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GROUP DESCRIPTION Des Amis Racing Corporation (DARC) is the racing entity of Des Amis Ventures LLC (Des Amis Holding), a closely-held, limited liability company, dedicated to breeding, training and managing race horse assets. Des Amis Breeding Corporation (DABC) is the breeding entity of Des Amis Holding. (DABC is currently devoid of assets and is currently inactive). Des Amis Holding owns a majority of the shareholding in both DABC and DARC. Mr. Rafael A Castro is the chief executive officer (CEO) of Des Amis Holding, DARC and DABC. To see an organizational chart for the Des Amis Group, click here. GROUP HISTORY The Des Amis Group was founded by the CEO, who is a seasoned handicapper of thoroughbreds. In the first two years of existence, the Des Amis Group endeavoured to breed our Current Assets. Unfortunately, but not uncommon in the breeding business, it has endured a few hardships in such years (e.g., having 2 abortions in the first breeding year, and, in the second year, having a male colt die of colic as a weanling and having a gorgeous Mo Mon filly badly sprain her ankle as a weanling), which in hindsight were an obstacle to obtaining adequate loan or equity capital. As a result, the Des Amis Group incurred losses in those years. Despite having cash flow problems and, therefore, having to dispense with the Previous Broodmare Assets at distress prices, the Des Amis Group has survived on a tight budget, benefiting from loan capital infusions of the CEO, well-timed equity infusions from investors, and the goodwill of the CEOs industry connections. Nevertheless, owing to the CEOs determination, sacrifices, and unwillingness to quit under circumstances in which many similarly situated persons would have liquidated all of the assets and cut their losses, the Des Amis Group has achieved its objective of breeding the Current Assets.In 2007, the CEO bred the Previous Broodmare Assets to Go for Gin, a stallion who had won the Kentucky Derby in 1994. In 2008, the Previous Broodmare Assets produced our Current Assets: two Go for Gin fillies (Cest Chic and Sophie Belle) and one Go for Gin colt (El Zaino). These Current Assets are owned by DARC.MISSION STATEMENT For our colts, our mission is to produce supremely fit racehorses that can win the Triple Crown in the US, which is comprised of 3 races (each having a purse of at least US$ 1,000,000) over a 5 week period:-
The stud value of any horse that wins the Triple Crown in the US is circa US$ 500 million. This is a conservative estimate, and the pecuniary value could be much higher taking into account the hype that will surround the winning colt. This is due to the fact that no colt has won the Triple Crown in the US since Affirmed in 1978. There was previously a US$ 5 million bonus awarded to the owner of the colt that won the US Triple Crown. However, VISA discontinued the bonus in 2005. For our fillies, our mission is to produce supremely fit racehorses that can win the Triple Tiara (i.e., the Triple Crown for fillies in the US), consisting of:-
Due to the fact that the broodmare value is often much less than the stud value of a stallion, the hype surrounding a filly that wins the Triple Tiara will not be as extraordinary as the hype for a colt that wins the US Triple Crown. Nevertheless, the pecuniary gains for owners will still be quite lucrative. No filly has won the Triple Tiara since Sky Beauty in 1993. There was previously a US$ 2 million bonus awarded to the owner of the filly that won the Triple Tiara. The bonus was discontinued by the New York Racing Authority in 2005. MARKET VISION We believe that the US racing public is anxiously waiting to see a Triple Crown winner, and that the owner of the next Triple Crown winner in the US could make over US$ 1 billion in purse money, marketing revenues and revenues from the stallion sale price. Since no colt has won the Triple Crown since 1978, the hype surrounding the winning Triple Crown horse will be extraordinary, and, consequently, the industry and the media (as well as the securities market) will reward the winning connections with pecuniary judgments as to the fair market value of such horse (especially the stud value) far in excess of the typical fair market value prior to such momentous and historical event. Our assets have the pedigree to win the Triple Crown, and we have the scientific know-how and (through our industry connections) the experience to develop a Triple Crown winner. Winning the Triple Crown will cement our legacy in the history of the thoroughbred breed, and we seek investors that espouse this market vision and are willing to invest capital to achieve it. We might even bring forth a revolutionary change in the thoroughbred industry that will make us mavericks (if not pioneers) in such industry. BUSINESS MODEL The Des Amis Group is dedicated to breeding and developing top-class, thoroughbred athletes. We are committed to using our know-how to exploit niche-markets in the thoroughbred industry that can generate high-yield profit for our shareholders. We are also committed to building, in the next five years, a top-notch, multi-national breeding and racing operation in the thoroughbred industry. Our business plan is, in part, predicated on a meticulous, empirical genetic study (undertaken by our CEO) of thoroughbred bloodlines that have produced winners of classic-distance races, such as the Triple Crown races (Breeding Model). The breeding of our Current Assets was done in accordance with the Breeding Model. From the beginning, our business strategy was to purchase (at bargain prices) broodmares whose pedigrees conform to the Breeding Model and to breed them to stallions that not only fit the criteria of the Breeding Model but also were offered at reasonable stud fees. For instance, Go for Gin, the 1994 Kentucky Derby winner, was offered at a stud fee of US$ 4,000, which we thought was undervalued considering that the average earnings on the racetrack of his foals is US$ 65,075.00. This business strategy, which has a low cost base, will give us a greater chance of achieving high-yield profit margins for our investors when we achieve our goals. Nevertheless, as can be seen from the musculature and attitude of our Current Assets, we did not sacrifice quality in the process. In addition, as part of our business model, we have made a commitment to our shareholders to develop and train our thoroughbred assets in a scientific and sophisticated manner, similar to the way in which elite human-athletes train for endurance events. This will give us a competitive advantage in the industry and will ensure our success. To download a copy of the business plan for DARC, click here. FUTURE ASPIRATIONS The sport of horseracing has become very international, and, while our primary goal is to win the US Triple Crown, we would very much like to win the Triple Crown in other countries in the near future, especially in the UK. The Triple Crown in the UK is comprised of 3 races (each having a purse of at least US$ 1,000,000) over a slightly longer period of time than the US Triple Crown:-
No colt has won the Triple Crown in the UK since Nijinsky in 1970.
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