FREQUENTLY ASKED QUESTIONS
Have a question about the offering, the future of HYLETE, or just need more information? Please use the forum below to post questions or comments. Please Note: All entries will be moderated so they may not post right away.
No. Both accredited and non-accredited investors can participate in both the equity and bond offerings. Non-accredited investors are limited to investing 10% of their income or net worth per year.
An accredited investor is one who demonstrated an annual income of $200,000 or $300,000 for joint income, for the last two years with the expectation of earning the same or higher income. A person is also considered an accredited investor if he or she has a net worth exceeding $1 million, either individually or jointly with a spouse. The SEC also considers a person to be an accredited investor if he or she is a general partner, executive officer, director or a related combination thereof for the issuer of unregistered securities.
A non-accredited investor is one who does not meet the net worth or income requirements mentioned above. He or she has a net worth of less than $1 million (including spouse) and who earned less than $200,000 annually ($300,000 with spouse) in the last two years. A non-accredited investor may invest no more than 10% of the greater of the investor’s net worth or annual income.
Absolutely. There is a separate process for international investors, as our current platform is set up to only accept investments from American citizens.
To invest in HYLETE from outside of the United States, email email@example.com using the name and email address you would like to be used for your investor account. We will then send over a Docusign agreement containing the subscription agreement, instructions for wiring your funds, and the offering circular. When you complete and sign the agreement, you can send the Docusign to firstname.lastname@example.org, along with a copy of your passport for identity verification, and proof of your address. Proof of address can be in the form of a utility or lease statement, bank statement, or something of the like.
After you complete the investment workflow via the WealthForge platform, it takes 3-5 business days, on average, for your funds to process and your investment to be approved. After your investment has been approved by WealthForge and sent back to HYLETE to countersign your subscription agreement, you will receive an email from HYLETE informing you that your funds have been distributed and your Investor Account on HYLETE.com has been activated and/or upgraded, depending if you were already an investor in HYLETE.
If you have any questions regarding your investment, feel it may be taking too long or would like to know where your funds are at in the investment process, you can email email@example.com, or ask your question in the Q&A below.
Yes! If you choose to invest through your IRA, the names on all of the investment paperwork must reflect that. As such, most IRA providers will title something along the lines of “XYZ IRA fbo (investor name)”. All documents must be titled appropriately for the investment to be approved. Please consult your IRA custodian on how to properly title your subscription documents.
When completing the investment workflow, you will choose ‘wire’ instead of ‘ACH’ when you get to the payment type page. The wire instructions will be included in the DocuSign sent over immediately after you complete the investment workflow. You can then wire in your funds from your IRA.
Regulation A+ of Title IV of the JOBS Act was enacted in 2015, and is a type of offering which allows private companies to raise up to $50 million from the public. Like an IPO (Initial Public Offering), Regulation A+ (Reg A+) allows companies to offer shares to the general public, and not just accredited investors. The improved Reg A+ fixes the provisions of Reg A. First, by raising the maximum ceiling from $5 million to $50 million and secondly, eliminating the state compliance requirement.
By pursuing a Reg A+ offering, we are inviting our community members to share in our success.
Title IV of the JOBS Act allows startups and late-stage pre-IPO companies to use equity crowdfunding platforms to raise as much as $50 million from both accredited and non-accredited investors.
Broken up into two tiers, Tier 1 allows you to raise up to $20 million while Tier 2 allows you to raise up to $50 million. In Tier 1, anyone can invest worldwide, the company can publicly advertise, financials are required, there is no limit on investment amount, and Blue Sky laws in each US state that investors live in must be satisfied. In Tier 2, anyone can invest worldwide, the company can publicly advertise, there is no state registration required, audited financials are required, and non-accredited investors are limited to 10% of income or net worth per year.
HYLETE is participating in Tier 2.
A bond, also known as a fixed-income security, is a debt instrument created for the purpose of raising capital. They are essentially loan agreements between the bond issuer (in this case, HYLETE) and an investor, in which the bond issuer is obligated to pay a specified amount of money at specified future dates.
In the case of the HYLETE bonds, we are obligated to pay each investor 1% per month on the total bond amount, and then also pay the original total bond amount back to the investor at the bonds’ maturity date of 36 months/3years.
General solicitation is public fundraising. General solicitation allows companies to tell the general public they are raising money. On September 23, 2013, the U.S. passed Title II of the JOBS Act that allows startups to raise money publicly.
Investing in early-stage companies involves risk. You should not invest any funds in either the equity or bond offerings unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offerings, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
After you complete all of the necessary steps to invest in HYLETE, you will receive an email from Carta, our SEC-registered Transfer Agent. When you receive your email, you will be prompted to accept your shares.
Once you have purchased your shares and funds have been distributed, you can transfer shares to others. Through our SEC-registered transfer agent, Carta, you can transfer your shares. While you cannot purchase shares for someone else, Carta makes it easy to transfer those shares to the person(s) of your choosing.
To transfer your shares, please send us the name, email, and residential address of the person you wish to transfer the shares to, as well as the number of shares you are transferring. We will then send over a Stock Power and Assignment Separate from Stock Certificate via DocuSign. After it is executed, we can authorize the transfer through Carta.
For any questions regarding share transfers, please reach out to firstname.lastname@example.org
HYLETE’s mission is to become a community driven billion-dollar fitness lifestyle solution, and to forge a fitness lifestyle ecosystem founded upon the needs and desires of our HYLETE nation community. Our vision is to be the next generation athletic brand that is community built, backed, and driven.
We believe that we will be the next generation of athletic brands that leverages community and new paradigms to create a loyal following. We intend to be the first brand that is built, backed, and driven by our community. We believe we can engage a community of 1 million+ members who, despite various backgrounds, ages, and economic levels, all share a desire to live a fitness lifestyle in the easiest, least expensive manner without sacrificing performance or integrity.
This ecosystem that is tied to the direct desires and benefit of the community will drive a loyalty that we hope makes HYLETE the reference brand in which people cite in the future when they speak of “brand loyalty”. As we continue to grow, we will be able to drive value back to the community in ways that no brand before us has ever envisioned. We have a long way to go to make this a reality, but we have the right foundation, vision, and investors to get there.
We are a digitally native brand with a community of over 150,000 members and growing. We believe that we will be a next-generation athletic brand that leverages the community to create a loyal following. We intend to be the first fitness brand that is built, backed and driven by our community.
We are what we are now terming a Direct to Community (D2C) brand that can deliver performance and value to our members. Being a direct to community brand, we take out the middle man (retail stores) to give our community members the best price possible. Our future success will be primarily dependent on our community, and within our community, we truly believe our strongest advocates will be our community members who are also investors.
Yes. As an investor, you will be seeing new product categories first and have the opportunity to pre-purchase at substantially reduced pricing. We want our investors to get a first look so they can test out our products and give us valuable feedback prior to launching new product categories to the rest of the HYLETE nation.
We have had quite an overwhelming response with brand ambassador and athlete sponsorship requests. We will be evaluating how we best put a potential program into place.
Need another question answered? Create an account, we will review your questions, then add it below with our answer. You will be notified as soon as your question and our answer are live.
THE Q&A SECTION INCLUDES FORWARD-LOOKING STATEMENTS, BASED ON THE COMPANY’S CURRENT EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE DISCUSSED IN, OR IMPLIED BY, THESE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE IDENTIFIED BY WORDS SUCH AS “BELIEVE,” “EXPECT,” “INTEND,” “PLAN,” “WILL,” “MAY,” “SEEK,” “TARGET,” “ESTIMATE,” “CONTINUE” AND OTHER SIMILAR EXPRESSIONS. IN ADDITION, ANY STATEMENTS THAT REFER TO EXPECTATIONS, PROJECTIONS OR OTHER CHARACTERIZATIONS OF FUTURE EVENTS OR CIRCUMSTANCES ARE FORWARD-LOOKING STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE EXPECTATIONS REFLECTED IN THE FORWARD-LOOKING STATEMENTS ARE REASONABLE, THE COMPANY CANNOT GUARANTEE FUTURE RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS. THE COMPANY HAS NO OBLIGATION TO UPDATE OR RELEASE THE RESULTS OF ANY REVISIONS TO THESE FORWARD-LOOKING STATEMENTS TO REFLECT ANY FUTURE EVENTS OR CIRCUMSTANCES.
Forward-Looking Statements. This website and other written or oral statements made from time to time by representatives of HYLETE, Inc. (the "Company") contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Although we believe that the expectations reflected in these forward-looking statements are reasonable, these statements relate to future events or our future operational or financial performance, and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements include, but are not limited to, statements about our business, business strategy, expansion, growth, products and services we may offer in the future and the timing of their development, sales and marketing strategy and capital outlook, and the consummation of the contemplated financing.
In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology. These statements are only predictions. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control and which could materially affect results. Factors that may cause actual results to differ materially from current expectations include, among other things, inability to obtain adequate capital funding or improve our financial performance, the effectiveness of our marketing, our product quality, and our customer experience, our strategic plan and growth initiatives, an economic downturn or uncertainty in the United States, ability to compete successfully against our competitors, ability to protect our intellectual property rights, and those listed under the section entitled “Risk Factors” and elsewhere in the registration statement that we have filed with the Securities and Exchange Commission (“SEC”). If one or more of these risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual events or results may vary significantly from those implied or projected by the forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read the prospectus and the documents that we reference in the prospectus and have filed with the SEC as exhibits to the registration statement, of which the prospectus is a part, completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements.
The forward-looking statements in this presentation represent our views as of the date of this presentation. We anticipate that subsequent events and developments will cause our views to change. However, while we may elect to update these forward-looking statements at some point in the future, we have no current intention of doing so except to the extent required by applicable law. You should therefore not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this presentation.
Risk. An investment in our securities involves a high degree of risk. You should consult with your own financial and legal advisors as to the risks involved in subscribing for the securities and to determine whether the securities are a suitable investment for you. Before making a decision to purchase the securities, you should carefully read our preliminary prospectus, and carefully consider, among other matters, the information set forth under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our preliminary prospectus, as may be amended from time to time by our filings with the SEC. Additional risks and uncertainties that are not yet identified may also materially harm our business, operating results and financial condition and could result in a complete loss of your investment.