, drive sales and expand distribution.
  • Working capital – Secure the human resources it needs to manage and accelerate growth.
  • Research and development – Deepen and broaden the product’s appeal, conduct independent research into product effectiveness, creating unique IP.

 

Revvies product package

Goals

Revvies aims to be the go-to caffeine source for people undertaking any physical activity and for busy people, with a view to exit via trade sale or IPO within the next 5 years. The company plans to broaden its distribution network through sports, convenience, petrol and grocery channels and double sales in key retailers such as Chemist Warehouse. Revvies also plans on exporting to 2 major Asian markets and envisages introducing a stronger strip to its product line within the next 2 years.

Risks

Revvies Energy Strips Limited is subject to a range of risks. While investors should consider all the risks before applying for shares, we recommend that investors take particular notice of the following:

Interruption to supply – If the supply of ingredients is interrupted, or Revvies is required to find a new manufacturer, there could be an impact on the company’s ability to meet supply obligations while a new supplier is sourced.

Interruption to business – Currently one month of stock is stored off site. If there is an interruption to business at its main trading location, there may be a delay in stock delivery and an impact on revenue and profitability.

Competition risk – It is possible that a large player with established distribution streams enters the market which may result in a loss of distributors and customers impacting profitability.

Key staff risk – The company will put in place "key man" insurance. Should any key staff leave the business there would be short term costs involved in relacing these individuals.

Regulatory risk – Revvies is not TGA registered and relies on Trans-Tasman Mutual Recognition Act to sell its product in Australia. Changes to legislation would require the supplier to become TGA registered, which could have an adverse effect on the business.

Distribution risk – Revvies is reliant on a relatively small group of domestic distribution channels to get product to market. Inability to source new channels, or the loss of existing channels, will adversely affect profitability.

Funding risk – Revvies may run out of cash and may need to raise additional funds to achieve its goals. This may not be on favourable terms and may dilute shareholders. If additional funds are not available, the company may not be able to execute its business strategy over the medium term.

A more detailed discussion of risks facing the Company are set out in Section 2.14 of the Offer document.

Management and Board

Revvies has a highly experienced and capable Board. Revvies utilises a variety of contractors and casual staff, with John and Jacqui currently Revvies only full-time staff:

John Nolan-Neylan, Managing Director

Role:  John is responsible for overseeing the strategic planning, sales and marketing functions of the business.

Experience:

  • 20 years’ experience managing start-ups and SMEs in Australia and the UK.
  • Developed new export markets in Europe, Asia, North and South America and the Middle East.
  • Established the European hub for the Australian cosmetics brand, Skin Doctors Cosmeceuticals, growing the UK and European turnover from AU$0 to >AU$10 million in just over 5 years, whilst building a team of 22 staff, including an award-winning marketing department.
  • MBA and a Master of Marketing.

Jacqui Nolan-Neylan, Operations Director and Company Secretary

Role:  Jacqui is responsible for covering the operations, finance and logistics functions.

Experience:

  • 15 years’ experience working in senior management roles in start-ups and SMEs.
  • Experience in HR, strategic planning, logistics, localisation, compliance, administration, facilities, due diligence and accounts.
  • Key team member of UK based Ash Gaming Ltd, expanded from 7 to over 50 employees, assisting in the company’s sale in 2011 for GB£23 million pounds. (~AU$44 million).
  • BA and MBA (candidate).

 

The Offer is subject to a Maximum Subscription amount of $450,000. If the Maximum Subscription is reached, the Offer will close early. Applications will be treated on a time priority basis and may be subject to scale back, so please fund your application as soon as possible.

 

IMPORTANT: Please read the below information before investing in this Equity Crowdfunding offer.

RISK WARNING:  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 becomes insolvent, you may have difficulty recovering your money. Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.

5 DAY COOLING OFF PERIOD: There is a 5 business day cooling off period for retail investors. During this period, you may withdraw your application and receive a full refund into your nominated refund account. More information here.

ONMARKET FEES: Upon successful completion of the Offer, a fee of 7.5% of the funds raised will be paid to OnMarket by the Company.

ONMARKET INTERESTS AND AMOUNTS SUBJECT TO COOLING OFF: The funding bar displayed under each crowd funding offer may include applications where payments are yet to be made and amounts that are subject to the cooling off period. OnMarket and its associates will be participating in this offer.

Section 734(6) disclosure: The issuer of the securities is Revvies Energy Strips Limited ACN 600 703 848. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).??

 

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Question time

We'd love to answer your questions, we'll have one of the OnMarket team or the company representative of the offer get back to you asap. So ask away ...

revvies

Could you check the link to the offer document of the revvies offer . It appears to be stuck on a blank page. Thanks!

johan w (OnMarket member) on 21/02/2018

Hi Johan,The offer document seems to be working from our side. Please check again and let us know of you have any continued issues,CheersNick

Nick M (OnMarket staff) replied to johan w on 22/02/2018

test

Ryan D (OnMarket member) replied to johan w on 17/03/2018

test

Ryan D (OnMarket member) replied to Ryan D on 17/03/2018
Can I invest as a non Australian resident

When registering I was notified that I can't invest if I'm not an Australian resident, why is that ?

Ivan B (OnMarket member) on 26/02/2018

Hi Ivan, good question. The Crowd-Sourced Funding legislation in Australia does not consider the ability for non-Australian residents to participate in these types of offers. Like in many IPO prospectuses, the offer document has not been registered in any foreign jurisdictions, hence we are limited to who we can allow to participate in the offer. I hope this helps, Cheers Nick

Nick M (OnMarket staff) replied to Ivan B on 26/02/2018

Ok thank you for quick reply

Ivan B (OnMarket member) replied to Nick M on 27/02/2018
Investing in subsidiary

I can see the Australian entity owns regional trademarks but which entity owns other IP, particularly manufacturing/design of the product?
Tag along right in constitution only appears to apply to AU company, section 3.4.7 implies there is a group-wide tag/drag how is this implemented?

Craig D (OnMarket member) on 03/03/2018

Hi Craig, the groups IP associated with the product, its branding, and the trademarks all reside in the Australian company. I should point out that the process for manufacturing the product is not considered unique, similar to drinks, gels or supplements. The R&D we plan to conduct with a proportion of funds raised will provide new IP that will also reside in the Australian company.
The drag/tag rights in the Australian Constitution are mirrored by similar clauses in the UK's Shareholder Agreement. As the UK company is the majority shareholder in the Australian company its proposed sale would trigger the drag and tag rights in the Australian Co.

John N (Revvies Energy Strips Ltd representative) replied to Craig D on 05/03/2018
Packaging

Given the current movement to avoid disposable plastics, I was wondering g what your packaging materials consist of? Certainly with previous gel formulations by other companies, their packaging is often found littered around areas where people run and cycle.

Catherine M (OnMarket member) on 14/03/2018

Hi Catherine, Thanks for the question. Revvies display boxes and wallets are cardboard, so recyclable. The individual strips are packed in an aluminum and plastic laminate, which is not currently recyclable. Revvies is developing a sustainability strategy, part of which will address the materials we use for the packaging of the product. Our strips are smaller than gels, so use less material and are less sticky, so easier to pop back into a pocket once used reducing the chance of litter, but we are aware that we need to find a more sustainable laminate material to really tackle the issue you raise and is one that we believe we can address as volumes increase making alternatives economically viable.

John N (Revvies Energy Strips Ltd representative) replied to Catherine M on 14/03/2018
Other similar products on the market

This are quite a lot more expensive per mg of caffeine than other pure caffeine delivery products like NoDoz which is also sugar and additive free. Why would I choose to use this product above taking a small package of NoDoz with me? They are also so small that I find don't need to take them with water.

Raimond B (OnMarket member) on 21/03/2018

Hi Raimond, Thanks for you're a question. The answer is that not all purchase decisions are based on price. Takeaway coffee, energy drinks, gels, and shots have all found their place in the market for caffeinated products at a per serve price above Revvies. Our market research showed Australian consumers thought $1 per strip appropriate which formed part of the reason we selected the $4.50 price point for the 5-pack. Caffeine power, for example, would be even cheaper than No Doz, but sales are minimal. Our combination of USPs outlined in the offer document means in the sports space we have a clear advantage, which is why we are used by so many pro clubs, have been selected to partner Athletics Australia and are a preferred supplier to high-performance sport NZ through to Tokyo 2020. The trend for sports nutrition to move into the mainstream, we believe we help us move into being an everyday source for caffeine for busy people, without time to stop.

John N (Revvies Energy Strips Ltd representative) replied to Raimond B on 22/03/2018

Given the size of the offer document, I thought I just run through the key USPs for you.
The main difference to something like No-Doz is that users feel the benefits of Revvies strips in 2-5 minutes rather than 30-45 minis for tablets or drinks etc. This has the added benefit of reducing the chances of GI distress.
The speed of action also means that it can be taken mid-game. This allows for lower levels to be taken pre-game, but topped up at intervals during a game or race. This also helps reduce the impact of caffeine on rest and recovery post-match, especially important where games are played in the evening and frequently through a week.
The other key thing is Revvies are Informed-Sport certified meaning every batch is tested for WADA banned substances meaning it is safe for elite athletes and is an indicated of quality for general consumers.

John N (Revvies Energy Strips Ltd representative) replied to John N on 22/03/2018

Thanks John.
I would be interested to understand why Revvies reduce the chance of GI distress because it is quicker acting than the No-Doz.
Cheers

sean l (OnMarket member) replied to John N on 27/08/2018
Offer document - questions on revenue (current and forecasted) and inventory; and exiting from shares

Great idea and product. Grateful for your answers on the following questions:
- In your offer document, the half year result to Dec 2017 appears to have almost no revenue growth over the years before. Can you describe the reasons for this and what your proposed forecasted growth for FY2018 and beyond look like?
- Inventory in your offer document appears down on in the Dec 2017 result - can you explain why?
- Your offer document describes a strategy to exit by IPO/trade sale in 5 years - are there any ways to trade shares between now and then? Also, will you consider dividends/other benefits should the company start turning a profit?
Thank you very much!

faye l (OnMarket member) on 22/03/2018

Hi Faye,
Thanks for the questions. In response:
1. FY2017 Revenue vs. 6 month to 31 Dec 2017 - The two key reasons is that at the beginning of the FY2017 we listed with Chemist Warehouse, so the was a large pipe fill order and the second is that we do see a seasonality to the product with the best sales from January through to July then tapering of through to Christmas. Underlying sales through our largest retailer is up approximately 60% for the same period last year on the same marketing budget.
2. 30 June 2017 vs. 31 Dec 2017 - The production runs for the product are large, so there is a significant variation in SOH based on how close to reordering the business is, for cash flow reason we try to keep SOH down to a sensible level.
3. Dividends vs Capital growth - As described in the offer document it is our goal to move into profit in the mid-term, but with profits reinvested in the business to maximise growth both domestically and into exports markets in Asia and north, south and central America. At this point in time we expect returns to investors will be maximized by this approach, but we will, of course, review our strategy throughout the businesses development. I hope these responses are helpful.

John N (Revvies Energy Strips Ltd representative) replied to faye l on 23/03/2018
I need is finance or loan money 250,000 to my credit card 3168

I need is finance or loan money 250,000 to my credit card nab bank, commonwealth or Westpac thank you

der t (OnMarket member) on 29/03/2018

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Before investing please consider the offer document and the general risk warning.

Minimum Target $500,000

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$599,015

Raised

2% - 9%

Equity

484

Investors