Please note, investment in the Company must be in multiples of $1,500.00 which is the face value of each Convertible Promissory Note
The Company is offering to Investors a Convertible Promissory Note with the following terms:
The Idea and Solution
The lighting market is undergoing a substantial paradigm shift from antiquated incandescent and fluorescent lamps to more technologically advanced LED lighting products. The technology has always been much more environmentally responsible, but now is finally affordable and easy to implement. The considerable cost savings that are generated via reduction in energy consumption delivers an outstanding return on investment for the customer.
Projections forecast that revenues in the global LED lighting market will grow to approximately US$140 billion in 2020. Global population growth and urbanization are increasing the overall demand for technologically advanced lighting products. At the same time, governments around the world are passing legislation that is forcing the lighting industry to produce more energy efficient light bulbs with longer lifespan resulting in lower labor costs, capable of reducing the load on aging electrical infrastructure and lessening the impact on our environment.
Citadel has identified numerous commercial customers who are significant consumers of energy, with multiple brick and mortar locations in the hospitality, retail, commercial office, multi-unit residential buildings, and the outdoor sign market sectors.
Sales and Marketing Strategy
Citadel will implement a “Direct to End User” delivery model, as opposed to selling and marketing its products via large scale retailers (eg. Home Depot), electrical wholesalers and third party distributors. The Company is developing a North American sales force comprised of several hundred commission driven independent sales agents who will be responsible for product sales in a clearly defined specific territory. In order to best accommodate today’s rapid response to customer needs, the sales agents will be equipped with tablets that are loaded with proprietary software containing digital catalogs with instant access to current pricing, inventory levels and new product introductions. Another feature will allow the sales agent to perform an onsite energy audit and provide the prospective customer with forecasted cost savings should they undertake a retrofit.
Citadel’s ability to leverage current relationships with our manufacturing partners and implement our direct sales system provides for a significant competitive edge. The Company is able to cycle inventory faster and maintain higher gross profit margins than the current industry standard. Our direct sales system also allows the Company to offer higher than usual commissions to its agents, who will be managing exclusive territories in States and Provinces. Citadel’s sales model has the cumulative effect of i) eliminating layers of mark up ii) minimizing overhead and iii) rapidly scale the business thereby achieving the phenomenal year over year growth rates as forecasted.
Citadel has already completed retrofit projects at several locations for a major North American hotel chain and an American university managed by one of the largest facilities management companies. The Company is currently in joint product development negotiations with North America’s second largest outdoor sign company, with the objective of replacing fluorescent tubes with LED tubes in their manufactured signs.
Use of Proceeds
The Company intends to use most of the capital raised (60 to 90 percent dependent on the final amount) to fund the acquisition of inventory and accounts receivable. Citadel will invest the proceeds from the Company’s sales and use those funds to acquire additional inventory to drive both further sales and market expansion.
The Citadel Management team is comprised of executives with combined decades of experience in the North American importation and distribution of hard goods, supply chain management, quality analysis and quality control, management of a territorially diverse sales force as well as accounting and finance.
Once revenue milestones have been achieved, management will consider the best exit strategy for its shareholders. This may include issuing additional debt instruments in order to drive further sales growth , a strategic merger with, or acquisition by, another entity in a similar market sector, or an IPO (Initial Public Offering). There is already a clearly defined exit strategy as per the terms of the Offering since Citadel is required to redeem the Convertible Promissory Notes for any investor who is not interested in converting all or a portion of their investment in to common shares of the Company.
Citadel LED Lighting Inc. (“Citadel”) is a private company headquartered in Vancouver, B.C. Canada who has partnered with innovative Chinese lighting manufacturers who utilize state of the art technology to bring leading edge LED lighting products to North America that are more aesthetically appealing, more efficient and more affordable than the current leading name brands. Citadel LED Lighting Inc. is poised to become an industry leader in an increasingly energy conscious and environmentally aware society.
Citadel is offering to investors a vehicle that offers a combination of investment features, including a competitive annual interest rate, the opportunity to convert all or some of the Notes into equity of the Company at a fixed price, a clearly defined exit strategy via redemption of the Notes, and an additional opportunity to purchase common share warrants.