Dear Investors, Thank you for your interest in increasing your returns and supporting our business.
To the offer yielding 11% p.a. by refinancing with maturity 20.4. 2027 we decided for the following reasons.
Due to the growth of the canned food market in both petfood and non-perishable food (and the resulting lack of capacity of European manufacturers), we have significant demand for Private Label production, specifically contracts and negotiated contracts for 5+ years of expected cooperation. In addition, we are also launching B2C sales and brand building of our own brand LOUIE ( www.louie.pet ), where we achieve margins of up to 80%.
Since you have supported our business, we have started or significantly deepened our collaboration with the following brands:
- Plaček Pet Products s.r.o. – brand ONTARIO (Owner of the Superzoo network and others)
- Fressnapf Tiernahrung (Maxizoo net)
- Sana Vesta – Netherlands
- LIMEDIKA Veterinary and Pet Distributor – Baltic States
- Yoggies
- And many others.
We do business in our own premises in Žabčice (production) and we continue to use the hall in Kuřim as a distribution warehouse. In addition, we have obtained a license to produce canned food for humans as well.
We have also obtained ISO 9001 and 22000 certificates.
After the Interzoo fair in May, we have 36 more Private Label projects in the range of 2-15 items with minimum orders of 10,000 pieces per type. I.e. demanding up to 3,000,000 cans per month, which is about 125,000 cans per day, plus private label and extremely profitable B2C. All this already to the current sales…
All of this led us to the creation of the holding ALEMAR Food Group s.r.o., whose sole executive and owner is still me (Martin Košt’ál – founder), who is the owner of all our companies, and to a further financial plan for expansion in 4 stages. These can of course be changed and adjusted as needed, but there is a clear need for further growth in automation, capacity, logistics and marketing of the brand itself.
We have already received offers for entry or acquisitions from BHS Fund, Voff – Swedish company, CBDO & Co. (UK) and others. But in the end we decided not to lose our entrepreneurial freedom and go our own way.
We are already gradually setting aside money for the redemption of your bonds on 20.10. 2024.
But the fact is that we can’t even pay them out gradually (we have to either pay the issue in full or nothing) and the money that we will now, e.g. 1 million a month to set aside to pay off your bonds, we could have otherwise bought more machinery, equipment or otherwise supported our goals listed above.
This would then lead to an acceleration of profit generation and we could postpone e.g. 5 million a month.
At our margin of 55-80%, “not spinning” this money is a rather expensive affair, so we have decided to offer you a buyout of these bonds by our company ALEMAR Food Group s.r.o., which would pay you for your bonds with its bonds maturing on 20.4. 2027 with a yield of 11% p.a. paid quarterly, according to the prospectus approved by the CNB.
We do not expect any further dramatic growth needs in 2027, as the attached table shows that capacity will be sufficient for further growth.
If you are interested in our offer, please fill in the form form and we will send you the bond repurchase agreements to your email.
Then we will ask you to send the bonds and one original contract with your signature to Martypet s.r.o., Průmyslová 479, 664 63 Žabčice and after receiving them we will send you new bonds.
Thank you. Thank you.
Sincerely,
Ing. Martin Ioan Košt’ál
