Case study: Reefton Distilling Co.

Reefton Distilling Co. requirements

Reefton Distilling Co. initially engaged Snowball Effect to provide strategic advice on preparing their offer materials and to assist in negotiations with large investors.  As the offer progressed, it became clear that there was also demand from smaller investors to participate in the offer as well. Reefton Distilling Co elected to conduct a private retail offer.

Private retail offers combine the privacy and control of a private offer with the legal ability to accept investment from outside investors. Reefton accepted outside investment from a few of Snowball Effect's wholesale investors, who by headcount only made up 5% of the investors, but accounted for 20% of total investment. Some of Snowball Effects most experienced investors saw a great opportunity in Reefton, as they made up 5 of the top 10 biggest investors.

Reefton also elected to make use of Snowball Effect's share registry services, providing a simple and professional way to manage and maintain shareholdings. This saves time and paperwork while also meeting compliance obligations, and presenting a professional image to investors.

• Offer material preparation

  The most critical part of the process is preparing high quality offer content. While this often takes time, high quality information is the best way to attract experienced investors who generally invest larger amounts.

  Snowball Effect facilitates workshops, interviews and discovery sessions to collect and process the information about the product, market, strategy and financials. We also use existing business plans and investment materials to write the Information Memorandum. We help tailor the message for retail or wholesale investors and assist with the layout and design of the Information Memorandum.

• Investor communication, sessions, and negotiations

  We help source lead investors or a syndicate of wholesale investors to anchor the round before launching a private or public offer. As part of preparing for a wholesale or private offer, we actively identify and reach out to potential cornerstone investors before the offer opens to build a list of interested investors.

  The offer is tested with sophisticated investors, and Snowball Effect supports face to face investor information sessions.

• Document preparation for strategic investors

  We identify the correct strategic investors from our investor database where their investment interests are aligned with the business. We create several documents for these investors to help them gather an informed understanding of business before making a decision to invest.

• Registry, nominee, and shareholder communication services

  Once the offer has successfully closed, the work doesn't stop there. Snowball Effect provides a wide range of services to manage the various aspects of shareholder engagement. The Snowball Effect online share register provides a way to track investments into a company over time. The register is managed online and stored securely with audit trails for every transaction and transfer.

  Our nominee services allow companies to add only one other shareholder (the nominee), which allows Snowball Effect to help create a clear plan for ongoing management of the company.

  Snowball Effect also manages shareholder communication, including the facilitation of AGM voting, distribution of company updates, and management of shareholdings and share transfers.