Biohacks wants to issue two bonds. One paper is aimed at institutional investors and has a volume of 8 million euros. With a term of two years, the annual interest rate is 5.0 percent. Another bond is to be subscribed primarily by private investors. This has a volume of 999,000 euros and bears annual interest of 3.5 percent. The term is one year.
Biohacks boss Ingo Lange explains to our editorial team how he wants to use the fresh money. An energy drink is about to be launched, and other products are being prepared. Biohacks also wants to grow internationally. Two countries are particularly in focus. Sales strategies, market potential and the high quality standards of the mostly vegan organic products from Biohacks are other topics discussed with Lange.
Personal-Financial.com: Biohacking is probably a foreign word for many market observers. Is this “just” a new trend or what is it?
Long: Biohacking is already a megatrend in the USA and is also becoming increasingly popular in Europe. Biohacking is about optimizing the performance of the body and mind in a natural way. With biohacks, we focus on nutrition – a field in which biohacking is becoming increasingly important. We have developed vegan and certified organic functional food products and brought them to market. These help people in a natural way, i.e. with natural ingredients, to achieve optimal performance.
Personal-Financial.com: Biohacks is also unlikely to say much to investors so far. What do you do?
Long: Biohacks GmbH was founded with the aim of establishing biohacking as a megatrend in the food sector. Our product portfolio is developed and marketed on a vegan basis with natural ingredients in organic quality. Our strength lies in product development and marketing. We do not have our own production, but have our certified functional foods produced on order in Germany. We focus on the steadily growing market for healthy alternatives to existing biohacking products.
Personal-Financial.com: Which products do you have on the market so far?
Long: We are represented throughout Germany with the products “Hang & Over” and “Sleep & Well” in more than 4,000 retail branches. There are also over 5,000 existing customers for online purchases on Amazon and in the in-house online shop. “Hang & Over” is a dietary supplement to support against tiredness and fatigue. “Sleep & Well” is a product to reduce the time it takes to fall asleep. And it is important to emphasize that our products are primarily based on natural ingredients. We stand for high quality and combine potent natural plant extracts from herbal medicine with the effectiveness of high-dose dietary supplements.
Personal-Financial.com: What is the advantage of “Hang & Over” over an aspirin?
Long: We prove that you can do it without chemistry. We offer a product that helps in a gentle way to prevent the fatigue effect. Our products work with biological ingredients such as natural plant extracts, amino acids, electrolytes and vitamins. The “Hang & Over” product, for example, contains ginseng, ginger, minerals and vitamins. The quality was also confirmed by the “Handelsblatt”, which declared “Hang & Over” the test winner among “anti-hangover products”.
Personal-Financial.com: Your previous products are vegan and mostly “organic”. It is a must-have?
Long: Yes, we aim to offer our customers high quality products in organic quality – if possible on a vegan basis. The high quality of our products is particularly evident from the ingredients. The above-mentioned product test by the Handelsblatt came to the result that “Hang & Over” contained the highest number of proven ingredients of all tested products – including magnesium, calcium, several B vitamins, choline and L-cystine. In order to guarantee the highest quality standards in production, we manufacture in Germany.
Personal-Financial.com: Are further products in preparation?
Long: Yes, we will be launching a new product this year. Our “Hang & Over – Spirit” meets the requirements of a modern energy drink. The product will be available in three variants Mango & Cactus, Lime & Kiwi and Berry & Dragon – of course, 100 percent vegan and organic. Many other products are also being planned. In the future, we would like to optimize the typical “daily products” and turn them into natural functional food products, in line with our biohacking philosophy.
Personal-Financial.com: What are the sales strategies of biohacks?
Long: Germany is our home market. We are particularly present here with a strong retail network. Our products are represented in over 4,000 branches across Germany – including at EDEKA, Kaufland, dm, BUDNI, HIT, Globus and REWE. We therefore have a strong basis for growth. But we also pursue international standards. We plan to enter the Swiss and US markets in 2021. So yes, we want to and will expand internationally. Our vegan and organic certified products provide the ideal basis.
Personal-Financial.com: What is the market potential of your products?
Long: The growth potential is huge. The growth rates are 7 to 12 percent depending on the market segment. The global market volume for energy drinks is currently estimated at around 30 billion US dollars. In the Hangover Cure and Sleeping Aids areas, it’s $ 1.5 billion and $ 2.4 billion, respectively.
Personal-Financial.com: And what forecast do you have for the new year and the following years?
Long: We want to achieve a turnover of 90 million euros in the medium term. We expect cash flow breakeven as early as 2022. The medium-term EBIT margin is around 20 percent. I see us well on our way to achieving these goals. The aforementioned market launch of the modern organic energy drink “Hang & Over – Spirit” is an important step on this path. But of course growth financing also remains an issue.
Personal-Financial.com: You want to collect almost nine million euros from investors with two bonds. In these difficult times, what makes you optimistic about receiving the money?
Long: The feedback we have received from investors so far makes me very optimistic. We concentrate with our products on a huge future market. By subscribing to the bond, investors have the opportunity to invest in a promising and high-growth player.
Personal-Financial.com: For what purposes do you want to use the money?
Long: The proceeds from the issue are to be used to finance growth, in particular for international expansion, the development of new products, intensification of product marketing and working capital. We must invest now to participate in the market growth. With a consistent expansion strategy, we will significantly increase our market share. The placement of corporate bonds enables us to significantly increase the rate of growth.
Personal-Financial.com: What is the current ownership structure like?
Long: Biohacks GmbH is majority owned by Hadi Rafaty – a successful entrepreneur and investor. The two founders Jonathan Sehlinger and John Peters will continue to be involved in the company.
Personal-Financial.com: Are you also considering going public?
Long: Of course, an IPO could be an issue in the future. But we want to take one step at a time. The placement of the corporate bonds will enable us to expand and take advantage of the growth opportunities presented to us.
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