About OCHO and Own the Factory
This venture began in July 2017 when Mondelez announced the closure of the Dunedin Cadbury Factory. This document covers what has happened to date and our plans for the future. Please consider investing to grow premium chocolate manufacturing in Dunedin. This is about Dunedin-made chocolate and a company owned by kiwi chocolate-lovers.
Jim O'Malley (Own The Factory) and Liz Rowe (OCHO)
Our share offer
Our share offer is a little different from the ordinary. We aim to attract as many investors as possible and are limiting the total that any one person can own to 11% so that no single investor can dominate.
Instead of one or a few large 'cornerstone' shareholders, OCHO Newco will be owned by a broad base of investors. Each share is $100 and all shareholders will have voting rights. We never plan to sell OCHO because we believe that chocolate manufacturing should stay and grow in Dunedin.
Our intention is to run the business profitably. Initial profits may be reinvested to help OCHO grow, but longer term our intention is to pay a dividend on shares. In additional all shareholders will be REWARDED WITH CHOCOLATE by being able to buy OCHO chocolate at a 20% discount through the online website and OCHO store in Dunedin.
Please note: The campaign for Ocho Newco Limited is raising $2million on a pre-money valuation of $57,100. This means if the offer is fully subscribed through PledgeMe the company will be worth $2,057,100.
Ocho Newco Limited are planning on completing a transaction after the crowdfunding raise to purchase Ocho Limited. This will be part paid for in cash ($75,000), and by issuing new shares in Ocho Newco Limited ($228,600). This means after that transaction the company will be worth $2,285,700. The equity investors that come in during the PledgeMe campaign will still have shares worth $100, and own 87.5% of the company after that transaction.
About our Team
(left to right) Stewart Cowan, Vito Iannece, Anna McDonald, Tami Louisson, Liz Rowe, Rachel Elder, Nicola McConnell, Jim O'Malley
Board of Directors
An establishment board of directors has been appointed to lead OCHO for the first 12 months. Positions will be revised after 12 months at which stage one staff board member will be appointed. There will be a maximum of five directors at any one time.
In looking for directors we have searched for a mix of people with strong practical skills especially in the food & beverage area, and in scaling companies for expansion. All the directors are Dunedin-based except for Tami Louisson, who lives in Wellington. OCHO founder Liz Rowe will continue working for OCHO as general manager.
Tami Louisson co-founded SHOTT Beverages, Tami was CEO for eight years before retiring in 2015. She remains on the board. The company has now grown to employ 35, with turnover of more than $10 million and exporting half its sales. Originally trained as an artist, Tami was a silversmith and glass art worker before turning her hand to drinks. Tami believes there is a logical connection between art and business – conceptualising, translating that concept into a product, building a brand, developing markets and selling the product. Tami was an Ernst & Young Entrepreneur of the Year finalist in 2012 and a finalist in the Next Woman of the Year Award in 2014.
Vito Iannece along with his wife Penny, founded Pasta d’Oro 30 years ago. They have grown it from a kitchen enterprise to a company employing 18 which supplies trade and supermarkets with a range of high-quality artisan pasta. Vito brings start up experience in FMCG as well as experience on factory establishment. He is committed to the development of food manufacturing in Dunedin.
Stewart Cowan is Enterprise Systems Manager at Silver Fern Farms. He is a Chartered Accountant and an IT specialist. He brings project management skills as well as IT systems integration. He understands the quality control issues required for farm to table tracking systems in the meat industry. He is enthusiastic about the challenge of building up a strong manufacturing capability in Dunedin and the role OCHO will play.
Jim O’Malley is a Dunedin City Councillor and was instrumental in starting the Own the Factory campaign and achieving the initial pledging of nearly $6M towards saving jobs in the city. He has 25-years' R&D experience in biomedical research in the USA. He has led project development teams at Pfizer Inc and been involved with in-licensing and joint ventures. He has also founded his own biotech company and successfully managed an $8 million project to develop a novel bone growth agent for use in orthopaedic surgery. He recently returned to live in Dunedin and has extensive experience in project management and scale-up, along with experience in the culture of large organisations.
Liz Rowe started OCHO in 2013 and has grown the company from one person producing 15 kilos of chocolate per week to producing 90 kilos per week and employing five staff. Last year OCHO moved premises toVogel St in Dunedin's new Warehouse Precinct and now has a shop & cafe as a front of house to the chocolate production. Liz trained as a journalist and worked overseas and then in Wellington in a number of journalism and communications roles before moving to Dunedin in 2004 to attend the Dunedin School of Art, graduating with a BFA in 2007. Chocolate was a change of direction that surprised Liz as much as anyone else, but she is now firmly committed to seeing OCHO grow as a strong and sustainable business in Dunedin. She will continue working for OCHO as general manager.
Nicola McConnell is a marketing communications professional who specialises in the area she loves - food and drink. She trained as a journalist and has worked for the Otago Daily Times and Radio New Zealand before heading across the ditch and working in Sydney and Melbourne in marketing and corporate communication roles. She’s beenback home in Dunedin since 2014, setting up her boutique marketing company Brand Amp. In October 2016 she co-founded Marvellous Marketing, which is a specialist food, drinks and lifestyle marketing communication agency. Marvellous Marketing established the Outstanding NZ Food Producer Awards and co-owns the NZ Chocolate Awards which were held for the first time in 2017.
Rachel Elder & Marie Laufiso, along with Jim O’Malley, were the team who started the Own the Factory movement. Both are Dunedin City Councillors. Rachel has stayed with the team throughout the planning process and remains a key cheerleader in the quest to keep jobs & manufacturing in Dunedin. Seeing communities and individuals grow and thrive is very important to Rachel and she has worked over the past 30 years across the health, education, church, community, employment and business sectors. Marie’s connections with the workers at the Cadbury Factory helped in the initial phase of the campaign.
Anna McDonald recently graduated with a Master’s in Entrepreneurship from the University of Otago, majoring in New Venture Strategy. She jumped on board with the Own The Factory campaign at a communitymeeting when she learned of the socially responsible and ethical business model the team was looking to build. Anna’s involvement hasbeen in business planning, research, analysis, and evaluation of OCHO’s strategic options. She currently works at Timely, as the Business Relationship Manager, and is on the Dunedin Branch Executive for the National Council of Women.
OCHO’s current five staff will continue working for the new company. We have two baristas who look after the cafe & shop plus help with packaging & labelling when there’s time. Two staff look after tempering, moulding and the bulk of the packaging of bars and one staff member does the roasting, winnowing and loading of the grinders. Currentlyeveryone prefers part-time work, so this team equates to 3.6 FTEs.
What we've done so far
Own the Factory
When Mondelez announced it was closing the Cadbury Factory in Dunedin, New Zealand, a group of local citizens decided something must be done to keep chocolate making skills and jobs alive in the city. With the help of PledgeMe and Firebrand set up the “Own the Factory” web landing page to gauge public interest in investment to retain confectionary and chocolate manufacturing in Dunedin. uring the two week campaign considerable national and international media coverage resulted in $5.7 million pledged.
An existing Dunedin-based craft chocolate maker, Otago Chocolate Company Ltd (OCHO), approached DMH with the proposal that it would benefit both parties to combine forces to establish a large scale chocolate manufacturer in Dunedin under the premium brand already established by OCHO. Internationally, the key growth area in the chocolate industry is in premium quality chocolate. Premium chocolate is defined by the use of quality cacao, limited ingredients, traceability of cacao beans, ethical sourcing, attention to craftsmanship, continued search for excellence and quality, and high quality brand presentation.
This business proposal is to form a new company (OCHO NewCo) that will raise $2M in equity through crowdfunding. It will then acquire OCHO, expand production and look to move into new markets and products. The new company will aim to develop a visitor experience in Dunedin and establish export markets. OCHO NewCo will continue trading as OCHO.
OCHO has been growing since its establishment in 2013. However, more investment is required to develop the space and production capability to produce enough chocolate to gain a significant share of the New Zealand premium chocolate market. OCHO is a perfect fit to establish a modern model of growth in the manufacturing industry with its values of quality ingredients, fairly traded cacao beans that are sourced from our Pacific neighbours, community and ethics which are central to operations. OCHO will provide staff and manufacturing expertise and the initial growth of the new venture will leverage the established OCHO market.
The Own the Factory team, under the umbrella of Dunedin Manufacturing Holdings Incorporated, will bring a strong focus on keeping a broad base of community ownership, paying fair wages to workers, keeping worker-CEO pay ratios within an agreed multiple, and a strong commitment to regional development through profitable businesses.
OCHO sales have doubled year on year since it was established. While costs have also increased, the company is now profitable. Further growth is limited by production capacity. Our plan is to buy new craft chocolate making equipment that is capable of producing 200kg of chocolate per day.
Our forecasts are based on a conservative growth strategy of 200-400kg production per week in year one, 600kg production per week in year two and 800kg per week in year three. It assumes production for 48 weeks per year. This strategy assumes high overheads and low production in the first two years as equipment is installed and new markets are developed. This is especially true in the first year where we anticipate a nine month period where the equipment is being shipped from Italy before installation and commission in Dunedin. During this time production will be at its lowest when compared to staffing. However in year two production will expand with market growth and with the increases in gross margins over year two and year three. Production labour costs are included in cost of goods sold and key overheads include salaries for executive staff, rent at both the new space and Vogel St, and energy costs.
Risks and Challenges
Production needs to shift to larger premises immediately because of space constraints at the current location in Vogel St. A decision about premises is likely to take into account the longer-term tourism
development plan. Two locations in Dunedin’s Steamer Basin area have been identified as potential sites for the new production facility and ultimately cafe and tourism. The Board of Directors will consider the pros and cons of both sites and whether they want to consider further options. A decision needs to be made promptly so planning and site development can start before new equipment arrives from Italy. The current premises at 22 Vogel Street in the Warehouse Precinct will continue to operate in the interim. The street is a popular destination for business and has a developing cafe culture. This venue has potential to host tours and chocolate making classes until the new site is fully developed.
Supply of raw materials
Sourcing quality cocoa beans is of paramount importance to the manufacture of premium chocolate. Most growers are small farmer owned producers who are largely price-takers without any bargaining
power and so focused on quantity more than quality. However, some are developing a reputation for producing good beans and these can bring a better price for growers.
OCHO has good supply relationships established within the Pacific countries where it sources beans. With more buying power, there is an opportunity to develop closer relationships with suppliers to help them improve quality and maintain the constant supply of beans. OCHO will continue to source beans from a number of different growers and countries of origin in order to minimise supply interruption, given that extreme weather events as a result of further climate changes are likely to increase in the Pacific.
While developed nations, especially in Europe and North America, consume the most chocolate, tastes are changing in Asian countries and this has the potential to open up large export markets. Recent growth in chocolate sales has been driven by growth in the premium and dark chocolate market. This is reflected in an exponential increase in the number of craft bean-to-bar chocolate makers, especially in North America, but also in the UK and Australia.Developing export markets is neither cheap nor simple and holds significant financial risks. It will take expertise and careful planning to maximise this opportunity.
What we're raising the money for
Expanding OCHO requires buying some equipment that’s capable of producing more chocolate and setting up a new production space to make the chocolate. Some more staff will be needed and we’ll spend money on marketing to expand in existing markets and establish new markets. The equipment and assets of OCHO, including beans and stock on hand, plus intangibles such as the established brand and production know-how also need to be bought.
$75,000 - Buying equipment & assets of Ocho Limited gives us the platform for growing our company.
$470,000 - Equipment, including a new roaster, ball mill & conch, tempering machine & butter press. This equipment produces up to 200kg of chocolate each day, which compares to OCHO’s current production of 90kg per week
$550,000 - Building lease & fitout as we need more space to accommodate new equipment and to process chocolate. WE're looking for premises with long-term potential for tourism
$40,000 - Marketing. We need to spend more on marketing as we establish new markets
$650,000 - Working capital so we can employ more staff to run an expanded company and have the cashflow to purchase bigger shipments of beans. The number of staff required and bean supply will be low in year one, but increase as we confirm new markets.
$215,000 - Capital Raise Costs include PledgeMe fees to run the crowdfunding campaign, legal expenses to form the new company and a management fee to DMH.
Note from PledgeMe
We have completed a Veda check on the company and their directors, as well as a google check. There were no adverse findings.
Pledger & Follower Update
03:21AM Mon 22/01/18 on OCHO and Own the Factory
Happy New Year!
Last year, you took part in our biggest equity campaign ever - both in the number of investors and speed at which you hit the legal maximum for an equity crowdfunding campaign in New Zealand. Thank you so much for your support of the Ocho team.
The team at OCHO took a short break over Christmas but are now back into full swing making chocolate and planning the year ahead. 2018 promises to be exciting with the opening of their new production space sometime around the middle of the year.
In the PledgeMe office, we’ve been busy too trying to finalise payments and verify final identities. Here are a few updates from us:
Final share issue
We are very close to finishing the process required to issue all of the shares available from the PledgeMe campaign. There are still 100 people not verified. This could be for two reasons:
Identity was not verified
Address was not verified
We have been trying our best to get in touch with the unverified pledgers by email and phone. If we are unable to get in touch with the Pledgers by this Friday, 26 January, the remaining shares will be offered to those on the Waitlist. If you haven’t heard from us, please send us an email on [email protected] (with the subject line: “Getting my investor profile verified”) and we’ll sort you out ASAP.
Once all shareholders have been verified, the list of shares issued and shareholders will be available on the Companies Office website. This will be the official record. OCHO will send you the link to the share register when the verification process is complete. Please note that share certificates are not typically issued as proof of share purchase.
If you would like to transfer your shares at any stage, please find the Transfer of Share Ownership form online here and return to [email protected]. Shareholder contact details can also be updated by sending an email to [email protected].
If you have not paid for your shares by bank transfer yet, and you have been verified, we will be charging your credit card this Friday, 26 January.
For pledgers and followers
Want to buy (more) shares? Click here to register your interest (if you haven’t already), and if you haven’t yet registered as an investor on PledgeMe do that here. There might still be a few shares that become available as the final investors are verified.
Anna the PledgeMe team
Comment on this update:
Update from Team PledgeMe
04:04AM Wed 22/11/17 on OCHO and Own the Factory
Hey, Team PledgeMe here!
We are so stoked that you jumped on board to support OCHO and the Own The Factory team. Did you know that, with your help, we broke the PledgeMe record for the quickest time to reach $2 million dollars (a mere 32 hours)! AND you all helped smash the PledgeMe record for the highest number of investors getting on board a campaign - there are over 3,500 of you!
We hope that you are as excited as we all are about this opportunity to Own The Factory. We are working hard to verify all of our investors. If you haven’t heard from us yet, hold tight, because we are coming for ya! We have verified about 1/3 of all investors and are aiming to get in touch with everyone by the end of this week.
You might get an email from us in the next few days if we need to clarify any of your details (because it might not be verifying with the information already provided when you registered).
Once we get you checked off, you’ll receive either:
(1) our bank account details to complete your pledge; or
(2) a note letting you know that your credit card will be charged in two working days.
For those that have asked to wait until 12 December to pay your pledge, we will hold off until then (and you can too if you get the bank details).
The Ocho team is also super excited about all the orders that have been coming through for their delicious chocolate. They are working hard to get everyone’s orders processed but it is taking a little longer than usual because of the volume! Rest assured though, your order will be on its way soon.
Those of you that are just following this campaign, and really want some shares - fill out this form. Those of you that have already emailed, don’t worry, we’ve added you already.
If you have any other questions, please send an email to [email protected]. We are also working through enquiries, so thanks to all those who have asked us questions. If you haven't heard back from us yet, we'll be in touch by Friday.
Thanks again for your support!
The PledgeMe team
Comment on this update:
You need to pledge to see this update.
Wow! First goal met and next steps...like your OCHO Owner chocolate discount…
11:25PM Mon 13/11/17 on OCHO and Own the Factory
Wow! Thanks! We did not expect to hit our goal so quickly. A huge thank you to the community who came on board to help us keep jobs and chocolate making in Dunedin. You and more than 3,000 others have helped us reach our goal and we feel really privileged to have such a huge base of support.
We’ve reached our minimum goal of $1.8 million, but the campaign will stay open until we reach our $2 million target. As soon as the maximum target of $2 million is reached we’ll start processing pledges.
Your OCHO Owner Chocolate Discount
Congrats! As soon as your pledge has been successfully processed you’ll be able to purchase all OCHO chocolate bars with a 20% discount on the usual retail price. You can purchase with your discount at the OCHO Cafe, 22 Vogel Street, Dunedin or at Otago Farmers’ Market as well as through our website www.ocho.co.nz.
We’ll email you a code to use when you’re buying online once your pledge is successfully processed. To buy in person from our shop on Vogel Street or at the Otago Farmers’ Market, bring a copy of the email saying “PledgeMe has received your funds for Own the Factory” (either printed or on your phone). Early next year we’ll organise a special OCHO Owner card.
Processing your pledges
Once we hit our maximum goal of $2million, PledgeMe will start processing pledges in two tranches - those who can pay now, and those who need to wait until Tuesday 12 December.
Please email [email protected] with the subject line “Please wait until 12 December” if you need to wait until the deadline to transfer your pledge or for your credit card to be charged.
PledgeMe will issue our first round of shares to processed pledges two weeks after the goal is met and you will be added to the OCHO Owner share register, with the final shares added to the register in late December. Even if you aren’t added to the share register you will receive your OCHO Owner discount if you have paid for your pledge.
Verifying your identities
PledgeMe will work to verify pledgers identities now and will only process your pledge as soon as that is complete. They might need to ask you for a bit more information if they can’t verify you against your registration. This is required by New Zealand’s anti-money laundering legislation and therefore must be complied with.
Once PledgeMe have processed all the pledges (likely to be late-December, to accommodate those who want to wait to pay), we’ll be in touch to officially welcome you to our OCHO Owner shareholder family and let you know how we’ll be keeping you in the loop in the future.
We know that some of you have bought shares for other people - like children and grandchildren. There’ll be a form you need to fill out to transfer shares and we’ll let you know when that’s ready.
Shout out if you need anything, and thanks again - we can't wait to bring our plans for OCHO to life in Dunedin and you’re one of key ingredients!
OCHO and the Own the Factory team
Comment on this update:
Become an owner of OCHO now
06:05PM Sun 12/11/17 on OCHO and Own the Factory
As if you need another reminder for a time as important as this....time to buy your shares in OCHO, and own a piece of Dunedin's premium chocolate factory.
You can go directly to the OCHO PledgeMe page and purchase your shares from here https://www.pledgeme.co.nz/investments/290
Thanks to those that have already pledged
Comment on this update:
|Maximum Shares Offered||20,000|
Explanation of valuation:
OCHO NewCo has a nominal value of $57,100, which is the value of 571 shares, prior to the capital raise. Essentially no assets are held or costs incurred until after the capital raising so this is its goodwill value.
Financial summary below
Please note, this summary is for Ocho Newco Limited, which has no trading history to date. The forecast FY19 and FY20 below are the Year 1 and Year 2 forecasts in the attached offer document, and are dependent on when funding comes in. Please refer to the offer document for the full financials.
|Prev Year||Current Year||Est. FY 2019||Est. FY 2020|
Company Name: OCHO NewCo Limited
Company Number: 6435392
Ask a Question (You must login to ask a question)
I understand there is fantastic export potential (e.g. Asia), however I would like to understand what large-scale opportunities we could expect to see within NZ (i.e. large scale, such as supermarkets, rather than boutique stores).Posted on 12-11-2017 by Nigel
Hi Nigel. Looking at large-scale opportunities within NZ is part of phase two of our marketing strategy. The board will make final decisions on the timing of these things, but I imagine it will come before exportingAnswered on 12-11-2017 by Ocho Newco Ltd
Yes. Chocolate Boutique, Scarecrow Store, Ripe Deli, Benson Rd Deli, Mars Salt & Sweet. Apologies if I've missed anyoneAnswered on 12-11-2017 by Ocho Newco Ltd
I’d also like to know if I can purchase for other people, in their name now or transfer later onPosted on 12-11-2017 by James
How would I sell these shares in the future (12-18 months time) once purchased. Cheers.Posted on 12-11-2017 by Andrew Sabich
We would have to keep a record of anyone who wanted, but was unable, to buy shares and put you in touch. There's no independent trading platform available with crowd-funding equity raises.Answered on 12-11-2017 by Ocho Newco Ltd
Hi, there is a mismatch between Equity Available in offer page (97%) and offer document, where it has a post-raise figure for Equity Crowd Fund Investors of 87.5%. Are OCHO leading this investments with $200k (ie buying the first 2000 shares)?Posted on 12-11-2017 by Adrian Edge
Hi Adrian. The pledgeme site calculates the percentage from the amount already owned (which is the 541 shares owned by DMH Inc) rather than the eventual ownership (which includes an additional 10% to OCHO). This is a wee bit confusing, but is to do with the way the automated update system is set up. There's a good link on the site under: http://guide.pledgeme.co.nz/how-to-investAnswered on 12-11-2017 by Ocho Newco Ltd
Hi. What do we get for the $100 per share, do we get a dividen etc . Are these shares listed if so what is the cost per share? $100 for 1 share seems steep as you wont make that back unless they are worth that much. I am keen to help but need this info. CheersPosted on 12-11-2017 by Mark
The info about dividends and what you get is in the offer document. You can find a link on the PledgeMe page (It says click here to view the IM document)Answered on 12-11-2017 by Ocho Newco Ltd
I have an NZ bank account from my 50 years in N.Z, as a Permanent Resident. Unfortunately I now live in Aus.....but still would like to invest in OCHO (one share only at the mo). As I don't have an NZ residential address, can I still invest?
Unfortunately, people who live overseas can only invest if they are a wholesale investor (A wholesale investor is someone who:
- are an investment business, in that their principal business involves investing in financial products, acting as an underwriter, providing financial advisory services, providing broking services or trading financial products;
- have, during the previous two year period, owned a portfolio of, or carried out transactions to acquire, financial products of a value of at least $1 million
- have, in the previous two years, materially participated in the investment decisions made by an investment business
- have, or any entities controlled by them, have, as at the last day of the two most recently completed financial years, net assets or total consolidated turnover exceeding $5 million
- are "eligible investors", and have certified that they have previous experience in acquiring or disposing of financial products that allows them to assess: the merits of the transaction; their own information needs in relation to the transaction; and the adequacy of the information provided, that they understand the consequences of so certifying, and the grounds for this certification; and an authorised financial adviser, a chartered accountant, or a lawyer signs a written confirmation of the certification.)
Hi, are there plans to get Fairtrade certification on some of your chocolate blocks?Posted on 12-11-2017 by Michael Gray
We totally support the principles of Fairtrade certification. However, it costs both us and, more importantly, the farmers a lot of money. We operate under a direct trade model where we like to know and visit the farmers we buy from and understand how the money we spend with them goes back into helping their communities. So at the moment the answer is no current plans for Fairtrade certification, but that's not to say we won't consider it in future.
Thanks for you answer. I have read the doc.. you say investors will not be paid any divs untill you make profit.. but you wish to invest back in the company.. how long you you think it will be before any investors see a return on their shares. 20% off chocolate you still have to buy doesnt seem like much reward if you are no where near the factory or order online. If there is no payout.. shouldnt investers get some free product as a min?Posted on 12-11-2017 by Mark
Here's a couple of scenarios to illustrate 1) the chocolate return and 2) the potential financial return
1) if a shareholder (one share) buys a chocolate bar (usual price $11.50, shareholder price of $9.20) once a week for the next year, they would make back their return and some (total savings of $119.60)
2) if we grow as anticipated, the board each year will decide whether the best thing for our shareholders is to pay out a portion of profits as a dividend, or to reinvest that portion back into growing the company with the main intention of increasing the potential future profit and the related future dividends for our shareholders. The decision to pay a dividend will be made with our shareholder's best interests at the fore.
Ultimately though it's up to you as a potential investor to decide what you need as a return. Some people are simply interested in supporting regional initiatives and aren't expecting a dividend! What's your take on what you'd like/expect to see, return-wise?Answered on 12-11-2017 by Ocho Newco Ltd
That doesn't explain it at all. Are OCHO contributing to this offer? for their 10%? If they are not the figures on the Campaign screen seem wrong. The campaign screen should show only equity available for purchase?Posted on 12-11-2017 by Adrian Edge
OCHO is contributing assets & equipment, stock on hand, brand value and know-howAnswered on 12-11-2017 by Ocho Newco Ltd
Limited exclusively to 20,000 public owned shares - so $100 a share seems like good value to me! :)))Posted on 12-11-2017 by Carmel Kokshoorn
Hi Matthew. Yes, certainly in the shorter term (12-18 months) and possibly after that. Part of our plans are to develop a tourism venture in the new production space which will include tours and a cafe, so we have to see how all that fits in with where we are now long term.Answered on 12-11-2017 by Ocho Newco Ltd
Hi, is there a minimum age for buying shares? My 11 year old daughter would love to own a share of a chocolate factory!Posted on 13-11-2017 by Mark White
Hi Mark. Yes, sadly you have to be 18 to buy shares. But, you can always buy them for her and then transfer them to her later. We will have a share transfer system up and running at some stageAnswered on 13-11-2017 by Ocho Newco Ltd
Cre8iveworx in Cuba St and the Chocolate Bar has a stall at the Chaffers MarketAnswered on 13-11-2017 by Ocho Newco Ltd
If I was to invest and during the initial time of establishing and growing the business where there are no dividends paid to the investors and I die where do my shares fall as to being passed on to my next of kin?, also after business grows and does make lots of profit then pays out dividends then I die are these paid to my next of kin?Posted on 13-11-2017 by Sandi
Hi Sandi. Should any investor die their shares can be passed on to whoever they like, as would be indicated in their will. Any dividends would be paid to whoever held the shares at the time - the original investor or their beneficiaries.Answered on 13-11-2017 by Ocho Newco Ltd
I am concerned about the 10% shareholding allocated to OCHO. This is a business that is struggling to make a profit after projecting a $170 000 gross profit in 2017. Would it not be better for the owners of OCHO to just pay the NEWCO to take over their struggling business? Now you plan to give them 10% for their troubles - 2286 at $100 a share.Posted on 13-11-2017 by Ben Fouche
Hi Ben. All potential investors are advised to read through the Offer Document and make their own minds up about the campaign.There is a clear statement at the end about the risks around equity investing.Answered on 13-11-2017 by Ocho Newco Ltd
Hi Reuben. Our salted caramel bar contains butter, and our Beekeeper bar contains bee pollen and honey. All other bars are vegan.Answered on 13-11-2017 by Ocho Newco Ltd
Hi just want to clarify that the 20% discount applies only to chocolate, not cafe products or possibly tours/classes in future. CheersPosted on 13-11-2017 by Kegan
Hi Kegan. Yes, chocolate only at this stage. We'll be working out a way that foundation shareholders can identify themselves at the cafe or the farmers market and get the discount. It's possible that foundation shareholders may get discounts on tours and classes when we offer those in future, but that's not yet been decidedAnswered on 13-11-2017 by Ocho Newco Ltd
Hi Andrea. PledgeMe will be in touch once we've reached our target with all those details.Answered on 13-11-2017 by Ocho Newco Ltd
Hi, I read that you are not pursuing a fair-trade certificate at this time due to the costs associated. Is the company achieving the requirements for getting a fair-trade certificate as outlined by fairtrade.net? Thank youPosted on 13-11-2017 by Rowan Simmons
Hi Rowan. We haven't investigated getting the certificate and so consequently aren't familiar with the requirements. That sounds like something to put on the to-do listAnswered on 13-11-2017 by Ocho Newco Ltd
Will there be future rounds of capital raising that dilute the equity raised in this campaign?Posted on 13-11-2017 by Christopher Maddock
Hi Christopher. That's an unknown. It would be up to the Board to decide how best to raise money if we needed more. Loans or further equity raising are both options.Answered on 13-11-2017 by Ocho Newco Ltd
If people decide to sell their shares, will there be an opportunity for existing shareholders to buy them?Posted on 13-11-2017 by Ethan Meder
I cant register as the system is saying my licence number is incorrect, please helpPosted on 13-11-2017 by Andrea Tawhara
Hi Andrea. Sorry, can't help there. Have you another form of ID you can use?Answered on 13-11-2017 by Ocho Newco Ltd
I had trouble trying to register with just drivers licence. Don't select any of the other two fields; only the first one that says drivers licence then confirm. I had to do that a couple of times before I noticed a line under where I selected drivers licence where it asked me to put in my drivers licence (5a) and (5b) a three digit number that is on the drivers licence, then I scrolled down and confirmed again before it would let me progress further.Posted on 13-11-2017 by Carmel Kokshoorn
Oops I just saw that there was an age restriction, what do I do now if my children have pledged to buy 1share already? It is under their name!Posted on 13-11-2017 by robin knowles
Is there a plan to get the price lower than the current $11 per 100g? Obviously the market leader already has extremely high quality product for under $5 and 2.5x the weightPosted on 13-11-2017 by Matt Bowman
Hi Matt. We're certainly looking at all variables. However, we're staying in the premium craft market so it's unlikely we'll be competing with that kind of price structure.Answered on 13-11-2017 by Ocho Newco Ltd
Hi, this is interesting. I'm interested in the 20% discount to foundation shareholders. I was an original investor in Renaissance Brewing, the first crowd funded equity offering in New Zealand. One of the things that was attractive with that offering was the annual beer distribution to shareholders. That has since proved to be a problem with Renaissance as they are now in administration. One of the contributing factors was the requiemnet within the balance sheet to account for the liability for the shareholders beer distribution.
What advice have you received that the 20% discount provided to shareholders will not create a similar problem on the future?Posted on 13-11-2017 by Bruce Milne
Hi Bruce. This isn't something we've asked for advice on. Without wanting to offer a fully verified legal opinion, I'd say that it's not the same liability as the discount doesn't 'exist' until someone buys chocolateAnswered on 13-11-2017 by Ocho Newco Ltd
It says minimum pledge $100.00 why isn't mine being accepted?Posted on 13-11-2017 by Michelle Meynell
I won't be buying discounted chocolate and would like to buy up to 11% of these shares in the future because I have so much faith in this Company. Can I do that as a foundation member with minimum number of shares? I'm wondering if there should be a limit on the number of discounted chocolate blocks you can buy because I can see lots of entrepreneurs cashing in on this and buying in bulk at discounted prices of 20% then reselling and undercutting your retail prices. Look what happened with the baby milk formula fiasco in Auckland! People where buying it up and shipping by the container load to China and charging three times the NZ retail price.Posted on 14-11-2017 by Carmel Kokshoorn
Hi, I see there is an 'OchoCandy' company in the US (I Think). No issues with naming copyrights?Posted on 14-11-2017 by James Cameron
I missed out by 4 minutes on making a pledge before it closed! (Congratulations by the way). Will there be a waiting list in case of people not paying or further funds raised?Posted on 14-11-2017 by Tracey Fraser
I've missed out by a few hours. Is there a list to go on should any fall through?Posted on 14-11-2017 by Sarai Mawkes
Since this is finished, is there still a chance to buy shares in the near future?Posted on 14-11-2017 by Jakob Jones
Hi there i had a successful pledge however have not received a bank account to deposit my pledge it a lot of emails saying about it, has an account yet to be sent out or did I just miss an email?Posted on 15-11-2017 by Montaego Eglinton-Bradey
If Ocho chooses to run another equity campaign will the original Pledgeme Sgareholders be offered first right if purchase?Posted on 22-11-2017 by Pip Steele
we pledged 2 shares $200 on 13.11,17 but haven't heard further. How and when do we pay for these?Posted on 05-12-2017 by Jo Sinclair
Followers of OCHO and Own the Factory
Paul & Helene McAleece2018-02-01 03:37:56 UTC
Paul & Helene McAleece has pledged on 3 campaigns
Ian Booth2018-02-01 03:36:59 UTC
Ian Booth has pledged on 4 campaigns
Ronette2018-02-01 03:36:29 UTC
Ronette has pledged on 4 campaigns
Jane Thomsen2018-02-01 03:35:38 UTC
Jane Thomsen has pledged on 3 campaigns
Sandra Sinclair2018-02-01 03:34:29 UTC
Sandra Sinclair has pledged on 5 campaigns
Bryan Taylor2018-02-01 03:34:00 UTC
Bryan Taylor has pledged on 4 campaigns
Tammy Eaton2018-02-01 03:33:13 UTC
Tammy Eaton has pledged on 6 campaigns
Darryl palmer2018-02-01 03:32:28 UTC
Darryl palmer has pledged on 4 campaigns
John & Marilyn Fisher2018-02-01 03:31:49 UTC
John & Marilyn Fisher has pledged on 4 campaigns
Pip Oldham2018-02-01 03:31:11 UTC
Pip Oldham has pledged on 4 campaigns
Kes Stuart2018-02-01 03:30:39 UTC
Kes Stuart has pledged on 4 campaigns
Cathy2018-02-01 03:26:49 UTC
Cathy has pledged on 4 campaigns
Terry Fitzgerald2018-02-01 03:23:23 UTC
Terry Fitzgerald has pledged on 4 campaigns
Megan sharp2018-02-01 03:22:55 UTC
Megan sharp has pledged on 3 campaigns
Julie Bowe2018-02-01 03:22:22 UTC
Julie Bowe has pledged on 12 campaigns
Lynne Macdonald2018-02-01 03:21:54 UTC
Lynne Macdonald has pledged on 5 campaigns
Maureen Patching2018-02-01 03:16:07 UTC
Maureen Patching has pledged on 3 campaigns
kris gallagher2018-02-01 03:15:33 UTC
kris gallagher has pledged on 3 campaigns
Janine Broxton2018-02-01 03:14:56 UTC
Janine Broxton has pledged on 3 campaigns
Marcia Reid2018-02-01 03:13:24 UTC
Marcia Reid has pledged on 2 campaigns
Pip Steele2018-02-01 03:12:45 UTC
Pip Steele has pledged on 9 campaigns
Andrea Cotton2018-02-01 03:11:30 UTC
Andrea Cotton has pledged on 7 campaigns
Mary Maunder2018-02-01 03:10:24 UTC
Mary Maunder has pledged on 3 campaigns
Peter Cochrane2018-02-01 03:07:40 UTC
Peter Cochrane has pledged on 4 campaigns
Linda King2018-02-01 03:06:56 UTC
Linda King has pledged on 4 campaigns
Massimo2018-02-01 02:59:40 UTC
Massimo has pledged on 4 campaigns
Helen Chester2018-02-01 02:56:04 UTC
Helen Chester has pledged on 4 campaigns
Rebekah Blakemore2018-02-01 02:55:16 UTC
Rebekah Blakemore has pledged on 5 campaigns
Gaynor Morrissey2018-02-01 02:54:02 UTC
Gaynor Morrissey has pledged on 4 campaigns
Andrew Head2018-02-01 02:50:28 UTC
Andrew Head has pledged on 4 campaigns
Equity crowdfunding is risky.
Issuers using this facility include new or rapidly growing ventures. Investment in these types of business is very speculative and carries high risks.
You may lose your entire investment, and must be in a position to bear this risk without undue hardship.
New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision.
The usual rules do not apply to offers by issuers using this facility. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.
Ask questions, read all information given carefully, and seek independent financial advice before committing yourself.