hard assets management bmc investor presentation
TRANSCRIPT
Hard Assets Management, Inc has the goal ofbecomingthesingle largest facility in theworld forthe buying, selling, storage and financing of hardassets, which includes precious metals, rare coins,rareartandrarebooks.
Introduction
3
Overview
4
• HardAssetManagementbenefitsfromthreerecurringrevenuesources.Buying/selling,storingandfinancingofhardassets,includingpreciousmetalsandrarecoins.
• CEOChrisEanBriggsisa35yearveteraninthepreciousmetalsandrarecoinindustry.Theprincipals,employeesofBMCCapitalInchaveboughtandsoldover$500millioninhardassetsduringtheircareer.Mr.Briggsthroughhisfamilyofficehasinvestedand/orloanedaround$1millioninBMCCapitalInc.andHardAssetManagementtodateoverthepast2years.
• TheHardAssetManagementIncbenefitsfromalowcorporatetaxrateof4%undertheAct20lawduetobeingdomiciledinPuertoRico.
• TheCompanyisprojecEng$3-6MRevenuein2017withoutcapitalraiseand$12Mwith$5Mcapitalraise.
Key Facts • FiledupdatedS-1September27th,2016• SecondroundofcommentsfiledJanuary11th,2017• ReceivednewcommentsfromSECJan25th,2017• SharesOutstanding:178.011million• Float:EsEmated10.5Million• InsideOwnership:85%• 2014and2015FinancialStatementshavebeenauditedby
IndependentCPAfirm,Turner&Stone,locatedinDallas,TX
6
Experienced Management Team Chris9anBriggs,CEOMr.Briggshasbeeninthehardassetbusinessforover35years.TogetherwiththeprinciplesandemployeesofBMCthey’vesuccessfullyboughtandsoldnearly$500,000,000inpreciousmetalsandrarecoins.Heisalsoaserialentrepreneurandraised$130minventurecapitalforanonlineinteracEvevideopla_orm.Hehashelpedtocreateseveralhighprofiletechnologypatentsdigitalvideowithcuepoints.RecentlyMr.Briggsfamilypartnershipsoldpartofitsdigitalmediaso`warecompanyforover$8m.ThomasGingerich,CFO33yearsofaccounEngexperienceinpublicandprivatepracEce,specializingintaxcompliance,structuresandtaxplanning.FormerPartneratLain,Faulkner&Co,PCspecializinginforensicaccounEng.HeisaCerEfiedPublicAccountantandamemberoftheAmericanInsEtuteofCerEfiedPublicAccountants.LeslieBall,BoardofDirectors,BusinessDevelopmentFormerCFOofCorralWestRanchwear,whichunderhisleadershipbecameoneofthelargestretailersofwesternandworkwareintheUnitedStates.HehasalsoservedinexecuEveposiEonsforR.H.Macy,IncandwasPresidentofMacy’sEast,Macy’sWholesaleandCEOandChairmanofMacy’sMidwest
7
Experienced Management Team
HerschelWalker,Pending-BoardofDirectorHeismanTrophywinneratUniversityofGeorgia.formerprofessionalAmericanfootballplayer,bobsledder,sprinterandmixedmarEalarEst.Asacollegefootballplayer,heearnedAll-AmericanhonorsthreeEmes.HewasastarrunningbackattheDallasCowboys.Henowownsandoperatesasuccessfulfoodserviceandhotelbusiness.
Value Proposition Led by ChrisEan Briggs, a pioneer in planning andmanaging preciousmetals andrare coins for family offices andwealthy individuals for over 30 years,HardAssetManagement is the first company to trade, store, and finance hard assets that isdomiciled inPuertoRico,benefiEng fromAct20 law,whichgives thecompanyanextraordinarilylowcorporatetaxrateof4%.Theprincipalsandemployeesof thecompanyhavedevelopedaprovensalesandservicingmodel over thepast 30 years. The company currently has adatabaseof20,000wealthyindividualsandfamilyofficeswhobuyandsellpreciousmetalsandrarecoinsallovertheworld.ThisgivesthecompanyabuiltincustomerbasethatisgeneraEngimmediate,long-termandsustainablerevenue.
Investment Highlights • ExperiencedManagementTeam• Long-TermSustainableMulEpleRecurringRevenueSources• Addressing$2.5billion-$3billionMarketOpportunity• TaxAdvantagewithlowcorporatetaxrateof4%• Ownershipofrealestate,companyownedstoragefaciliEes• ProjecEng$3-6Mrevenuefirst12monthswithoutcapital
raise
Market Opportunity • Preciousmetals,rarecoinsandrareartareamongthemost
valuablecommodiEesintheworld• EsEmated$2.5-$3trilliondollarsingoldaboveground
mintedoverthepast35-40years• Vastmajorityofgoldisnotlicensed,bondedorinasecure
storagefacilitybutheldwithinaprivateresidence• $72.6billionesEmatedglobalsalesofpreciousmetalsand
rarecoinsannually
HAM – The Process
11
Peoplebrowseourwebsiteandfilloutappropriatedocumentsforfinancingofpreciousmetalsprogram.
Accountisquicklysetupwithclient.50%MoneyiswiredtoHAMatBancoPopular(1%commissiontoHAMSegregatedclientaccountforpurchase).Priceislockedand6-9%recommendedinterestratedependingonsizeofloan).
HAMissuesnewpurchaseordertobuygold.
4.GoldarrivesatHAMstoragefacilityinSanJuan.
5.Every30days–interestpaidonloan.Loanvalueupto50%onpreciousmetals.Loanvalueupto40%onrarecoins.
1
2
3
4
5
12
$39B
GOLD
$4.6B
PLATINUM
$5B
PALLADIUM
$19B
SILVER
$5B
RARE COINS
Global Sales of Precious Metals and Rare Coins PreciousmetalsareamongthemostvaluablecommodiEesintheworld.Gold,silver,plaEnum,palladiumandhaveconsistentlyincreasedinvaluethroughouttheworldandwillconEnuetorise.Roughly1,000formermilitarybunkerssEllinexistenceacrossSwitzerland,severalhundredofthemhavebeensoldtoprivateindividualswhoarenowoperaEngthemasprivatestoragesitesforthegoldstashoftheworld’swealthiestofbillionaires.WithacollecEveesEmatedsalesofpreciousmetalsandrarecoinsof$72.6billion,HAMhasthepoten-altocapture30-40%ofthemarketshareoverthenext5-10years.
2015EsFmatedSales
$72.6B
Our Solution • Weofferfamilyofficesandwealthyindividualstheopportunitytobuy/
sell(trade),storeandfinancetheirinvestmentsinpreciousmetals,rarecoinsandrareart
• Universalcreditlineusedforthefinancingofclientliquidityneeds
• Efficient,lowcostbarriertoentryproductcontrollableandsustainable
• Secure,state-of-theartstoragefaciliEesinstrategiclocaEons
• Secureserverfarmforonlinebuying/sellingofpreciousmetalsandrarecoinsinphysicalforms
• CallCentersgeneraEngthousandsofleadstohelpdriverevenue
Revenue Model-How We Make Money
• Commissionsof1-2%forbuyingandsellingofallpreciousmetals
• Buy/sellspreadsrangeonrarecoinsof20-50%.ThiswilldependonwhetherthecoinswerebrokeredorowneddirectlybyBMCCapitalInc.initsinventory
• StorageFeesof1%annuallyofthevalueofhardassets.
• PotenEalFinancingratesof6-9%interestwith1-2%paidtoHardAssetManagementInc.
Near-Term Plan of Action
• ConEnuemarkeEngtoexisEngdatabaseofinvestorsforthebuyingandsellingofpreciousmetalsandrarecoins
• Launchglobalmarketefforttoincreasesales• BegintoplanandopenlocaEonsforspecificstorage
faciliEes• IniEalcapitalraiseof$5mtobuildoutstoragefacility
andbuildinventoryofrarecoins
Auditor, Legal, Investor Relations
• Legal-CooleyLLCNY,NYoffice• Auditors-Turner&StoneDallas,TX
• InvestorRelaEons-RedChipCompaniesInc.
Contact Us
HardAssetManagementChrisEanBriggs,[email protected]://bmcham.com/pages/contactInvestorRelaEonsRedChipCompaniesInc.DaveGentryDave@Redchip.comPH:407-491-4498