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FAQ - Investors

Questions

Project

By investing now, you get shares in the company Initium Watches Holding, which owns 100% of the company Initium Creawatch Sàrl (LLC). The Holding will also own 100% of Initium Watches SA (Corp) once it is founded.

Founded in 2015, Initium Creawatch Sàrl (LLC) offers initiations to watchmaking in three workshops.
Initium Watches SA (Corp) will be established in early 2021 and will manage online retail of kits and watches.
Initium Watches Holding already owns 100% of Initium Creawatch Sàrl (LLC) and will own 100% of Initium Watches SA (Corp). The holding will also invest in other companies.
You therefore invest in our existing workshops, our online retail offers as well as any future development of the company.

Today, the term "community" is widely used in the watchmaking industry. Purchasing a watch from a brand in presale at a preferential price and therefore being part of the watch community is common. However, apart from benefiting from a preferential price, the community members remain above all “customers” of the brand. It actually often accounts for the vast majority of sales of the brand, as few watches are then sold at "real" price. We'd like to change this by sharing the benefits of the company with our community, because it is also thanks to the members of our community, whom we call the Initiators, that we will grow!

Taking part in our project development from the start guarantees you have the shares at the best price. Shares are currently sold for CHF 80cts a share, but this will not last. Indeed, we expect an increase in share price with the development and future plans of the company.
If you believe in our project development and want to participate in its realization, then invest while the share price is still low!

This form of company is the most suitable for having a portfolio of companies. We intend to acquire stakes (in principle between 10% and 20%) in other startups in the watchmaking industry or in a field offering synergies with Initium.
Today, we have already concluded an initial agreement allowing us to acquire 20% of the company described below:

• A 100% digital start-up based in the USA which offers an online service for watch enthusiasts. We are currently working on a monetization strategy for this platform, whose customer database (mechanical watch owners) already exceeds 100,000 registered users. The name of the company will be released once the deal is made official.

We invest in promising projects by providing them with skills and resources. The objective is multiple: to diversify the Holding portfolio; achieve synergies and economies of scale; increase the network and reputation of Initium in the watchmaking world. And who knows, we may invest in a company which will become very profitable in the future or be bought out by a large group!

Our goal over the next three years is to grow Initium Holding as much as possible and ultimately to thank our investors by starting to pay them dividends or by allowing them to realise a significant capital gain if they wish to sell their shares. Should an interesting buyback proposal arise later on, we will of course examine it carefully!

Functioning

The co-founders currently hold almost all the shares of the company. These shares will be gradually issued as new shareholders invest in the company. There is only one class of shares accompanied by the same privileges and obligations.

Yes, this is even one of the great strengths of our crowdinvesting system. The more shareholders you find, the more shares of the company you gain! In fact, you get 5% of the number of shares for each person you sponsor.
And it is not all: when a sponsored shareholder finds new investors, you still receive 2% of the number of shares per person he or she has sponsored!

For this, two solutions are available to you:

- On your investor account, you find a referral link you can share. Then, it is imperative that the people you refer purchase their shares directly through your link,

- Provide us, via the platform, the names of those you wish to sponsor in advance. We will then check if a new investor is on your list of "future sponsored".

You will thus receive the number of shares that are rightfully yours directly in your investor account, without you having to do anything more.

Yes, you do. This is what you get:

From 1,000 shares
- 10% discount on all offers and Initium products, with the exception of the purchase of company shares
From 10,000 shares
- 25% discount on all offers and Initium products, with the exception of the purchase of company shares

Yes, your voting rights are proportional to the number of shares you own. If you own 100 shares, your vote counts as 100 votes.
At the annual general meeting to be held in Switzerland and / or via a video-conference system, the directors will present information about the company's performance and strategy and then submit proposals to the shareholders.

Yes, you can. Our strategy is to promote rapid growth, we expect to start paying dividends from 2022. Indeed, Initium Creawatch Sàrl (LLC) is already more than five years old and has a steady revenue thanks to its three workshops. Our new online offers will already be available in the first half of 2021.There is also the possibility of receiving as dividends the proceeds of a future sale of shares in startups.

10 million shares were issued at the founding of Initium Watches Holding SA, with a nominal value of CHF 1 cent each. (This information is publicly available via the portal of the Swiss Confederation: lien vers l'extrait du registre du commerce)

The nominal value of a share does not reflect its market value, i.e., the price at which it can be bought or sold. We never talk about the price of a share, because Initium Watches Holding SA is not a publicly traded company, therefore the selling price of a share is defined by the company using internal methods to value its share.

The shares issued for sale to the public are the result of an increase in authorized capital. We have an authorized capital increase of 5 million shares over two years. It is therefore possible that within two years, there will be 12 million shares of the company (e.g., the 10 million share base + 2 million shares issued during the 2 years).

This allows us to pay tax-free dividends while tax is normally around 40% in Switzerland, until we have reached the equivalent of the funds raised from investors (from you). Consider the following example: If we raise a million during our crowdinvesting campaign, then over the years we will be able to pay up to a million in dividends net of tax to shareholders. Beyond this amount, tax is applied normally.

No, it won't. The entry of new shareholders is positive, it means that we are successful and that the market value of the company increases. On the other hand, a dilution of the percentage of your shares in the company does take place, as we issue new shares. Note that the co-founders' shares are diluted in the same proportions as you, since there is only one type of action. (See point “Who owns the majority of the shares in the company?”)

In fact, this dilution will be under control. Consider the following example: If we issue a million new shares, your ownership will then be diluted by 10%, but the company will have benefited from a capital contribution of CHF 1 million in cash (e.g., with a share price of CHF 1.-), which will mean that its market value will have increased considerably. As we increase the share price over time, a secondary offering of 1 million shares, to use the same example, will bring in even more equity capital than the first one, and so on!

Our shareholder agreement states that you cannot resell your shares before June 30, 2022. The goal is to promote a rapid growth of the company. And for that, we need our network of investors to grow. After this date and as soon as you have a buyer, you just have to send us a request by e-mail indicating buyer's identity as well as the number of shares and the price at which you wish to sell them. Ultimately, we will set up a platform to facilitate these transactions.

Yes, there is. As specified in the Articles of Association, a preemption right can be exercised when you wish to sell shares. When we receive your transfer request, the company or the co-founders may or may not exercise their right of first refusal (pre-emption right) to buy the shares you wish to sell at the price to which your buyer had agreed.

Our goal over the next few years is to develop Initium Watches Holding SA as much as possible. However, if an interesting acquisition proposal comes up at any point, we will naturally take it seriously! Considering of course the general interest of all shareholders, as there is only one type of share.

The Articles of Association provide that if we, the co-founders, decide to sell the whole company (100% of the shares), we undertake that you will receive at least an amount equivalent to the price at which you bought your shares. This is to protect investors who have bought shares shortly before the sale of the company. It goes without saying that the earlier you buy shares, the greater the profit might be!

Investing in a company always involves risk, we invite you to read the disclaimer available here (lien vers le disclaimer).

Regarding Initium CreaWatch Sàrl (LLC):
In 2020, we saw a decrease of around 30% in turnover from the sale of watchmaking classes in our workshops. This decrease is due to the fact that our workshops had to close twice as well as the absence of international customers at our workshop in Geneva. However, After the first wave, the increase in the number of reservations was rapid and results in higher revenue for the month of October compared to 2019. We sold quite a few gift vouchers and classes scheduled for 2021, which helped not to have a bigger drop in revenue. The capacity of our workshops being large, this will not be problematic regarding the availability for 2021. The year 2021 promises to be exciting with this development and communication that will be made around.

Regarding Initium Watches SA (Corp):
There was no impact, as the project was only launched at the very end of 2020.
Online retail of watch kits and models via the configurator constitute an offer that is perfectly in line with the consequences of the health crisis on behavior and purchasing habits. As a result, we are more convinced than ever that we will meet or even exceed our sales targets!

You will receive a link by email to log into the investor platform. This platform allows you to view the shares in your portfolio, to follow the evolution of the share price, as well as to make new investments.
You will find your referral link, which will allow you to win shares by sharing it with your network, and you'll also find your list of potential referrals to complete.
We will regularly post project news as well as exclusive information for investors.

You will receive a certificate in PDF Format by email digitally signed by Initium Watches Holding SA (Corp). You will also find this certificate by logging into your investor account, which can be downloaded at any time. This document is official and cannot be falsified because its number must correspond to the number appearing in the shareholder register kept by Initium and to which only the members of the Board of Directors have access.

Yes, you will. All shareholders will have access to view that information. It will be available online in your investor account and will be discussed with you during the annual general meeting.

Yes, you do. The number of shares you hold must be declared in your tax return at the nominal value of the share as assets.

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