Smoke Cartel

Smoke Cartel

Smoking Accessories

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Security Type
Equity
Categories
Consumer Goods & Products
Min Investment
$101
Location
Savannah, GA
Offering Date
August 07, 2018
Expected Close Date
November 07, 2018
Target Raise
$10.00K-$1.07M
Deal Notes
  • Type of Security Offered: Common Stock
  • Purchase Price of Security Offered: $1.50
  • Minimum Investment Amount (per investor): $100.50
  • Maximum 713,330* shares of common stock ($1,069,995.00)
  • Minimum 6,666 shares of common stock ($9,999)
Valuation
$31,500,000

Company Description

Smoke Cartel started operations in Georgia in 2014 and as of July 2017, is traded on OTC Markets under the symbol SMKC. The focus of the Company’s business operations is to provide smoking accessories and glass pipes as an online retailer and wholesale distributor. The Company operates in different verticals within the online headshop industry, consisting of but not limited to sales of consumer products through online retail, sales of wholesale products to other retailers, design and manufacturing of branded products, and shipping and fulfillment services. Smoke Cartel is a household name in the headshop and glass industry, and its products can be found in retail stores across the US and internationally. The Company operates its online retail division through SmokeCartel.com and its wholesale division through Glassheads Distribution. We believe that Smoke Cartel has led the industry standard in all aspects of operations including product design and development, fast and reliable shipping, excellent customer service, and organic online traffic rankings.

Key Deal Facts

The retail division has over 90,000 customers in 44 countries and continues to grow its consumer base.
In January 2016, UPC Distribution which was rebranded as Glassheads Distribution and became the wholesale division of Smoke Cartel. The acquisition allowed the Company to expand into the wholesale market to sell to other retailers across the United States and internationally.
In November 2017, Smoke Cartel acquired Early Bird Distribution, and expanded its product lines into the pet industry.
Revenue in 2017: $5,895,040
Total retail and wholesale visitors in 2017: 4,891,486
Site visitors in last 30 days of 2018 for all websites: 375,390
Average Daily Sessions visitors: 14,500

Use of Proceeds

  • Inventory purchase, for anticipated increase in product sales due to increase in marketing and trade-show efforts.
  • Vaporizer Product Development, including the expenses of design, branding, manufacturing, and advertising new products. We believe there is great potential in the vaporizer market and want to develop our own products in this category to achieve higher margins on these products.
  • Pet Product Development, including the expenses of design, branding, manufacturing, and advertising new products. We have recently entered the pet industry and believe there is great potential in developing more products for this billion dollar market.
  • CBD Product Development, including the expenses of design, branding, manufacturing, and advertising new products. We also see potential in the growing CBD market and want to develop our own products in this area for higher profit margins and better service to our end customers.
  • Legal Compliance Expenses, including advisory costs, patent and trademark fees, and onboarding professional experts in regards to medical devices.
  • Trade shows, including expenses for the booth, cost of attendance, and shipping costs. We want to grow our wholesale division and we believe that increasing our trade show presence is key to growing our B2B business.
  • Advertising, including paid digital advertising campaigns, social media advertising, print and radio advertisements as well as sponsored and celebrity content.
  • Smoke Cartel branded product development, including the expenses of design, branding, manufacturing, and advertising new products. We believe that developing proprietary products has shown the highest margins and we want to continue to build out the Smoke Cartel brand with uniquely designed products.
  • Development of our proprietary technology system Warely, including expenses of hiring new developers. We believe that technology is one of our biggest strengths as a company and plan to invest in building out our proprietary software to bring to the retail market for cannabis e-commerce businesses.

Management Team / Advisory Board Bios

Sean Geng
Executive Chairman (Director) and COO
Sean Geng is the Executive Chairman, Chief Operating Officer and director of Smoke Cartel. Mr. Geng co-founded Smoke Cartel in January 2013 and has acted as CEO for the past four years. In January 2013, Mr. Geng also founded and owned Kryptotrader, a cryptocurrency denominated securities trading and tracking platform. He sold the company after acting as CEO and CTO for one year. From May 2013 to September 2013, Mr. Geng worked as a Developer at Powered Analytics, a predictive analytics company in Pittsburgh that was acquired by Target Corporation. From January 2011 to January 2013, Mr. Geng served as Creative Director of Pixelmess, a full service design studio. He also studied Advertising at the Savannah College of Art and Design. Besides his managing position in Smoke Cartel. Mr. Geng is also a member of 13 Bricks Clothing's advisory board (part-time).

Darby Cox
CEO and Chairman (Director)
Darby Cox is the Chief Executive Officer, Chairman and director of Smoke Cartel. Ms. Cox co-founded Smoke Cartel in January 2013 and has acted as Operations Manager for the past four years. Ms. Cox also leads the local Reform Georgia chapter, a group of activists organizing and working for the reform of local drug laws in the City of Savannah. Ms. Cox also previously founded the terrarium company SproutSouth in January 2014 and ran the company for a year (and no longer holds this position). Prior to this, Ms. Cox attended Savannah College of Art and Design and studied Service Design.

Deal Notes

  • Type of Security Offered: Common Stock
  • Purchase Price of Security Offered: $1.50
  • Minimum Investment Amount (per investor): $100.50
  • Maximum 713,330* shares of common stock ($1,069,995.00)
  • Minimum 6,666 shares of common stock ($9,999)
Amount Raised : $124,457
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