A joint venture (JV) is a strategic alliance where two or more parties come together to undertake a specific business project or activity for mutual gain. Such a collaboration allows the partners to share resources, skills, risks, and profits while maintaining their distinct legal identities. Joint ventures can be formed for various reasons, including entering new markets, leveraging complementary strengths, sharing costs, or pooling expertise.

Common Structures of Joint Ventures

Joint ventures can be structured in several ways, depending on the nature of the partnership and the goals of the involved parties. These are the most common structures:

• Separate Legal Entity: In this structure, the partners create a new company that operates independently. Each partner contributes capital, assets, or expertise, and the profits and losses are shared according to their agreement.

• Contractual Joint Venture: Here, the partners collaborate without forming a new legal entity. They enter into a contract that outlines the terms of their partnership, including responsibilities, contributions, and profit-sharing arrangements.

• Equity Joint Venture: This involves partners contributing equity to a new entity, where ownership stakes are determined by the amount invested. This structure often involves significant capital investment from each partner.

Active vs. Passive Investors as Joint Venture Partners

 In a joint venture, partners can be classified as either active or passive investors:

• Active Investors: These partners are directly involved in the day-to-day operations and decision-making processes of the joint venture. They typically contribute not only capital but also expertise, management, and resources. Active investors often take on leadership roles within the JV and are responsible for executing the business strategy.

• Passive Investors: Passive partners primarily provide capital and do not engage in the daily operations or management of the joint venture. Their involvement is limited to financial contributions, and they rely on active partners to manage the venture. Passive investors may receive returns based on the performance of the JV without the burden of operational responsibilities.

Revenue Sharing Splits in Joint Ventures

Revenue sharing arrangements in joint ventures can vary widely based on the contributions of each partner, the level of involvement, and the overall objectives of the venture. Common revenue sharing splits include:

• Equal Split: In some cases, partners may agree to share profits equally, regardless of their individual contributions. This is often seen in partnerships where both parties bring equal value to the venture.

• Proportional Split: More commonly, revenue is shared in proportion to the capital or resources contributed by each partner. For example, if one partner contributes 60% of the capital and the other 40%, the profits may be split accordingly.

• Tiered Splits: In certain agreements, revenue sharing may be tiered based on performance metrics or milestones. For instance, profits might be split differently if the venture exceeds specific revenue targets.

Summary

Joint ventures are a versatile business strategy that allows companies to collaborate on projects while sharing risks and rewards. Understanding the structure, roles of investors, and revenue sharing arrangements is crucial for partners to align their interests and achieve mutual success.

Now that you understand the JV concept, here is how ReeBike proposes implementing this very valuable business strategy to help "Monetize the e-Mobility Economy" while providing opportunity to resident and non-resident entrepreneurs alike.

BUSINESS STRUCTURE

We plan to utilize a modified structure that incorporates both a Contractual and Equity Joint Venture model. JVOP Equity Participants (hereinafter termed JVEP's, or Joint Venture Equity Participants), will have a legal agreement with the JVOP that outlines how the pool will receive capital from each participant, how equipment will be purchased and deployed, what geographic area it will operate in, how income will be disbursed through Royalty Units (RU's), and how capital will be disposed of as it is depreciated over time.

ACTIVE INVESTOR STRUCTURE

ReeBike will be using a modified Active model whereby each JVEP is encouraged to perform some level of "sweat equity" in the JVOP. In addition to monetary capital, each JVEP "works" the business to help drive rentals to the pool. For many, this could be as simple as regular online, off-line, or word-of-mouth promotion of the ReeBike brand. For example, one could reach out to their social media contacts with unique assigned coupon codes that build brand awareness and offer followers incentives to try out the JVOP's e-bikes at a preferred discount. JVEP's who live in the local area may also choose to be a bike host, service maintenance technician, advertising and merchandise sales rep, charge point location scout, battery swap runner, bike pick-up & delivery agent, or other yet to be defined role. The point is that JVEP's are not just passively investing in the JVOP merely to earn a royalty income but they have the opportunity and incentive to contribute to the overall success of the venture.

This active structure ensures that the JVOP is not classified as a marketable security subject to typical regulatory requirements of the investment industry. We are an active business with an independent group of joint venture equity participants all actively working in the venture for mutual financial gain. None are employees or independent contractors but rather vested interest parties of the project helping it to succeed.

REVENUE SHARING STRUCTURE

ReeBike will utilize the proportional split model as described above but using Royalty Units (RU). Each RU represents a proportional share of the capital contribution to the JVOP, the revenue, and some of the operating expenses of the JVOP as determined by the total number of e-bikes in the pool. For example, in a pool of n=100 e-bikes, each RU would represent a 1/n or 1% share of the total net revenues of the JVOP. This can be adjusted over time should additional capital be contributed by a JVEP during times of expansion.

Our Banff area JVOP-1 will have an initial inventory of a minimum of 100 e-bikes (expandable up to 150) and will be launched by May 1 of 2026. In summary, here is how a typical JVOP is created:

• A prospective JVEP submits an application form with a signed letter of interest agreeing to purchase one or more RU's for $2000 CAD.

• The prospective JVEP submits a non-refundable $500 deposit at the time of application to secure an allocation in the JVOP. These funds will be used for start-up expenses and to place deposits on the equipment ordered. The balance will be due prior to shipment from the supplier in China.

• To qualify for any related city council rebates (such as the Banff resident $500 e-bike rebate incentive), a separate qualification form may need to be completed and submitted to the city for approval. Resident JVEP's would need to provide proof of residency to qualify. Non-resident JVEP's would be paired with a local town resident bike sponsor who can qualify for the rebate. (NOTE: Under the current town rules, only one rebate is allowed per JVEP in the case of an individual, or 2 rebates if the JVEP is a local business. We are currently in discussions with town council to waive this strict resident rebate requirement procedure so that the JVOP can directly qualify for and receive the rebate while still assigning the residency benefit to local residents to encourage rental e-bike usage at our preferred Banff Resident Bike Sponsor rate discounts.)

• A purchase order receipt is then issued to the JVEP (or to the associated resident sponsor) and submitted to the city as proof of purchase and commitment that the e-bikes will be used within the qualifying area as assured by the geofenced e-bike software.

• The city will issue the rebate to the JVEP or resident sponsor. This rebate will then be assigned and paid to the JVOP as shared revenue. (At the city's discretion, the rebate may be paid directly to the JVOP.)

  • In the case of a resident JVEP, the full $500 rebate is retained by the JVOP. In the case of a non-resident JVEP, the JVOP will grant the resident sponsor a preferred rate discount of 75% to rent our ReeBikes as detailed on the membership page under the Banff - Annual Bike Sponsor Membership plan. The rebate will be retained by the JVOP as common revenue, effectively earning all the JVEP's an instant eligible pro-rated royalty.

• The royalty structure is set as follows:

  • Each RU entitles the JVEP to a pro-rated share of the gross rental receipts (less the platform fee paid to the software booking partner that is providing the rental interface, and less any credit card processing fees charged, as applicable.)

  • A gross royalty of 35% is calculated on these net gross receipts received by ReeBike for each e-bike rental.

  • Royalty Income is then calculated and disbursed monthly to the JVEP RU holders.

• Once the JVOP has been fully subscribed, ReeBike will place a purchase order with the supplier to ship the products to Vancouver, BC and then the bikes will be freight-forwarded to the local destination for assembly. Turnaround time is 60-90 days from the date of order.

OPERATIONS

As the JVOP begins operation, total revenues will be received by the JVOP and managed by the plan administrator. Within 30 days of the month-end royalties being earned, the JVOP administrator will calculate and send by e-transfer a prorated share of the royalties to each JVEP as determined by the number of RU's held by the JVEP. Disbursements will be made quarterly within 30 days of the end of each quarter.

ASSET SALES

As the e-bikes are used in the pool and depreciated accordingly, they will be sold off to the secondary market. The JVEP's have a right of first refusal to purchase the bikes from the pool on a first-come, first-served basis, and to re-use them for personal use. The anticipated sales price of $500 will be collected by the JVOP and used to purchase new inventory or to wind up the JVOP as determined by a majority vote of the JVEP's. At the discretion of each JVEP, their share of the sales proceeds can be reinvested to purchase the next lot of new e-bikes to replenish the inventory. A 0.25 RU will be awarded to each JVEP electing to redeploy their share of the returned capital.

ROYALTY UNIT RE-SALES

As JVEP's earn royalties from the JVOP, some may decide to sell their RU's to another interested third-party under the same terms of ownership. Or, in the event of the death of a JVEP, the estate may chose to divest of the RU. JVEP's are free to offer their RU at any price a buyer is willing to pay to secure the associated royalty income stream. This offers each JVEP an exit strategy as part of a diversified portfolio. The only condition is that the JVOP and ReeBike have a right of first refusal to buy the RU back at an agreed upon price before the JVEP will be authorized to transfer it to a third party.

CONCLUSION

This is a basic summary of how the Joint Ventures created by ReeBike will be offered. More details will be updated here as changes to the plan are made. Stay tuned...

We have some serious questions for you to ponder!

The actions you take after answering these questions to yourself may drastically change your personal financial future!

• Do you have a mortgage payment that is weighing you down financially?

• Are you looking to buy a home and already know how big your mortgage payment would be on a property and now realize that you can barely afford it?

• Do you have condo fees dragging you slowly into the abyss?

• If you are a renter, how would you like to have some or all of your monthly rent paid by other people instead?

• Is high inflation impacting your budget and leaving you with little disposable cash at the end of each month?

If you answered yes to any of these questions, then this page is crucial to study.

By the way, our friends at The Wealth Coaches provided us with this success pyramid graphic and attached narrative that shows the percentage of 18 year year old's in Canada or the US who work a job for 47 years and end up in the various financial positions shown at age 65.

As you can see, the outcomes are dismal. What it reveals is that you only have a 5% chance of making it financially by age 65 and to be able to afford a comfortable retirement if you simply follow the crowd! And that is IF you do everything right and have managed to save a sizeable retirement portfolio AND have paid off your mortgage and all debts by the time you retire!

These are actual long-term statistics compiled over decades. They tell us that it doesn't matter which income bracket you are in during your working life, it only matters on how much you manage to accumulate in savings, the total taxes you pay or save, and the total hard assets you manage to acquire. Of course, financial education is key to your success as well as choosing the right investment opportunities along the journey of life.

The biggest investment most people will ever make is a home. Many will not even qualify to buy a home and will be burdened with paying rent forever with nothing to show for it in retirement. Regardless of your situation, the cost of accommodations is likely your largest monthly expense.

EXAMPLE

Let's start with a typical Canadian example of a 1000 sqft, 2 bedroom, 2 bath apartment rental payment or a monthly mortgage on a similar sized condo. Depending where you live, you might be expecting to hand over about $2200 in a city like Calgary. If you own the condo, add in about $500-$800 in condo fees plus property taxes. We will exclude utilities and other costs for the moment.

The typical Canadian spends over 40% of his or her monthly household income on accommodation expenses, according to most metrics. This makes it exceedingly difficult to pay down other debts, invest in retirement, and cover the high cost of living while also enjoying life along the way.

Well, that is why you are reading this page!

We urge you to study all the content presented under the tab called The Case for e-Bikes to fully understand the e-mobility industry and how you as a Joint Venture Equity Participant (JVEP) can participate in this powerful private crowd funding opportunity called Joint Venture Ownership Pool #1 (JVOP-1).

Here is our brief JVOP-1 video presentation describing the opportunity in detail, followed by our take on how this could work for you.

Here is how you can REPLACE some or all of your housing expenses mentioned above.

The typical bank client or mutual fund investor earns about 5-7% Rate of Return on his or her money. The Rule of 72 is a financial estimation tool that allows you to easily calculate how long it takes to double an investment given a set rate of return. Take 72 and divide it by the ROR and you get 72/7 = 10. In our example, it would take 10 years to turn $2000 into $4000 through typical investment strategies. Likewise it would take a decade to turn $8000 into $16,000.

The problem with the typical investment offered through a bank, mutual fund company, or self-directed ETF is that the investment pays out what's left AFTER all other expenses have been paid. Most people have never heard of a Royalty Unit or a Joint Venture.

• One RU in JVOP-1 has a one-time purchase price of $2000 CAD.

• Each RU is projected to pay out $7087.50 per YEAR in royalties to each JVEP RU holder.

• That works out to a very generous $590.67 per month! That will replace the average condo fee payment in Calgary.

• The JVOP-1 has a forecasted ROR of 254% and a 42-day break-even point in year #1.

• Of course, actual results will vary and are NOT guaranteed!

  
  

• Four RU's in JVOP-1 has a one-time purchase price of $8000 CAD.

• Each RU is projected to pay out $7087.50 per YEAR in royalties to each JVEP RU holder.

• Four RU's works out to a very generous $28,350/yr or 2,362.50/mo! That will replace the average rent or mortgage payment in Calgary!

• The JVOP-1 has a forecasted ROR of 254% and a 42-day break-even point in year #1.

• Of course, actual results will vary and are NOT guaranteed!

The above results are based on modest yet realistic forecasted revenue projections for the Joint Venture Ownership Pool. Although no financial results can ever be guaranteed, wouldn't it make sense for you to at least look into the possibility of funding your highest monthly expenses by having joy-riding tourists in Banff contribute to your financial future by them simply renting eco-friendly ReeBikes every summer? They are going to do it anyway so why not get a piece of the action? Become a Joint Venture Equity Participant (JVEP) today. Click the button above to get started!

Each JVOP has a limited number of available Royalty unit positions equal to the number of e-bikes and accessories being ordered. Allocations are based on a first-come-first-served basis until the pool is fully subscribed.

Simply click the button to complete the intake form to begin the process of reserving your spot in your chosen JVOP.

In addition to your non-refundable "buy-in" deposit, you will need to complete the Joint Venture Equity Participant Agreement which is provided within the reservation form while reserving your spot or access it directly by clicking here.

Once you have completed the JVOP reservation form and JVEP Agreement (if you did not already make your deposit in the step above) click the PAY MY DEPOSIT NOW button or image below to be taken to our Square shopping cart where you can make your initial deposit into one of our active Joint Venture Ownership Pools.

If you are returning here to pay your outstanding balance, you can skip the agreement page by clicking the button below to Pay my Outstanding Balance.