Projects } TBK Capital

Nootropics – growth sector in global supplements market

Nootropics (also known as smart drugs and cognitive enhancers) improve cognitive function, particularly executive functions, memory, creativity, or motivation, in healthy individuals. The nootropic capsule market was worth $3.3 billion in 2017 and is growing at an annual growth rate of 11%.

Nootropics (also known as smart drugs and cognitive enhancers) improve cognitive function, particularly executive functions, memory, creativity, or motivation, in healthy individuals. The nootropic capsule market was worth $3.3 billion in 2017 and is growing at an annual growth rate of 11%.

Propelled by soaring demand for functional food and beverages, the global nutraceutical market as a whole is expected to grow by $86 billion to reach $285 billion by 2021.

Level Up have developed and formulated its own high strength, non-addictive nootropic – an all-natural supplement that increases mental stamina and endurance and helps people increase their ability to absorb, retain and recall information.

Starting off with capsule products, research and development has already been completed for 3 new ranges that will allow Level Up to expand into other functional food and beverage categories and finally into e-liquids (inhaling the product via vapour).

Vision
Level Up’s vision is to build a sustainable global business around a natural family of products that help people to feel and perform at their best. Level Up endeavours to deliver a financially sustainable business model by building a strong NZ brand with international appeal through leveraging influencers and advocates and utilising an internationally distributed e-commerce platform.

Market Validation
Level Up achieved their initial learning milestones through the results of their beta testing which was experimentally sold through affiliates, influencers and 81 pharmacies and health stores.

The target market was particularly responsive to the marketing initiatives and resulted in increased reorders and sales. User group trials reported increased ability to absorb, retain and recall information, heightened mood and social ease, with an overall increase in mental stamina and endurance.

Level Up’s key to its New Zealand success will be taking the beta testing results and rolling out the product into 250 prominent pharmacies and health stores. The development of a highly engaged base of influencers and advocates will assist to stimulate sales directly through the website and e-commerce channels.

Initial interest from China has been received via a letter of intent but this will be investigated and developed over time as the New Zealand experience proves the appeal of the product.

Intellectual Property
Level Up’s formulation has been derived from the specific identification and isolation of certain alkaloids at the cellular level. Level Up has already undertaken internal protocols to protect this Intellectual Property.
 
Financial Information
Based on an initial launch in New Zealand, sales for the first 12 months of full operation are estimated to be $1.3 million. With an international e-commerce launch in the following year, sales will continue to grow through to $16.5 million in Year 5.

High gross margins will allow a significant commitment to marketing initiatives to stimulate demand and drive on-going sales activities, especially into China and abroad.

The Offer
Level Up is seeking to raise a minimum of $500,000 and up to $1 million through the issue of ordinary new shares in the business. At the $1 million level, this will equate to an 18.2% interest in the business. Funds raised will be used to do additional product development testing (14%), sales and marketing (51%) and general administration including the employment of staff and other working capital requirements (35%).

Funds will be accepted in multiples of $100,000.  Smaller amounts may be considered. This offer is only open to qualifying investors and no investments will be accepted without proof thereof. Please refer to the investor criteria below.

Want to Know More?
For more information on the Level Up Performance offering, please contact Andrew Larsen on 027 483 4200 or email a.larsen@tbkcapital.co.nz

.............................................................................................................................................................................................................
The above investment is not an offer of financial products that requires disclosure under the Financial Markets Conduct Act 2013 (Act) and is available only to wholesale investors as defined by that Act. It is intended for distribution only to selected people to whom, under the relevant laws, it can be lawfully distributed. It cannot be distributed in any other jurisdiction, or to any other people. It is not an offer or solicitations in any jurisdiction in which such offers or solicitations are not authorised, or in which the person making such offers or solicitations are not qualified to do so, or to any person to whom it is unlawful to make such offers or solicitations. Any representation to the contrary would be unlawful. No action has been taken by any person that would permit a public offering in any jurisdiction where action for that purpose would be required.

Kind Regards


Andrew Larsen
Associate - TBK Capital Limited
Level 10
120 Albert Street
Auckland 1010, New Zealand
Mobile +64 27 483 4200
Email a.larsen@tbkcapital.co.nz
 

For more information, please click the contact button below to send us a message.

CONTACT US

⇑ back to top