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Changing The Face Of The Golf Industry
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Investment Opportunity Available To Investors Of All Wealth Levels
GolfSuites 1 Regulation A+ Offering
This offering for GolfSuites 1 has been qualified by the SEC to sell shares under Regulation A+ to investors of all wealth levels. The company intends to raise up to $50M. Investors will be paid an annual dividend of 8% invested capital, paid monthly.* For many investors, the dividends may be tax-free for several years.**
Today we are offering an investment in GolfSuites 1, the Midwest region. We intend to add five additional regions, subject to the SEC qualifying their Regulation A+ filings.
$5.10 per share
Minimum Investment Price
$500 per investor
Special Opportunity for Accredited Investors Only
Regulation D 506c Stock Offering in KGEM Golf, Inc. (The GolfSuites Parent Company)
Today we are presenting the opportunity for professional and accredited investors to invest in the parent, corporate company, KGEM Golf, Inc. (GolfSuites) in a $30 million Reg D offering. In addition to participating in our anticipated growth, we plan to distribute a tax-free dividend at the annual rate of 8% paid monthly. * For many investors, the dividends may be tax-free for several years.
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*Since the tax treatment of any distributions may vary according to the financial performance of the company, as well as the particular circumstances of the investor, investors should consult their own tax advisers, and should not assume that the distributions will be subject to the same tax treatment from year to year. GolfSuites 1, Inc. will not generate revenues or profits until the company has built facilities, and there is no guarantee that those facilities will be profitable. The company will set aside a capital reserve as investments are received; dividend payments will initially be made from this reserve. There can be no guarantee of future profits.
**During the early years it is likely that dividend payments will be tax-free due to favorable real estate depreciation tax rules combined with the likely treatment of dividends as a tax-free return of capital to investors and thereafter as capital gains income for a limited period. The dividend will only be payable to the extent there are legally available funds. GolfSuites does not offer tax advice. Investors should consult their own tax adviser for information regarding their own tax situations.
The broad appeal of new concepts like GolfSuites is apparent by reviewing some of the demographics of various golf facilities. TopGolf shows 51% of its audience are non-golfers and 54% are in the very desirable 18-34 age group, according to Sports Business Daily. Cities like Houston and Dallas each have four to five TopGolf locations. These facilities have the potential to generate gross revenue in excess of $300-500K each per week. Existing facilities are estimated to produce gross revenue of $15-25M annually based on location, facility size and population densities. In addition, the local economic impact of each of these facilities may be as much as $250 million over 10 years, based on primary research at 30+ sites, industry estimates, and TopGolf press releases and marketing materials.
TopGolf has shown these facilities can draw large numbers of customers to their facilities. However, it is clear there is an under-supply of facilities to meet the acute demand for these golf-themed entertainment centers. Analysis of 1st, 2nd and 3rd level Metropolitan Service Areas (MSAs) in the US suggests there are opportunities for 1000+ facilities of varying sizes. These include many state capital cities, large urban metro areas, college towns and other population centers with favorable demographics.
The company will operate under the brand name “GolfSuites” and is a subsidiary of KGEM Golf, Inc. KGEM has six operating subsidiaries each covering a different region in the United States. The first region seeking funding, GolfSuites 1, is located as shown in the map.
The food and beverage segment of the $552B hospitality market consists of bars, restaurants, cafes and other food and beverage establishments. Food and beverage currently is a $16.25B industry and projected to grow to $26B by 2022.
Golf facilities make up a huge portion of the $84B golf industry, operating 15K locations that generate $33B of revenue.
Meeting Market Demand
Evolving The Golf Experience
Over the last 20 years, traditional 18-hole golf course participation has been declining. This is not necessarily due to lack of interest, but rather to the challenges and issues surrounding the sport as it exists today. This includes three major factors: the time required to play 18 holes; the cost of equipment and course/membership fees; and the skill level required to play. However, golf participation, specifically first-time players, has grown steadily over the last five years and is projected to keep growing. Even more telling is the fact that very interested non-golfers who expressed an interest in playing grew from 8 million in 2013 to 15 million in 2017 according to the National Golf Foundation.
This proves that the issue is not with the sport of golf, but with the overall golf course and practice range experience. For seasoned golfers, the concerns are unpredictable weather, course access and available tee times, lack of events, poor food and beverage options, among others. For new golfers, social and skill level intimidation is at the top of the list, followed by cost, golf course etiquette and dress requirements, and the cost of renting or buying equipment.
GolfSuites is designed specifically to capitalize on these trends. New golfers are looking for more affordable, less time consuming, less intimidating ways to embrace the game. Entirely new types of facilities and experiences are coming to market in hybrid golf-themed entertainment venues. These facilities are designed not just for avid golfers, but tailored for beginners, family fun, entertainment, recreation, corporate and family events, and provide a more casual, party-like atmosphere.
“Off-course” golfers who didn’t play golf on a regular golf course during the past year but played at a modern driving range, golf entertainment venue like GolfSuites or on an indoor golf simulator grew to 8.3 million in 2017 according to a National Golf Foundation (NGF) survey. New hybrid golf and entertainment facilities are attracting first-time golfers at the rate of 51%.
Technology is providing new capabilities, critical game improvement data, better engagement through gamification, customization and social sharing for both new and avid golfers.
AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. IT DOES NOT MEAN THAT THE SEC HAS APPROVED, PASSED UPON THE MERITS OR PASSED UPON THE ACCURACY OR COMPLETENESS OF THE INFORMATION IN THE OFFERING STATEMENT. YOU MAY OBTAIN A COPY OF THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT FROM:
YOU SHOULD READ THE OFFERING CIRCULAR BEFORE MAKING ANY INVESTMENT.
Market size estimates are based on the Company’s internal analysis of primary research at 30+ sites, industry estimates, MSA data, and TopGolf press releases and marketing materials.