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jzamora@castleplacement.com
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(917) 331-0159
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OVERVIEW
Tulip Cooking is raising $2 Million to expand and sell its residential cooktop product line globally.
- The cooktops are unique in that they are modular and can be integrated into any location in almost any countertop material. The company offers gas and induction products
Products
- Gas Cooktop Systems (Tulip I): a “plug and play” unit available in up to 12 different configurations. It represents approximately 73% of sales
- Modular Induction Cooktop Systems (Tulip II): Induction products currently represent about 27% of sales. They are fully modular and provide more installation flexibility
- Modular Gas Cooktop Systems (upcoming 4Q24): Will provide total freedom in the placement of gas burners on a countertop based on the customer’s exact design preferences. Knob placement will also be discretionary
MARKET OPPORTUNITY
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A Short-Term Alternative Investment Profile
- Cooktops are part of the global household appliance market, which totals almost one trillion dollars ($941 billion)
- The global cooktop market is $103 billion, with the residential market valued at approximately $70 billion in 2023. The high-end segment is estimated at approximately $3 billion
- Consumer preferences trend towards technologically advanced cooking methods and energy efficient appliances make. Tulip is well positioned to capitalize on these trends
- While gas is anticipated to remain the dominant heating element, the segment with the highest growth rate is induction. This is driven by a greater acceptance of the benefits of induction; of safety and environmental issues which is a driver of Tulip’s induction line
MANUFACTURING & DISTRIBUTION
- Headquartered in Greenwich CT, with design and manufacturing facilities in our ISO 9001 certified factory in the Netherlands
- Full control over the critical aspects driving our success, including brand, product development and manufacturing
- Strong distribution partners in Canada, Japan, Germany, France, Holland, Belgium, Italy, Brazil, Ukraine and Israel
- US sales led by Regional Distribution groups with coverage in 23 states and Independent Marketing groups. Distributors typically commit +$60,000 for inventory and marketing materials
GO-TO-MARKET STRATEGY
- Tulip Cooking will occupy a niche in the luxury residential appliance market, similar to brands such as Wolf, Gaggenau, Miele, Viking. Targeting affluent consumers for high-end gas and induction cooktops. All products are built-in units
- Tulip Cooking has Trademark protection in EU and 11 countries – and will apply for patents in markets as needed
- In the US, Tulip will partner with major appliance retailers, kitchen design centers, designers, architects and developers and buying groups
- Internationally, Tulip will partner with distributors with a significant presence in the top end of the market
- Robust presence at the industry’s most influential trade shows
- Active social media presence across Meta, Instagram, TikTok, YouTube, and Pinterest, generating brand recognition and demand
RISK FACTOR
Limited Operating History: limited operating history and no history of profitability.
Dependence on Key Personnel: may be heavily dependent on the skills, experience, and continued participation of key personnel, and the loss of these individuals could negatively impact the company’s operations.
Market and Industry Risks: may be subject to changes in market conditions, industry trends, regulatory developments, or competitive pressures.
Financial Risks: may face financial risks such as liquidity constraints, inability to raise additional capital, or reliance on debt financing, which could adversely affect its financial health and operations and is highly indebted.
Forward-looking Statements: Although forward-looking statements and stated goals and objectives are based upon assumptions and research believed to be reasonable, actual results of operations and achievements may differ materially from the statements, goals, and objectives. Such statements involve known and unknown risks, uncertainties, and other factors, and undue reliance should not be placed thereon.
Legal and Regulatory Risks: may be subject to legal and regulatory risks, including potential litigation, compliance with securities laws, changes in regulations, or adverse rulings that could impact itsbusiness activities.
Technology and Intellectual Property Risks: has a pending Trademark Registration; however, there is no patented proprietary technology or intellectual property, and as such, its technology is atrisk of copying.
Marketability and Liquidity Risks:. There is no organized secondary market for the shares, making it difficult for investors to sell or transfer their securities. You can lose your entire investment. You may have to hold your investment indefinitely.
Capital Structure and Dilution Risks: capital structure may change over time, leading to potential dilution of investors’ ownershipthrough additional equity issuances or convertible securities.Castle Placement has certain rights regarding future capital raises ordebt issuance that could make such transactions unfeasible and putthe financial health at risk.
Cybersecurity Risks: The issuer may be vulnerable to cybersecurity threats, such as data breaches, cyberattacks, or unauthorized access to sensitive information, which could disrupt its operations or result in financial losses.
Economic and Market Volatility: Investments in the issuer’s securities may be subject to risks associated with economic downturns, market volatility, interest rate fluctuations, or geopolitical events that could impact investment returns.
Lack of Public Information/Limited Regulatory Oversight: Since these offerings are exempt from SEC registration, they don’t have the same level of public disclosure requirements as publicly traded companies. Investors may have limited access to information about the company’s operations.
Market and Industry Risks: Investments in specific industries or markets can be subject to unique risks, such as regulatory changes, technological disruptions, or shifts in consumer preferences.
Capital Loss Risk: As with any investment, there is a risk of losing someor all of the capital invested. Factors such as business performance,economic conditions, and competitive pressures can impact its success.
Legal and Compliance Risks: The management team has not run a public company and must comply with securities laws and regulations. Failure to comply could result in legal and financial consequences for both the company and its investors. Investors should ensure that the offering is conducted in accordance with applicable laws.
Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment.