Tuesday, 13 October 2015

Cauli Rice looking for more money, again.

Our advice to investors looking at Cauli Rice is do your research. Be aware that the CEO has, since 2011, managed to raise considerable sums on Crowdcube for this and her other business Righteous - neither of which have managed to get even close to the sales forecasts used to sell that equity - ever. We are sure the many investors in Righteous will be delighted with the CEO's comment last February to Management Today '' 'The great thing with Righteous is that it's been four years running so now it's running quite a lot on its own,’ - !! What you might call a little bit flitty?

This is Cauli's third raise - in the first there was no mention of another one let alone another two.  In fact the figures given for the previous 12 months in this pitch have nothing in common with the ones presented only months ago for the second raise.

Then you have the valuation - enough said. Of course it may be the next sliced bread but there is no evidence it is yet.

Look carefully at the sales projections - the first year now has twice the sales volume projected for it only months ago based on only a months sales figures in their new listings. Those are high stakes. Look at the GPM - it has jumped around all over the place since their first predictions - as has EBITDA. Timescales are completely elastic. One thing we can guarantee - the company will not follow the path they predict. It's like they dont know how to plan ahead.

On the plus side, they have excellent listings and according to the company these are going well - but then this company has always said that but never actually delivered. Righteous, which has never achieved its targets, is at last starting to see some level of profit.

It does strike us a enigmatic to be majoring on health, as Cauli does, when they are producing an easy eat, mass produced version of a home made healthy product that takes a few minutes to prepare. It's a bit like presenting large volumes of home made bread, sliced and packaged already buttered with massed produced jam. Just eat.

Be sure that Cauli will be  back for more funding at least once and that your holding will be diluted to infinity. It will complete as its already 75% there with one investor (VC?) putting in £150k. Have a fun ride.

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