The HUB Project Financing
Appraisal V.1

Introduction:

The Hub is a fee-paying, private education model that is to be established within a newly formed UK Limited Company and is seeking Seed Capital Funding to enable the first stage of development towards the launch of its initial educational facility.

Similarly configured to the ever-expanding global ‘Co-Working Space’ model, the Hub operates on a 'space for rent' approach, offering individuals a choice of rental plans. Additionally, an extensive suite of curated external educational services are provided by various independently contracted professionals enabling this highly scaleable business structure to operate with minimal fixed costs, allowing for the potential of highly leveraged additional income beyond its core rental revenues.

Supported by a management team with extensive international experience in both business and education, we are committed to attracting highly trained and dedicated additional management and specialist support staff for this long-term project.

To enable the initial stages of the project development initial capital is being sought as a precursor to a more extensive CrowdFunding campaign.

Objectives:

The international education market is undergoing dramatic change and The Hub is strategically positioned to capitalise on the demand for more tailored and niche-centric services and contemporary educational facilities.

Key Areas:

  1. Develop a trusted and creative brand and a national reputation within the private educational market.

  2. Attract motivated and experienced specialist staff, tutors, and mentors.

  3. Build a high-profile group of market-relevant Ambassadors.

  4. Manage bottom-line costs and the commercial base of the business with intense diligence.

  5. Seek consistent feedback from family members to enable quantifiable and measurable data to drive necessary changes.

  6. To apply the utmost respect to parents and their children, particularly in the face of relevant care needs and vulnerable conditions.

  7. Modernise systems and procedures for maximum efficiency, reducing expenditure and enabling economies of scale.

  8. Conduct regular and open book discussions with investors and other relevant stakeholders.

  9. Plan for expansion into both domestic and international markets.

  10. Explore the potential for a License or Franchise-driven expansion.

Executive Management:

Please visit the following Deck website: www.river-agency.com

Branding:

‘The HUB’ is currently a working title brand.

Enhanced brand development and value-added IP are crucial to the business development model. As such, full brand development will be undertaken before our pending Crowdfunding initiative.

Advisors to the ongoing brand development process are Heat Design. www.heatdesign.com

Funding:

A Seed Round of £750,000 is being sought from sophisticated investors, including known parties and or, investment entities with market experience or value-added capability.

Anticipating the Seed Round's success, a subsequent Crowdfunding round (circa £500k) is planned within six months. Seed investors will benefit from a priority position and discounted pricing during this upcoming Crowdfunding phase.

Seed Round Terms:

Two optional approaches can be employed within this round. Straight Equity investment has significant tax benefits, or Loan funding, which can convert within a set term into Equity or be repaid with interest.

Equity Funding - SEIS (An application is being submitted to HMRC to obtain advanced assurance that the business and equity investment will be SEIS qualifying)

  1. Required sum: £750k

  2. Minimum tranche per investor: £50k

  3. Maximum tranche per investor: £350k

  4. Equity allocation: 1% of NewCo Ordinary Shares per £50k invested

    Investors subsequent Crowdfunding priority access:

    i Maximum of £150k investment per investor

    ii Crowdfunding discount to offer price - 25%

Loan Funding - by way of Convertible Loan Note

  1. Required sum: £750k

  2. Minimum lend per lender: £50k

  3. Maximum lend per lender: £350k

  4. Term of loan: 2 years. Principle rolled up until the end of the term

  5. Interest paid: 7% annually

  6. Option to convert Loan into Equity - at any point within the 2-year loan term

  7. Rate of Loan conversion: 1% of Ordinary Shares per £50k of Loan Capital

    Subsequent Crowdfunding priority access:

    i Maximum £150k investment per investor

    ii Crowdfunding discount to offer price - 25%

Summary:

In addition to known parties, conversations are sought with sophisticated investors committed to this sector particularly those who influence within the realm of Education.

Timing + Action:

For further information, please contact Sean Rafter: +44 (0) 7467 875533 or, via email at info@river-agency.com