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Although the directors have funded the project to date, the company needs funding to now put the car into production and is looking to raise £1.5million in return for 33% equity.

The company will be based and the car manufactured at Coventry Prototype Panels who assemble cars like the Spyker super car, as well as completing work for clients such as Aston Martin, Zagato and Bentley.

Management Team

The team has strong skills in engineering, design and finance, with many years experience within business.

Our FD Simon Kiero Watson has worked in Banking and corporate finance for many years and will control the financial aspect to the company. Additionally, our Manufacturing Director, Brendan OToole is the MD of CPP Ltd (www.cpp-uk.com) this appointment ensures that we have access to the very best skills and engineering for our car. CPP are specialists in low volume and prototype cars with clients such as Aston Martin and Spyker. CPP will be producing the tooling for us, as well offering office and work space, with a rent holiday till 2011. This allows us to be incredibly cost efficient and reduces our start up funding dramatically.

The Climax Sports Racer

The Climax Sports Racer has been designed to be both a lightweight road and track car and will have a performance equivalent to much more expensive competitors. The heart of the car is a V8 engine developing 345 bhp as standard, and 450bhp with a supercharged version. This means the car will be able to achieve a top speed of 170 mph plus with a 0-60 mph time of 3.7 seconds. The Sports Racer will be built with Aluminium body and chassis and there will be two models;

* Climax Sports Racer
* Climax Sports Racer S (S denotes supercharged version)

These cars will sell at £85,000 and £95,000 respectively but we suspect that the S version will sell in greater numbers, plus we also expect that each customer will include options which will increase the sale value.

The Climax Sports Racer will be capable of running on biofuels and so environmentally advantageous.

The market

The Climax Sports Racer will be a highly exclusive, distinctive lightweight sports cars with dramatic looks and performance and will be engineered with excellent power to weight ratio allowing for excellent performance equivalent to cars that are priced much higher than the Climax. The overall market place for sports and supercars that are exclusive is currently strong even in an economic downturn, and the Sports Racer will win customers on price, desirability and exclusivity.

Our completion in terms of performance and market would likely be the Atom V8 and Caterham R500, both of which are more pure track cars, our car will appeal to road and track and be more balanced in its use for both activities.
Lightweight cars from Ferrari and Lamborghini are a result of removing components from the original, this actually increases the price, however we will be building a lightweight car from the outset, and should thus ensure that the car presents excellent value.

n Growth in Sports car market place increased by 28% 2009/2010

Investment

The pre-investment valuation of the company has been placed at £3million - this figure has been generated in line with the potential value of the trademarks, plus quotations from engineering companies to build an equivalent car which estimated 5-8million.

The investment of £1.5 million for 33% of the enlarged share capital.

Projections and Returns

The financial projections for the company estimate a pre tax profit of £9.5million should the full production of 200 plus cars be met.

The profit margin for each car will be 35% and breakeven for the entire project would be full payment for 39 cars.

Future

Designs have already been completed for the next version of the car which will have a roof and be directed at the GT market place. The funding of this will be via the growth of the company and is targeted at year 2 of production of the Sports Racer. A GT version will increase profitability and apart from low cost retooling would be initiated very easily into the production cycle.

Summary

Climax Cars offers an exciting opportunity for involvement in both a desirable product with the potential for growth and market, which we are very confident in due to the commercial infrastructure created around the product, which is probably unique for a start up car company.

Dividend payments to share holders will be dependant on performance, but we are confident, if we achieve plan to issue in year 3.

This is a medium to long term investment, however, the directors may seek to put the company onto a fledgling exchange such as PLUS and the AIM.

A full prospectus is available to sophisticated high net worth individuals on request.