Crowd-sourced funding offer document - FUNDSITION · Crowd-sourced funding offer document 16 July...
Transcript of Crowd-sourced funding offer document - FUNDSITION · Crowd-sourced funding offer document 16 July...
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Crowd-sourcedfundingofferdocument
16July2019
Offeroffully-paidordinarysharesinLightYearGroupPtyLtdat$1.50persharetoraiseamaximumof$450,000
Thiscrowd-sourcedfunding(CSF)offerdocumentrelatestotheOfferoffully-paidordinarysharesinLightYearGroupPtyLtd.ThisOfferismadeundertheCSFregimeinPart6D.3AoftheCorporationsAct2001(CorporationsAct).
IssuerLightYearGroupPtyLtdACN631302817
IntermediarySMECrowdFunderPtyLtdAFSL512643
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Contents
RiskWarning 4
LetterfromtheChairman 5
CompanyDetails 7
DescriptionoftheBusiness 8
BusinessModel 13
CapitalStructure 21
DirectorsandSeniorManagers 23
Risks 26
FinancialInformation 30
InformationabouttheOffer 34
InformationaboutInvestorRights 39
Glossary 43
Annexure 44
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Section1:
RiskWarning
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Crowd-sourcedfundingisrisky.Issuersusingthisfacilityincludeneworrapidlygrowingventures.Investmentinthesetypesofventuresisspeculativeandcarrieshighrisks.
Youmayloseyourentireinvestment,andyoushouldbeinapositiontobearthisriskwithoutunduehardship.
Evenifthecompanyissuccessful,thevalueofyourinvestmentandanyreturnontheinvestmentcouldbereducedifthecompanyissuesmoreshares.
Yourinvestmentisunlikelytobeliquid.Thismeansyouareunlikelytobeabletosellyoursharesquicklyoratallifyouneedthemoneyordecidethatthisinvestmentisnotrightforyou.
Eventhoughyouhaveremediesformisleadingstatementsintheofferdocumentormisconductbythecompany,youmayhavedifficultyrecoveringyourmoney.
Therearerulesforhandlingyourmoney.However,ifyourmoneyishandledinappropriatelyorthepersonoperatingtheplatformonwhichthisofferispublishedbecomesinsolvent,youmayhavedifficultyrecoveringyourmoney.
Askquestions,readallinformationgivencarefully,andseekindependentfinancialadvicebeforecommittingyourselftoanyinvestment.
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Letter from the Chairman – Grant Abbott IwouldliketotakethisopportunitytoinviteyoutoreviewtheattachedOfferDocumentofLightyearGroupPtyLtd(“LY”)anditssubsidiarybusinesses,LightYearDocs,ILoveSMSFandtheSMSFTrainingGroup.ThisOfferDocumentistwo-fold:Firstly,toproviderelevantinformationforthepurposeofinvestinginthecompany,andsecondlymakingyouawareofthedevelopmentandrolloutofLYsportfolioofleadingproductsandservices,thebrand,themarketingandthebusinessstrategy.Asaninvestoranduser,likemanyothersyourinvestmentmaygrowthemoreinvestor/userscomeonboardasaresultofthisuniqueoffer.LYhastheteam,thecommercialfootprintandarangeofproductsandservicestogrowandscalequicklyandprofitably.TheILoveSMSFbrandandoperationhasbeeninexistencefortwoyearsandhassuccessfullyreleasedseveraleventsandCPDprogramsintothemarket.TheSMSFTrainingGroupwasestablishedforthepurposeofenablingaccountants,financialplannersandSMSFadviserstomeettheireducationrequirementsunderFASEA.ItsflagshipRG146SMSFSpecialistAdviserProgramhashadmorethan120enrolments.LY,itsteamandbrandsthriveonchangeandprovidingtools,educationandresourcestoenablethefinancialservicescommunitytoadaptandprofitfromchange.WithCPDnowlawunderFASEAILSwithitsaffordablespecialistSMSFCPDsolutionsarereadytotacklethelong-termspecialistupskillingofthefinancialservicesindustry.
ThecorefinancialdriverforLYistheLightYearDocsdivisionwheremorethan$1millionhasbeeninvestedtobringthemostadvanceddocumentandstrategyautomationsystemtoAustralia.Thisisascalable,intuitiveandautomatedprecedentsystemusedbymajorlawfirmsintheUSandUKfortheirdocumentbuildingaswellasbymultinationalcompaniestocomplete100,000financialcontractsanddocumentsdaily.Thesystemisbuiltforlargescaleandishighlyadaptivetomulti-documentstrategiesandprocesses.LYDocswasreleasedinMay2019throughasoftlaunchtoourclosestsupportersandprovidesawideandgrowingrangeoflegal,taxandSMSFdocumentsplusasuiteofspecialiststrategicdocumentsfocusedonLeadingMemberplanningtoretainwealthwithinabloodlinefamilyunit—arelativelynewandfreshoptiontargetingthe$300BnofSMSFmoniesdestinedtobethesubjectofestatetransitioninthenext20years.Inaddition,theintuitivesystemprovidesfinancialplannersandlicensedaccountantswithalegalsystemenablingthemtocompleteWills,SMSFestateplanning,healthdirectives,jointventures,syndicatedunittrustsandmuchmoreallwithlegalsignofffromourassociatedlegalfirmTGALegalPtyLtd,therebyprovidingaprofitablelayerofadvisingfees.
ThesearestilltheearlydaysforLY,butthefutureisexciting.LYiscurrentlyseekingbetween$300,000to$450,000ofcapitalforbetween9%to13%ofthecompany’sordinaryshareholding.TheuseoftheFundsistoprovidefurtherdevelopmentofLYDocs,increasemarketsharethroughamarketingandsalescampaignAustraliawide,boostcustomersupportandrolloutadditionalproductsincludingspecialisedSMSFparaplanningandinvestigatingtherolloutoftheplatformintheUSandUK.Theminimuminvestmentis$3,000withamaximum$10,000unlessyoucanclaimsophisticatedinvestorstatus.Thisoffercloseson28thAugust2019.Let’sworktogethertomakeLYaleadingnameinthefinancialservicesindustryandbeyond.
Kindregards
GrantAbbottChairman
StayStrategic
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Section2:
InformationabouttheCompany
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2.1 CompanydetailsThisofferofsharesismadebyLightYearGroupPtyLtdACN631302817(theCompany).TheCompanywasincorporatedon30January2019.
Companyname LightYearGroupPtyLtd
ACN 631302817
Offertype Crowd-sourcedfunding
Offerdate 16July2019
Offerdetails Offeroffully-paidordinarysharesinLightYearGroupPtyLtdat$1.50persharetoraiseamaximumof$450,000oraminimumof$300,000.
Registeredoffice C/-ILoveAccountingPtyLtd5WyanganValleyWayMudgeerabaQLD4213
Principleplaceofbusiness Level5ToowongTower9SherwoodRoadToowongQLD4066
Relatedcompanies LightYearDocsPtyLtdandILoveSMSFPtyLtdarerelatedpartiesofLightYearGroupPtyLtdinaccordancewithsection738G(3)oftheCorporationsAct2001.
SMSFAngelsPtyLtdATFILoveSMSFTrustholds74%ofthesharesinLightYearGroupPtyLtdandisthereforearelatedpartyinaccordancewithsection738G(3)oftheCorporationsAct2001.
Intermediary SMECrowdFunderPtyLtdACN624517719,AFSL512643
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2.2 Descriptionofthebusiness2.2.1 Whoarewe?TheLightYearGroupconsistsofthreedifferentbusinessdivisions:
BusinessDivision Description
LYDocsandourstrategyautomationtechnologyisthemainrevenuedriveroftheGroupwithmorethan80%ofincomeexpectedfromthisdivisionalone.
LYDocsdelivershigh-qualityyetlow-pricedlegal,taxandbusinessdocumentationforaccountants,financialplanners,businessesandotheradvisors.Additionalunlimiteddocumentpackagesareavailableforaccountingfirmsseekingtocontrolthelegal,taxandSMSFdocumentandstrategyprocess.
LYDocsisthefirstofitskindtodevelopcomplexbutsimpletouseStrategyAutomation.ThisautomationwillprovidetoLYDocsusers,theabilitytoproducemultipledocumentpackageslinkedtomarketleadingstrategiesattheclickofabutton.
Theplatformoperates24/7,runsefficientlyandcanbescaledtocaterforsubstantialgrowth.Itcanhandlemorethan100,000documentsandstrategiesperdayifrequired.
ILoveSMSFisoursuccessfulSMSFcontinuingprofessionaldevelopment(“CPD”)offeringforadvisersandaccountants.CPDisnowthelawandlegallyrequiredundertheFinancialAdviserStandardsandEthicalAuthoritywithanylicensedadviserrequiredtocomplete40hoursoftrainingperannum.
ILoveSMSFisbasedonamonthlymembershipmodelofferedperuserorwrappedupinafirmwideoffering.Plus,anallinone,unlimiteddocumentsandstrategiesplusfirmwideCPDisavailableforanyshareholderatthelowfeeof$695permonth.
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TheSMSFTrainingGroupwasestablishedforthepurposeofenablingaccountants,financialplannersandSMSFadviserstomeettheireducationrequirementsunderFASEA.CurrentlyitsflagshipSMSFSpecialistAdviserProgramhashadmorethan120enrolments.
TheSMSFTrainingGroupdeliversthiseducationviaitsonlineLearningManagementSystem.
ThemajorityshareholderoftheGroupisGrantAbbott,anSMSFindustryveteranwhohasgivenmorethan2,000presentations,writtenfivebooksonSMSFsandtrainedmorethan1,000accountantsandfinancialplannerstobecomeSMSFspecialistadvisers.Grant’sregularindustrywebinarsgenerallyhaveinexcessof300participantsandshowcasetheLightYearGroupproductsandservices.
AlthoughtheLightYearGroupstartedin2019,itssubsidiaryILoveSMSFcommencedoperationsin2016intheSMSFtrainingfield.ButthisisnotanewenterpriseforGrantAbbottandisinfactthethirddocumentandtrainingplatformhehasbeeninstrumentalinbuilding,eachonemoretechnologicallyadvanced,leanerandmoreautomatedthantheonebefore.Thepriorbusinessespaidregulardividendstoshareholdersandhadasuccessfulexitstrategyforshareholdersthroughatradesale.
Withastrong,experiencedandleanleadershipteam,successfultrainingandcontentcreationplusarobustenterprisegradedocumentandstrategyautomationsystemstheLightYearGroupiswellplacedtomarketandgrowitsexistingbusinesslinesplusdevelopfurtherofferingsincludingspecialistSMSFStatementsofAdviceandparaplanningforadvisersseekingtheseservices.
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2.2.2 Whatisourbusinessstrategy?OurstrategyistonotonlybringtomarketbutbethenumberoneproviderofStrategy-As-A-Service(“SAAS”)andultimatelythe“goto”destinationforbundledtraining,continuingprofessionaldevelopment,specialistSMSFconsultingadvice,documentsandbusinesspartneringsolutionsthatareallunderpinnedbyourstrategies.Ouraimistobethelowestcost,yethighestqualityon-linedocumentandstrategyproductionplatforminAustralia.
StrategyasaService
UnderpinningourentiresolutionisStrategy.
GrantAbbottandthetechnicalteamcreatethestrategies,theydevelopthedocumentsinconjunctionwithTGALegalwhoalsolegallysignoffonthese,ourplatformteamengineerthestrategyontothesystem,ILoveSMSFtrainsonthestrategyandhowtouseLightYearDocstocreate,completeand
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executethestrategyandtheadviserchargestheirclientforaquick,compliantandeffectivestrategy.
Welivebyourcatchphrase“StayStrategic”.
Education&ContinuingProfessionalDevelopment
Ourstrategyistodelivertoadvisorstheireducation,training,continuingprofessionaldevelopmentrequirementsatthelowestpossibleprices.Wecandothisthroughourtrainingplatformandtheutilisationofwebinarsandothertools.
DocumentPlatform
Ourstrategyistoprovidetoourusersadocumentandstrategyassemblyenginethatisquick,compliant,andeasytouse.TheLightYearDocsplatformcutsupto90%ofthecompletiontimeandprofessionalcoststoproduceandcompleteasuccessfulsetofstrategicdocuments.
Wehaveadocumentedcontinualreviewprocessinplacetoensureourdocumentscontinuetoremainfresh,relevantandcompliant.
Ourdocumentsextendtoawiderangeofapplicationsforbusiness,tax,accountingandsuperannuationstructures,strategiesandadvice.
Ourstrategyinreleasingnewdocumentstomarket,istoprovidetrainingaroundnotonlythedocumentsbutthestrategiesthatthesedocumentscanbeusedfor.
Strategy&ProcessAutomation
OurstrategywithourLightYearDocsplatformistoprovideacompletesetofdocumentsforadvisorsthatmatchtodifferentstrategies.Anautomatedprocessthattakesouttheguessworkbehindselectingtherightdocuments,processandinformationforadvisorstoprovidetotheirclients.
Ourfuturedevelopmentsshouldseesignificantadditionstothisareaincludingparaplanning,andprocessandworkflowsolutions.
BusinessPartnering
Ourstrategyistopartnerandworkwithouradvisorstoenablethemtoimprovetheiradvisorybusinessesandmoreimportantlyworkonthevalue-addsolutionsthattheycanprovidetotheirclients.Wewanttohelpthemtakeawaytheircomplianceandadministrationheadachesthroughoutsourceandtechnologicalsolutions.
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EfficiencyImprovements&LowerCosts
OurstrategyistoprovidethehighestqualityandbestsolutionstoouradvisorsBUTmostimportantlydosoatthelowestcost.Formostthiswouldbeadifficultandalmostcompetingtask,butwehavebeenabletosucceedthroughresearch,developmentandyearsofexperienceandknowledgetodeveloptherightplatformsinadditiontoensuringwehavetherightteaminplace.Ourplatformshaveconsiderableabilitytocontinuetoscaleanddeliverthankstoourtechnologyandlowfixedcosts.
ToDisrupt&Differentiate
LightYearGroup’sstrategytodisruptanddifferentiatefromitscompetitionisthrough:
ü Strategy-As-A-Service–wearetheonlyonefocusedondeliveringthisasanoutcome;ü QualityofitsDocumentSuite;ü Technicalknowledgeandexperienceofitsteam;ü Continualreviewprocess–documentsandstrategiesshouldremainfreshand
compliantthroughourdocumentedprocess;ü Abilitytocreateanddelivertomarket–wecandevelop,review,obtainlegalsign-off,
andhavedocumentsupwithinhours,notweeksandmonthslikeourcompetition;ü Trainingandeducationsolutions–deliveredasalow-costmodel;andü Communityofactiveusers–weencourageouradvisorstoshareanydocumentsthey
wishtomakeavailableortobeautomated.Throughthisourwholenetworkcanengage,learnandgrow.
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2.3 TheLightYearGroupbusinessmodel
TheLightYearGroupbusinessmodelembracesaplatform(anendtoendsolution)creatingandtrainingonstrategies,withmarketingandclientfacingtoolstoenableaccountants,financialplannersandSMSFadviserstobuildanddevelopclienttrustingstrategiestobenefittheirpersonalandfamilyfinancialposition.
ThankstotechnologyandlowfixedcoststheLightYearGroupisabletoprovidethebest,moststrategicandfreshestdocumentation,strategies,training,continuingprofessionaldevelopmentandspecialistSMSFadvisercoursesatthelowestpossibleprices.TheLightYearGroup’sgoalistomaximisethenumberofprofessionalsandbusinessesthatuseourplatformandprovidetakeupofnewproductsandserviceslaunchedthroughtheLightYearGrouporoneofitsjointventurepartners.
Ourspecialtyisthe$750billionSMSFindustrywhereadvicefeesareexpectedtogrowto$4.8billionperannumby2028.Itisherewherewedeliverstrategicknowledgeanddocumentationtoawiderangeofaccounting,financialplanningandSMSFadvisersonasubscriptionbasis.ApartfromSMSFs,ourbusinessmodelistocontinuetobe,thelowestcostandhighestqualityon-linedocumentandstrategyproductionplatforminAustralia.WeknowaccountantsarecostconsciousandLYwantstodeliveronthatforAustralia’stensofthousandsofaccountingfirms,fromsmallone-manoperationstolargemulti-partnerfirms.
Therecentlylaunched(May2019)LightYearDocsdocumentandstrategyassemblyenginehasexperiencedastrongtakeup.Itisdestinedtoreshapetheaccounting,financialplanning,SMSFadvice,mortgagebrokingandlegalindustrieswithitsquick,compliantandeasytouseplatformthatcutsupto90%ofthecompletiontimeandprofessionalcoststoproduceandcompleteasuccessfulsetofstrategicdocuments.TheLightYearDocsplatformisnotsolelyreliantonSMSFsbutextendstoawiderangeofapplicationsforbusiness,tax,accountingandsuperannuationstructures,strategiesandadvice.Thisincludes:
i) SMEagreementsincludingbuy-sells,employmentagreements,servicescontracts,debtcollectionnotices,shareholderagreements,licensingagreements,non-disclosureandconfidentialityagreementsplusemployeeshareplans;
ii) Accountingandtaxstructuresincludingcompanies,trustssuchasdiscretionary,unittrustsandfixedtrusts,partnershipandjointventureagreements,loanagreementsincludingDivision7Aloanagreementsandtrustdistributionminutes;
iii) SMSFstructuresandstrategiesincludingSMSFtrustdeeds,specialpurpose
corporatetrustees,limitedrecourseborrowingarrangements,superannuationunrelatedunittrustinvestmentvehicles,SMSFjointventures,account-basedpensionswithin-builtestateplanning,transitiontoretirementincomestreams,investmentstrategies,contributionsandotherreservesplusbindingdeathbenefitdirectionsandnominations;
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iv) EstatePlanningforbothSMSF,discretionarytrustandsoontobereleasedwillsandtestamentarytrusts.IncludedinthissuiteofdocumentsisourestateplanningandbloodlineprotectionsetofLeadingMemberdocumentsandstrategies;
v) SMSFandSMEstrategypackswhereasetofdocumentsandprocessesare
purposebuiltforaclientintoacompliantstrategy.Ourmostadvancedautomatedstrategy,aSMSFrelatedpartylimitedrecourselendingarrangementpackwhichconsistsofninedocumentsbundledtogetherandcanbecompletedinminutesnotweeksandcosts$450not$5,000+atalegalfirm;and
vi) FinancialandSMSFAdvisingstatementsofadvicecoveringmorethaneight
differentSMSFstrategies–tobereleasedinOctober2019.
OurcurrentdocumentlistingcanbefoundattheLightYearDocswebsitewithmoredocumentsandstrategiesaddedonaweeklybasis.ThesearelaunchedandshowcasedatourregularThursdaymorninglaunchandtrainingwebinar.
OurmostrecentlaunchwasforMemberPensionPaymentsandInvestmentStrategiesforthe2020incomeyear.
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2.3.1 Howwemakemoney
MonthlyMemberFees
Small Accounting / Financial Planning
Practice
• Scholar CPD Package$49 per month or $490 per annum. The Scholar package has more than 20+ CPD hours per annum. On the strategy and document front our “$99 Max” pricing per document provides even the smallest professional with great documents, strategies at low cost.
Larger Accounting / Financial Planning
Practice
• LY Strategist Package$795 per month. For an accounting, financial planning or SMSF advisory firm seeking to use the system we have our LY Strategist package which includes firm wide continuing professional development, technical and strategy support, unlimited access to all training and CPD materials plus unlimited access to the LightYear Docs platform of 40+ documents and strategies. Only ASIC fees for the establishment of a company are additional payments to the $795 per month all-inclusive offering.
For those firms not looking at training or CPD, our Unlimited Document and Strategy package is $595 per month or on a per document basis of $99 per document.
Multi Partner Practice
• LY offers a limited number of five year non-exclusive licences which provides an all-inclusive comprehensive package for the five year period including:ü Unlimited documents for five years;ü Firm wide specialist SMSF CPD;ü Technical and strategy support.
The cost of the Unlimited License package is $27,500 and ideally suited to a firm with 100 or more SMSF, regular trust and company set ups.
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PAYGFees
LightYearDocsalsooffersregistereduserstheopportunitytopurchasedocumentsasPay-As-You-Go(“PAYG)users.Thismaybenefitlowvolumeorone-offpurchaserssuchasdirectuserswantingtosetupacompanyorotherstructure.
AdditionalProducts&Services
LightYearGroupalsoreceivesrevenuefromothervalueaddproductsandservicesincluding:
• Bespokesolutionsforpartners• Customisedconsultancyagreements• Businesspartneringsolutionsincludingprovidingoutsourceservicessuchas
provisionandmanagementofoffshorepersonnel,whitelabelledSMSFadministration,accountingandaudit,paraplanning,etc.
2.3.2 Howweraisemoney2.3.2.1 FundstodateThefoundersofLightYearGrouphavebeenworkingonbringingtheirideastomarketforoverthreeyears.Theyhaveinvestedasignificantamountoftheirowntime,knowledge,skillsandpersonalwealthtogetitstartedandwhereitistoday.GrantAbbottcontributedover$500,000duringthisdevelopmentphase.
InFebruary2019,LightYearGroupraisedapproximately$450,000incapitalfrom16investors(foundationinvestors).WeusedthismoneytocontinuetodevelopourproductsandplatformsandcommencethemarketingandsoftlaunchofourLightYearDocsdocumentplatform.
2.3.2.2 Thecrowd-sourcedfundingcampaignOuraimistoraiseupto$450,000fromupto150investorstopartnerwithustoscaleandbuildthebusiness.
Asaninvestoryoucannominatetoinvestfrom$3,000,whichgivesyou2,000sharesforevery$3,000investmentinLightYearGroup.
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Wewouldlovetoseethisselloutinashortperiodoftime.Itisimportanttonotethatifwedonotraisetheminimum$300,000,thecrowd-sourcedfundingcampaignwillbedeemedunsuccessfulandyourinvestmentwillberefunded.Thisisthereasonwhyweaskforyourbankaccountdetailswhenyoupayforyourshares,toensurewecanrefundyouiftheaboveoutcomeoccurs.
2.3.3 InvestorBenefits
AsaninvestorinLightYearGroupyoubenefitfromourbusinessmodelthrough:
ü Futurereturnsoninvestmentthroughpotentialdividendspaidtoshareholders.ThisisnotguaranteedasitdependsonthefutureprofitabilityofthecompanyandtheboarddecidingtopayadividendalthoughitistheintentoftheBoardtopay50%ofnetprofitsasdividendsonaregularbasis
ü Possiblecapitalgrowthintheinvestmentsovertime;
ü RegularupdatesonourprogressinbecomingtheleadingproviderofstrategyasaservicetotheAustralianmarket;
ü Investordiscountsonthefollowingpackages:
IMPORTANTNOTEFORINVESTORS
ForanyinvestorinthisLightYearGroupCrowdfundingthatinvests$3,000ormoreweareabletooffer:
1. TheUnlimitedDocumentandStrategypackagefor$495permonthforthenexttwoyears
2. TheLYStrategistpackageoftrainingandunlimiteddocumentsfor$695permonthforthenexttwoyears
CompetitorAnalysis
Ourpricingissignificantlylowerthanourcompetitorseventhoughourdocuments,inoureyesatleast,arefresher,morestrategicandofferalotmoreoptionssuchastheLeadingMember™estateplanningprotectionsuiteofdocuments.ToseeacomparisonofLightYearDocsversusthetopon-linedocumentproviderspleasecontactusatsupport@lightyearadocs.com.auforacomparisonlistingtoseethepricingdifferences.
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2.3.4 Whatdoesourorganisationlooklike?CorporateStructure
LightYearGroupPtyLtd
ACN631302817ABN92631302817
ILoveSMSFPtyLtd
ACN615266174ABN25615266174
LightYearDocsPtyLtd
ACN622171368ABN15622171368
100%
100%
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OrganisationalStructure
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2.3.5 LegalordisciplinaryactionsagainsttheCompany
In2019ILoveSMSFwasservedwithatrademarkclaimthatitsuseontheterm“Bloodline”breachedthetrademarkofalegalfirmthathadtrademarkedthattermintermsoftheprovisionoflegalservicesanddocuments.ILoveSMSFvigorouslydefendedthisclaimasitprovidesonlyeducationservicesbutenteredintoanagreementnottousethetrademarkBloodlineasanidentifierofanylegaldocumentsproducedbyLightYearDocsPtyLtd.Otherthanthis,therearenoandhavenotbeenanylegalordisciplinaryactionsagainsttheLightYearGroupofcompaniesnorhasGrantAbbottbeenashareholderinacompanythathasfacedlegalordisciplinaryactions.
AsaconsequenceofthisactionLYhasensuredthatallitskeytermshavebeentrademarkedandcopyrighted.
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2.4 Capitalstructure2.4.1 IssuedcapitalLightYearGroupPtyLtdhas2,280,000ordinarysharesissuedasatthedateofthisofferdocumentandtherearenootherclassesofshares,oroptionsonissue.
IssuedcapitalofLightYearGroupPtyLtdPre-Offer
Shareholder Sharetype Shares Options
Directors&ExecutiveShareholders
GrantAbbott1–heldindirectlybyarelatedentity
Ordinary
1,687,000 -
MichaelJeffriess2–heldindirectlybyarelatedentity
Ordinary 50,000 -
AshleighJaremyn Ordinary 25,000 -
OtherShareholders
Othershareholders Ordinary 518,000 -
Total Ordinary 2,280,000 -1heldindirectlybyarelatedentity2heldindirectlybyarelatedentity
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IssuedcapitalofLightYearGroupPtyLtdfollowingtheOffer
Shares MinimumSubscription MaximumSubscription
ExistingShares 2,228,000(91%) 2,228,000(87%)
Offershares 200,000(9%) 300,000(13%)
Totalsharesonissue(undilutedbasis)
2,480,000(100%) 2,580,000(100%)
ShareholdingRights
AllissuedsharecapitalintheLightYearGroupareordinarysharesthathavefullvotingrightsanddividendparticipation.
DividendPolicy
ItistheCompany’sgoaltopaydividendsatleasttwiceayear.Theboardwilldetermineattheendofeachfinancialperiodanappropriatetotalamountofordinarydividendpershare.Thiswillconsidertheresultsforthefinancialyear,theboard’sviewofthelong-termgrowthprospectsofthebusinessandtheCompany’sobjectiveofmaintainingastrongbalancesheet.Theintentionisthatthebalancebetweentheinterimandfinaldividendisweightedtothefinaldividend.Theboardexpectstotalcashreturnstoshareholdersoverthelongertermtobeupto50%ofunderlyingearningsaftertax.
Theboardiscommittedtomaintaininganappropriatebalancebetweencashreturnstoshareholdersandinvestmentinthebusiness,withtheintentionofmaximisingshareholdervalue.
2.4.2 Debtfundingandothersourcesoffunding
DebtFinancing
TheCompanyhasnoloansoutstandingasatthedateofthisOfferDocument.
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2.5 Directorsandseniormanagers2.5.1 OurdirectorsandmanagementGrant–Director,CEOandChairman
GrantAbbottisthekeypresenterforLightYearGroup,incorporatingILoveSMSF,LightYearDocs&SMSFTrainingGroup.GranthasaMastersofLawspecialisingintaxandsuperannuationlaw.Hehasbeenattheforefrontofself-managedsuperfundthinkingsince1994,andmostrecentlyhasledanationwidemovementto“Grow,ProtectandPreserve”self-managedsuperandtherightsandentitlementsofself-fundedretireesacrossAustralia.
GrantAbbott’snotableachievementsintheSMSFindustryinclude:
• BuilderoftwoprevioussuccessfulSMSFtraining,compliance,adviceanddocumentationbusinesses;
• Developmentoftheleadingtrainingcourseforadvisersprovidingadviceinself-managedsuperfundswithmorethan1,000havingbecomeSMSFspecialistsandRG146compliant;
• WritingonsuperfundissuesonbehalfofmanymajorfinancialservicespublicationsincludingtheSMSFmagazine,MoneyManagementandbeingregularlyquotedintheAustralianFinancialReview;
• PublishingaspecialistSMSFjournalwithmorethan100editions;
• Writingthe–“GuidetoSelf-ManagedSuperFunds”forCCH.Thebooknowinitsthirdeditionhasbecomeabestsellerandprovidestechnicalandpracticaltipsonestablishing,buildingandmanagingaself-managedsuperfund.CCHhasalsopublishedthe“SMSFStrategyGuide”writtenbyGrant;
• MakingnumeroussubmissionstoTreasuryandGovernmentonvariousSMSFissues;
• ThefinancialfounderoftheSMSFAssociation;
• TheChairmanoftheformerSMSFMembersAssociation;
• Providingadvice,technicalsupportandproductdevelopmentforallthemajorbanks–bothinAustraliaandoverseasaswellasthemajorfinancialplanningandaccountingorganisations;
• Preparingself-managedsuperfundprofessionalstandardsincommitteein2004forthefinancialservicesindustry;
• Presentingonmorethan2,000occasionstomorethan100,000SMSFTrusteesandhaslaunchedhisfifthbook–“TheGuru’sGuidetoSMSFs”tocriticalacclaim.
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AshleighJaremyn-Director
Ashleighhasextensiveknowledgeinthefinancialservicesmarket,includingSelf-ManagedSuperannuationFunds(SMSF),InvestmentAdvice,WealthCreation,Retirement
Planning,PersonalandBusinessInsurances,andEstatePlanningstrategies.
AshleighhasahighlevelofSMSFtechnicalknowledgeandisExecutiveDirectorofLightYearGroup,incorporatingLightYearDocs,ILoveSMSFandSMSFTrainingGroup.Ashleighworksalongsidethebestofthebestintheindustryandisdedicatedtobuildingscalable,profitable,technicallysavvyanddigitallybasedbusinesses.
AshleighhaspreviouslyheldthepositionofHeadofTechnicalServicesatanon-alignedAFSLandvarioustechnicalandmanagementroleswithotherfinancialservicesbusinessesinSAandQLD.AshleighalsorunsherownparaplanningbusinessforhighlystrategicSMSFadvisersandiscurrentlyappointedasbothPartySecretaryandPartyExecutivefortheFederalpoliticalparty,TheSMSF&Self-FundedRetireesParty.
MichaelJeffriess-Director
MichaelischarteredaccountantwithabroadrangeofexperienceinrolessuchasChiefFinancialOfficer,OperationsandProjectsExecutive,ExecutiveDirector,and
asanInvestmentandComplianceCommitteememberacrossanumberofbothASXlistedandprivatelyheldGroupspredominantlywithinthefinancialservicesindustry.MichaelhadaprimaryinvolvementinthelistingofHFAHoldingsLimited,totheASXin2006,andhasbeenaleadonseveralothercapitalraisings.
Afterspendingmorethan17yearswithvariouscompaniesMichaelunderstandsthekeydriversforbusinesseshavingdevelopedandsuccessfullyimplementedstrategicplansanddirections,budgetingprocesses,operationalproceduresandactiverolesinproductdevelopment.Hehasheldresponsibilitiesandmanagementoverbusinessdivisionsincludingcorporateaccounting,operations,humanresources,IT,treasury,AFSL/ACLcomplianceandadministration.Michaelhasgreatsuccessintheoffshoringofvariousbusinessunitsthathaveproducedproductivityimprovementsaswellascostreductions.
MichaelholdsaBachelorofCommerce&JurisprudencefromBondUniversity,aDiplomaofFinancialServicesandisaGraduateMemberoftheInstituteofCompanyDirectors.
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TonyAnamourlis–Non-ExecutiveDirectorandLegalCounsel
TonyobtainedhisLawdegreefromtheUniversityofNewEnglandandtheCollegeofLawrespectivelyandalsoholdsaMasterofLaws.HewasadmittedtopracticeintheNewSouthWalesSupremeCourtandsubsequentlyadmittedinVictoria,Queensland,WesternAustraliaandintheNewZealandHighCourt.FollowingcompletionofhisArticleswithaVictorianLawfirm,heundertookvariousadvancedlecturingrolesintheareasofcommerciallawandtaxlawatbothundergraduateandpostgraduatelevel.Hehasalsopresentedatleadingdomesticandinternationaltaxconferences.
TonywasaformertaxlecturerinchargeandchiefexaminerofthetaxunitatMasterslevelatLatrobeUniversity.Inaddition,TonyisalsocurrentlyundertakingresearchonGlobalisingTaxInformationExchangeAgreementsbetweenTaxHavensandNon-TaxHavensandcontinuestoresearchandwriteincurrentcommercial,internationalanddomestictaxissues.
Aspartofhisresearch,complementinghistaxandcommercialpracticeforlast18years,Tony’smainfocusisoncommercialandtaxwhereheprovidesrealisticadvicewithcommercialoutcomes.Tony’sresearchandpracticeinterestsincludesbutnotlimitedtoareasofdomestictax,structuredbusinessadvice,TaxCompliance,TaxAffectAccounting,TransferPricing,CapitalGainsTax,Trusts,TaxAdministration,TaxLitigation,GeneralCommercialmatters,Reconstructions,CorporateInsolvencyandCorporateGovernance.
Priortoengaginginlegalpracticeandacademia,TonywasemployedasataxandcompliancemanagerandwasemployedtovariousCPAandCharteredAccountingfirms,dealingwithvariouscomplextaxandcomplianceissues
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2.5.2 LegalordisciplinaryactionsTheDirectorsandManagersofthebusinessesoftheLightYearGrouphavenolegalordisciplinaryactionsagainstthemnorprioractionsorpenaltiesleviedonthempersonally,includingbankruptcy.
Federalpoliceandbankruptcychecksareheldbythecompanyfordirectorsandmanagers.
2.6 RisksfacingthebusinessBusinessriskcanbedescribedastheeffecttoacompanyfromtheexposuretofactorsthatmaycauseuncertaintyonacompany’sobjectives.Thisriskoruncertaintymayresultinapositiveornegativeoutcome.
BelowisadescriptionofthemainrisksfacingLightYearGroupPtyLtd.Onlytherisksthatmaysignificantlyimpactthesuccessorfailureofthebusinesshavebeenincluded.
TypeofRisk DescriptionofRisk MitigationoftheRisk
PeopleRisk KeyPersons
LightYearGrouphasanumberofkeypeople,includingthefounders,thatareimportanttothesuccessofthebusiness.Ifthesekeypeoplearetoleave,theywouldneedtobereplacedinordertoachievethebusiness’sobjectives.
ConductRisk
Wheneverpeopleareintroducedintoabusiness,thereisthepotentialthatpeoplewillnotfollowallpoliciesandprocedures.
KeyPersons
ThefoundersareownersinLightYearGroupandhavespentover3yearsplanningandbuildingtheGroup.Theyarededicatedandalignedtothesuccess.GrantAbbottisthemajorshareholderandAshleighJaremynisunderanemploymentagreement.
TheBoardhasalsodiscussedandwillimplementappropriatesuccessionplansandriskmitigationstrategiesinrelationtokeypeople.Thefoundershavebroughtonotherkeypersonssuchas
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MichaelJeffriesstosupportinrelationtotechnical,productoperation,strategicandothermatters.
GrowingtheBusiness LightYearGrouphasonlybeeninoperationforashortperiodoftime.
LightYearGroupisnotyetprofitable.
ThesuccessoftheLightYearGroupwilldependonanumberoffactors,includingtheabilitytogrowtheactiveuserandmembershipbase,anditsabilitytocontinuetodeliverproductandtrainingsolutions.
GrantAbbotthassuccessfullybuiltandsoldsimilarbusinesses.LightYearGrouphasalsobuiltupastrongandverylargedatabaseofadvisorsforitspipeline.Thisdatabasehascomeaboutfromyearsofwork.Thereisriskinnotconvertingleads,however,thekeypersonswithinthebusinesshavecombinedexperienceof65plusyearsandbelievetheyshouldbesuccessful.
ThekeypersonshaveallbeeninvolvedwithbusinessingrowthstagesandhavethenecessaryexperiencetogrowLightYearGroup.
FundingRisk IfLightYearGroupdoesnotmeetthetargetsithassetitmayimpactitsabilitytoachievepositivecashflowsintheforecasttimeline.
TheminimumsubscriptionunderthiscrowdfundingofferwillassistLightYearGroupinmakingfurtherdevelopmentstoitsplatformandproductsuchasAPI’swithpartners.LightYearGroupisnotrelianthoweveronthisfunding.Itwouldsimplydelaytheseprojects.
LightYearGroupbelievesitshouldhititstargeted
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numberofactiveuserstodeliverpositivecashflowtotheGroupandinturnreturnstoitsshareholders.Theonlyimpactonthismaybetiming.
CompetitionRisk LightYearGrouphaslaunchedintoacompetitivemarket.Competitionriskoccurswheneverthereareotherbusinessestryingtogainorretainmarketshare.
IfLightYearGroupisunabletoacquireandgrowitsactiveuserandmembershipbase,itwillnotachieveitsstrategicbusinessobjectives.
LightYearGroupisaimingtodisruptthemarketthroughitsapproachusingstrategy,scale,efficiency,continualimprovement,complianceproductandservices.
TheLightYearGroupplatformenablesittodeliverandadaptitsproductinmostcasesinlessthanoneday.Thisissomethingthecompetitioncannotcurrentlydo.
Thecompetitionhasfocussedonbeingtechfactoriesratherthantheprovidingtheadvisorymarketwithproductsandservicestonotonlymeettheirclientsneedsbutbethebestqualitydeliveredinthemostefficientmannerusingtechnology.
LegalRisk LightYearGroupdeliverslegal,business,andcompliancedocumentsandtrainingtoitsusers.
Legalriskistheriskoffinancialorreputationallossthatcanresultfrom
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lackofawarenessormisunderstandingof,ambiguityin,orrecklessindifferenceto,thewaylawandregulationapplytoyourbusiness,itsrelationships,processes,productsandservices.
TechnologyRisk LightYearGrouprelievesheavilyontechnologytodeliveritsproductstomarket.
Technologyriskisanypotentialfortechnologyfailurestodisruptyourbusinesssuchasinformationsecurityincidentsorserviceoutages.
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2.7 FinancialinformationBelowarethefinancialstatementsforthe11monthsto31May2019.ThefinancialstatementsarepreparedonthebasisthattheGroupwasformedandconsolidatedeffective1July2018andtheyhavebeenpreparedinaccordancewiththeAustralianAccountingStandards.
BalanceSheetLightYearGroupPtyLtdanditscontrolledentitiesAsat31May2019
$
Assets
CurrentAssets CashandCashEquivalents 50,979Debtors 1,731GST 15,149OtherCurrentAssets 22,024
TotalCurrentAssets 89,883
Non-CurrentAssets LightYearDocsPlatform 213,951ILoveSMSFPlatform 16,996Plant&Equipment 5,472
TotalNon-CurrentAssets 236,419TotalAssets 326,302
Liabilities
CurrentLiabilities AccountsPayable 48,818PayrollLiablities 7,843EmployeeEntitlements 2,079OtherCurrentLiabilities 2,167
TotalCurrentLiabilities 60,907TotalLiabilities 60,907NetAssets 265,395
EquityCurrentYearEarnings (505,783)OrdinaryShares 771,178
TotalEquity 265,395
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ProfitandLossStatement
LightYearGroupPtyLtdanditscontrolledentitiesForthe11monthsended31May2019
$
ProfitandLoss
MembershipFees 56,111DocumentSales 9,040TrainingWorkshops 72,400Books&Sponsorship 5,003InterestIncome 180OtherRevenue 3,636
TotalRevenue 146,370
CostofSales 54,851GrossProfit 91,519
LessOperatingExpenses EmployeeCosts 153,193ProfessionalFees 209,659OccupancyCosts 20,675MarketingCosts 74,961TechnologyCosts 38,663AdministrationCosts 100,150
TotalOperatingExpenses 597,301
NetProfitor(Loss) (505,782)
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CashflowStatement
LightYearGroupPtyLtdanditscontrolledentitiesForthe11monthsended31May2019
$
CashSummary
Revenue 159,078Interest 180
TotalRevenue 159,258
Less:OperatingExpenses
TotalOperatingExpenses 620,858
OperatingSurplus/(Deficit) (461,600)
Less:AcquisitionofFixedAssets (236,419)Less:Loans (1,180)Plus:MovementsinEquity 750,178
TotalOperatingExpenses 597,301
NetCashMovement 50,979
Summary OpeningBalance -Plus:NetCashMovement 50,979ClosingBalance 50,979
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Forecasts
The summary profit and loss forecasts for LightYear Group and its controlled entities are asfollows:
$ $ $
FY2020 FY2021 FY2022Revenue 840,426 2,358,184 3,845,036OperatingExpenses (1,008,147) (1,074,561) (1,071,184)EBITDA (167,721) 1,283,623 2,773,852Profit/(Loss)AfterTax (85,000) 951,365 2,014,655
Thedirectorsbelieve that these forecastsareconservative,however theyshouldnotberelieduponindecidingwhethertoinvestintheGroup.Toachievetheaboveforecasts,oursalestargetswillneedtobeachieved.
Assumptions:
• IncreaseinLYDmembers:65%FY2020,40%FY2021,5%FY2022• OPEXincrease5%annually.Currentcoststructuremaintained• Nosignificantincreasetoheadcount
2.7.1 ValuationThedirectors(pre-crowd-sourcedfunding)valuedthebusinessat$3,450,000or$1.50pershare.Thishasbeenbasedonadiscountcashflowvaluation,capitalinvestmentsandcomparisontocompetitors.WebelievethereisupsideopportunityforinvestorsshouldtheGroupmeetitsconservativeforecasts.
$1.50
$3.36 $4.86
Market Value Upside Intrinsic Value $0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
Market Value vs Intrinsic Value
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Section3:
InformationabouttheOffer
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ThekeytermsandconditionsoftheOfferaresetoutinthetablebelow.
ToparticipateintheOffer,youmustsubmitacompletedapplicationformtogetherwiththeapplicationmoneyviatheIntermediary’splatform.TheIntermediary’swebsiteprovidesinstructionsonhowtoapplyforsharesundertheOffer.
TheIntermediarymustclosetheOfferearlyincertaincircumstances.Forexample,iftheMaximumSubscriptionisreached,theOffermustbeclosed.IftheMinimumSubscriptionisnotreachedortheOfferisclosedbutnotcompleted,youwillberefundedyourapplicationmoney.
3.1 TermsoftheOffer
Term Details
Shares Fullypaidordinaryshares
Price $1.50pershare
MinimuminvestmentAmountperinvestor $3,000
MinimumSubscription $300,000
MaximumSubscription $450,000
Openingdate 16July2019
Closingdate 29August2019
Rightsassociatedwithsharesarecoveredinthenextsection.
InvestorsmaywithdrawtheirapplicationduringtheCooling-offPeriod.Furtherinformationoninvestorcooling-offrightscanbefoundinSection4ofthisCSFofferdocument.
LightYearGroupisofferingupto300,000sharesatanissuepriceof$1.50persharetoraiseupto$450,000.
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Werecommendinvestorsseekindependentadvicebeforeapplyingincludingfinancialandtaxadvice.
TheOfferisnotunderwrittenandthereisnoguaranteethatthesefundswillberaised.
3.2 Rightsassociatedwiththeshares
AllsharesthathavebeenissuedpriortotheOfferareordinaryshares.AllsharestobeinaccordancewiththeOfferwillbeordinaryshares.
Immediatelyafterissue,theshareswillbefully-paidshares.Therewillbenoliabilityonthepartofshareholdersandtheshareswillrankequallywiththeotherordinarysharescurrentlyonissue.
TherightsassociatedwiththesharesaresetoutinLightYearGroup’sCompanyConstitution.Asummaryoftheserightsissetoutbelow.AcopyoftheconstitutionisattachedintheAnnexuretothisofferdocumentandisavailableontheintermediary’splatform.
Themainrightsattachedtoordinaryshareholdersincludes:
1. ToreceivenoticeofandtoattendanygeneralmeetingofLightYearGroup.2. TovoteatanygeneralmeetingofLightYearGroup,onthebasisofonevoteforeach
shareheld.3. Toreceivedividends(iftheyarepaid).4. Toparticipateequallyinthedistributionofthecapitalandsurplusassetsof
LightYearGroup(beinganyassetsleftoverafteralldebtshavebeenpaid)inawindinguporreductionofcapitalofLightYearGroup.
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3.3 UseoffundsThetablebelowsetsouttheintendeduseoffundsraisedunderthisOfferbasedontheminimumandmaximumsubscriptionamounts.
Table:UseofFunds
Intendeduse Year1:MinimumSubscription
Year1:MaximumSubscription
Marketing $75,000 $75,000
PlatformDevelopment $100,000 $175,000
IT $25,000 $25,000
Workingcapital $100,000 $125,000
Totalfunds $300,000 $450,000
ThecostsoftheOfferincludetheIntermediary’sfeesunderthehostingagreementbetweentheCompanyandtheIntermediary.Thesefeesare$Nil.
3.4 DetailsofpreviousCSFoffersThisistheLightYearGroup’sfirstcrowd-sourcedfundingoffer.
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3.5 EarlyStageInnovationCompany(ESIC)
LYexpectstomeettheobjective100-pointconditionsforbeinganESICwhichmaypotentiallyprovideinvestorswitha20%taxoffsetandnocapitalgainstaxondisposalsoftheissuedsharesuptoaperiodof10years,providedtheyareheldforaperiodofoneyear.
However,investorsshouldnotrelyonESICstatusasthishasnotyetbeenfinalisedanditcannotbeguaranteed.
3.6 InvestorRewardsForanyinvestorinthisLightYearGroupcrowdfundingthatinvests$3,000ormoreweoffer:
1. TheUnlimitedDocumentandStrategypackagefor$495permonthforthenexttwoyears–asavingof$100permonth.
2. TheSuperStrategistpackageoftrainingandunlimiteddocumentsfor$695permonthforthenexttwoyears–asavingof$100permonth.
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Section4:
InformationabouttheInvestorRights
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4.1 Cooling-offrightsYouhavetherighttowithdrawyourapplicationunderthisOfferandtoberepaidyourapplicationmoney.Ifyouwishtowithdrawyourapplicationforanyreason(includingifyouchangeyourmindaboutinvestingintheCompany),youmustdosowithinfivebusinessdaysofmakingyourapplication(theCooling-offPeriod).
YoumustwithdrawyourapplicationviatheIntermediary’splatformasfollows:
Afteryourwithdrawalhasbeenprocessed,theIntermediarywillrefundtheapplicationmoneytoyournominatedaccountassoonaspracticable.
4.2 CommunicationfacilityfortheOffer
YoucanaskquestionsabouttheOfferonthecommunicationfacilityavailableontheIntermediary’splatform.Youcanalsousethecommunicationfacilitytocommunicatewithotherinvestors,withtheCompanyandwiththeIntermediaryaboutthisOffer.
YouwillbeabletopostcommentsandquestionsabouttheOfferandseethepostsofotherinvestorsonthecommunicationfacility.TheCompanyand/ortheIntermediarywillalsobeabletorespondtoquestionsandcommentspostedbyinvestors.
Officers,employeesoragentsoftheCompany,andrelatedpartiesorassociatesoftheCompanyortheIntermediary,mayparticipateinthefacilityandmustclearlydisclosetheirrelationshiptotheCompanyand/orIntermediarywhenmakingpostsonthefacility.
AnycommentsmadeingoodfaithonthecommunicationfacilityarenotsubjecttotheadvertisingrestrictionsintheCorporationsAct.
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4.3 Proprietarycompanycorporategovernanceobligations
4.3.1 AnnualreportWhiletheCompanyiscurrentlyasmallproprietarycompanythatisnotrequiredtoprepareannualfinancialreportsanddirectors’reports,ifwesuccessfullycompletethisOffer,thenwewillberequiredtoprepareandlodgetheseannualreportswithASIC(withinfourmonthsofthefinancialyearend).TheCompanyhasa30Juneyearendanditsfinancialreportsmustbelodgedby31Octobereachyear.
Ourfinancialreportsarecurrentlynotrequiredtobeauditedasweareasmallproprietarycompany.ThismeansthattheCompany’sfinancialreportswillnotbesubjecttoauditoroversight,and,therefore,therewillbenoindependentassuranceoftheCompany’sfinancialstatements.However,thedirectorsarestillrequiredtoensurethatthefinancialstatementsgiveatrueandfairviewoftheCompany’sfinancialpositionandperformance,andthatthefinancialstatementscomplywiththeaccountingstandards.
Wemayberequiredtohaveourfinancialreportsauditedinthefutureifweraisemorethan$3millionfromCSFoffers(includingthiscurrentofferandanyfutureoffers),or,otherwise,becomealargeproprietarycompany.
4.3.2 DistributionofannualreportTheCompanyisnotrequiredtonotifyshareholdersinwritingoftheoptionstoreceiveoraccesstheannualreport.Shareholderswillnotbeabletoelecttoreceiveacopyoftheannualreportbywayofemailorpost.However,shareholderscanaccesstheannualreportontheCompany’swebsiteatthefollowingaddress[insertlinktowebsite](freeofcharge)orcanpurchasethereportfromASIC.
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4.3.3 AnnualreportTheCompanyisrequiredtoprepareannualfinancialreportsanddirectors’reportsattheendofeachfinancialyearandlodgethesewithASIC(withinfourmonthsofthefinancialyearend).TheCompanyhasa30Juneyearendanditsfinancialreportsmustbelodgedby31Octobereachyear.
ShareholderscanelecttoreceivetheCompany’sannualreportsinhardcopyorelectroniccopyfreeofcharge,orbyaccessingthemontheCompany’swebsite.
4.3.4 RelatedpartytransactionsIfwesuccessfullycompletethisOffer,therulesonrelatedpartytransactionsinChapter2EoftheCorporationsActwillapplytotheCompany(forsolongaswecontinuetohaveCSFshareholders).ThismeansthattheCompanyisrequiredtoobtainshareholderapprovalbeforegivingfinancialbenefitstorelatedpartiesofthecompany(e.g.directorsandtheirspouses,childrenorparents),subjecttocertainexceptions(suchasreasonableremunerationprovidedtodirectors).
4.3.5 TakeoversIfwesuccessfullycompletethisOfferandhavemorethan50shareholders,thetakeoverrulesintheCorporationsActwillonlyapplytotheCompanyinaverylimitedway.Ifsomeonewantstobuymorethan20%ofthevotingsharesintheCompany,theywillbeabletodosowithoutcomplyingwiththetakeoverrules.ThismeansthatapersonmaybeabletogetcontroloftheCompanywithoutmakingaformaltakeoverbidtoallshareholdersorwithoutseekingshareholderapproval.
Shareholderswillnothavethebenefitofthefullprotectionsunderthetakeoverrules,whichmeansyoumaynothavetherighttovoteonorparticipateinachangeofcontrolofthecompany.However,thegeneralprinciplesofensuringshareholdershavesufficientinformationandtimetoconsiderachangeofcontrol,andallhaveareasonableandequalopportunitytoparticipateinanybenefits,willapplytotheCompany.Inaddition,theTakeoversPanelhasjurisdictiontoheardisputesrelatingtocontroloftheCompany.
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Glossary
Company meansLightYearGroupPtyLtdACN631302817 Cooling-offPeriod meanstheperiodendingfivebusinessdaysafter
anapplicationismadeunderthisOffer,duringwhichaninvestorhasarighttowithdrawtheirapplicationandberepaidtheirapplicationmoney
CSF meanscrowd-sourcedfundingunderPart6D.3A
oftheCorporationsAct Intermediary meansSMECrowdFunderPtyLtdAFSL512643 MaximumSubscription meanstheamountspecifiedinthisCSFoffer
documentasthemaximumamountsoughttoberaisedbytheOffer
MinimumSubscription meanstheamountspecifiedinthisCSFoffer
documentastheminimumamountsoughttoberaisedbytheOffer
Offer meansanofferoffully-paidordinarysharesby
theCompanyunderthisCSFofferdocument
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Annexure
● CompanyConstitution