Can anyone get involved with RCN1 and race with Australia's leading trainers?
Yes! The structure allows affordable ownership to most people from all walks of life. Our company/business model is
structured to ensure that almost anyone who wants to become involved in the excitement of racehorse ownership can!
What is the smallest number of shares I can take?
The minimum investment is $1,595 (1 share). You can invest as much as you like up to $240,000.
What are the ongoing costs after I purchase my shares?
There are no ongoing costs. 3 years total racing, upkeep and management costs are included for the 6 horses in the offer.
What would be the life of the investment?
It is intended that RCN1 will operate for an unlimited period unless terminated by a shareholder’s vote under the Constitution. It is designed to continue and has a standing option to purchase ALL future weanlings, yearlings, 2yo’s Racehorses introduced by the experienced and professional Directors of RCN1.
What happens if a new horse crop is purchased?
The assets of the Company including remaining cash, retained prizemoney, income from sales and the value of the remaining racing stock on hand will be the equity of all existing shareholders. A merge with the capital to be raised to complete the new acquisitions and their 3-year expenses will then be calculated. Funding will be by a pro rata rights issue to existing shareholders, with any shares not subscribed for under the rights issue being offered to new investors. If you elect not to take up your rights your equity may be diluted by new investor’s capital. The merge price for new buyers will reflect their interest in the combined assets.
What happens if I want to sell my share/leave the Company (RCN1)?
You can sell your shares at anytime. How much you can sell your shares for will depend on you finding a willing purchaser. As shares in RCN1 are not listed on any stock exchange, there is not a liquid market for the shares. Shares can be repurchased by the Company in accordance with section 257A of the Corporations Act 2001 providing the requirements of that section are met including approval of RCN1 Shareholders is received at a General Meeting. Shareholders have the ability to sell their shares to a third party or an existing member. To facilitate this, the Company will maintain a register of the shares that any member wishes to make available for sale, and will inform any prospective purchaser who expresses an interest. However, the Company is legally inhibited from soliciting for purchasers on behalf of sellers or otherwise making a market for the shares.
What happens to the prizemoney?
Prizemoney earned will be accrued as shareholders equity. The Company will provide annual audited accounts and the Board will decide if it is appropriate for surplus funds to be distributed.