This is a very popular question we get from potential investors, and we wanted to spend some time to go over the various scenarios that could play out for you to see a strong return on your investment.
You see, our first shareholders that invested back in 2015, got in at a price per share of $0.94 USD – with our shares now priced at $7.13 USD, these investors have seen a 7.5x return on investment! Learn more about our funding history here.
But how can these shareholders sell their shares to get some of their cash back? Well, we’ve outlined a few potential options that can play out below, listed in the order we believe is most desirable and suitable for our type of company and investment:
- Merger or Acquisition (M&A) – This is where a larger company, like an Amazon or Google, comes in and buys the company. To do so, they would need to purchase the shares outstanding from existing shareholders, hopefully at a significantly higher share price. This type of liquidity event would be ideal for our type of company, likely by a company in shade automation, like Somfy, Lutron, or LeGrand who we all had conversations with in the past, as well as a Google or Amazon. This would be a long-term investment horizon upwards of 3-5 years, and traditional angel investors do expect a minimum of 10x return on investment in this scenario. Remember that technology start-ups in the smart home space have seen a slew of acquisitions earnings investors incredible returns: Google acquired Nest for $3.2 billion, and DropCam for $550 million, and recently invested $450 million into ADT, while Amazon bought Ring for $1.2 billion.
- Over-The-Counter (OTC) or Alternative Trading System (ATS) – This is where you sell the shares to another investor. In both cases, you would list your shares for sale where a registered broker-dealer would facilitate the trade, similar to listing a home for sale through a real estate broker. RYSE has the opportunity to list on an OTC and this is an option we are exploring for the near future, although no definite timeline can be provided.
- Regulation A+ Offering – The SEC allows for companies to decide and allow existing shareholders to sell their shares in the company’s Regulation A+ offering, so long as the selling shareholders are disclosed, and the total dollar amount of shares sold is no more than 30% of the offering size.
- Initial Public Offering (IPO) – Finally, we could make our shares available to the larger public and for trading through an IPO where you can freely sell your shares on an exchange, such as the NASDAQ or NYSE. The IPO process is ripe with extensive legal work and requires significant time and investment itself – this would only be considered years down the road when our company is in a more mature stage. For example, Flora Growth, which raised over $32M through Reg A+, recently IPOed on the NASDAQ.
As you can see, there are a number of options available to us, and we want to pursue the ones that make the most sense! If you have any more questions about RYSE Inc. and this particular investment opportunity please do feel free to schedule a 15-minute call with our Investor Relations team, or call us directly at 1-888-456-7973. In the meantime, we hope you join us as an investor!