The US thoroughbred industry (1) is obsessed with speed and precocity in the breeding and training of thoroughbreds and (2) lacks an objective methodology for valuing thoroughbred pedigrees. We have the expertise to bring forth change in certain niche markets in the US thoroughbred industry by applying our expertise in the field of genetics and exercise physiology to the breeding and training of thoroughbreds. We seek investors with such market vision.
UNIQUE CO-OWNERSHIP STRUCTURE
In addition to its expertise in applying genetics and exercise physiology to the breeding and conditioning of thoroughbreds for classic-distance races, Des Amis distinguishes itself from other co-ownership horseracing ventures by and through its co-ownership structure. A comparison of the industry’s syndicate model with our corporate model will demonstrate this point:
THE SYNDICATE MODEL
The syndicate, which is the typical co-ownership structure in the thoroughbred industry, is inherently unfair and flawed as an optimal means of investment. A syndicate consists of an investment in a specific portion of a thoroughbred asset, with units of ownership that are typically sold on a horse-by-horse basis. For instance, assume a company offers for sale five US$50,000 units in horse A and horse B (both of which were purchased by the same partnership for US$250,000), and that an investor only purchases a share of horse A but not of horse B. Assume further that horse A does not win on the racetrack but that horse B wins a graded-stakes race and becomes very profitable. In a syndicate, the investor of horse A is not entitled to receive profit from the earnings of horse B to offset his losses on the investment in horse A, even though both horse A and horse B are owned and managed by the same company. The illogical flaw in the syndicate model is that it deprives investor A of diversification of risk.
OUR CO-OWNERSHIP STRUCTURE
In contrast, our co-ownership structure is more conducive to diversification of risk than the syndicate model's co-ownership structure. Any shareholder in DABC or DARC will have an ownership interest in each and every thoroughbred acquired, bred, or developed by either DABC or DARC, respectively, regardless of his/her respective investment amount. In the above example, under our co-ownership structure, both investors would lose part of their investment on horse A and share in the profits of horse B (albeit in different amounts if they had different ownership percentages). As a result, our corporate structure is much more investor-friendly and makes more sense from the vantage point of diversification of invested capital than the syndicate model's approach.
OWNERSHIP OPPORTUNITIES
DesAmis is offering Common Shares in DARC for a capital contribution of US$2,500.00 per share.
DesAmis is offering Common Shares in DABC for a capital contribution of US$2,500.00 per share.
DesAmis is offering Convertible Preferred Shares in DABC and/or DARC (as the case may be) for a capital contribution of US$20,000.00 per share (Pays an annual cash-dividend of 15% ROI and can be converted, at any time, into Common Shares in DARC and/or in DABC, as the case may be).
No horse syndications or mark-ups on horses acquired or bred by any DesAmis company.
Unlike in a syndicate, each investor has an ownership interest in every horse acquired or bred by any DesAmis company.
Unlike in a syndicate, no investor pays for costs and expenses on a monthly basis. In the absence of earnings, costs and expenses are paid from capital contributions and/or company loans from shareholders or from commercial or private lenders.
The Board of Directors of DARC is mainly comprised of professional handicappers, horse owners, and one physician (with expertise in cellular and muscular biochemistry).
The Board of Directors of DABC is mainly comprised of professional breeders, horse owners, pedigree experts, and one physician (with expertise in genetics).
We are interested in forming equity-based strategic alliances (1) with high-quality farms that board broodmares; (2) with high-quality trainers that are interested in co-training thoroughbreds with our CEO; (3) with horse owners; and (4) with top-notch equine veterinarians.
