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Goal To encourage new owner investment in the thoroughbred industry of Alberta. The syndicate is designed to bring new owners into the industry, while providing an informed and committed management team to ensure that new owners receive the maximum return on there investment. Such a return shall not be measured purely on financial gain but in terms of learning, understanding, exploring and experiencing the world of thoroughbreds in a positive and embracing environment. The program ensures that new owners will be part of an experienced team to help them learn the ropes and protect them from some of the pitfalls sometimes associated with new ownership of racehorses. Programs "Run For Fun Stables" shall sell shares to new owners or previous owners looking for a more comfortable group purchase opportunity. We currently offer three forms of syndicates: 1. No Buy in (the most economical choice) 2. Claiming 3. Yearling purchase Although syndicates will vary on a case by case basis, the goal is always the same - acquire horses and run them for fun with the potential to make a profit. Each syndicate opportunity is slightly different. Some syndicates will have a minimum buy in amount in addition to a monthly fee, while others will have no buy in, where each partner would be responsible for only the monthly fees estimated at $150 - $160 per month, except for winter months which are only about $40 per month. Monthly expenses for all syndicates are estimated the same. These can vary from horse to horse based on vet expenses, travel, shoeing, etc., but usually January, February, and March payments are about 100 - 120 dollars per month, per 10% share. April through October are $150 - $160 per month, per 10% share. This is when the horse is actually racing. November and December are only about $40 per month, per 10% share. This is when the horse is on vacation or rest (No racing in Alberta during these months). No buy In Syndicate In a No Buy In syndicate, the horse is already owned by Run For Fun Stables. Therefore, there is no need to purchase or claim a horse. Each owner is only responsible for his/her share of the horse's monthly expenses. If a no buy in syndicate horse is sold or claimed from Run For Fun Stables, a predetermined value will be paid to Run For Fun first, then the balance will be split between the investors. For example, Cool Mint's value has been pre-determined at $2,000. If she is claimed from us for $10,000, $2,000 will go straight to Run For Fun Stables and the remaining $8,000 will be split between the investors. Claiming Syndicate The difference between claiming and no buy in is that a share of a claiming syndicate will cost each investor 10% of whatever the claiming price is. For example, if we claim a $10,000 horse, a 10% share is worth $1,000. Each claiming syndicate buy in price will be different based on the claiming level of the horse we decide to claim. In addition, the monthly fees are in effect. Yearling Purchase Syndicate Each yearling syndicate will be slightly different from one another, it is dependent on the purchase price of the yearling we decide to buy. For example, our 2008 yearling syndicate cost each owner $2,000 per 10% share. and these funds were used as follows: $10,000 was the purchase price of our yearling. $2,500 will be used for it first three months of breaking/training, transport and board expenses. $7,500 dollars will be used for training and board and transport expenses from January until the end of June. At this point in time we should be ready to race, and the usual monthly expense will take over. The intent is that these investments be self sustaining once fully capitalized, and such shall not require further investment by the stakeholders. However, all investors must be aware that by its nature, the thoroughbred racing industry is volatile in nature and that while each new owner will have the potential to experience many new emotional and financial highs, there is also the possibility of financial risks associated with the sport. As such, it is entirely possible that the syndicate will have future cash calls, and it will be incumbent on each unit holder to contribute the further capital as may be required based on there pro rata share. Investors should be aware that the average twelve month cost to own and maintain a thoroughbred racehorse in Alberta is approximately $16,000. ALL AMOUNTS SHOWN ABOVE ARE APPROXIMATE AND SUBJECT TO ADJUSTMENT BY THE SYNDICATE MANAGER. ALL PRICES ARE SUBJECT TO GST AND ARE BASED ON THE HORSE MAKING NO MONEY AT ALL For further information please contact: Run For Fun Stables Jason Pitruniak 89 Newport Cresent St. Albert, Alberta, Canada T8N 6Y7 E-mail: tj2004@telus.net Phone: (780) 458-3483 Fax: (780) 460-2129 |