What’s in a share?
Acquisition Expenses: Simply put, this is the cost of finding a top level prospect. These expenses represent the Company’s portion of Acquisition Expenses incurred in connection with the evaluation, discovery, investigation, development and acquisition of the Series Asset including bloodstock fees, transportation costs related to transportation of the Asset, research fees, expert due diligence, interest, bank fees and similar costs and expenses incurred.
Asset Purchase Price: This is the cost to purchase the individual percentage of the horse being offered. Ex: If 25% of a $500,000 horse is offered, the total would be $125,000 divided by the total number of shares offered.
Working Capital Reserve: These funds cover all of the ongoing costs associated with, managing, training and caring for the horse for 24 months.
Race Training Expenses: Working capital reserves include 24 months of projected training expenses, 6 months longer than the industry average. Training expenses include things like fees to board and train the horse, regular blacksmith work, and routine veterinary care. Should the horse be sold or retired before the end of 24 months, any unused funds will be returned to investors. Commonwealth never has access to these funds.
Additional Reserves: This additional capital is set aside for unforeseen expenses like race entry fees, hauling, specialized healthcare, and more. Should the horse be sold or retired before the end of 24 months, any unused funds will be returned to investors. Commonwealth never has access to these funds.
Racing Insurance: Represents the Company’s portion of premiums for racing and medical insurance coverage for 24 months based on the Thoroughbred’s estimated value.
Racehorse Management Fees: Represents certain fees payable to the Manager for managing the Company’s Racehorse Asset and for content and stable management over the next two years.
Investor Relations: These are the fees the company pays to provide the shareholder experience including ongoing updates, event production, content production and all services related to the shareholders of the asset for 24 months.
Aftercare Donation: These funds help to ensure all thoroughbreds have a safe landing place at the end of their career no matter how successful they are as a racehorse. This helps fuel our commitment to the welfare of all equine athletes. This is typically 2% of an offering.
Offering Expenses: Represent the Company’s Offering Expenses including the following fees, costs and expenses incurred in the connection with executing the Initial Offering, consisting of legal, accounting, escrow and compliance costs related to this offering.
Fundraise Fee: means the cash compensation paid to the Intermediary at the closing of the Offering, and represents ten percent (10%) of the (i) value of the Thoroughbred Asset (as defined below), and (ii) the amount of Offering proceeds allocated for working capital. The Intermediary will also receive compensation in the form of Securities equal to two percent (2%) of the total number of the Securities sold in the Offering. This figure excludes fees to the Company’s advisors, such as attorneys and accountants.