O2 Pure Hydration

Super-oxygenated sports beverage company

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Form C
View on SeedInvest
Security Type
Preferred Stock
Min Investment
$463
Location
COLUMBUS, OH
Offering Date
December 30, 2021
Expected Close Date
April 23, 2022
Target Raise
$25.00K-$3.50M
No. Investors
551
Security Price
$115.65
Valuation
$25,000,000
Website
drinko2.com
Number of Employees
8
Cash
$724,982
Revenue
$3,565,771
Short Term Debt
$1,373,099
Cost of Goods
$1,501,332
Long Term Debt
$1,266,073
Net Income
$-1,567,754

Company Description

We created O2 to meet growing demand in the sports drink market for clean, great-tasting hydration without the "junk". 

PROBLEM

We believe too many sports drinks are unhealthy, bad for your body, and not very Earth-friendly; too many calories, too much sugar, filled with syrupy-tasting chemicals - and packaged in single-use plastic that’s wrecking the planet.

SOLUTION

O2 makes great-tasting, clean hydration with 1g total sugar, 15 calories, and 20% more electrolytes than some big brands. Our patent-pending oxygenation process delivers a crisp, refreshing mouthfeel that leaves you feeling light without the carbonated bloat. We’re 100% carbon neutral with a digital-first business model and product line we believe are fit for the 21st century.

O2’S ADVANTAGE

Most drink brands have high marketing and customer acquisition costs while battling for retail shelf space. Our approach offers an alternative, with growth achieved through innovative marketing campaigns, proprietary partnership tech, and a presence in large gyms (LifeTime) and thousands of independent locations (CrossFit).

TRACTION

O2 has increased in revenue from the start of our operation in 2014 through 2020, and grew gross revenue from $1.8M in 2019 to $5M+ in 2020. Our growth led to O2 being featured in the Inc. 5000 2021 list. Our proprietary partnership platform helped grow online customers 5x and helped thousands of gyms through COVID. Our industry innovations earned coverage in Entrepreneur ("Growth During A Crisis: How O2 Founder Dave Colina 5x’d His Business") and Forbes ("How O2 Helped Keep America’s Gyms Open"), as well as BevNET’s Best Beverage Marketing Campaign award in 2020.

Today, O2 is sold in thousands of gyms and retailers. We aim to optimize both DTC and gym sales to create a powerful flywheel to drive awareness, trial, and loyalty without the capital intensity of other brands.

Perks

BONUS PERK: All investments between $1,000 and $9,999 made by 11:59 PM ET on January 21, 2022 will be automatically bumped up to the next corresponding tier.

$1,000 - $4,999 Investment:

32oz O2 Pure Hydration™ branded tumbler and 4 free cases of O2.

Retail value: $178.95

$5,000 - $9,999 Investment:

1 year personal subscription to O2 and 32oz O2 Pure Hydration™ branded tumbler.

Retail value: $380.47

$10,000 - $24,999 Investment:

O2 Pure Hydration™ branded YETI® Tundra® 45 cooler (white), 1 year subscription to O2, 32oz O2 Pure Hydration™ branded tumbler, Hyperice Hypervolt, a seat at O2’s R&D roundtable on the next O2 flavor/product line.

Retail value: $929.46

$25,000 - $249,999 Investment:

O2 Pure Hydration™ branded mini-fridge with 1 year personal subscription, 10 x 1 year subscriptions to gift to friends, O2 Pure Hydration™ branded YETI® Tundra® cooler (white), 32oz O2 Pure Hydration™ branded tumbler, Hyperice Hypervolt + Normatec 2.0 Leg Recovery System, lifetime 30% discount to O2, and a yearly one-on-one video chat session with CEO and founder Dave Colina.

Retail value: $5,583.26

$250,000 and Above Investment:

Free O2 for life and an all-expenses-paid weekend trip for two to a “Mile-High Meet N’ Greet” with CEO and founder Dave Colina in Denver, CO.

Retail value: Priceless

It is advised that you consult a tax professional to fully understand any potential tax implications of receiving investor perks before making an investment.

Please note that due to share price calculations, some final investment amounts may be rounded down to the nearest whole share - these will still qualify for the designated perk tier. Additionally, investors must complete the online process and receive an initial email confirmation by the deadline stated above in order to be eligible for perks.

Key Deal Facts

470% gross revenue growth rate across three years (2020 compared to 2017) is 2.8x higher than the 2021 Inc. 5000 median of 167% (unaudited - comparing FY 2020 and FY 2017 gross sales, net revenue may differ)

$10M+ total net revenue since operation began in 2014, with under $6M in total capital raised (only 2019-2020 audited), and majority of Q3 2021 revenue was subscription-based (54%)

In Q4 2021, achieved revenue-generating contracts with CrossFit and LifeTime Fitness gyms and notable retail accounts include Whole Foods, Publix, Sprouts

Inc. 5000 2021 company that has been featured in Forbes and Entrepreneur, and chosen by BevNet for "Best Marketing Campaign" in 2020

Achieved a 42% online repeat purchase rate for 2020 customers with its proprietary partnership platform

Use of Proceeds

If minimum amount is raised:
4% - General & Admin
40% - Team expansion
56% - Sales & Marketing

If maximum amount is raised:
1% - General & Admin
26% - Team expansion
73% - Sales & Marketing
Amount Raised : $1,575,397
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Security Description

Preferred securities are a type of investment that generally offers some sort of preferred treatment through a dividend or preferred treatment in a liquidation.

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