Hi and welcome to the investor FAQ page.
Throughout our crowdfunding campaign, we have enjoyed talking to so many of our now investors and shareholders in Lilly's Little Lunchbox.
Below are some of the common questions we have discussed with our investors. We will be sure to update this page with more information along the crowdfunding journey.
If you have any specific questions please email us at email@example.com or call our Director of Business Development and Growth, Chris Heydon on 0402 089 484.
If you have not invested yet it is simple but get in quick before the offer closes 8 June. Please visit the Lilly's Little Lunchbox company page on the Birchal crowdfunding website, review the offer document and click to invest from as little as $250.*
1. How focused is Lilly's Little Lunchbox on Sustainability?
Sustainability is a top priority - A constantly evolving and exciting part of our business.
At Lilly’s Little Lunchbox we are super conscious of our environmental impact and responsibility in helping parents and carers teach their kids not only about healthy eating but also healthy living – and that means looking after this wonderful planet we call home.
Lilly's Little Lunchbox strives to use the most environmentally conscious and sustainable packaging wherever food safety standards permit.
We originally launched with fully compostable packaging but the technology wasn’t quite up to standard for our customers who demanded longer shelf life for their meals and fewer deliveries per week.
Back when we launched, in September 2021, customers needed 3 deliveries per week due to the low shelf life of compostable packaging technology at the time.
It is also critical that we fully comply with strict food safety standards here in Australia. Something we pride ourselves on at LLL ensuring we adopt above standard processes and practices in our kitchen and food handling.
Currently, our food safety-compliant packaging is reusable and recyclable and locks in freshness for 7 days in the fridge once customers receive their weekly delivery.
There are some inspiring compostable products in the pipeline that may meet our regulatory requirements for food safety and we, personally and as a company, keep a keen eye on these emerging technologies and cannot wait to adopt them within our business whilst ensuring our premium quality and freshness is maintained.
An exciting company we keep an eye on is Notpla which has been announced as the winner of Prince William’s Earthshot Prize. Their mission is making food containers fully biodegradable using seaweed and plants that disappear naturally – so it feels pretty good to know what is potentially in the pipeline for our business and sustainable practices.
In Australia, our current transparent PP trays are recyclable through curb-side collection (check with your local council – just in case things change).
Once recycled, given the flexible nature of PP it can be turned into many things post-consumer recycling such as:
2. Is there a plan to increase the debt level or change the balance sheet structure? At this stage, we would refer you to the Offer document (on the Birchal website https://www.birchal.com/company/lillyslittlelunchbox) - Specifically section 2.6.3 - Sources of Financing which states: As at the date of this Offer, other than the Founder loans, the Company has not relied on debt financing to fund its business activities. The founding shareholders have loaned start-up funds to the Company. The key terms of these loans are set out in the offer doc. The directors of the Company, in consultation with the Company Advisory team (who specialise in these matters), may take on Debt in the future to take advantage of growth opportunities and manage the balance sheet structure in the best interest of shareholders, however, our preference is to raise capital at this stage through the sale of equity.
3. What stage is the company at, what have you achieved? After well and truly proving our original concept and now considered a leading emerging business - it's our mission to be the world's largest and healthiest tuckshop - delivering dietitian-designed, fresh and healthy lunches made for kids, with the incorporation of the 5 core food groups in every meal, instilling healthy eating habits in younger generations. We’re ready to take on the $1.5 Billion revenue p.a prepared meals production industry (IBISWorld) with a strategy to build our business hard and fast and capture the interest of private equity firms and other major players here in Australia and internationally who are looking to acquire an established operator in this growing industry. Since launching our crowdfunding activity in April 2023 we have seen 600% increases in sales of some of our core products. We've been overwhelmed by the response of those expressing interest in sharing in our future success and attracted national media attention and adoption Lilly's Little Lunchbox Key highlights:
Established demand for a new product (not currently available anywhere else in the market) seeing quarter-on-quarter revenue growth trend since launch in 2021
Refined production processes to implement in the new larger kitchen facility with a strategy to decrease Cost of Goods Sold as sales volume increases
Strategically partnered with a national distribution network - off the back of which, we have expanded across QLD, launched in NSW and announced we will start taking orders and delivering to Vic and ACT in May/June 2023. SA and WA to follow by 2024.
Developed over 80 meal types, variations and products
Created and delivered well over 10,000 nutritious meals in SEQ and NSW
4. What is the strategy moving forward? We’re ready to take on the $1.5 Billion revenue p.a prepared meals production industry (IBISWorld) with a strategy to build our business hard and fast and capture the interest of private equity firms and other major players here in Aus and internationally who are looking to acquire an established operator in this growing industry. We aim to focus on shareholders by opening our doors to customers across Australia increasing customer volumes and sales revenue while implementing efficiencies through strategic supplier negotiations, reducing input costs. In the pre-made meal industry as well as many other manufacturing industries - we all know, the more that sales volume increases and input costs decrease, the more opportunity to enjoy positive EBITDA and profit margins.
5. When will I receive a return on my investment?
It depends! When you make an investment under a CSF offer, you should consider this a "medium to long-term" investment. You are purchasing shares in an unlisted company and these are generally considered 'Illiquid' - they not traded on a public exchange like the ASX and so you may not be able to easily transfer the shares or sell them when you want to.
Many companies that make a CSF offer are new, early stage or rapidly growing ventures. Companies in the early stages of the business usually have some years of hard work ahead of them in order to grow the business and execute on its strategy. This is what your investment money will be spent on.
There may be various events or ways for you to receive a return on your investment. For example:
the company undertakes an IPO and lists on a securities exchange like the Australian Stock Exchange
the company undertakes an exit event, like a sale of the company (to larger players in the pre made meal sector or Private Equity forms who have interest in owning part of whole of an established operator like Lilly's Little Lunchbox in a few years)
you transfer your shares to a third party and a price for the shares is agreed
the company declares dividends (see — Will I receive dividends from the company I invested in?)
the company undertakes a share-buy back
the company participates in a trade facility, like Birchal Trade
At this early stage, it is not likely to be reasonable for a company to predict when one of these options might eventuate or what the return on investment might be.
We recommend you read the company's constitution and CSF offer document carefully to satisfy yourself of the investment opportunity and associated risks. You should also review additional company material and speak to us via the contact details below.
If you are unsure, we recommend you seek independent financial, legal or other professional advice.
If you have any specific questions please email us at firstname.lastname@example.org or call our Director of Business Development and Growth Chris Heydon on 0402 089 484. If you have not invested yet it is simple but get in quick before the offer closes 8 June. Please visit the Lilly's Little Lunchbox company page on the Birchal crowdfunding website, review the offer document and click to invest from as little as $250.
*Always consider the general CSF risk warning and offer document before investing.