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Black Opal Capital Partners, LLC

Black Opal Capital Partners, LLC

Operator of boutique luxury resorts in the Caribbean, seeking acquisition capital for profitable Cat Island Bahamas Resort.

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Deal Type

Equity

Funding Goal

$1,600,000

Current Reservations

$400,000

Minimum Reservation

$10,000

Maximum Reservation

$1,600,000

Deal Stage

Seed

Pre-money Valuation

$4,800,000

Open Date

07/10/2019

Closing Date

12/01/2019

Elevator Pitch

Unique opportunity to ownership in one of a kind destination resort in the Bahamas. Our business model includes the sale of insured vacation club interests returning purchasers money at end of term.

Company Overview

Black Opal Capital Partners, LLC is the U.S. based parent company to The Beach Club Bahamas, the operating subsidiary. Black Opal seeks acquisition capital in the amount of $1.6 million in return for 25% of the equity of the subsidiary, thus providing investors a 29% ROI based upon our expected results. We are an owner, operator and manager of third party owned boutique luxury resorts in the Caribbean. Demographic and economic trends in the Caribbean have been extremely favorable, with the Bahamas among the strongest destinations. We intend to re-position Beach Club Bahamas in the luxury travel segment as a mixed use resort property. The resort is situated upon 3 acres of beach front, and included in the sale is an additional 180 linear feet of beach front, that will provide our expansion opportunity. The resort as it exists today is modestly profitable with 21 rooms, restaurant& lounge area, dive shop, pool and other associated amenities. Approximately 60% of resort guests are repeat, thus showing high levels of guest satisfaction. Our business model includes not only resort room rentals, but the sale of fractional/vacation club interests. Unique to our vacation club/fractional model is that we insure the purchaser through Lloyd's of London in such a manner that at the end of their ownership term (usually 15 years), they receive 100% of their purchase price returned to them, thus providing an extremely compelling purchase condition. We intend to highlight eco-tourism, luxury, privacy, the "art of relaxation", as well as a host of outdoor activities & sports. Cat Island is inhabited by 4,000 residents, creating a pristine environment, with spectacular beaches. We have assembled the entire team that made The Beach House Barbuda such a success, purchased for $5 million and sold four years later for $14.5 million and operationally profitable in year 1.

Key Customers & Partners

Graces Distinctive Properties Blue Mountain Marketing

Frequently Asked Questions

Why did you choose Greenwood Beach Resort?

We believe that our acquisition price is at a significant discount to the company's asset value. The resort further meets our requirements for a re-positioning of the resort in the travel and tourism market and characteristics necessary for the sale of fractional and vacation club interests. That the resort is profitable, and exhibits a high percentage of returning guests was also critical. The island and resort amenities allow us to market the one of a kind destination with a focus towards eco-tourism, outdoor activities, privacy, and the art of relaxation. We further believe that the rising cost of real estate in Florida and increasingly crowded areas cause the Bahamas close proximity to the U.S., English speaking, stable government, and other factors cause the Bahamas to be viewed as an extension of the U.S. and an increasingly attractive retirement and vacation destination.

Is the sale of fractional/vacation club interests a vibrant market?

Yes, it is a $10 billion in annual sales business worldwide, and particularly popular in the Caribbean in general, and Bahamas in particular. Our marketing partner Blue Mountain Marketing has sold over $1 billion of product, and has created the insured fractional/vacation club interest. Insured by Lloyd's of London so that at the end of the term of use, the purchaser receives a 100% return of purchase costs. This is a tremendous sales tool where it lowers the cost of ownership for the purchaser, and increases buyer retention. Blue Mountain believes a complete sellout can occur over 18 months, however we have spread such over a five-year term.

Is the business model scale-able?

Yes, the parent company controls 30 acres of ocean-front on the island of Barbuda and our plans include developing a luxury resort on the unique island destination. Management further desires to be opportunistic in acquiring other boutique resorts that meet the company's acquisition criteria. Two important criteria in that analysis are that the resort must be profitable, or able to achieve profitability shortly after the implementation of managements re-positioning strategies, and it must be able to finance itself based upon the value of its assets or cash flow. The depth of the management team was created specifically to grow the company by acquisition, and to manage other luxury resorts owned by third parties, all of which accretive to the company's potential profitability.

Are hurricanes and tropical storms a concern?

Yes, however there are certain things that can be done to mitigate the risk: 1. Insurance against hurricanes is a "cost of doing business" and we have factored such into our financial projections; 2. Technologies specific to construction in hurricane zones has greatly improved the structural integrity of buildings in such locations. When one views destruction by hurricanes, the local residents typically have been unable or unwilling to embrace these technologies, and thus have been subject to wide spread destruction with simple wooden structures that were inexpensive to construct and unable to withstand the forces of nature. Embracing these technologies is critical to our acquisition and development strategies where acquisitions must exhibit the ability to withstand such forces without significant damage and future development will incorporate the latest technologies. Retirees and tourists continue to flock to destinations despite these risks, ie: Florida.

Do I receive any perks as an investor in the transaction?

Yes, an investment of $10,000 provides 3 weeks (food & beverage excluded); $25,000 three weeks all inclusive, $50,000 or more five weeks all inclusive.

Risks & Disclosures

1. Failure to raise sufficient capital required to acquire and re-position resort in such a way to properly execute managements business plan.

2. Tropical storms and hurricanes, while insurable, can cause significant damage to the resort, island, and island's infrastructure, thus causing short or long term business interruption.

3. Loss of key personnel can negatively impact the execution of the business model and potential success of the company.

4. Economic recession in one or more of the company's target market could negatively impact travel and tourism, thus preventing the company from achieving its projected results.

5. Potential dilution should the company need to raise additional capital.

6. Lack of liquidity as the company is a private company, and no public or private market exists to facilitate the sale of shares, as such investors should be viewing this as a long term investment, with no view to the sale of such investment.

7. Management will control a majority of shares of the company and as such will control election of directors, and control the operations of the company.

8. Changes in laws may negatively impact the sale, or increase the cost of the sale of fractional and vacation club interests, negatively impacting the company's financial projections.

9. The company's financial projections are just that, "projections" that may or may not prove to be accurate in either the short or long term.

Documents

Confidential

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