The Hotcha Bond is a very straightforward idea – you loan money to us and we agree to pay you interest quarterly and redeem your initial investment (the ‘principal’) when the Bond(s) mature in 4 years. The Hotcha Bonds will be issued by Hotcha Limited.
We have designed the Hotcha Bonds to be a simple investment. For an initial investment of £250 or more, Hotcha Limited will provide registered holders of Hotcha Bonds (“Bondholders”) with their choice of:
1. A fixed-rate return of 8% gross interest per annum over the course of an initial four year term payable in cash; or
2. A fixed-rate return of 12% gross interest per annum payable in store credit over the course of an initial four year term.
At the end of the initial four year term and on every anniversary thereafter, you have a choice: either continue to hold the Hotcha Bonds for another year on exactly the same terms or give us six months’ notice and we’ll redeem your Hotcha Bonds. On maturity of the Hotcha Bonds, the full amount of your initial investment will be repaid without any deductions or charges.
Please note: Hotcha Bonds are issued on a first come, first served basis.
Use of Funds
We have invested heavily into building the foundation of the Hotcha brand, i.e.
- Streamlined in-store operations,
- Effective staff training programme,
- Upgrading our food preparation equipment,
- Central production unit,
- Experienced management team both at store and head office levels
…to name just a few! And we have turned the initial concept into a profitable model. We are now ready for the next phase of our growth and are therefore looking to raise external funds through the Hotcha Bond to accelerate the implementation of our plans.
If we raise our maximum target of £3 million, we will be using the Hotcha Bond proceeds to:
- Build up to 22 new company operated Hotcha stores within the South West over the next three years
- Develop and recruit franchisees to open franchise stores in other part of the country
- Upgrade our current central production unit to improve food quality and efficiency. And also gear up for store growth
- Develop a new website to provide a better customer journey and drive higher average spend and to keep up with the current market trend of online ordering
- Continuous development of new menus to drive higher order frequency and differentiate ourselves from local competitors
- Continuous development of staff training programme to provide better customer experience and hence higher customer loyalty
If we raise our £1 million target, we expect to build up to 5 new stores.