Roholm

Roholm develops, markets and distributes the innovative Inverse Hair Conditioning System. Roholm's patented system uses sub-zero temperature (instead of damaging heat and chemicals) to improve the strength, condition and appearance of hair.

Minimum investment: $1,005.00

$322,635
Funded
Min target: $264,883 (3.27% equity) Max target: $1,500,000 (16.05% equity) Total amount raised in this round: $557,753 (including Snowball Effect investors)
Ended Fri, 20 January 2017 9:00pm (NZST)
41 Number of investments
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$322,635 Funded
$264,883 Min target (3.27% equity)
$1,500,000 Max target (16.05% equity)
$0 Still available for investment
Offer closed Fri, 20 January 2017 9:00pm

Overview

Roholm Limited develops, markets and distributes the world-first Inverse Hair Conditioning System. For years, women have used damaging heat and chemicals to try and achieve great looking hair, leaving their hair in poor health and condition and at considerable expense. Inverse uses sub-zero temperature to naturally lock in moisture, which is proven to restore the health, strength, condition and appearance of women’s hair. Inverse naturally sits between styling tools (heat) and conditioners, shampoos and treatments (chemicals).

The global hair care market is estimated to be worth US$83.1 billion in 2016. The global shampoo & conditioners market accounts for a significant portion of this, at US$34 billion in 2014. Our focus is on the emerging health and wellness segment of this market. Our target customers are women 25 – 65 years of age who are looking for an alternative, healthier approach to their haircare.

The ultimate market for Inverse is the mainstream customer, but we are utilising professional sales channels to educate the market about Inverse in conjunction with direct e-commerce to build a blended, high-margin sales approach. Distributors have been appointed in Brazil, Canada, France, Germany, The Netherlands, United Kingdom and New Zealand. First indent orders are in progress for the export markets and repeat distributor sales are already occurring in New Zealand. We have developed a directly controlled, sub-tier manufacturing supply chain and a logistics approach that is globally scalable, capable of supplying end customers along with our professional distribution partners.

The method of using sub-zero temperatures to condition hair, as well as the ice cores and a range of other potential applications are filed as an international PCT Patent. The NZ Patent was accepted on 31 August 2016, was published in the Patents Journal on 30 September 2016 and (barring opposition) will be granted by 31 December 2016. The international PCT examination (undertaken in Australia) is complete with a positive final report confirming novelty of the invention. International applications are being prepared for filing in key markets to meet priority filing dates. The trademark “Inverse” is registered in NZ and applications are progressing under Madrid protocol in all key jurisdictions. Roholm also produces “Ice Mist”, an accessory consumable product. It is an all-natural water based solution with a specific pH level to help induce a closing effect on the cuticle.

Roholm has identified a number of exit opportunities which can be broken down into device companies (such as GHD, Cloud 9), hair care brands (such as L’Oréal), diversified product companies (such as Proctor & Gamble, Unilever), and retailers (such as Sephora, Kendo Brands). Roholm has recently been approached by two multi-national industry participants interested in the product and technology, and discussions and trials are progressing with both.

Roholm was formed in 2013 and is based in Tauranga, New Zealand. Inverse launched into the New Zealand market in early 2016 and has been busy evaluating and establishing its international distribution networks.
Distribution agreements have been signed in Brazil, France, Germany, The Netherlands and Canada, with minimum volumes (related to exclusivity) totalling a combined 100,000 units in their first 12-months. Refer more detail in the section titled Sales by Region, the Strategy tab.

3,300 units have been sold to date which consisted of small trial indent export orders and online sales in New Zealand. The forecast for the current financial year (2016/17) is 33,000 units.

Roholm is seeking capital to support the continued growth of its distribution network, raise consumer awareness and build a strong e-commerce sales base. Inverse is a completely new product category, and Roholm wants Kiwis to share in this journey as we take Inverse to the world.

Notes on Investment

Nominee Shareholding Structure

The shares that will be issued by Roholm will be issued to Snowball Nominees Limited (“Nominee”). The Nominee will hold the legal title to the shares, which will be held on trust for the beneficial owner of the shares (i.e. the Snowball investor). The full terms on which the Nominee will hold the shares are set out in the Nominee Deed Poll (refer to the offer documents).

The Nominee must:

  • Act in accordance with the beneficial owner’s instructions (e.g. in exercising the voting rights attached to the shares);
  • Account to the beneficial owner for the amounts it receives from the shares (e.g. payment of dividends); and
  • Deliver the notices, documents, reports and other communications that it receives to the beneficial owner.

The beneficial owner must pay for the shares and is liable for any other obligations that arise in relation to the shares. Under the Nominee Deed Poll, the beneficial owner indemnifies the Nominee against any costs or claims that the Nominee incurs as a result of holding the shares (unless the Nominee has been fraudulent or grossly negligent).

Rewards

Any investor who invests $3,000 or more in this offer will receive one complementary Inverse Hair Conditioning System, subject to the minimum fundraising target being reached.

Team

Photo of Murray Denyer

Murray Denyer Chairman and Enterprise Angels Director Representative

A Partner in Cooney Lees Morgan’s commercial team since 2010, early stage and angel investment is a large part of Murray's practice, and is an area that interests him very much as a potential driver of economic growth in the Bay of Plenty region. Murray is a director of two early stage businesses, one of which is Roholm. Prior to joining Cooney Lees Morgan, Murray worked for five years at Zespri Group Limited as General Counsel. Murray was also a senior associate at Minter Ellison Rudd Watts in Wellington, and spent the first eight years of his career as a New Zealand diplomat and international trade lawyer for the Ministry of Foreign Affairs and Trade. Murray was also Chairman of Priority One until early 2016, and is the current Chair of Enterprise Angels and a director of NZX-listed Comvita Limited.
Photo of Daryl French

Daryl French (Acting CEO) Executive Director

Daryl started his career in the ICT industry and undertook activities mainly in sales, marketing and senior management roles. He was a senior manager with IBM Asia Pacific for 12 years with responsibility for the operation and finances of his division. In the course of his career, Daryl has worked across a number of countries, including Japan, China, India and the US and consequently he has an excellent industry network. Alongside his corporate career, he has developed a number of new markets in competitive areas and has started and run a number of businesses. Daryl now mentors other entrepreneurs and business leaders as an active member of Business Mentors NZ. In the last eight years, Daryl has made Governance his career and as a chartered member of the Institute of Directors he is committed to continued personal development to stay abreast of changes in this area. His focus is on companies in growth or change management mode. Director Daryl French is Roholm’s interim CEO. The Board has identified a CEO and terms of employment have been signed. The Board and the candidate are now awaiting the conclusion of this capital raise to ensure the business is appropriately funded before making this appointment.
Photo of Timothy Allan

Timothy Allan Executive Director

Timothy has more than 20 years’ experience as an Innovation and R&D leader, with a wide range of experience in the development of new businesses driven by disruptive new products. With a proven ability to lead technology oriented product development projects and diversified design teams, he founded Locus Research in 2002 which continues to deliver world class products to market. Timothy is a Fellow of the Designers Institute, a standing member of the Enterprise Angels investment and Fund investment committee and has played a strong role in the development of the innovation eco-system in the Bay of Plenty.
Photo of Neil Craig

Neil Craig Advisor

Neil founded Craig & Co. Ltd in 1984 and, through a series of acquisitions, built the company into a retail broking business with a national presence. Craigs Investment Partners now has 17 branch offices throughout New Zealand and Neil retains the role of Chair. Craigs also has a 40% interest in an Australian stockbroker, Wilsons. Neil is also Chair of NZX-listed Comvita Limited and a Director of Pohutukawa Private Equity Limited, Oriens Capital Private Equity Ltd, AGInvest Holdings Limited, NZ Cricket Inc, and a number of private, largely horticulture based and early stage companies. He is a member of the New Zealand Institute of Directors.
Photo of Kim Willoughby

Kim Willoughby Advisor

Kim is a seasoned business leader with NZ and global experience and strong commercial and governance skills with a focus on strategy, business performance and sales and marketing. After corporate careers with CHH, NZ Dairy Foods, Frucor and the Perry Group, Kim currently is involved as a shareholder and director in a number of businesses, in particular currently working in developing international markets for Deosan. He has a passion for start-ups, being involved in Enterprise Angels.
Photo of Tracey Swinehart

Tracey Swinehart CFO/Director

Tracey has had over 25 years’ experience in lead finance roles across a variety of NZ manufacturers and exporters. Tracey is Managing Director for Locus Research and also is involved in investee start-up Ubco Bikes as interim CFO, and is a Non-Executive Director for start-up Balex Marine. She has valuable experience working with angel and venture capital networks for innovative product start-ups and assisting them with their financial management.
Photo of David Roe

David Roe Founder

David is founder and progenitor of the Inverse Ice Conditioning System. With 30 years in the hairdressing industry, David’s experience ranges from personal styling and educating to entrepreneurial endeavours, both in and out of the industry. He has a passion for education, exploring new ideas and sharing knowledge. Prior to Roholm, David was the co-founder of Grasshopper, the company that brought a clever lens-distortion removal tool to market and sold into 55 countries worldwide.

Warning statement

It's crucial for you to understand the characteristics and risks of this investment opportunity. New Zealand law normally requires people who offer financial products to provide in-depth information to investors before they invest. The usual rules do not apply to offers by companies through Snowball Effect. As a result, you may not be given all the information you need to make an informed decision. Investing is risky. Some of the key risks include loss of capital, illiquidity, lack of returns, dilution, loss of key people and customers, and lack of control. You should only invest money that you can afford to lose.

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