Cherry Street Pharmacy

Cherry Street Pharmacy

One-stop pharmacy that has generated ~$7.11 million in revenue since inception

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Security Type
Convertible Note
Categories
Service Businesses
Min Investment
$100
Location
Tulare, CA
Offering Date
August 18, 2020
Expected Close Date
November 01, 2021
Target Raise
$25.00K-$1.07M
Deal Notes

Discount Rate: 20%

Conversion Provisions: In connection with equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into non-voting preferred stock (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price per share for Preferred Stock by investors in the Qualified Equity Financing or (B) the price per share paid on a $13,000,000 or $15,000,000 valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Company Description

Founded in 2017, Cherry Street Pharmacy is a California Central Valley-based company that aims to deliver wide-ranging healthcare services to underserved areas. The company offers a robust selection of services like prescription delivery, personalized health programs, pet care, and health content that customers can access both online and from the company’s brick-and-mortar location. The company has grown quickly without much spend on advertising and with no outside equity capital investment.

Key Deal Facts

Generated nearly $3 million in revenue in the 2019 calendar year, with only ~$5,000 in advertising and marketing spend
Acquired a second brick-and-mortar location in August 2020, with a targeted launch in 2021
The company filled 6,170 prescriptions in July 2020, a record high
Grown revenue 106% year-over-year and 603% year-over-year in 2019 and 2018, respectively, without any outside equity capital investment

Use of Proceeds

  • Campaign Marketing
  • General Marketing
  • R&D
  • Future Wages
  • Equipment
  • General Working Capital
  • Intermediary Fee

Deal Notes

Discount Rate: 20%

Conversion Provisions: In connection with equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into non-voting preferred stock (Conversion Shares) at a price based on the lower of (A) a 20% discount to the price per share for Preferred Stock by investors in the Qualified Equity Financing or (B) the price per share paid on a $13,000,000 or $15,000,000 valuation cap. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Amount Raised : $106,235
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Valuation

Security Description

A convertible security is a security that can be converted into another security, typically equity in the next round of financing.

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