CCIF Business Plan

[dizzy]

For those who want to seperate MAC & CCIF: http://www.cciforum.org/pdfs/RPA_biz_plan.pdf

Be sure to check out the list of acknowledgements. :wink: And Initial Platform Companies.
Mitch

 

[JT]

Edited at the request of Sea Dwelling Creatures, Eric Cohen, and their legal counsel.

 

[Anonymous]

Well, *this* changes everything.

 

[clarionreef]

.... deafening silence...or are people still dumbfounded to see a living, breathing conspiracy theory proven in black and white before their very eyes?
I thought it was for the reefs...not Packard investors.
Investors 'tend' to want a return on investments. As money gets sunk in and fish do not come back as planned [ ie.... the proverbial ...sustained 245 clown triggers per kilometer surveyed on Indo reefs :lol: ]...and the ROI goes South...how then do these 'green' investors get back their money?
Nuff said....

Now, back to the employment want ads.
Steve

 

[Anonymous]

Exit Strategies
RPA will make investments in industries that are not typically publicly traded or
frequently acquired or sold. A typical “exit” strategy such as an IPO or acquisition at
high multiple may not be achievable. Instead, investors will benefit initially from the
inherent value of a well-run, profitable business – mostly cash dividends. In the later
stages, RPA will pursue some opportunities for consolidation of the aquarium industry
which may generate a more traditional “liquidity event”. At the discretion of the
Investment Committee, cash dividends may even be re-invested if this will greatly
enhance long-term value creation

 

[Anonymous]

CCIF explored pricing dynamics in the market through a number of interviews with
retailers, importers, and enthusiasts. The basic trends are no different from those of
most consumer goods: a group of knowledgeable aquarium enthusiasts is willing to
pay considerably higher prices for sustainably caught fish; they tend to understand the
mortality implications of cyanide collection techniques; and they genuinely care about
the long term survival of the source reefs. This group is no larger than 35 - 40% of the
market. The remainder of the market is made up of either institutional customers
(restaurants, offices, etc.) or casual consumers who tend to buy through large chains
(i.e., PetCo) and are primarily price driven. While this group of consumers has driven
the demand for extremely cheap cyanide-caught Philippine and Indonesian fish, they
have also been systematically misled about the collection practices: random visits of
retail outlets revealed that very few, if any, admit the presence of cyanide in their fish.

 

[Anonymous]

Sea Dwelling Creatures
RPA has signed a memorandum of understanding with Los Angeles-based Sea
Dwelling Creatures (SDC), providing SDC first right of refusal, as the primary U.S.-
based importer entity, in participating in the implementation of this business plan.
With estimated 2001 gross revenues of $9.2 million, SDC is one of the largest tropical
fish importers in the US. This privately held company has recently moved into a new,
state-of -the art facility next to Los Angeles Airport, which allows for seamless tracking
of each fish by supplier, state of health, etc. – an essential prerequisite for MAC chainof-
custody certification.
SDC has grown dramatically in the past two years; 1999 SDC had gross revenues of
$4.2 million and gross profits of $1.1 million, the company grew by 53% in 2000 to
yield gross revenues of $6.7 million. SDC revenues have continued to grow in 2001 at
a rate of 37%. This growth, and the preparation of the move to the new facility, has
increased SDC’s operating expenses by 55% this year, from $1.9 million to $2.9
million. The company has a stable cash position, with total current assets at $701,736,
and total current liabilities at $550,137. At $52,000, SDC’s net profits for 2000 have
been very low. However, operating margins will improve significantly in the next year
due to:

To that end, SDC proposes to use an RPA investment of $1.5 million. This
investment would allow SDC to:
1. Facilitate the conversion of a Philippine exporter to fully sustainable
practices by providing loan financing, harvesting/handling/husbandry
technical assistance, and a guaranteed US market;
2. Aggressively build a brand of certified fish in the US. Eventually, the
company hopes to shift its entire import business to a fully certified basis,
putting strong pressures on other importers to follow suit; and
Each of these activities is discussed in greater detail, below.
1. Convert a Philippine exporter to sustainable practices. Currently, aquarium fish
exporters in the Philippines do not operate at standards that are MAC certifiable – fish
are bought from independent contractors, tracking is spotty if available at all, cyanide is
still used in at least 40% of the harvest.9 SDC and RPA are currently in negotiations
with a number of exporters who wish to convert to fully certifiable operations. The
conversion would be loan financed by SDC – the company would, in return, receive
12% interest on the dollar-denominated note, as well as a forward contract on the fish
locking in a 15% discount for the life of the loan (since the Philippines do not allow
foreign majority ownership, and equity investments in this volatile political and
currency environment are difficult to control from the US, debt financing is
9 Based on results from 2000 laboratory tests on random sample of aquarium fish, International Marinelife
Alliance.
P O T E N T I A L I N V E S T M E N T S
31
preferable). SDC would direct the entire conversion process with full-time project
directors “on loan” to the exporter. SDC’s debt financing would be used to:
§ Build a central collection and shipping facility in Manila, set up to fully complement
SDC’s Los Angeles facility in terms of tracking procedures and handling protocol.
§ Build two regional collection stations with a salaried staff of 20 collectors each,
fully trained in non-destructive fishing practices. (See Table 7: for Possible
Implementation Sites).
§ Develop the required fishery management plans and monitoring protocols.
§ Provide sufficient working capital to allow the exporter to reach cash flow positive
operations.
A full, bottom-up financial proforma for this investment, including Income Statement,
Balance Sheet, Sources and Uses of Funds, Valuations/DCF analysis and Investment
Returns is available upon request.
2. Building a certified brand in the US. SDC will develop and implement a branding
strategy for certified reef products in the U.S. This will require intensive education of
key, large-volume retail customers, advertising to the retail trade channels, and broad
marketing to the end consumer. SDC will work closely with industry associations as
well as non-profit organizations such as MAC to coordinate the consumer education
effort.
A number of additional export-oriented investment opportunities exist, which RPA
may pursue, preferably with the active participation of SDC.

 

[Anonymous]

Rover wrote:
Quote:
CCIF explored pricing dynamics in the market through a number of interviews with
retailers, importers, and enthusiasts. The basic trends are no different from those of
most consumer goods: a group of knowledgeable aquarium enthusiasts is willing to
pay considerably higher prices for sustainably caught fish; they tend to understand the
mortality implications of cyanide collection techniques; and they genuinely care about
the long term survival of the source reefs. This group is no larger than 35 - 40% of the
market. The remainder of the market is made up of either institutional customers
(restaurants, offices, etc.) or casual consumers who tend to buy through large chains
(i.e., PetCo) and are primarily price driven. While this group of consumers has driven
the demand for extremely cheap cyanide-caught Philippine and Indonesian fish, they
have also been systematically misled about the collection practices: random visits of
retail outlets revealed that very few, if any, admit the presence of cyanide in their fish.

 

[dizzy]

Chip Barber must have been a key player in getting all this done.

§ The International Marinelife Alliance for their invaluable introductions to the
aquarium fishing trade in the Philippines, Indonesia, and the South Pacific.
§ Lida Pet of WWF-Indonesia for her invaluable introductions to the aquarium
fishing trade in Indonesia.
§ Lyle Squire of Cairns Marine Aquarium Fish for his generous time and
introduction to the reef fishing trade in Australia.
§ Scott Atkinson of WWF for his thoughtful review of the early drafts of this plan.
§ Charles V. Barber, World Resources Institute/International Marinelife Alliance, for
his endless support of our efforts and thoughtful review of this plan.Chip Barber must have been a key player in getting all this done.

 

[sdcfish]

It's very flattering to be the topic of discussion and reflect back on how we have come so far in such a relatively short time.

SDC appreciates all the support from customers world wide and we continue to raise the bar and set new high standards for the marine sector of the pet industry.

While we here at SDC continue to focus on our business and products, please feel free to contact me directly to discuss any concerns one might have.

Best regards to all,

Eric

 

[naesco]

Edited at the request of Sea Dwelling Creatures, Eric Cohen, and their legal counsel.

Edited by whom?

 

[naesco]

What a win win solution!

The reefs benefit because with cyanide gone, they can start the slow repair process.

Industry benefits as this is the only reeform initiative that I am aware of and if finalized in a short time will have an effect on the contents and timing of the BILL.

Hobbyists benefit because they will receive healthy fish instead of the cheap cyanide caught fish currently on the market.

Are other issue like the USL part and parcel to this initiative?

 

[dizzy]

Wayne this don't sound like good news to me:

"In the later
stages, RPA will pursue some opportunities for consolidation of the aquarium industry
which may generate a more traditional “liquidity event”."

It sounds like collateral damage.
Mitch

 

[naesco]

Wayne this don't sound like good news to me:

"In the later
stages, RPA will pursue some opportunities for consolidation of the aquarium industry
which may generate a more traditional “liquidity event”."

It sounds like collateral damage.
Mitch

Nay, that is just cool business plan lingo.

 

[dizzy]

Wayne I have to admit that bringing all the fish in through one super wholesaler might be the most efficient way to do things. Especially if the proper disease quarantine protocol is followed. hr4928 does stand to greatly reduce the available fish supply. Perhpas we should just congratulate Eric and see what happens. Congrats Eric.
Mitch

 

[JT]

Edited at the request of Sea Dwelling Creatures, Eric Cohen, and their legal counsel.

Edited by whom?

Edited by me sadly.

- Uncle JT

Disclaimer: Unfortunately because of one paranoid and insecure individual who repeatedly takes offense when I mention his or his company name, I must write this damn disclaimer. However, it is not my place to judge him.. only God can judge him so I must forgive him for his ways. So people, when reading my posts they are of my own opinions and thoughts and NEVER are the same viewpoint of my employer or any other organization I may represent. To threaten someone I work for over something I say here is blasphemy.

 

[nanocat]

To threaten someone I work for over something I say here is blasphemy.

Uhh, actually it's not blasphemy.

I think it falls more under the category of wimp, and chicken **** :lol:

 

[Joew]

wouldn't SDC be considered a monopoly then? and would the FTC have to stomp them?
_________________
failed banks

 

[JT]

Joe: That's been the basis of several consipiracy theories for the past couple of years. A group of select few coming in to take over the ornamentals industry.

Don't know the legal ramifications though.

- Uncle JT

Disclaimer: Unfortunately because of one paranoid and insecure individual who repeatedly takes offense when I mention his or his company name, I must write this damn disclaimer. However, it is not my place to judge him.. only God can judge him so I must forgive him for his ways. So people, when reading my posts they are of my own opinions and thoughts and NEVER are the same viewpoint of my employer or any other organization I may represent. To threaten someone I work for over something I say here is blasphemy.