Cleveland Whiskey Bond

Asset-Backed Promissory Note, High ROI, Whiskey Conversion Option at Maturity

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Security Type
Secured Loan
Categories
Alcohol, Technology, Food & Bev
Min Investment
$1,000
Location
Cleveland, OH
Offering Date
November 25, 2020
Expected Close Date
March 01, 2021
Target Raise
$250.00K-$1.07M
No. Investors
2
Security Price
$1,000
Deal Notes

Loan with optional whiskey conversion

Asset-backed, fixed return note @ 5% interest, whiskey conversion option yields 170% overall return.

Number of Employees
16
Cash
$347,889
Revenue
$2,005,312
Short Term Debt
$313,380
Cost of Goods
$901,198
Long Term Debt
$617,243
Net Income
$-167,102

Company Description

Cleveland Whiskey is as much a technology company as we are a craft distillery.  Traditional whiskey can take 6 to 12 years to passively age in a charred-oak barrel.  However, there is a limitless world of possibilities for creating unique flavor profiles by using different species of wood in the aging process.  Our technology allows us to do what other distilleries can’t do: create all-natural whiskey expressions using more than just oak.  The results are as impressive as they are varied. 

Our technology allows us to do this without sugar, without syrup, artificial flavors or colors. And it allows us to do it faster.  Everything comes from transformative woods like black cherry, apple, hickory and sugar maple that's led 80 medals at competitions around the world, including 36 Gold, Double Gold, Platinum, and Best in Show awards.

Our research and development process is exponentially faster and what we make today is better than what we made last month. Not just faster but better. Our agility helps us fill market gaps and expand world-wide. Unconstrained by the status quo, we're a "just-in-time" manufacturer with new flavors that can reach markets in a fraction of the time previously necessary. Some say we'll be acquired by one of the big players; maybe it will be the other way around.

Key Deal Facts

Asset-backed, fixed return note @ 5% interest, whiskey conversion option yields 170% overall return.
80 medals globally incl. 36 Gold, Double Gold, Platinum, Innovator of the Year, and Best of Show.
Significant capacity expansion and system upgrades underway in new riverfront, historic location.
Distributed in 16 States, growing e-commerce availability. Poised for international expansion.
Technology-based, protected intellectual property, profitable and award-winning distillery.
Multi-round, successful equity funding with $3.2M raised to date. Consistent valuation increases.

Use of Proceeds

$250,000

  • $185,000 for additional distillation, fermentation, and processing equipment.
  • $45,000 to support operating capital necessary for cooperage and barrel racking.
  • $20,000 to be used for legal, accounting, portal and to partially offset marketing expenses associated with the funding round, including intermediary fees (5% to Wefunder).

$1,070,000

  • $910,000 for additional primary fermentation and distillation equipment, incremental finishing technology fabrication and installation, trenching and required water systems.
  • $95,000 for barrel cooperage, rack storage, and database implementation.
  • $65,000 to support legal, accounting review, specialty consulting, relevant marketing, and platform processing costs (5% to Wefunder).

Management Team / Advisory Board Bios

Tom Lix
Founder/Chief Executive Officer
Serial entrepreneur, technology innovator and seasoned leader with packaged goods, software/new product marketing experience.

Donald G Coffey
Chief Science Officer
Former Executive Vice President of Research, Development, and Innovation at MGP Ingredients, a leader in whiskey, neutral spirits, and gin manufacturing in the U.S. Holds a PhD in Food Chemistry from Michigan State University

Reese Edwards
Chief Financial Officer
CPA. Former Big 4 auditor, 10+ years in public multinationals.  Multiple M&A deals, up to $1.8B.

Brandon Conley
Distillery Manager
Creative thinker who’s driving significant product improvement initiatives and new product development.

Rebecca Harmon
Marketing Director
Former Fortune 100 Marketing Manager. Purposeful integrator of creative design, art and analytics.

Andrew Lix
National Sales Director
Intuitive sales leader and strong motivator. Joined in late 2012, only months before our first bottles shipped.

Deal Notes

Loan with optional whiskey conversion

Asset-backed, fixed return note @ 5% interest, whiskey conversion option yields 170% overall return.

Amount Raised : $2,726,640
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Security Description

Secured debt is debt backed or secured by collateral to reduce the risk associated with lending. If the borrower on a loan defaults on repayment, the debt holder can seize the collateral, sell it, and use the proceeds to pay back the debt. Assets backing debt or a debt instrument are considered as a form of security, which is why unsecured debt is considered a riskier investment than secured debt.

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