The Fonehouse Bond is a very straightforward idea – you loan money to us and we agree to pay you interest quarterly per annum and redeem your initial investment (the ‘principal’) when the Bond(s) mature in 3 years. The Fonehouse Bond will be issued by Fonehouse Ltd.
We have designed the Fonehouse Bonds to be a simple investment. For an initial investment of £500 or more, Fonehouse Ltd will provide registered holders of Fonehouse Bonds (“Bondholders”) with a fixed-rate return of 8.0% gross interest per annum over the course of an initial three year term payable in cash.
At the end of the initial three year term and on every anniversary thereafter, you have a choice: either continue to hold the Fonehouse Bonds for another year on exactly the same terms or give us six months’ notice and we’ll redeem your Fonehouse Bonds. On maturity of the Fonehouse Bonds, the full amount of your initial investment will be repaid without any deductions or charges.
Use of Proceeds:
With the recent introduction of the TechHouse brand, Fonehouse is moving into the new exciting Wearables and Internet of Things market. A mini-bond will enable us to open new stores at a faster pace, and challenge the larger market players. With the support of our core Fonehouse business, we are certain that TechHouse will be a great success story.
Based on our experience, wearable technology including accessories, peripherals and non-phone hardware, tend to have a higher margin. Moreover, this new concept will be synergistic with the existing Fonehouse business. TechHouse stores will merge fashion with technology. We have plans to open more than 30 Shopping Centre stores and up to 28 TechHouse franchised stores over the next 24 months. By Christmas 2015, we are on track to have six ‘mall’ sites up and running. We have trialled opening costs of new stores at £75,000 per store and the target funding of £500,000 will fund up to seven new stores. While we believe that we will be able to fund this expansion from organically generated funds, a mini-bond will help us accelerate our growth plan and gain a stronger foothold in this rapidly expanding sub-sector.
Fonehouse is a mobile and technology retailer trading since 1994. The company is launching the Fonehouse Bond, offering an 8.0% coupon p.a. over 3 years to help it expand TechHouse, its newly established brand focused on tech accessories.
See Campaign: https://www.crowdcube.com/investment/fonehouse-bond-20657