Here is an interesting Reg A+ crowdfunding offer. Red Mountain Resort, a ski area in British Columbia, Canada, is in the midst of a “Testing the Waters” (TTW) campaign as a precursor to selling shares in the company. As of earlier this month, Red Mountain Resort has surpassed its target of $10 million in indications of interest as it prepares for Phase 2 in the fall. According to the offering page on StartEngine, Red Mountain Resort has registered 3,030 potential investors with a reserved goal of $10.8 million. The company expects to sell equity in the resort later this year.
So what is Red Mountain Resort? It is a ski area in Rossland, BC that is pretty huge. Red Mountain claims 2,877 in acreage – bigger than Jackson Hole, Copper Mountain, Snowbird and more. In 2012, Red Mountain was voted the top Ski Town in North America by Powder Magazine. With a vertical drop of nearly 3,000 meters, 5 mountains and 7 different lifts, Red Mountain sounds pretty good. It also claims the “best gladed tree runs in North America.”
So what will Red Mountain Resort do with any money that it may raise? Pretty much what you would expect; remodeling of facilities (Paradise Lodge), expanding ski-runs, building a new restaurant/clubhouse and boosting summer activities.
What do you get if you invest? Well the offering circular required to issues shares under Reg A+ is not available yet. Once that is filed you will better understand the share structure, the valuation and what any equity ownership may mean. But Red Mountain is offering some interesting investor perks. They are as follows:
- $1000 – 5 transferable adult lift tickets good for 5 years
- $3500 – 10 transferable adult lift tickets good for 5 years
- $5000 – 1 Adult Season Pass for 1 year, 10 transferable adult lift tickets good for 5 years, limited edition set of custom skis or snowboard
- $7500 – 1 Family Ski Pass for one year, 10 adult lift tickets good for 5 years, plus limited edition set of custom skis or snowboard
- $10,000 – Overnight stay in mountain cabin, 1 family ski pass, 10 adult lift tickets and 2x custom skis or snowboard
- $25,000 – 5 year long family season pass or 2 x 7 adult season passes. Overnight cabin stay, 2x custom skis or snowboard, 10 adult lift tickets
You can do the math.
Fight The Man. Own The Mountain.
Red Mountain resort has stubbornly maintained their “mom & pop / weird uncle feel” for more than 100 years. With enough investors, they can keep things going and growing. By offering “shred equity”, Red Mountain Resort wants to align their interests with their customers. A quick trip to TripAdvisor shows pretty solid reviews of the Red Mountain experience. There is also great FAQ that may answer a lot of your questions on the Resort website here.
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