(terms capitalized but not defined herein have the meaning assigned in “Security Terms”)
Conversion Events: The Note’s accrued and unpaid interest and principal will be convertible into equity securities of the Company pursuant to the following terms:
Mandatory Conversion Events:
Voluntary Conversion Events:
YouTube Video: 3 Steps to Beautiful Brows by Chella
Led by founder and CEO Chris Kolodziejski, Mosaic Distributors, LLC (“Mosaic” or the “Company”) was established in Southern California in October 2012 to acquire all assets associated with the Chella brand. Mr. Kolodziejski has over thirty years of experience in business as an entrepreneur, the last 19 within the beauty industry with a focus on product development, branding, marketing, and sales.
Under the Chella brand, Mosaic formulates its proprietary line of products across the brow and eye care product spectrum. The Company prides itself on its ability to distribute its prestige cosmetic brands to leading retailers throughout the United States and around the world. The Company also provides a comprehensive level of product development, marketing, sales, wholesale customer training and other support for all Chella beauty products. This line is promoted as the Chella Brow & Eye Collection. This brand has been actively and successfully sold into the “Prestige” target market since its development and launch in 2011.
Success in the beauty industry is centered around building a strong brand:
Chella’s Brow & Eye Collection of products is over 65+ SKUs, including:
Chella Pro Focus: Spa and Salons
In the U.S., the spa and salon industry saw a collective revenue of $21.3 billion in 2023, a 5.7% increase from 2022’s $20.1 billion. This growth was facilitated by the presence of more than 21,840 operating salons and strong recovering consumer demand post COVID-19.
Additionally, the following data was shared by Square:
“Square Appointments saw more than 60M completed reservations with beauty and personal care sellers in 2021 alone. Out of millions of appointments, brow specials and vacuum therapy were the fastest-growing trends among consumers.”
The market lacks established competition, allowing for opportunities. Prominent competitors like Anastasia and Benefit have established distribution channels primarily through Ulta and Sephora, avoiding the thousands of fragmented smaller spas and salons. The minimal competition lacks a comprehensive product selection and a specific focus on brow and eye products, making Chella's unique offerings stand out.
Chella possesses a diverse range of shades to cater to all skin tones and brow colors, along with comprehensive training, education, and event support. It promotes a "Clean Beauty that cares" ethos, exhibited by its commitment to carbon and plastic neutrality and the use of Prop65 and EU-approved ingredients in all formulas, with an aim towards recyclability.
The incentive for Spa and Salons:
Through Chella’s value-added services, spas and salons will retain and attract new businesses. The implementation of the Brow Fill service elevates the value proposition, resulting in a boost to revenue streams. This affords spa owners a competitive advantage as they will be able to offer a unique experience, capitalizing on the current trend in the industry of offering enhanced services that instantly improve a client’s appearance. The Brow Fill service is easy to implement without requiring any major investments like re-designing a spa space, buying expensive equipment, or hiring specialists.
In addition to enhancing the value proposition and driving revenue growth, Chella provides the following for Spa and Salons:
Chella’s Sales and Growth Strategy:
To achieve quick sales and attractive financial performance, Chella’s will focus on implementing the following:
A McKinsey article emphasizes the necessity for beauty companies to integrate product sales with their services to boost revenue per customer and enhance overall profitability. This strategic shift underscores the importance of offering a holistic approach that combines both services and products to remain competitive in the evolving beauty market. Recognizing this trend early, Chella implemented their Chella Pro strategy, successfully aligning stakeholders and driving retail sales. This foresight and strategic action have proven effective, demonstrating Chella's ability to capitalize on market opportunities and enhance their competitive edge.
Chella’s channel partnerships will broaden its market reach by incorporating Chella products into partner services and selling them on-site. This approach allows customers to directly experience Chella products, enhancing the likelihood of purchase. By promoting brand loyalty and repeat sales, Chella’s strategy strengthens customer connections through personalized service in spas and salons. This approach exemplifies how Chella effectively navigates and thrives in the evolving beauty market landscape.
| Income Statement | 2024A+P | 2025P | 2026P | 2027P | 2028P |
|---|---|---|---|---|---|
| Revenue | |||||
| Developed Sources | 703,860 | 1,460,896 | 2,124,276 | 2,869,572 | 3,615,256 |
| New Channel | 149,776 | 788,944 | 1,441,680 | 2,179,000 | 3,101,872 |
| Additional Sources | 107,000 | 174,167 | 270,833 | 320,833 | 350,000 |
| Total Revenue | 1,260,636 | 2,424,006 | 3,836,790 | 5,369,405 | 7,067,128 |
| Cost of Goods Sold | 444,095 | 363,601 | 575,518 | 805,411 | 1,060,069 |
| Gross Profit | 816,540 | 2,060,405 | 3,261,271 | 4,563,995 | 6,007,059 |
| Gross Margin | 64.77% | 85.00% | 85.00% | 85.00% | 85.00% |
| Operational Expenses | 1,121,431 | 1,680,388 | 1,660,681 | 1,847,395 | 1,958,983 |
| EBITDA | (304,891) | 380,017 | 1,600,590 | 2,716,599 | 4,048,076 |
| EBITDA Margin | -24.19% | 15.68% | 41.72% | 50.59% | 57.28% |
Model Assumptions
Associated Risks
| Investor Group | Common Units | Series A Preferred Units |
Series B Preferred Units |
Warrants | As-Converted Fully Diluted Units |
Membership Percentage |
|---|---|---|---|---|---|---|
| Founders | 6,790,000 | - | - | - | 6,790,000 | 27.00% |
| Series A - Convertible Note Investors (2016) | - | 3,513,872 | - | 1,857,665 | 5,371,537 | 21.36% |
| Series A Participating Round | 2,361,471 | - | - | 2,361,471 | 9.39% | |
| Crowdfunding Investors | 53,141 | - | - | - | 53,141 | 0.21% |
| Series B Participating Preferred | - | - | 6,653,300 | - | 6,653,300 | 26.46% |
| Convertible Note Investors (Series B*) | - | - | 3,131,692 | - | 3,131,692 | 12.45% |
| Carolina Financial Securities, LLC | - | - | - | 786,082 | 786,082 | 3.13% |
| Total | 6,843,141 | 5,875,343 | 9,784,992 | 2,643,747 | 25,147,224 | 100% |
The preceding financial projections reflect the Company’s best estimated forecasts and are not guaranteed to be accurate. The timing of performance is estimated post-funding. These figures are forward-looking statements and reflect the Company’s views about various future events or expectations. These figures take into account known and unknown risks, uncertainties and other factors and assumptions which may cause the Company’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by this forward-looking financial projection. Please see the note regarding forward-looking statements. A full version of this pro-forma financial model is available through Carofin.com
Mr. Kolodziejski is the founder and oversees all aspects of the Chella brand. His approach emphasizes beauty service events and demonstrations with the goal of making each customer more beautiful. This effort creates very positive branding and gives Chella a competitive advantage over others in the Prestige market. Mr. Kolodziejski received a Finance degree from the University of Wyoming and played professional football for the Pittsburgh Steelers. In addition, he also has thirty years of experience in business including real estate development, investment banking and corporate finance and, finally, cosmetics.
As a native of London, England, Sarah Siegel comes to us with an early background in Fashion as a model and worked at Elle Magazine in the early 90’s. Her career successfully took her into high-end real estate sales at Sotheby’s International, business development and management with some of the top firms in Southern California. Today, Sarah expertly navigates as our Inside Sales Rep. Her day to day includes managing house accounts, International and territory driven domestic sales and Trade Shows with her travels all over. Additionally, Sarah on any given day can be found working with the team for marketing and social media support. Making the switch to fashion and beauty was easy. Her exuberant passion for the brand, with a key sense of what women want, like and needs, she is truly a team player with excellent customer service and professionalism. Sarah has a proven track record of driving and maintaining sales.
Ms. Ferrer assisted with the Chella Skin Care re-launch in 2010 including an all-new branding and packaging concept, literature and several new exciting formulations. Ms. Ferrer worked closely with the Chella Team to successfully re-launch this skin care line in a time frame of 10 months. She continues to support the Chella sales and marketing team and to find cost savings, in addition to leading inventory and chain management. She has worked as a project management professional in international telecom, aerospace, powder coatings, biomedical and beauty industry companies.
Kayla comes to us as a professional makeup artist who grew up in the small town of Sedona AZ and then moved to Los Angeles to grow her career. She has a genuine passion for cosmetics but more importantly making women feel more beautiful and confident! For more than 6 years, Kayla Parks, Intl. Training Director has been busy training and educating people from all over the world! From T.V. appearances and print, her travels include China, Australia, South America, Canada, Europe and all over the U.S. She has educated thousands of beauty professionals about the Chella Brow & Eye Collection and protocols with outstanding results and response! Her expertise in cosmetics is a key asset to Chella.
With over two decades of experience in the beauty industry, Martinez is dedicated to helping individuals reflect their inner beauty. She received her cosmetology license from Santa Barbara, California, and joined Chella in 2014, contributing to its growth and impact. Her passion lies in running beauty programs in Spanish and English for those affected by cancer, aiming to uplift and empower them to thrive. Building excellent client relationships to support their growth with guest engagement and increased sales.
Jocelyn Shahin, our Fulfillment Manager, came to Chella in 2023 with 19 years of professional experience in Sales, Operations, Warehouse and Customer Experience Management for Specialty Retail. She is passionate about efficiency and being an inspirational leader. Her extensive knowledge and experience in many different facets of business make her an essential part of this company's development and success.
Carofin, LLC (“Carofin”) is offering up to $1,600,000 of Series 2024A Convertible Promissory Notes (the “Offering”, “Securities” or the “Notes”) by Mosaic Distributors, LLC. (“Mosaic” the “Company” or the “Issuer”).
Proceeds from this Offering will be used for (i) general working capital, and (ii) invest in salesforce expansion, and (iii) administration initiatives and fees associated with the issuance and sale of the Securities. Terms capitalized but not defined herein shall have the meaning assigned to them in the Notes.
Mosaic Distributors, LLC (“Mosaic” or the “Company”), a California limited liability company.
Convertible Promissory Notes (the “Offering”, “Securities” or the “Notes”) of the Issuer, offered in accordance with S.E.C. Regulation D, Rule 506(c).
Up to $1,600,000, with $600,000 having been issued as of June 19, 2024
The proceeds will be used to meet working capital needs for ongoing operations and obligations, fund the expansion of the salesforce, and cover administrative initiatives and costs related to the issuance and sale of the Securities.
All Investors in the Convertible Notes (the “Holders”) must qualify as an “Accredited Investor” as defined within Regulation D, Rule 501 as promulgated by the U.S. Securities Exchange Commission
The minimum subscription amount for an investor to directly invest in the Offering will be $5,000, subject to exception by the Company.
This Offering will remain open until (1) full subscription for the Securities, or (2) September 30, 2024, subject to extension at the Company’s sole discretion.
The Notes will accrue interest at a rate of 10.0% cumulative, but non-compounding per year and calculated on an actual/365-day basis.
The Note will be due and payable on June 30, 2025 (the “Maturity Date”) unless converted as further described herein.
Twenty Percent (20%)
$8,000,000
(i) Qualified Financing: Upon the next sale of the Company’s equity securities (the “Equity Securities”) in one private placement or a series of related private placement transactions in which the aggregate proceeds to the Company (exclusive of the Notes and other convertible promissory notes of the Company) exceed $2,000,000 (a “Qualified Financing”), the outstanding principal amount and all accrued but unpaid interest under the Notes shall be converted into shares of the Company’s Equity Securities sold in the Qualified Financing at a price per Equity Security equal to the Conversion Price, as further defined herein.
(ii) EBITDA-Based Financial Performance: In the event that the Company generates $25,000 or more of Earnings Before Interest, Tax, Depreciation, and Amortization (“EBITDA”, as it is commonly understood under Generally Accepted Accounting Principles) for any three consecutive months preceding the Maturity Date, then the outstanding principal amount of this Note and any unpaid accrued interest shall automatically convert in whole without any further action by the Holders into the Company’s Series B Preferred Units (the “Series B Preferred”) at a price per Series B Preferred equal to the Original Issue Price of the Series B Preferred.
(i) Non-Qualified Financing: If the Company consummates an issuance and sale of its Equity Securities to investors in a bona fide equity financing that is not a Qualified Financing (a “Non-Qualified Financing”), then the outstanding principal and any accrued but unpaid interest under the Notes shall, at the option of the holders of a majority of the outstanding principal amount of all Notes then outstanding (the “Holder Majority”), convert into shares of such equity securities on the same terms and subject to the same conditions as are applicable in such Non-qualified Financing and at a price per share equal to the Conversion Price.
(i) Maturity Date: In the event that the Notes remains outstanding on the Maturity Date, then the outstanding principal and any accrued but unpaid interest shall, upon the election of each Holder, convert as of the Maturity Date into Series B Preferred at a price per unit equal to the Original Issue Price of the Series B Preferred.
If the Company consummates a Change of Control (as defined below) while this Note remains outstanding, the Company shall repay the Holder in cash in an amount equal to the outstanding principal amount of this Note plus any unpaid accrued interest on the original principal; provided, however, that upon the written election of the Holder made not less than five days prior to the Change of Control, the Company shall convert the outstanding principal balance of this Note and any unpaid accrued interest into Common Units of the Company at a price per Common Unit equal to the Conversion Price. For purposes of the Notes, a “Change of Control” means (i) a consolidation or merger of the Company with or into any other corporation or other entity or person, or any other corporate reorganization, other than any such consolidation, merger or reorganization in which the shares of capital stock of the Company immediately prior to such consolidation, merger or reorganization continue to represent a majority of the voting power of the surviving entity immediately after such consolidation, merger or reorganization; (ii) any transaction or series of related transactions to which the Company is a party in which in excess of 50% of the Company’s voting power is transferred; or (iii) the sale or transfer of all or substantially all of the Company’s assets, or the exclusive license of all or substantially all of the Company’s material intellectual property; provided that a Change of Control shall not include any transaction or series of transactions principally for bona fide equity financing purposes in which cash is received by the Company or any successor, indebtedness of the Company is cancelled or converted or a combination thereof. The Company shall give the Holder notice of a Change of Control not less than 10 days prior to the anticipated date of consummation of the Change of Control. Any repayment pursuant to this paragraph in connection with a Change of Control shall be subject to any required tax withholdings and may be made by the Company (or any party to such Change of Control or its agent) following the Change of Control in connection with payment procedures established in connection with such Change of Control.
The term “Conversion Price” shall mean (x) the lower of (i) eighty percent (80%) of the lowest per share cash selling price of shares of equity securities sold in a Qualified Financing, Non-Qualified Financing, or Change of Control, as applicable, and (ii) the price per share obtained by dividing (A) $8,000,000 by (B) the number of shares of outstanding Common Units of the Company as of immediately prior to the initial closing of the Qualified Financing, Non-Qualified Financing, or Change of Control, as applicable (assuming conversion of all securities convertible into Common Units, exercise of all outstanding options and warrants to purchase Common Units, but excluding, for this purpose, both (x) the conversion of the Convertible Notes and (y) the conversion of all other outstanding convertible debt and SAFEs including, without limitation, all outstanding convertible promissory notes, SAFEs and similar instruments as of immediately prior to the initial closing of the Qualified Financing or Non-Qualified Financing, as applicable).
In connection with any conversion of this Note into capital stock, the Holder shall surrender this Note to the Company and deliver to the Company any documentation reasonably required by the Company (including, in the case of a Qualified Financing, all financing documents executed by the Investors in connection with such Qualified Financing). The Company shall not be required to issue or deliver the capital stock into which this Note may convert until the Holder has surrendered this Note to the Company and delivered to the Company any such documentation. Upon the conversion of this Note into capital stock pursuant to the terms hereof, in lieu of any fractional shares to which the Holder would otherwise be entitled, the Company shall pay the Holder cash equal to such fraction multiplied by the price at which this Note converts.
Interest Accrual. If a Change of Control or Qualified Financing is consummated, all interest on this Note shall be deemed to have stopped accruing as of a date selected by the Company that is up to 10 days prior to the signing of the definitive agreement for the Change of Control or Qualified Financing.
The Company may not prepay this Note without the consent of the Holders of a majority of the outstanding principal amount of the Notes (the “Majority Holders”).
The Notes shall represent an unsecured obligation of the Company and be fully subordinated in right of payment to the following existing obligations of the Company (the “Senior Indebtedness”):
If, while the Notes are outstanding, the Company issues other indebtedness of the Company convertible into equity securities of the Company, or amends any existing indebtedness convertible into equity securities of the Company, and such newly issued or amended indebtedness would have material terms that are more favorable, from the perspective of the Holder (the “Other Debt”), than the terms of this Note, then the Company will provide the Holder with written notice thereof, together with a copy of all documentation relating to the Other Debt and, upon request of the Holder, any additional information related to the Other Debt as may be reasonably requested by the Holder. The Company will provide such notice to the Holder promptly (and in any event within 30 days) following the issuance of the Other Debt. In the event the Holder determines that the terms of the Other Debt are preferable to the terms of this Note, the Holder will notify the Company in writing within five days following the Holder’s receipt of such notice from the Company. Promptly after receipt of such written notice from the Holder, but in any event within 30 days, the Company will amend and restate this Note to be substantially identical to the promissory note evidencing the Other Debt, excluding the principal and unpaid accrued interest.
Standard representations and warranties as to due organization, existence in good standing and power to conduct its business will be provided by the Company in the purchase agreement. Standard representations and warranties typical of a private offering of securities will be provided by each Investor, including as to status as an “accredited investor”, receipt of the Company’s organizational documents, other offering documents, and other materials as requested, and acknowledgement that the Offering is being made under exemption from registration requirements (Details to be found in the purchase agreement). In order to comply with the requirements of Rule 506(c), Each Investor shall be obligated to provide the Company with either: (i) third party confirmation of such Investor’s status as an “accredited investor”, or (ii) such information as reasonably requested by the Company to confirm such Investor’s status as an “accredited investor”.
Usual for Loans of this type, including but not limited to performance of obligations; delivery of agreed financial information and compliance certificates; notices of default and litigation; maintenance of satisfactory insurance; compliance with laws; and payment of taxes.
Including but not limited to limitations on indebtedness; transactions among affiliates; dividends and redemptions; issuance of additional stock; and others usual for loans of this type.
Carolina Financial Securities, LLC (“CFS”), shall be entitled to a “Placement Fee”) equal to six percent (6%) of the aggregate funds received by the Company in the Offering, with such Placement Fee being payable by the Company upon receipt of funds for the purchase of Notes. CFS may share up to 50% of the Placement Fee with Carofin, LLC, an affiliated broker-dealer for its assistance in the placement of the Offering. CFS and Carofin may also receive warrants for shares of common stock of the Company as a result of sales of the Notes.
Given the relationship of certain participants in the Offering, certain conflicts of interest may be present:
Proprietary Products: CFS and Carofin will often present investments that are only available through them, which may result in a higher placement fee. The Firms will receive the placement fee regardless of your investment performing as expected.
Warrant Position: Carolina financial Securities and Carofin will be issued a warrant to purchase certain ownership interests in Mosaic upon closing of the Offering, in addition to certain already outstanding warrants. The financial interests associated with the conversion of such warrants may result in a conflict of interest regarding the timing of exit opportunities, as the exercise of such warrants is often predicated upon the realization of a business combination or other exit transaction.
Administrative Agent Role: CFG FS acts as administrative agent for multiple classes of securities of the Company, including the Senior Indebtedness. These roles may present a conflict of interest when interests of the Senior Indebtedness holders is adverse to those of the Notes.
Existing Indebtedness held by CFS and Carofin Registered Representatives: Mr. Peter Milhaupt, a registered representative of CFS and Carofin, is the holder of certain Subordinated Indebtedness of the Company. While subordinated to the Notes described herein, Mr. Milhaupt’s interests may sometimes be adverse to those of the Holders of the Notes.
California
What is Carofin?
Carofin is a FINRA broker dealer, an investment bank headquartered in Brevard, North Carolina, that specializes in financing smaller businesses. Carofin’s parent company Carolina Financial Group, LLC, was established in 1995 and its affiliates have privately placed over $1 billion of debt and equity securities.
Is this security registered with the Securities Exchange Commission (S.E.C.)?
No. It is being privately placed under Rule 506c of Regulation D of the S.E.C.
Must Investors in the Notes be Accredited Investors?
Yes. They must have household income of $300,000 (for married couples) OR a net worth of $1,000,000, excluding the value of their primary residence, OR qualify for an institutional category of investor.
How is this security repaid?
The Company is obligated to repay the convertible note through the payment of accrued interest and principal if not converted at or prior to the Maturity Date. In the event that the Company is unable to fulfill these repayment obligations, repayment shall be made through the proceeds from the sale or acquisition of the Company's assets or business.
What rights do I have as an Investor?
Information Rights
Investors will receive standard financial reporting, including monthly, year-to-date, and annual income, balance sheet, and cash flow statements as compared to the current budget and compared to results for the comparable period for the prior year, and his/her/its Schedule K-1 to the Issuer’s tax return.
Approval Rights/ Negative Covenants
So long as Series B Preferred shares are outstanding, the Company will obtain the consent of a majority of the Series B Preferred for any merger or sale of all or part of the Company at a price resulting in a return to the Series B Preferred shareholders (inclusive of all prior distributions received by the Series B Preferred shareholders) of less than two times their Investment Principal.
Note: Other rights included in the term sheet.
Will Investors Continue to Receive Information About the Notes After Issuance?
Given its role as the administrative agent, CFG Financial Services is able to keep Investors informed about any unexpected changes in the Issuer's business and general operational updates.
What if I have questions in the future about the Business’s performance?
Carofin will distribute updates to investors at least quarterly, including account statements. You should feel free to also email Carofin at investorrelations@carofin.com or telephone us at 828.393.0088
An investment in the Securities involves certain risks. You should carefully consider all of the following risk factors, in addition to all of the information contained in this Offering Package prior to investing in the Securities. The risk factors described below are not the only ones facing the Company. Additional risk factors not presently known to the Company or that the Company currently deem immaterial may also impair their business operations. The Company’s business, financial condition, results of operations or prospects could be materially and adversely affected by any of these risks. If any of the following risks occur, the Company’s business, financial condition or results of operations could be seriously harmed. In such case, an investor could lose all or part of its investment. The investment in the securities offered hereby is highly speculative, involves a high degree of risk, and should not be made by persons who cannot afford to lose their entire investment.
The Company has limited operational history and has a limited basis to evaluate its potential for future success.
The Company was formed in 2012 and has, since then, been developing its products through extensive research and development. However, it has limited operational history and cannot fully evaluate its business and prospects. Investors in the Securities must consider the risks and uncertainties frequently encountered by early stage companies like this. If the Company is unsuccessful in addressing these risks and uncertainties, its business will be seriously harmed or may fail.
The Company may not be able to successfully implement its business model.
The Company is in the process of implementing its business model as it relates to expansion into spa and salons. It is still in the early stages of developing its business strategy, sales and implementation practices, technological capabilities, customer relationships and marketing focus. The Company faces a number of challenges, including a lack of meaningful historical financial data upon which to plan future budgets, competition from a wide range of sources, the need to develop customer relationships and other risks. The Company may not be able to successfully implement its business model.
The Company has generated limited revenues, has incurred only losses and may not become profitable in the future.
Since its inception, the Company has generated limited operational revenues and has incurred only losses, principally from costs relating to research and development, legal expenses, and salaries and consulting fees. The Company expects to continue to incur net operating losses for the foreseeable future. Its business model and strategies may not be successful and there is no assurance that the Company will ever become profitable in any future period.
The Company depends on a limited number of retailers for a large portion of our net sales, and the loss of one or more of those retailers, or business challenges at one or more of those retailers, could adversely affects its results of operations.
A limited number of the Company’s retail customers account for a large percentage of its net sales. The Company expects that a small number of retailers will, in the aggregate, continue to account for the majority of its net sales for foreseeable future periods. Any changes in the policies or the Company’s ability to meet demands these customers relating to service levels, inventory de-stocking, pricing and promotional strategies or limitations on access to display space could have a material adverse effect on the Company’s business, financial condition and results of operations.
As is typical in the makeup industry, the Company’s business with retailers is based primarily upon discrete sales orders, and the Company does not have contracts requiring retailers to make firm purchases from them. Accordingly, retailers could reduce their purchasing levels or cease buying products from the Company at any time and for any reason. If the Company loses a significant retail customer or if sales of its products to a significant retailer materially decrease, it could have a material adverse effect on its business, financial condition, and results of operations.
Because a high percentage of the Company’s sales are made through its spa and salon strategy, the Company’s business is subject to risks relating to the general business performance of its spa and salon partners. Factors that could adversely affect the Company’s spa and salon businesses may also have a material adverse effect on its business, financial condition and results of operations. These factors may include: • Any reduction in consumer traffic and demand at our retail customers as a result of economic downturns, pandemics or other health crises, changes in consumer preferences or reputational damage as a result of, among other developments, data privacy breaches, regulatory investigations or employee misconduct; • Any credit risk associated with the financial condition of the Company’s spa and salon partners; • The effect of consolidation or weakness in the spa and salon industry or at certain retail customers, including store closures and the resulting uncertainty; and • Inventory reduction initiatives and other factors affecting retail customer buying patterns, including any reduction in retail space committed to beauty products and retailer practices used to control inventory shrinkage.
The Company is likely to require additional funding, which may not be available on favorable terms, or at all.
The Company plans to continue to expend substantial capital in connection with the development of its products or sales process. If it fails to obtain the funding necessary to fund such development and to satisfy its working capital needs, the Company may have to delay its plans and miss its market opportunities. The Company’s current operating plan could change as a result of many known and unknown factors and may require additional funding. In addition, the Company may choose to raise additional capital due to favorable market conditions or strategic considerations even if it has sufficient funds for its current operating plan. To the extent available capital resources are insufficient to meet future capital requirements, the Company will have to seek additional funds to continue with its expansion plan. There can be no assurance that such funds will be available on favorable terms, or at all. If adequate funds are not available, the Company may be required to curtail operations significantly or even altogether. The Company’s inability to raise capital on favorable terms could have a material adverse effect on its business, financial condition and results of operations.
The Company may be held liable for the actions and errors of its management.
Under most conditions, the Company’s officers and directors may not be held liable for errors in judgment or other acts or omissions made by them as representatives of the Company because of provisions in its operating agreement holding them harmless and providing them with indemnification against liabilities or losses that arise from such acts or omissions. To the extent that such indemnification provisions are invoked, then Company’s assets could be reduced and its business could be impaired.
The Company’s failure to expand its management systems and controls to support anticipated growth and to hire qualified personnel could seriously harm its business.
The Company’s inability to manage its growth effectively could affect its ability to pursue business opportunities and expand its business. As the Company increases the commercialization of its products and its operations grow, it will need to hire a significant number of additional employees. This growth may place strain on its management and operations. The Company’s ability to manage growth will depend on the ability of its officers and key employees to implement and improve the Company’s operational, management information, sales and marketing and financial control systems and to expand, train and manage its work force. The Company believes that competition for qualified technical, sales, marketing and managerial personnel will be intense. The Company’s ability to implement its business plan could be adversely affected if it is unable to hire and retain qualified personnel as needed.
The Company is highly dependent on management and other key employees.
The Company is highly dependent on the efforts and abilities of its CEO, Chris Kolodziejski. The loss of its CEO or any of its other officers or key employees could have a material adverse effect on its financial condition, existing business, or anticipated growth.
The Company relies significantly on the use of information technology. Any technology failures causing a material disruption to operational technology or cyber-attacks on its systems affecting its ability to protect the integrity and security of customer and employee information could harm its reputation and/or could disrupt its operations and negatively impact the Company’s business.
The Company increasingly relies on information technology systems to process, transmit and store electronic information. The future success and growth of its business depends on streamlined processes made available through information systems, global communications, internet activity and other network processes.
The Company’s information technology systems, and those of its third-party service providers, may be vulnerable to information security breaches, acts of vandalism, computer viruses and interruption or loss of valuable business data. Stored data might be improperly accessed due to a variety of events beyond the Company’s control, including, but not limited to, natural disasters, terrorist attacks, telecommunications failures, computer viruses, hackers and other security issues. The Company has technology security initiatives and disaster recovery plans in place to mitigate its risk to these vulnerabilities, but these measures may not be adequate or implemented properly to ensure that its operations are not disrupted or that data security breaches do not occur.
Hackers and data thieves are increasingly sophisticated and operate large-scale and complex automated attacks. Any breach of the Company’s network may result in damage to its reputation, the loss of valuable business data, misappropriation of its consumers' or employees' personal information, product fulfillment delays, key personnel being unable to perform duties or communicate throughout the organization, loss of sales, significant costs for data restoration and other adverse impacts on its business. Despite the Company’s existing security procedures and controls, if its network was compromised, it could give rise to unwanted media attention, materially damage its customer relationships, harm its business, reputation, results of operations, cash flows and financial condition, result in fines or lawsuits, and may increase the costs it incurs to protect against such information security breaches, such as increased investment in technology, the costs of compliance with consumer protection laws and costs resulting from consumer fraud.
The Company’s product offerings may be unable to keep pace with other developments in the industry.
The Company’s success depends on continued innovation that make their products useful for existing and prospective customers, but there is no guarantee that the Company’s investments in its products and the development thereof will provide it with the benefits it expects. The Company’s products must often and quickly respond to changes in consumer preferences as they relate to environmental, sustainable, and cruelty-free manufacturing practices, and the Company may need to often modify and enhance its products to adapt to changes and innovation in these categories. Any failure of the Company to operate effectively with future infrastructure platforms and technologies could reduce the demand for its services.
The Company may be unable to scale its sales processes with increased adoption of its product offerings.
The Company’s ability to increase its revenue and grow its business is partially dependent on the widespread acceptance of their products by large businesses and other commercial organizations. The Company may need to spend significant time and resources to better educate and familiarize these potential customers with the value proposition of its products. The length of the Company’s sales cycle for these customers from initial evaluation to payment for the Company’s offerings will vary substantially from customer to customer and from offering to offering. Customers will often require considerable time to evaluate, test, and qualify the Company’s offerings prior to adopting the Company’s offerings. The timing of the Company’s sales with its enterprise customers and related revenue recognition will be difficult to predict because of the length and unpredictability of the sales cycle for these customers. During the sales cycle, the Company will expend significant time and money on sales and marketing and contract negotiation activities, which may not result in a sale. Additional factors that may influence the length and variability of the Company’s sales cycle include: the effectiveness of its sale force; the discretionary nature of purchasing and budget cycles and decisions; the obstacles placed by customers’ procurement process; economic conditions and other factors impacting customer budgets; the customer’s integration complexity; the customer’s familiarity with communications surveillance and compliance processes, and evolving customer demands.
The Company’s products will compete for customers against well-known providers in the market. If the Company cannot attract customers to buy its products, its business would suffer and you could lose your investment.
The Company will have to compete on the basis of price and performance with product offerings from manufacturers that are already well-established in the marketplace. The domestic market for the Company’s products is intensely competitive and is also characterized by frequent introductions of new or enhanced products, price competition, continued emergence of new industry standards and regulatory developments. Some of the Company’s potential competitors have longer operating histories, substantially greater financial, technical, sales, marketing and other resources, established name recognition and an existing customer base. Competitors with an established customer base will have a significant competitive advantage over the Company by virtue of their existing sales channels and ability to create repeat business.
If the Company fails to secure or protect its intellectual property rights, competitors may be able to use its technologies, which could weaken the Company’s competitive position, reduce its revenue or increase its costs.
The Company relies on a combination of patent, copyright, trademark and trade secret laws, and confidentiality procedures to establish and protect its proprietary rights. Policing unauthorized use of its technologies will be difficult and the Company cannot be certain that the steps it has taken will prevent the misappropriation or unauthorized use of its technologies, particularly in foreign countries where the laws may not protect its proprietary rights as fully as United States law. The Company’s competitors may independently develop or may have already developed similar technology, duplicate the Company’s products or design around its other intellectual property rights.
The Company will also rely on trade secrets and new technologies developed by its employees and consultants to maintain its competitive position. Although the Company has confidentiality and intellectual property protections inherent in employee relationships, it cannot be certain that these protections will be effective in preventing them and others from misappropriating its trade secrets.
The Company may be exposed to liability for infringing the intellectual property rights of other companies the cost of which could decrease the value of your investment.
The Company’s success will, in part, depend on its ability to operate without infringing on the proprietary rights of others. It may not be able to do this successfully. Although the Company has conducted searches and are not aware of any patents and trademarks which its products or their use might infringe, it cannot be certain that infringement has not or will not occur. The Company would incur substantial costs in defending infringement lawsuits or in asserting rights in a lawsuit against another party.
This Offering has not been reviewed by any federal, state, or other regulatory authority.
The Securities offered through this Offering will not be registered or qualified under federal and state securities laws or the securities laws of any foreign jurisdiction. The Company anticipates that no regulatory authority or other disinterred entity will review or pass upon the fairness of the disclosure of risks and tax consequences inherent in the investment in the Securities or the other terms of this Offering. Prospective investors should be aware that they do not have all of the protection afforded by applicable federal and state securities laws to investors in registered or qualified offerings. Accordingly, all investors must evaluate for themselves, or with the assistance of their advisors, attorneys, and accountants, the adequacy of the disclosures and the fairness of the other terms of this Offering without the benefit of prior review by any regulatory authority or other disinterested entity.
Management will control the way in which the proceeds of this offering will be expended.
Management will have broad discretion to spend or invest the proceeds from this offering in ways with which new investors may not agree.
Investors may never receive distributions of cash or other property on their investment.
The Company is not obligated to make distributions of cash or other property on any of the Securities and it has no present intention of making any such distributions. The Company intends to retain any earnings in the foreseeable future to finance the growth and development of the business.
Securities Laws will restrict the investors’ ability to transfer the Securities or liquidate their investment.
An investment in the Company is a long-term, speculative commitment. No public market for the Securities exists and no assurance can be made that any such public market will develop in the future. Consequently, investors may not be able to resell any of the Securities sold in this offering. Each purchaser of the Securities will be required to represent that it is an accredited investor and that it is purchasing the Securities for its own account for investment purposes and not with a view to resale or distribution. The Securities have not been nor will be registered under the Securities Act or under any state securities laws, and the Company is under no obligation to register any of the Securities. No transfer of the Securities may be made unless an exemption to such registration applies to any such transfer. See "Transfer Restrictions" under "Security Terms" for more information. Accordingly, investors must be ready to hold the Securities for an indefinite period of time and must be able to bear a risk of total loss of their entire investment.
The Securities have an arbitrary offering price and lack marketability.
The offering price of the Securities is not necessarily indicative of their value, and it is not anticipated that there will be any market for resale of the Securities. As a result, you may be unable to sell or otherwise dispose of your Securities should you desire to liquidate your investment in the event of an emergency or other financial need.
The Company’s operating agreement may allow a majority of the Company’s members to effect changes to its organizational documents without the consent of every single investor.
The Company’s Operating Agreement contains certain aspects which may affect the class as a whole upon the consent of a certain number of the outstanding Class A-3 Units or Class A Units and without the affirmative consent of Investors, which may include affiliates and employees of the Company as well as other parties with conflict of interest. As such, purchasers of the Securities shall carefully weigh how such governance mechanics may adversely affect them as it pertains to their membership in the Company.
Any single aspect of the Company’s business or the Security’s structure is subject to change.
Potential investors should not rely exclusively on one aspect of the security structure when making an investment decision on whether or not to participate in this Offering.
The Company and the Securities are subject to other unforeseen risks.
The foregoing risks, as well as other risks described in this Offering Package are not an all-inclusive listing of the business and other risks facing the Company. As with any business entity, the Company cannot predict with certainty all the possible challenges which may confront the Company’s business in future years. It is possible that events or conditions not foreseeable at present and which may not be subject to control by the Company may occur in the future and have an adverse impact on the ability of the Company to carry out its business objectives in a profitable manner.
FOR ALL OF THE AFORESAID REASONS, AND OTHERS SET FORTH HEREIN, THE SECURITIES OFFERED HEREUNDER INVOLVE A HIGH DEGREE OF RISK. ANY PERSON CONSIDERING AN INVESTMENT IN THE SECURITIES OFFERED HEREBY SHOULD BE AWARE OF THE SUBSTANTIAL RISKS SET FORTH IN THIS OFFERING PACKAGE. THESE SECURITIES SHOULD ONLY BE PURCHASED BY PERSONS WHO CAN AFFORD TO ABSORB A TOTAL LOSS OF THEIR INVESTMENT IN THE COMPANY.
Important Disclosures
These securities have not been registered with the Securities and Exchange Commission (the “SEC” or the “Commission”), or with any state securities commission or any other regulatory authority. The securities are being offered in reliance upon an exemption from the registration requirement of federal and state securities laws and cannot be resold unless the securities are subsequently registered under such laws or unless an exemption from registration is available. Neither the SEC nor any other agency has passed on, recommended or endorsed the merits of this offering (this “Offering”) or the accuracy or adequacy of these confidential offering documents (the “Offering Package”). Any representation to the contrary is unlawful.
These securities are offered through Carofin, LLC, Member of FINRA/SIPC. Carolina Financial Securities is an affiliate of Carofin and both Broker-Dealers are affiliates of Carolina Financial Group, LLC. Documents have been prepared by Carolina Financial Securities and have been reviewed and approved by the management of the Company. The information contained herein has not been independently verified and is dependent on information provided by the Company to Carolina Financial Securities, LLC.
Our firms seek to present vital capital with meaningful investment opportunities through the fundamental analysis of the businesses we seek to finance. Such analysis is usually conducted through a First Principles approach.
When we provide you with a recommendation, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recommendations we provide you. Here are some examples to help you understand what this means:
Proprietary Products: CFS and Carofin will often present investments that are only available through them, which may result in a higher placement fee. The Firms will receive the placement fee regardless of your investment performing as expected.
Warrant Position: Carolina financial Securities and Carofin will be issued a warrant to purchase certain ownership interests in Mosaic upon closing of the Offering, in addition to certain already outstanding warrants. The financial interests associated with the conversion of such warrants may result in a conflict of interest regarding the timing of exit opportunities, as the exercise of such warrants is often predicated upon the realization of a business combination or other exit transaction.
Administrative Agent Role: CFG FS acts as administrative agent for multiple classes of securities of the Company, including the Senior Indebtedness. These roles may present a conflict of interest when interests of the Senior Indebtedness holders is adverse to those of the Notes.
Existing Indebtedness held by CFS and Carofin Registered Representatives: Mr. Peter Milhaupt, a registered representative of CFS and Carofin, is the holder of certain Subordinated Indebtedness of the Company. While subordinated to the Notes described herein, Mr. Milhaupt’s interests may sometimes be adverse to those of the Holders of the Notes.
Our firms offer brokerage services to accredited investors, exclusively through the sale of private placements. the offerings we bring to market are carefully selected, and any recommendation you may receive from us will be limited to these offerings. Therefore, we may be unable to adequately compare the risks and benefits of the offerings we bring to offerings presented by other financial professionals. While our firms will often present new investments and discuss such investment’s risks and benefits with you, the ultimate authority to make such investment rests solely with you.
Our firms do not hold any investor cash or securities, and securities offered by us often have no easily assessable market value, so our firms will not monitor the market value of your investment on an ongoing basis. The investments we present often require a minimum investment of $5,000 for equity offerings and $10,000 for debt offerings.
Fees and costs may reduce any amount of money you make on your investments over time. Our firms are mostly compensated through placement fees, which are payable by the issuer, meaning that the firms will be compensated by receiving a percentage of the funds raised in an offering, regardless of the investment performing as expected. Such placement fee is usually between 3% and 7% (please find the specific Placement Fee for this offering in the “Fees & Expenses” section of the “ Key Investment Terms”. Given that different investments have different placement fees, we may often have a conflict of interest when presenting these investments to you. The Firms’ bankers are often compensated by receiving a percentage of the placement fee, and may have their own conflict of interest when presenting you with offerings they structure.
The information contained herein is for informational purposes only and is not intended for further distribution. The information does not constitute a complete description of any investment or investment performance. This document is in no way a solicitation nor is it an offer to sell securities nor is it advice or recommendation regarding any investment. The information is not directed to any person who is not believed to qualify under the definition of an Accredited Investor under the rules of Regulation D of the 1933 Securities and Exchange Act. No security listed in this document or otherwise offered through Carolina Financial Securities, LLC or Carofin, LLC may be purchased without prior receipt of a complete Private Placement Memorandum or other official offer to sell.
Due diligence materials related to this Borrower and the Offering are available to you through Carolina Financial Securities’ affiliated marketplace, Carofin. If you have not received your login information to access Carofin.com, please contact your company representative to have access granted.
The Company will not offer, sell or issue any Securities in any jurisdiction where it is unlawful to do so or where laws, rules, regulations or orders would require the Company, in its sole discretion, to incur costs, obligations or time delays disproportionate to the net proceeds the Company will realize from such offers, sales or issuances. Neither this Offering Package nor any subscription agreement shall constitute an offer to sell or a solicitation of an offer to purchase any Securities in any jurisdiction in which such transactions would be unlawful.
Private placements are high risk and illiquid investments. As with other investments, you can lose some or all of your investment. Nothing in this document should be interpreted to state or imply that past results indicate future performance, nor should it be interpreted that FINRA, the SEC or any other securities regulator approves of any of these securities. Additionally, there are no warranties expressed or implied as to accuracy, completeness, or results obtained from any information provided in this document. Investing in private securities transactions bears risk, in part due to the following factors: there is no secondary market for the securities; there is credit risk; where there is collateral as security for the investment, its value may be imped if it is sold. Please see the Private Placement Memorandum (PPM), and the complete list of contents of this Offering Package for a more detailed explanation of the securities Summary of Terms, Investor Suitability Standards, Confidentiality, Securities Matters and Risk Factors.
Caution Regarding Forward-Looking Statements
Certain statements in this Summary Offering Material may be “Forward-looking” in that they do not discuss historical facts but instead note future expectations, projections, intentions, or other items relating to the future. We caution you to be aware of the speculative nature of forward-looking statements as these statements are not guarantees of performance or results.
Forward-looking statements, which are generally prefaced by the words “may,” “anticipate,” “estimate,” “could,” “should,” “would,” “expect,” “believe,” “will,” “plan,” “project,” “intend,” and similar terms, are subject to known and unknown risks, uncertainties and other facts that may cause our actual results or performance to differ materially from those contemplated by the forward-looking statements.
Although these forward-looking statements reflect our good faith belief based on current expectations, estimates and projections about, among other things, the industry and the markets in which we operate, they are not guarantees of future performance. Whether actual results will conform to our expectations and predictions is subject to several known and unknown risks and uncertainties, including risks and uncertainties discussed in this Summary Offering Material.
Consequently, all the forward-looking statements made in this Summary Offering Material are qualified by these cautionary statements and there can be no assurance that the actual results anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us or our business or operations. Risks, uncertainties, and factors that could cause actual results to differ materially from those projected are discussed in the “Risk Factors” section of this Summary Offering Material. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Considering these risks, uncertainties, and assumptions, the forward-looking events discussed in the Summary Offering Material might not occur.
State Securities Laws:
The Company will not offer, sell or issue any securities in any jurisdiction where it is unlawful to do so or where laws, rules, regulations or orders would require the Company, in its sole discretion, to incur costs, obligations or time delays disproportionate to the net proceeds the Company will realize from such offers, sales or issuances. Neither this Offering Package nor any subscription agreement shall constitute an offer to sell or a solicitation of an offer to purchase any securities in any jurisdiction in which such transactions would be unlawful.
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Carolina Financial Securities, LLC and Carofin, LLC (“CFS” and “Carofin”, respectively) are affiliated broker-dealers registered with the Securities and Exchange Commission and members of FINRA and SIPC. The fees and services broker-dealers offer differ across the industry and it is important for you to understand such differences.
Free and simple tools to research firms and financial professionals are available at Investor.gov/CRS, which also provides educational materials about broker-dealers, investment advisers, and investing.
You will find certain pertinent questions you may ask us when first establishing a relationship listed as “conversation starters” below. We invite you to visit our Knowledge Base for educational materials on private investments.
Our firms offer brokerage services to accredited investors, exclusively through the sale of private placements. A private placement is an offering of securities that is exempt from registration with the Securities and Exchange Commission and carries significant risks, which may result in the loss of some or all of your investment. Such risks include, but are not limited to, the inability to sell your investment for cash, the lack of publicly available information on the company issuing the security, and no guarantees of returns or periodic payments.
Our firms carefully select the offerings they bring to market, and any recommendation you may receive from us will be limited to these offerings. Therefore, we may be unable to adequately compare the risks and benefits of the offerings we bring to offerings presented by other financial professionals. While our firms will often present new investments and discuss such investment’s risks and benefits with you, the ultimate authority to make such investment rests solely with you.
Our firms do not hold any investor cash or securities, and securities offered by us often have no easily assessable market value, so our firms will not monitor the market value of your investment on an ongoing basis. An affiliate of CFS and Carofin, CFG Financial Services, does, however, act as administrative agent for many offerings we bring to market. In this role, CFG Financial Services will monitor an issuer’s compliance with its obligations, make distributions of periodic payments, and, when necessary, intervene in the event that things are not going to plan. When this happens, CFG Financial Services is often compensated by part of the proceeds recovered in settlement or bankruptcy proceedings, which may reduce the return on your investment.
The investments we present often require a minimum investment of $5,000 for equity offerings and $10,000 for debt offerings.
Conversation Starters:You will pay fees and costs whether you make or lose money on your investments. Fees and costs may reduce any amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying.
Our firms are mostly compensated through placement fees, which are payable by the issuer, meaning that the firms will be compensated by receiving a percentage of the funds raised in an offering, regardless of the investment performing as expected. Such placement fee is usually between 3% and 7%. Given that different investments have different placement fees, we may often have a conflict of interest when presenting these investments to you.
Given that our placement fees are payable by the issuer, the full amount of your investment will be used to purchase debt or equity securities, even though a certain amount of the proceeds may be immediately redirected by the issuer to CFS and Carofin as placement fees.
Conversation Starters:When we provide you with a recommendation, we have to act in your best interest and not put our interest ahead of yours. At the same time, the way we make money creates some conflicts with your interests. You should understand and ask us about these conflicts because they can affect the recommendations we provide you. Here are some examples to help you understand what this means:
Proprietary Products: Our firms will often present investments that are only available though them, which may result in a higher placement fee.
Management Fees: Our firms will often present investments in which Carolina Financial Group, LLC an affiliate of CFS and Carofin, acts a manager of the company. CFG will often be compensated for such services.
Warrant Position: Our firms will often receive a warrant (an option to purchase an equity security in the future, for a defined price) for certain securities. Given that our firms, or other equity holders in the company, may have an investment time horizon that differs from yours, this may create a conflict of interest.
Equity Trust Company Relationship: Carofin and Equity Trust Company (“ETC”) have entered into an agreement by which Carofin exclusively promotes ETC’s services as IRA custodian, in exchange for the sharing of certain Carofin content by ETC. You can learn more about the services ETC offers, along with the fees associated with such services, at trustetc.com.
Conversation Starters:Our firms have different compensation structures.
CFS financial professionals, which are often the individuals working with the company to structure an appropriate security, receive a percentage of the placement fee received by CFS in the investments they structure. Therefore, these professionals have an interest in presenting you with the investments they have structured.
Carofin financial professionals, on the other hand, are the individuals responsible for understanding and presenting these investments to you. While Carofin professionals are compensated through discretionary bonuses, they may have an interest in presenting you with investments which may result in a higher placement fee to the firm overall.
Yes. You have access to a free and simple tool to research our firms and financial professionals at Investor.gov/CRS.
Conversation Starters:You may learn more about our brokerage services and request a copy of this relationship summary at Carofin.com. You may also contact us directly at 828.393.0088 or compliance@carofin.com to request up-to-date information and a copy of this relationship summary. We also encourage you to visit our Knowledge Base for additional educational information on private investments.
Conversation Starters:Form CRS – October 12th, 2020, Ver. 2.0
PRIVATE PLACEMENTS ARE HIGH RISK AND ILLIQUID INVESTMENTS. AS WITH OTHER INVESTMENTS, YOU CAN LOSE SOME OR ALL OF YOUR INVESTMENT.
Securities offered through Carofin, LLC. Carofin, LLC and Carolina Financial Securities, LLC are affiliated Broker-Dealers, Members of FINRA/SIPC, and subsidiaries of Carolina Financial Group, LLC. For more information on the services we offer and details associated with such services, please see our Customer Relationship Summary.
This site is published for residents of the United States only. Representatives may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed until appropriate registration is obtained or exemption from registration is determined. Not all services referenced on this site are available in every state and through every advisor listed. For additional information, please contact Craig Gilmore at 828.393.0088 x 520 and/or cgilmore@carofin.com
The information contained herein is for informational purposes only and is not intended for further distribution. The information does not constitute a complete description of any investment or investment performance. This webpage is in no way a solicitation nor is it an offer to sell securities nor is it advice or recommendation regarding any investment. The information is not directed to any person who is not believed to qualify under the definition of an Accredited Investor under the rules of Regulation D of the 1933 Securities and Exchange Act. No security listed on this webpage or otherwise offered through Carofin, LLC may be purchased without prior receipt of a complete Private Placement Memorandum or other official offers of sale.
Carolina Financial Securities and Carofin only offer one type of alternative investment, those sold as private placements. Nothing on this website should be interpreted to state or imply that past results are an indication of future performance nor should it be interpreted that FINRA, the SEC or any other securities regulator approves of any of these securities. Additionally, there are no warranties expressed or implied as to accuracy, completeness, or results obtained from any information provided on this website. Investing in private securities transactions bears risk, in part due to the following factors: there is no secondary market for the securities; there is credit risk; where there is collateral as security for the investment, its value may be impaired if it is sold.
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