29 days & 21 hours
2.6% - 11.6%
min - max equity offered
A$100,000.00 - A$500,000.00
min - max investment sought
min investment parcel
> Offer Type: Australian Retail (CSF) Offer This offer is open to Retail and Wholesale/Sophisticated investors in Australia. Whilst in New Zealand the offer is open to Wholesale investors.
> Company: Rhino Hide Pty Ltd Securities purchased are for direct equity in Rhino Hide Pty Ltd.
> Security Type: Ordinary Shares
> Fees Paid by Issuer: 6.00% of funds raised Upon successful completion of this funding round a total of 6.00% of capital raised will be paid by the Issuer to Equitise.
> Cooling-Off Rights: 5 working days - Retail investors in Australia are able to withdraw their applications for securities with accordance to the Australian Crowd Source Funding (CSF) regulations. For more information please click on the link supplied.
> Related Parties: None
More detailed information about this offer is contained in this Offer DocumentOffer Document
The Company is offering 100,000 to 500,000 shares under the following terms:
Rhinohide 4x4 body armour is a patented body panel protection system that is easily installed and removed by the end user, keeping the paintwork of a vehicle in pristine condition even in the harshest environments. The customised panels offer the vehicle protection, whilst simultaneously providing end users with an aesthetically unique look.
Rhinohide gained widespread attention after a successful appearance on Channel 10’s Shark Tank, securing investment from not one, but two of the Sharks; Greencross and Pet Barn founder Glen Richards, and Andrew Banks, co-founder of recruiting giant Morgan and Banks.
The business has since taken a prototype concept into full production and has expanded the range to 12 vehicle lines in Australia in just a few short years, covering 41% of the Australian market. Rhinohide's next step is to rapidly expand its model range to facilitate a launch into the United States, a market 25 times larger (by vehicle sales) than Australia.
Rhinohide designs, markets and distributes the Rhinohide product through selected business-to-business (B2B) and business-to-consumer (B2C) channels globally. We outsource production and assembly of the product with our trusted long-term supplier in China. There are no third party licenses or intellectual property involved in the production of Rhinohide, with all intellectual property and physical tooling owned by the business.
Individual orders are drop shipped to our customers Australia wide, with B2B orders from larger customers arriving at dealerships who have purchased our stock in larger quantities via cargo container from our factory directly.
The Company’s B2B channels include sales to car dealerships and aftermarket accessory stores. To date we have onboarded three dealership partnerships which has translated into almost half our total revenue. The immediate B2B focus is to increase B2B distribution of the product through car dealerships. Typically, this allows the dealership to offer the Rhinohide product at the point of purchase of a brand new vehicle. The customer has just purchased the vehicle and is precious about it. It is a logical product to invest in at this stage of the consumer’s buying process.
Rhinohide sells its product directly to consumers through its website and online store. This channel offers the highest margins and will be a focus for the Company moving forward. While B2B channels were initially seen as more important in establishing brand awareness and trust in our products, we now have an established customer base and brand equity. Rhinohide is now pushing forward with an aggressive marketing strategy to increase sales through B2C channels.
The US market represents Rhinohide’s largest growth opportunity, with a market size approximately 25 times larger than Australia.
Having shown proof of concept in the Australian market, Rhinohide is seeking to expand into the US market primarily on the back of launching the Jeep JK Wrangler model, a model that has sold over 1.8 million units in North America. We launched a pre-order campaign for the Jeep JK Wrangler at the end of May 2019, with the first production roll-out of this model in both Australian and US markets commencing towards the end of June 2019.
For our US entry we will take a two pronged attack. First, we will optimise our website for the US and run a social media marketing campaign to sell Rhinohide products direct to consumers, taking advantage of our highest margin channel.
At the same time, we will look to secure larger volume distribution agreements with dealerships and aftermarket stores to gain the benefit of market awareness from having the product physically displayed. These larger volume agreements will also reduce our cost per unit through economies of scale.
Expansion of Vehicle Models
Rhinohide is also looking to swiftly expand into other offroad vehicles following the success of the JK Wrangler launch. Target vehicles include the best-selling Ford F truck, which sells in excess of 1 million units annually. This number is followed closely by the Chevrolet Silverado and the RAM Pickup trucks, which Rhinohide would also cater for.
Certain existing models in our line-up translate into the US market already and can thus fulfill some aspect of US demand immediately.
The Australian market has been a good proving ground for the product. According to the Federal Chamber of Automotive Industries, consumers are increasingly favouring 4x4 vehicles due to their comfort, flexibility and utility, making up 43% of the market in 2018. This trend is expected to increase. The Ford Ranger was one of the top selling 4x4’s and sold 42,144 units in 2018.
US MARKET & OPPORTUNITY
The top selling pick-up in the USA sells approximately 25 times the volume of the top selling pick-up in Australia. 2017 Vehicle Sales in Australia topped out at new record levels of 1.18 million new cars, SUVs and commercial vehicles. 2017 Vehicle sales in USA reached 17.25 million.
The US and Australian markets significantly differ not only in their size, but also in their composition. Pick-up trucks and SUVs now account for two thirds of the US market as traditional sedan style vehicles suffered a more prominent sales slump in the USA than in Australia. Light-duty Trucks including Pick-ups and SUVs increased by 16.3% from March 2017 to March 2018. Rhinohide is moving quickly to capitalise on this lucrative market opportunity.
The table below sets out the intended use of funds raised under this Offer based on the minimum and maximum subscription amounts (for further information please see section 3.2 of the Offer Document).
For a full breakdown of the financials for Rhinohide Pty Ltd please see section 2.11 of the Offer Document.
The table below is a summary of the main risks facing the business. Please refer to section 2.13 of the Offer Document for a full breakdown.
The investors below have committed capital to the business in this funding round.