2022 LCT Broodmare Investment Fund

BROODMARE INVESTMENT FUND

OBJECTIVE

Our objective is to unite a group of like-minded investors to purchase mares for the purpose of re-trading them and selling the resulting progeny at a time that market forces dictate will provide the most commercial outcome, regardless of the age of the offspring.

The investment period will be limited to 24 months and all remaining stock will be sold by that date. During the 24 months, proceeds from any stock sold will be paid directly to investors at that time. Therefore, we envision it will be a self-funding model after the first 18 months for ongoing expenses.

Our intent is to be ruthlessly commercial, breed and supply future athletes while maximising returns for ourselves and our investors.

At this stage we expect Lime Country to be investing 20% of the fund. This is a significant investment for the farm and the concept of spreading our potential returns and reducing any potential risks across highly commercial mares in a investment situation has far greater appeal from a business model than purchasing on our own.

– Jo & Greg Griffin.

SERVICE FEES Service Fees are going to be based on an average of $90,000 plus GST per mare. This will allow us the flexibility to increase our service fee on some mares to the top stallions in the country at approximately A$200,000 while also making room for up-andcoming stallions in and around the A$50,000 bracket.

A benefit for investors, will be that any discount or commission on service fees offered to Lime Country by stallion farms, will be passed directly on to the individual investors in the investment.

This allows investors increased access to service fees at discounted rates not usually available to smaller breeders.

Service fees will be billed to investors directly by the stallions farms according to whatever terms we can negotiate with individual farms e.g. Payment by 31st May, payment after mare and weanling sales, payment on live foal etc.

HOW ARE WE BUYING? In Australia, Greg and Jo will manage the selection of mares purchased. This may or may not include the assistance of agents for any extra information required on a given horse. Any fees applicable for those services provided by parties such as outside agents will be on charged as per investment ratio.

Jo will be attending the Keeneland November mare sale and Tatts December Sale and inspecting stallions while up North.

We expect to potentially use local agents if we buy at those sales.

The reason for this is to maximise their depth of knowledge regarding the type of stock that not only those mares have left, but also the type of stock that their extended families have produced from previous matings. We expect to pay agents commission for their services provided.

COMMUNICATION & UPDATES This will be a multimedia style of feedback involving photos and or videos, voice updates, WhatsApp groups and potentially discussions with service providers (eg. Feedback from Vets and Sales Company representatives).

FUN FACTOR We are blessed to have existing relationships with some fantastic investors, people we enjoy spending time with and enjoying success with. We are looking forward to new investors travelling with us, sharing hospitality, coming on trips to stud farms, sales and events in the future as part of this fund.

The size and scale of this new investment provides the opportunities for some fantastic experiences for our existing investors and those that join us in this exciting new venture.

JOIN THE ACTION

PLAY VIDEO

RECORD OF SUCCESS Nb) The below are gross figures only for this exercise and have not included agistment, sales preparation, vet expenses, transport, sales commission etc. Please see the included APENDIX page for Lime Country agistment and sales preparation costs.

BROODMARE

RESULT

OH MY MIMI

Purchased in 2019 privately off the track for $90,000. Put in foal early to Lonhro at $50k service fee. One owner wished to exit and she was sold for $260k at the Chairman’s 2020 Sale with Lime Country Thoroughbreds & Healey Bloodstock increasing our ownership. Pedigree update provided stakes winning 2YO brother. Mare foaled filly. Put back in foal to Zoustar on $70k private service fee purchase (standing for $120k). Mare sold at MM 2021 for $300k. Lonhro filly sold at MM 2022 for $400k. Rough figures money in $380k money out $700k. Balance $320k ahead.

DOWNLOADS

Mare purchased at MM 2020 for $210k in foal to American Pharoah specifically for a discounted Pierro nomination we had access to. Foaled a very average filly by American Pharoah. Failed to be covered Pierro due to stallion injury and had to go to Deep Field at $45k. American Pharoah filly sold at Classic 2021 for $70k. Foaled VERY good Deep Field filly. Back in foal to So You Think on discounted bulk buying service fee. Yearling filly will be sold at Classic - result will depend on pedigree updates and stallion performance. So You Think foal sold as weanling or yearling. Rough money out $255k, money in $70k not counting weanling filly currently on the ground or service fee in the belly. Mare will foal down and be sold in 2023.

NICCONI LEGGERA

Mare purchased at MM 20219 for $95k in foal to American Pharoah. Foaled a filly. Filly sold at Classic 2021 for $135k. Mare put in foal to So You Think on $35k nomination, foaled a filly and sent back on another discounted bulk service fee price. One partner needed to exit, so mare offered at Inglis in 2021 partnership group buys her out in the ring at $150k. Yearling filly by So You Think sold at Classic 2022 for $200k. Weanling colt by So You Think to be offered at MM 2022, expected price $150k-170k. Mare now in foal to Bivouac, will foal down and be sold in 2023. Rough money in $235k, money out $495k.

Balance currently $260k ahead. Service fee in belly to be offset against future sale.

MYRIADS

Unlucky mare. Purchased in 2019 for $180k in foal to Russian Revolution.

Foaled a filly foal which died at 10 weeks of age. Insurance claimed for $80k on foal. Mare was sent to Lonhro that season and was in foal to him when the filly died. Relationship with stud and partnership make up provided us with a late free return to Russian Revolution to be used for the following season if we wished. Mare had trouble foaling Lonhro filly and the resulting foal died during labour. Mare sent to Russian on free nomination. One partner wanted to exit and mare went through Magic Millions 2021 in foal to Russian. New partner came in and mare re purchased at $170k at Magic Millions 2021.

Foaled a VERY good Russian filly. Filly will go to Magic Millions in January.

Have been offered $200k for her out of the paddock already. Mare now in foal to So You Think on discounted nomination fee. Will foal down & be sold in 2023. Rough money in $180k, rough money out $80k (insurance) - $200k weanling on the ground.

RAVENOUS LASS

Mare purchased as a tax mare in 2020 for $175k at Inglis. Foal died (crushed umbilical) during foaling. Widden honored a free return to the stallion. Mare foaled in 2021 Zoustar colt. Half share sold at four months old while still a foal on his dam at $125k (full value $250k). Full sibling has since won a Gr.3.

Colt will go to Magic Millions 2023. Mare in foal to Flying Artie and will probably be sold in 2023. Rough money in $175k, rough money out $350k (colt value) approx $175k ahead.

Mare sale and service fee in belly not included.

RIVER LIGHT

Mare puchased 2021 in foal to Pride of Dubai. Foaled a filly foal, sadly mare died approx 6 weeks post foaling from a rectal tear (vet accident). Mare insured for full purchase price. Outstanding filly foal. Filly will go to Classic 2023, current value based on valuation last week $50k. Slightly up at this stage due to insurance claim of $155k.

TELL YOUR MAMA

Mare purchased in 2021 at MM for $550k in foal to Snitzel. Outstanding filly born. Mare sent back to Snitzel off that foal. Pedigree updates (Russian Revolution & Home Affairs in pedigree). We value her at minimum $600k and a valuation last week put the filly weanling at $500k currently. Foal in belly to be sold as weanling or yearling. Mare to be sold in 2023

GIRANDOLA

Mare purchased in 2021 at MM for $360k in foal to Pierata. Foaled a very good colt. Mare currently in foal to Snitzel. Foal worth approximatly $200k now out of the paddock. Mare valued last week at $500k. Mare to be bred this season and foal in the belly to be sold as either weanling or yearling. Mare to be sold in 2023.

WORD FOR WORD

Mare purchased privately in 2021 for $315k off the track. Put in foal to Wootton Bassett on bulk buy discounted fee. Sold in May 2022 at Inglis Chairmans for $650k. Rough money out $380k, rough money in $270k.

Rough money ahead $270k.

KEY TERMS AND CONDITIONS •

Minimum investment 20% per mare invested in.

•

Funds cannot be withdrawn from the fund prior to completion of the term of the investment or the sale of horses at the best time for maximum returns for the group.

•

Profits from sales to be paid out directly to investors during the term of investment.

•

Individual owners are responsible for all costs for each horse themselves including service fees, agistment bills, vet bills etc and will be billed directly.

•

Any travel expenses for partners will be covered individually.

•

Travel expenses including economy flights and accommodation for Lime Country’s Northern Hemisphere buying will be split amongst partners on a pro-rata basis.

If there are travel rebates provided by sales companies (eg. cost of flights), that will be deducted from expenses prior to billing.

CONFIRMATION OF INTEREST This exciting and unique investment opportunity is by invitation only and will not be offered publicly. Lime Country already have commitments from a number of existing broodmare partners and clients of the farm.

This is an ideal opportunity for people who are interested in spreading their risk, upping their “upside potential earnings”, diversifying their investment portfolio and sharing in some great experiences, potentially around the world, with people like us who have “skin in the game” on each and every purchase.

Investors are welcome to join Jo (and Georgia for the Keeneland leg) at the sales, stud trips, dining and adventures across Australia, America, UK and France.

The first buying opportunity for the fund is the up-coming Magic Millions Broodmare Sale on Tuesday the 24th of May. Please call Jo to discuss any questions you may have or to confirm your participation prior to the commencement of the sale.

CONTACT LIME COUNTRY THOROUGHBREDS

Please feel free to contact Jo to arrange a meeting via Facetime or Zoom to discuss any questions or potential options for yourself in person, if you are unable to meet in the Hunter Valley or Sydney.

JO GRIFFIN

GREG GRIFFIN

STABLE FINANCIAL & STABLE LEGAL

Lime Country Co-Director e: jo@limecountry.com.au m: +61 428 960 669 w: www.limecountry.com.au

Lime Country Co-Director e: greg@limecountry.com.au m: +61 429 002 964 w: www.limecountry.com.au

Stable Financial and their legal arm, Stable Legal, are a highly regarded, specialist thoroughbred accountancy and legal firm in Australia.

Adam Tims and his team act as independent (and objective) participants in Lime Country’s business strategy and assist us in remaining both responsible and at the forefront of the latest developments and opportunities in the thoroughbred industry.

Adam, along with his legal counterpart Tim Johnson (Stable Legal), have worked through the finer points of this investment framework with us.

Please feel free to contact Adam directly if you have any accountancy related questions regarding this opportunity.

ADAM TIMS

Stable Financial Accountant e: Atims@stablefinancial.com.au m: +61 410 437 887 p: +61 3 9629 3023 w: www.stablefinancial.com.au

TIM JOHNSON

Stable Legal Lawyer e: tjohnson@stablelegal.com.au m: +61 427 953 323 p: +61 3 9629 3023 w: www.stablefinancial.com.au

APPENDIX 2022 LIME COUNTRY THOROUGHBREDS AGISTMENT RATES Effective 1st March 2022 NB: All fees and rates are INCLUSIVE of GST unless otherwise stated

Australian $ inc. G.S.T. AGISTMENT RATES:

per day

Dry Mares (not in foal)

$34.00

Dry Mares (in foal)

$36.00

Wet Mares

$39.00

Mare & Foal Boxed

$55.00

Weanling Rate

$36.00

Paddocked Yearling Rate

$38.00

Racehorse Spelling – fillies/mares/geldings

$38.00

Boxed Rehabilitation Horses

$53.00

Foaling Fee

$890.00

Weaning & Handling Fee

$890.00

Rugging

$

1.10

FARRIER: Broodmare Trims

$50.00

All other Trims (weanlings, yearlings, spellers)

$55.00

Sales Yearling Shoeing as per farrier’s charges at time of shoeing SALES PREPARATION RATES:

per day

Magic Millions Sales Preparation

$88.00

Classic Sales Preparation

$81.00

Easter Sales Preparation

$88.00

Weanling Sales Preparation Broodmare Sales Preparation

60.00 $55.00

CONSIGNMENT FEES

*Consignment Fees are charged per horse to recover accommodation, staff, meals, entertainment, marketing & promotional costs associated with individual sales. The prices listed are an estimate only and may be subject to change.

William Inglis Classic Sale Yearling Sale

$2,600

William Inglis Easter Yearling Sale (including hospitality pavilion)

$3,800

Magic Millions Gold Coast Yearling Sale

$3,400

William Inglis Broodmare & Weanling Sale

$1,600

Magic Millions Broodmare & Weanling Sale

$1,700

Sales Yearling Sales Commission (of gross sale price plus GST)

2.5%

Weanling & Broodmare Sales (of gross sale price plus GST)

2.0%

528 Timor Road, Blandford, NSW 2338 Australia

WWW.LIMECOUNTRY.COM.AU