Prana Foods Executive Summary

This is a private equity offering. According to SEC rules, that means it may NOT be shared publicly. Please do not share this link on social media or email list. Thank you!

What do we do?

Prana Foods makes Outrageously Good, Game Changing Free From Foods with a Social Impact.

 

Our current products:

  • Chocolate Chip Cookie Mix (currently in stores)

  • Pancake Mix (will be in stores by end of 2018)

  • Veggie Burgers (will be in stores by mid 2019.)

 

Upcoming Product Line:

  • Chai Mix

  • Vegan Jerky

  • Raw Water

  • Other products that occur to us later that we haven’t thought of yet.

 

Why are we doing it?

Back in 2000, I became Gluten Free for a time, to solve some health issues. That was before Gluten Free was a thing. Back then, there were virtually no ready made foods off the shelf that were both Gluten Free and Organic. If there were, they had a bad texture or odd aftertaste.

I made my own food and cooked at home for several years to stay healthy.

When I got married, I soon discovered that my husband loved pancakes. Every Saturday morning his mom made them, so he wanted us to have them too. He would bring home mixes from the grocery store. My response was “We don’t buy mixes! We make stuff from scratch!” He said “but I don’t want to wake you up if you’re sleeping in…let’s just have some available for when you’re not up to make them.” So I said “ok I’ll make you a mix.” So I did. Friends would come over and eat breakfast with us and say “Oh my God these are the best pancakes I’ve ever had!” When I told them they were free of conventional wheat (made with spelt), and had protein and fiber and were vegan and soy free, they said “You should sell these!” And so we started.

From there, our product offerings expanded to wherever there was a glaring gap. Second came cookie mix. There needed to be a sweet treat that ALL our friends’ kids could eat. That meant it had to be organic, gluten free, dairy free, egg free and soy free. While we were at it, we left out corn, potato and rice, three overused ingredients, all of which are at risk for being GMO. And we only used healthy, delicious and gut friendly ingredients. We don’t use guar gum because it causes bloating. We don’t use xanthan gum because it’s broccoli mold. We don’t use any kind of mold! All of our “binding” ingredients have actual nutritional value and are gut friendly and prebiotic. You get the idea.

Next came veggie burgers, for use by our own family. All the ones in the market are either GMO or mushy. We made ours from organic, whole, sprouted, regionally combined ingredients and they were an instant hit in our community.

 

Social Impact

When you have everything, the most important thing you can do is give back. When you give to someone else that needs what you have, there is a ripple effect of kindness and happiness out into the whole world. For this reason, we have decided to hire people with barriers to employment, such as people previously incarcerated or coming from generational poverty. We teach them meditation to relieve stress, start their shift with meditation and pay them a living wage. We exist to create abundance and wealth on multiple levels: Wealth of empowerment, life-supporting food, community, health and mental wellbeing. In all these areas we strive to create a ripple of goodness.

Essentially, for the last 18 years, the market has become more and more ripe for our offerings and our MO. It’s time to make this widely available by becoming a national brand. For this, we are raising capital. Our goal is to raise $500,000.

 

A raise of $500,000 will enable us to:

  • Open our own facility so we can get multiple certifications (vegan, nut free, etc that are difficult in a shared facility)

  • Scale our production to meet national demand

  • Achieve market penetration into 10 to 100 stores

  • Hire a basic long term staff

  • Potentially achieve profitability. (* see scenarios.)

 

Trends

  • Baking mixes are on a decline because of chemical ingredients, bad texture, bad nutrition and being difficult to make. However, the category is ripe for reinvention. The missing ingredients are “Better for You” (BFY), Game Changing Gluten Free and Easy to Make.  For the longest time, the gap in this area has been the cause of the decline. Obviously, we nail all the important factors.

  • Veganism went up 500% between 2014 and 2016 in the US.

  • Organic is on a steep rise.

  • Food allergies are on the rise, so Free From is becoming a more important category than ever and is unlikely ever to drop as a trend.

 

View THESE chartS of other chocolate chip cookie mixes on the market compared to ours.

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CookieChartOrganic.png
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Social Impact

We are making a social impact with our company because it is the right thing to do and it’s the core of our being. As it happens, Millennials, who are rapidly gaining buying power, agree with us.

  • 90% of Millennials will switch to a brand that is socially responsible.

  • 73% of Millennials will pay more for a sustainable brand.

 

Details of our Offer

Our equity investment is revenue based. We will pay 3% of gross margin to our investors up to a set multiple of the original investment. The multiple is 2x for a $1000 (minimum) investment up to 10x for a $100,000 or higher investment.

 

Some quick facts:

  • Expected year to get back your original investment is 2022.

  • Expected year to get your full multiple return is 2028.

 

THIS slide shows Expected yearly payments for one growth scenario. The bold numbers indicate the above milestones.

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Why are we doing a private offering?

We have deliberately chosen not to seek venture capital. It is not a good fit for our company for several reasons. First of all, venture capitalists get paid when a company gets acquired or goes public, which would mean a change in ownership and likely, views on the importance of our mission. There is a fixed exit involved. We do not seek to sell the company because it would put our mission at risk. We want to reward our investors for sticking with us, not promise pie in the sky for an unlikely and difficult to achieve event. Our payments to investors will depend on only one thing—our ability to create value and become a national brand—not several other very difficult factors that would divide our attention from our main goals of offering needed products and a positive social ripple.

 

A Note on Timing

Time is limited for taking advantage of this private equity offering. We are currently in a rebrand process that will solve trademark and packaging issues. As soon as the rebrand is complete, we will begin a public equity offering. This is not the same as an IPO…it is a direct public offering. But the point is, the equity will not be as generous as in this private offering. So please take advantage of it while you can.

 

How Can I Invest?

In most cases, it is possible to designate a portion of your 401K that you choose to a self directed IRA. From the self directed account, you can invest in Prana Foods. If the rules of your 401K plan do not allow transfer to a self directed IRA, you have the option of choosing to decrease your 401K contribution for a period of time and invest cash. If you wan to familiarize yourself with more details on our offer, feel free to visit our full Prospectus.  

If you are ready to invest now, contact Lisa right away at 415.212.8787 or lisa@pranafoods.co. She answers text the fastest.