Use of Proceeds

The total anticipated project cost for update Carmelo’s Cucina Italiana is $850,000. To date, the owners have committed $200,000 in equipment purchases. Proceeds from the NextSeed raise, if the $150,000 minimum is hit, will be used for renovation of the bathrooms and the large private room. Any funds raised up to the maximum of $600,000 will be put towards additional renovations, primarily focused on completing the interior and updating the exterior façade. The priorities of the renovation are as follows: the bar, patio, bathrooms, interior floors, signage, and the wine and display coolers.

Key Terms

Issuer
Benmelos LLC

Type of Offering
Regulation Crowdfunding

Offered By
NextSeed US LLC

Offering Min

$150,000

Offering Max

$600,000

Min Individual Investment

$100

Type of Securities

Revenue Sharing Note

Investment Multiple

Up to 1.5x

If the final offering amount raised is less than or equal to $450,000, the investment multiple will be 1.40x.

If the final offering amount raised is greater than $450,000 but less than or equal to $600,000, the investment multiple will be 1.50x.

If the Revenue Sharing Notes are paid in full at least 12 months prior to Maturity, the Investment Multiple will be reduced in accordance with the terms of the Note Purchase Agreement. Please review the Note Purchase Agreement and "Section I. Summary of Offerings" in the Disclosure Statement, available here, for a complete discussion of the potential reductions.

Revenue Sharing Percentage

Up to 5%

If the final offering amount raised is less than or equal to $300,000, then 2.0% of monthly gross revenue will be shared.

If the final offering amount raised is greater than $300,000 but less than or equal to $450,000, then 3.0% of monthly gross revenue will be shared.

If the final offering amount raised is greater than $450,000 but less than or equal to $600,000, then 5.0% of monthly gross revenue will be shared.

Maturity 60 months
Payments

Monthly

Security Interest Blanket Lien
Ownership % Represented by Securities

0% Investors will not receive any equity interests in the Issuer or any voting or management rights with respect to the Issuer as a result of an investment in Securities.

View the Issuer's SEC Form C filing

Revenue Sharing Summary

Total Raise Amount: $150,000 - $300,000

  • Investment Multiple: 1.40x
  • Monthly Revenue Sharing Percentage: 2.0%

Total Raise Amount: $300,100 - $450,000

  • Investment Multiple: 1.40x
  • Monthly Revenue Sharing Percentage: 3.0%

Total Raise Amount: $450,100 - $600,000

  • Investment Multiple: 1.50x
  • Monthly Revenue Sharing Percentage: 5.0%

Each investor will receive its proportionate share of the monthly payments made to the investors as a group.

Scenario 1:

Total Raise Amount: $200,000
You Invest: $2,000


Based on the Total Raise Amount, the Issuer will share 2.0% of revenues, until the 1.40x Investment Multiple is reached.

Let’s assume that the Issuer generated $100,000 in revenues in month X. The issuer will make a $2,000 payment ($100,000 x 2.0% = $2,000) to investors. Since you invested with 1% of the total amount raised ($2,000 / $200,000 = 1.0%), you would receive a $20 payment.

Scenario 2:

Total Raise Amount: $400,000
You Invest: $2,000


Based on the Total Raise Amount, the Issuer will share 3.0% of revenues, until the 1.40x Investment Multiple is reached.

Let’s assume that the Issuer generated $100,000 in month X. The issuer will make a $3,000 payment ($100,000 x 3.0% = $3,000) to investors. Since you invested with 0.5% of the total amount raised ($2,000 / $400,000 = 0.5%), you would receive a $15.00 payment.

Scenario 3:

Total Raise Amount: $600,000
You Invest: $2,000


Based on the Total Raise Amount, the Issuer will share 5.0% of revenues, until the 1.50x Investment Multiple is reached.

Let’s assume that the Issuer generated $100,000 in month X. The issuer will make a $5,000 payment ($100,000 x 5.0% = $5,000) to investors. Since you invested with 0.33% of the total amount raised ($2,000 / $600,000 = 0.33%), you would receive a $16.67 payment.

*The calculations above are mathematical illustration only and may not reflect actual performance. They do not take into account NextSeed fees of 1% on each payment made to investors. ... The exact length of time that it will take the Issuer to pay each investor in full cannot be known in advance since the Issuer's actual revenues may differ from its reasonable forecasts. If any balance remains outstanding on the maturity date, the Issuer is contractually required to promptly pay the entire outstanding balance due to each investor. Payment is not guaranteed or insured and investors may lose some or all of the principal invested if the Issuer cannot make its payments.