“Lasers are displacing conventional technologies because they can do the job faster, better, and more economically.” Coherent 2022 - Global Laser Leader
THE CHALLENGE: The initial industry for this technology continues to face high energy costs associated with roasting coffee and its product emissions (smoke & particulate matter), requiring additional energy expenditures. The National Coffee Association states, “FDA is clamping down on the U.S. coffee industry for their product emissions.”
THE SOLUTION: We provide a carbon-neutral approach that offers substantial energy cost savings resulting in higher profitability. The opportunity expands over four major industry sectors, coffee, cocoa, fruit & nuts, and agriculture, representing an overall CAGR of 6.2%. Our advanced laser technology roasts coffee, consuming 87.5% less energy and delivering zero emissions, thus providing a “Green and Clean” process.
THE OPPORTUNITY: Diversified holds a combined total of 128 global patents pending along with a U.S. Patent for their laser technology, positioned within market sectors totaling $750 trillion U.S. dollars. The initial industry for this technology continues to face high energy costs associated with roasting coffee and its product emissions, requiring additional energy expenditures of 1.5 million BTUs of energy.
COMPETITIVE ADVANTAGE: The patents and pending patents were developed by our law firm, Nixon Peabody, to eliminate competition, including “workaround attempts.” Our partnerships with the leading design firm Cambridge Design Partnership, located in the U.K., and our U.S. manufacturer of lasers, Optical Engines, position Diversified as a positive disrupter by providing a choice that can benefit all. Our team achieved scale on one-pound batches this year (2022)—investment to date of $1.5M+ in addition to $1.8M of sweat equity.
THE MODEL: Our sales platform, CoffeeTec.com, is owned and operated by Legacy Global Companies. CoffeeTec.com is the largest eCommerce platform in the world of coffee roasting equipment, both new and used. There are 70,000 unique visitors on a global basis per month. Our database of over 22,000 roasting operators has opted in for education, ongoing equipment needs, and technical support. Since Legacy Global owns both companies, thereby providing revenues and profits from two separate divisions within the same company to compound returns. Diversified Laser Technology (DLT) will manufacture and sell roasters for profit through CoffeeTec.com distribution.
THE TEAM: (This platform will not allow pictures or bios which we have.)
Scott K. Plail built a U.S.-based national coffee company with over 6500 retail grocery stores in the U.S. before executing the successful sales transaction to another corporation. (Management, Team Builder, Implementation). JR Fabretti has experience with laser tech from his time at the DOD, space, and aircraft industries. Mr. Fabretti has now become a coffee roasting expert. (Laser, Optical Intelligence, and Integration of Lasers with Green Coffee beans). Brian Jensen is our chief financial advisor and will move into the role upon funding. Mr. Jensen is a multi-talented fiscal management advisor, running an $800B U.S. Corporation as their CFO. (Financial Management, Growth Initiatives, Investor Relations). Nick Holman has significant corporate experience as an electrical engineer. Mr. Holman is the conduit between our lab, Cambridge Design, and Optical Engines. (Engineering, Controllers, Project Management). Willem Boot is recognized as a top-notch global coffee expert. Mr. Boot has influential significant white papers for international entities such as Nestle, Illy Café, and more. Mr. Boot is known and respected in the coffee roaster industry. (Coffee Science, Profiles, Q-Grader, Crop Management). Joachim Eichner started with Probat, the world leader in coffee roasting equipment, at the age of 15. Mr. Eichner worked for Probat for 22 years, including their entry into the U.S. market. Mr. Eichner is recognized as a global equipment expert and owns his own consulting and advisory company. Joachim’s expertise in roasting equipment is vast, and he has remained an advisor from the beginning development of DLT. (Data, Cprogrammingrograming, and Functionality).
THE FINANCIALS: COMBINED COFFEETEC.COM & DIVERSIFIED LASER TECHNOLOGIES (This platform will not allow uploading or copying of financials)
THE ASK: 20% of Legacy Global Companies, Inc. stock for $5.0M on a current valuation of $25.0M.
The investment will be used to produce scaled roaster models for sales while simultaneously building out the teams’ infrastructure for CoffeeTec.com and Diversified Laser Technologies. We plan to use a 3-Year convertible note with a 15% discount and a 5% interest rate. This will be a rolling close. A subsequent raise of $5.0M will follow the deployment of this initial $5.0M investment raise.
Valuation Considerations –
Existing CoffeeTec (50 Years) Revenue & Projected Growth at 6X EBITA
Pre-Money Investment into Diversified Laser Technologies
Combined hard capital and sweat equity investment to date of $3.3M
Existing Patents for Diversified Laser Technologies – U.S. and 128 pending Globally
Existing Customer base and distribution channels established through CoffeeTec
Experienced Team and Industry Network/Relationships
COFFEE FACTOIDS:
•167 million 132lb bags of coffee were consumed in 2020–2021.
•1.2 million metric tons of certified coffee were sold in 2020, up from 1.08 million in 2019.
•Before roasting, coffee has the highest “Anti-oxidants” of any natural substance on earth.
•Coffee is a complex beverage with over 1,000 chemical constituents compared to 800 for wine.
More information and an investment deck will be supplied to interested parties.
A subsequent raise of approximately $5.0M will follow the successful deployment of the $5.0M investment.
THIS IS AN OPPORTUNITY ZONE INVESTMENT - if a taxpayer sells an asset for $5 million, which then results in a $5 million capital gain, the investors can invest the proceeds into a Qualified Opportunity Zone Fund. As long as this happens within 180 days of the sale, the investor can avoid capital gains taxation.