FrontFundr Investment Offer FAQ
Q. What are the Tiered Investment Rewards?
A. You can find the list of tiered investment rewards on our FrontFundr campaign page here , and also on our Tiny Perks PDF [insert link] here.
Q. How do I get scanned to become part of Our Home & Miniature Land?
A. All of our investors will have a 3D printed 1:87 scale version of themselves placed in our miniature Canada, in the location of their choice eg. on Parliament Hill, on the shores of the Bay of Fundy, on the streets of the walled city of Quebec. And if you invest at the 5,000 level or more, we’ll send you a 5” version of your 3D selfie. To be 3D printed, you will need to be scanned at the facility of our 3D Printing Partner, Objex Unlimited, at 36 Fieldway Road in Etobicoke, Ontario. See here for details on how to get 3D mini-me printed [insert link here]
Q. Can I have someone else 3D printed in my place? Can I have additional people 3D printed?
A. Absolutely! You can designate a spouse, child or friend to be 3D printed in your place.
Q. Do you have a date for the pre-launch investor sneak previews of the attraction?
A. When we have secured this 2nd stage of capital, our next step is to secure a location and set a launch date. We will notify all investors when we have secured a location and a launch date. Our pre-launch sneak preview for investors will be set for 4-12 weeks in advance of opening day, and we will send investors an invite for this date well in advance.
Equity, Stock & Ownership
Q. Is this campaign an investment or a donation?
A. This is an investment. You will receive preferred shares in company, commensurate to your level of investment. The perks are in addition to the equity stake that you receive.
Q. Can you send me the financials and details of the offer?
A. Full details of the offering are included in the Canadian Offering Memorandum – please review this document carefully prior to investing. You can find it here on our FrontFundr page [insert link here] or here on our Website [insert link here]
Q. What is the procedure if I wish to invest more than C$50,000?
A. Individuals who wish to invest over C$50,000 are invited to contact our founder, Jean-Louis Brenninkmeijer, directly, by email at firstname.lastname@example.org
Q. If I live outside Canada, can I still invest?
A. The investment of $1,000-$50,000 through FrontFundr is available to residents of Canada only. The investment opportunity in Our Home & Miniature Land is made available by FrontFundr to residents of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick and Nova Scotia. Please note that there is a minimum investment threshold per province that must be reached before Our Home & Miniature Land can accept new shareholders from that province. If you have questions regarding the minimum threshold for a particular province, please contact email@example.com.
Investors living outside of Canada who are interested in investing more than C$50,000 can invest directly by contacting our founder, Jean-Louis Brenninkmeijer, directly, by email at firstname.lastname@example.org
Q. When is my equity investment “official” – how do I get notified?
Investors will invest through the FrontFundr portal via a subscription agreement, and will receive electronic notification from FrontFundr once shares have been issued to each investor. Upon receiving such notification, the investor will be able to log in to their FrontFundr account to confirm details.
Q. How will I make back my investment?
A. There are three potential ways to make back your investment. First, we expect the attraction to be cash positive in its first year of operations. Well-operated attractions should command an EBITDA of greater than 30%, climbing up to over 40% in subsequent years. We anticipate using this positive cashflow to invest in future destinations and to issue dividends. Second, a number of banks have expressed interest to provide senior debt after two years of positive cash operations to be used to fund further exhibits, thereby freeing up cash to dividend out, or to be used to buy out investors, who wish to exit at that time. A third potential is a straight sale of the company to a well established entertainment/attractions player at some point in the future.
Q. How many shares are available for investment?
A. There is no maximum number of shares available for investment. $5 million has been invested and committed by the founders. We are looking to raise a further $10million. We are building a syndicate of individuals who are willing to invest in the company, through two approaches:
· Individuals who wish to invest from C$1,000 up to C$50,000 can invest through the FrontFundr platform @ FrontFundr.com
· Individuals who wish to invest over C$50,000 are asked to contact Jean-Louis directly at email@example.com
Q. What happens to my investment if you don’t raise the necessary funds?
A. If we do not achieve the minimum offering of C$[insert min amount here], we will return all funds and the offering will be cancelled. All investor funds will be held in trust pending closing and will be fully refunded if we do not achieve the minimum offering.
Q. What happens to my investment if the company is not successful?
A. [insert answer here]
Q. Why are you not building all of Canada for launch?
A. Our vast, detailed miniature world is labour intensive. It takes over 30,000 hours and up to C$1,000,000 to build one destination. To launch all of Canada at once would be time and capital prohibitive. Our plan is to launch with an initial set of destinations, and to build out from coast to coast to coast over the first 5-10 years after launch. An initial launch of 6 destinations will provide our guests with 1.5-2 hours of entertainment in one visit. We will use positive cashflow and bank debt to launch a new destination every year or two. This approach of launching a smaller set of destinations and expanding with new destinations over time has been very successful for other miniature worlds. The plan to launch new destinations over time is a key way to drive return visits to our attraction.
Q. Where will the attraction be located?
A. Our Home & Miniature Land will be located in downtown Toronto, close to major leisure and tourism destinations, and accessible by car and transit. We have 6 location criteria:
1. ability to deliver a magical miniature Canada experience
2. sufficient space for our revenue programming eg. events, 3D printing, education
3. accessible by car, bus, transit, bicycle or foot
4. proximity to other leisure destinations and traffic
5. street level visibility
6. Fit-out, leasing and operational costs
We have identified 5 potential locations, and we’re currently in discussions with these landlords.
Q. What Ticket price will you charge?
A. Our financial model has set an adult full ticket price of C$25, which is just below first tier pricing in the attractions market. The CN Tower charges C$39 for timed front-of-the-line entry to the main observation deck. Ripley’s Aquarium charges C$35 for express anytime adult entry. Casa Loma charges $26.55 for adult entry. Legoland Discover Centre charges $26 for an adult flexi ticket. Child, student and senior tickets will be set at a discount to the adult ticket price, and further discounts will be available for on-line, timed entry tickets and group tickets/annual memberships.
Q. What are the planned revenues, costs, EBTDA margins, profits?
A. Details of the business plan are included in the Canadian Offering Memorandum – please review this document carefully prior to investing. You can find it here [on our FrontFundr page].
We expect the attraction to be cash positive in its first year of operations. Well-operated attractions should command an EBITDA of greater than 30%, climbing up to over 40% in subsequent years.
Q. Will the government provide assistance?
A. We are pursuing discussions with the municipal, provincial and federal levels of government.
So far we have been successful in tapping into SRED (research and development tax credit) and have applied to participate in NSERC through our partner George Brown College.