EXECUTIVE SUMMARY
Jade Point Capital Partners LTD (after this "JPC") is a Maryland C-Corporation located at 201 South Union Street. Ste. 110, Alexandria, Virginia 22314, and is poised for rapid growth as a holding and private lending company. JPC is seeking to fill the traditional banking industry with alternative lending opportunities for the underserved and minority communities. JPC is in the process of acquiring revenue-generating small to mid-sized companies in the transportation industry and building a portfolio of residential and commercial income-producing real estate holdings. Also, JPC has closed an opportunity with a private equity group to provide private money to our real estate investor and business financing clients.
Mission Statement. JPC's mission is to provide financing and investment capital to the underserved and minority communities which have lacked effective and sustaining funding and capital investment traditionally. By providing direct investment, financing, and capital investment opportunities for our clients and investors, we will be able to offer business incubations, real estate revitalization, and mentorship opportunities to guarantee prosperous and vibrant communities for generations to come.
Business Description. JPC's corporate structure is a C-Corporation in the State of Maryland. The current ownership lies amongst the board of directors and executive management. Later in this document, you will find the ownership percentages.
JPC is a holding company and private lending corporation. Its concept is to create self-sustaining capital structures that would allow it to generate revenues through its holdings and lending activities. And it will provide investment-grade securities and opportunities for our investors. We have structured JPC into three divisions: (1) Transportation Division, (2) Real Estate Holdings Division, and (3) Direct Lending and Capital Advisory Services Division.
Management. JPC's management has many years of experience in their respective areas of responsibilities and expertise. Robert Queen, Jr is the founder, CEO, and Chairman of the Board. He is the leader of this dynamic executive management team, all who have known each other worked together on many projects over the years.
CEO/Chairman
Robert Queen Jr. has more than 21 years of experience in management consulting, corporate finance, and financial accounting. His past employers include significant corporations like Accenture (formerly Andersen Consulting), Service Corporation International, and Robert Half International. In finding his purpose, he learned how to create an opportunity that all people would have access to financing and funding that would allow their communities to become self-sustaining and generationally prosperous. After years of trial and error, he founded JPC to fulfill that very purpose. As a man of faith, Mr. Queen's convictions are for "such a time as this." He has an MBA in Finance from Walden School of Business, a BBA in Accounting from the University of St. Thomas – Houston, TX, and a B.S. in Legal Studies from Keiser University-West Palm Beach, FL.
COO/Board of Director
Bryan Savage has more than 20+ years of management experience; he was a branch manager for two Fortune 500 companies. As a seasoned leader with the ability to motivate others, he is skilled in sales, organizational leadership, business planning, customer relationship management, training, and team building. Mr. Savage possesses outstanding interpersonal skills demonstrated through working successfully with people from diverse backgrounds. He earned a B.A. in Sociology, from Union College, Schenectady, NY
Sr. V.P. of Media & Marketing/Board of Director
Mr. Worthy is a 23-year veteran in LegalShield. He has served as an Area Coordinator, worked as a Regional Manager for 20 of his 23 years with the company. His colleagues recognize him with the "Golden App" Production award for protecting more than 1000 families personally. He is a certified Bronze Executive Director with Legalshield. Also, he has successfully worked in both the Networking and B2B divisions of the same corporate entity. He attended Penn State University and is a member of Omega Psi Phi Fraternity.
Sr. V.P. of Training & Community Liaison
Faheem Hammett has more than 20 years of experience in teaching, coaching, and mentoring. Mr. Hammett has worked with inner-city youth in Baltimore City and Washington DC in various capacities. Mr. Hammett is deeply passionate about serving and helping people succeed. His love for his family and passion for others allows him to live by his motto of "I am the Captain of my family's financial destination, and I am the light in someone else's darkness." He received his bachelor's degree in Physical Education and Health from the University of Maryland (E.S.)
Sr. V.P. of Mergers & Acquisitions
Kenise Hammett has been in the business administration and accounting industry for more than 14 years. Mrs. Hammett has an extensive background in accounting, business acquisitions, funds allocation, and financial management. Her resume includes working for large and small companies but most notably for a publicly-traded company where she gained most of her direct experience in mergers and acquisitions. She graduated with a degree in Human Ecology from the University of Maryland (E.S.) and continues to stay current with technology and trends within her area of expertise.
CFO/Controller
Scott Scarano, EA (Padgett Business Services, Raleigh-Durham, NC) is our outsourced finance and accounting department. Scott's team consists of several Enrolled Agents (EA) and Certified Public Accountants (CPA) that will manage the day to day accounting and payroll needs, tax and financial reporting for the
The Market.
Our initial transportation acquisitions are in the Maryland, Virginia, and the Pennsylvania areas. These companies have an ongoing contract with a Fortune 500 company delivery service with a profitable history. The acquisitions of transportation companies in the pickup and delivery and line haul niche provide the stable revenue base it requires to fulfill its objective and concept. Our management team, our processes of operational improvement and primary objective to establish productive and profitable business units, will be streamlined and sustainable. Therefore, JPC will reinvest the profits to build the portfolio of revenue businesses and real estate. The service revenue generated through lending activities and capital advisory fees will provide the company operating capital. These revenues will undoubtedly increase as JPC's reputation grows.
Our Competitive Advantage.
Our competition will be in the transportation (P&D/Line Haul) industry, business, and real estate lending space. Our competitive advantage is that we have a diversified revenue portfolio of transportation companies, residential and commercial real estate leasing, and direct access to capital through our lending and capital advisory division. With a conservative executive management team, we will establish a corporate culture of efficient asset allocation for increased returns with effective risk management.
Financial Projections.
The financial projections include the acquisitions of transportation companies first. The real estate purchases will vary in the DMV, Georgia, and Texas and will follow after we close on the first three P&D businesses. Then, we can acquire real estate that will focus on residential housing before moving into commercial properties. The lending and capital advisory services will consist of broker fees, advisory retainers, and ongoing management fees. All the revenue sources from the divisions mentioned that are operational are below.
1. Est. Annual Revenues (2020): $3MM
2. Est. Operational Expenses: $2.3MM
3. Est. M&A Costs: $150K
4. EBITDA: $550K
Financial Request
JPC is seeking $1MM in this round of funding. We are offering 40,000 shares of Preferred Stock with a 6% annual dividend. The Preferred Stock price for the first round of funding is $25 per share. We expect to pay the initial dividend in the 4th Quarter of 2022. All standard protections for offering Preferred Stock are in the Private Placement Memorandum (PPM). The PPM will be available by June 22, 2020, for interested parties that are Accredited Investors, High Net Worth Individuals, and Institutional Investors.
Ownership
Robert Queen Jr. has 100% ownership of all authorized shares of JPC. The executive management team will receive 2% ownership, each to be fully vested by 2022. The total amount of stock available for two rounds of funding is 100,000 shares. A percentage of shares are set aside for the company to go public at a later date.
Use of Proceeds.
Our startup costs are below:
Salaries $ 280,000
Benefits (Health/Dental) $ 13,000
Office Rent $ 24,000
Legal $ 25,000
Accounting $ 12,000
Marketing & Media $ 21,000
Licensed & Permits $ 5,000
Outsourced Admin. Services $ 15,000
Insurance (Business) $ 13,000
Broker Fees $ 40,000
Acquisition Cost/Down Pmt. $ 290,000
Capital Reserves (Show Money) $ 250,000
Website Design & Hosting $ 12,000
$ 1,000,000
Assumptions
The salaries for each executive management team member is $140K annually. Each executive officer will receive $50K for the first year, with the remaining $80K being set aside as deferred compensation. Similar arrangements apply for our executive administrative assistant. However, her salary is $70K per year, and she will receive $30K, and the remaining amount is deferred compensation.
Benefits include health and dental coverage.
Our office space is at the ALX Community location. The office support is shared and provides on-demand space for our meetings with clients, partners, and investors. As our company scales, we will acquire a park or building.
JPC legal counsel is on retainer. She will provide all legal services and function as our legal liaison when specialty services are required.
Our accounting department is outsourced to Padgett Business Services management by Scott Scarano and his team. He has prepared the accounting systems and processes that will allow us to operate efficiently and seamlessly with internal systems.
Infogroup is our marketing and media specialist. They will manage our digital and direct mail marketing campaigns.
Our license and permits will include but are not limited to, the acquisitions of the transportation businesses.
We will outsource our administrative support when we need to support our executive administrative assistant to meet client demand. This measure is for when we have a changing market for our lending services. We will work with Scion Staffing to meet any administrative needs that should exceed our current capacity.
We are still searching for error & omissions and general liability insurance. The cost above is only an estimate.
We include the brokers' fees because they represent most of the transportation companies.
We are confident that we will negotiate a lower down payment to acquire the targeted delivery companies and assume their current loan on the business. Therefore, we are optimistic about the amount of our down payment estimate for each company.
The capital reserves are a requirement for "Proof of Funds" when opening negotiations with the sellers.
Due to the nature of our industry and business, we require a professional web presence. We chose Smart sites to build and host our website. They will also work with Infogroup and our team to craft, manage, and consult on our marketing campaigns. Also, they will handle all the Key Performance Indicators (KPI) and marketing metrics resulting from our marketing and advertising campaigns.
We look forward to all interest investor inquiries. All legal paperwork and offering documents will be available for review by June 22, 2020. On June 30, we will officially open our capital raise.