TECH FIRM &

SPECIALTY PLANT NURSERY

a socially responsible tech start-up & plant nursery, currently building a suite of open-source software tools & services to provide semi-automated high-efficiency cultivation technology + other resources to cultivators of all types/sizes.

 

LATEST INVESTOR BULLETINS

 

SPECIAL BULLETIN

A piece covering the introduction of HOOG‚ĄĘ has been featured at the top of the Life & Style section of Westchester Magazine online! Read it here.

INCUBATION

 

Currently HOOG has completed the interview process, and is now under consideration for an upcoming cohort at element46 (last updated 06/09/21)

 

Additionally, we've created pages on Gust and Betapage to scout for additional incubator & accelerator opportunities.

 

OPEN COMMUNITY CALL

 

Connect with us get the latest HOOG‚ĄĘ updates, chat about tech, cannabis legislation, or just listen to ROOG, our trio of HOOG‚ĄĘ Radio bots (powered by Groovy).

 

Every Sunday at 1PM Eastern Standard Time (10AM PST) on our Discord server's #community-relations channel.

OPEN COMMUNITY CHANNELS

 

ROOG #1, our Community HOOG‚ĄĘ Radio bot, is available on-demand 24/7 for verified users to pull into the 24/7 ROOG lounge (via channel #roog1_control) to listen to their favorite tunes 100% free.

 

#MOOD

 

As you review our IR page, below, we gently recommend listening to the @Spotify music player embedded to the left.

 

Keep a lookout for static "Next Song" recommendations throughout, which are in place to guide Potential Investors with variable reading paces.

 

This playlist will get you into the right #MOOD to believe in our vision & invest in NY State's future. Lighting up a phat blunt wouldn't hurt either.

 

Troubleshooting: Don't see any embedded Spotify players? Click here to listen along as you read.

 

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Thank you in advance for your time & consideration,

Deniz S. Ozkaynak

HOOG‚ĄĘ Founder

STEALTH LAUNCHED 04/02

 

HOOG‚ĄĘ was officially stealth-launched by its Founder

at approximately 10AM on 04/02/2021

 

Unofficially has been in the works since December, 2020

 

Exited stealth mode 04/20/2021, announced on:

Reddit

Instagram

Twitter

 

 

 

FIRST SONG:

 

Barbra Streisand

 

By: Duck Sauce

 

AMBITIOUS LAUNCH SCHEDULE

Tenative, subject to change

 

 

EXITING STEALTH MODE

✅ 04/20/2021

 

TARGET DATE TO SECURE F&A FUNDING

"Friends & Acquaintances" closed funding round

 

$25,000 by 09/31/2021

 

TARGET DATE TO SECURE SEED FUNDING

$100,000 seed stage by 11/31/2021

 

TARGET DATE FOR 50% SERIES A FUNDING 

$1.5M by 02/31/2022

 

TARGET DATE FOR 100% SERIES A FUNDING 

$3.1M in total Series A by 08/31/2022

 

First PROJECTED legal NYS OCM-Licensed CANNABIS Harvest

Spring 2024, conservatively

Winter 2023, miraculously
 

Target Total investment over 3 rounds: ~$3.3M for 3 years of operations

LIVE VALUATION TRACKER

 

Investing Round: Closed F&A Round, seeking $25,000

 

Internal Estimate*

$2M

 

 

Actualized**

$2M

 

* - numbers still being crunched - based on internal projections, available here.

 

** - Actual valuation(s) based on one (1) closed investment:

Investor Display Name

Shares

Date

1.

J. Ramos

50

06/14/2021

2.

anonymous

200

08/06/21

3.

-

-

-

4

-

-

-

5

-

-

-

 

 

NEXT SONG:

 

I Love It (feat. Charli XCX)

 

By: Icona Pop, Charli XCX

 

ACCEPTING INVESTMENTS: YES

 

Investment Status: OPEN

We are accepting investment offers at this time.

Please reach out to deniz@hoog.biz to recieve a copy of our

 

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Compensation:

The below INFORMAL investment offerings to Accredited Investors are based on our "Live Valuation Tracker" (above)

 

$10,000 (ten thousand) angel investment = 0.059*% equity ownership stake

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If interested in investing, please reach out to legal@hoog.biz to negotiate terms.

 

* - the "Angel" investor tier includes a limited-time 0.009% bonus equity stake as a thank-you for believing in our vision! This bonus offer will expire once we have secured our first stage of funding.

Q: What is the $25k in "F&A" funding for?

 

This fund will be matched with a Founder's self-investment of $25k (see Prospectus for details) and a $25k small business loan to boot. This total fund of $75k from our Closed round will be spent on:

  1. $45,000 (60%) developing versions 0.1 to v0.4 of CaaS tools & services

  2. $15,000 (20%) developing our nursery retail services

  3. $15,000 (20%) business development & promotion for raising a Seed round

 

Q: What is $100k in seed funding for?

  1. $80,000 building out v0.5 to v0.7 of CaaS tools & services, to show our existing investors & potential Series A investors the tech we're capable of creating and demonstrate how disruptive it can be one day.
  2. $20,000 set aside for initial OCM filing fees and upcoming license acquisition fees/costs

 

 

 

NEXT SONG:

 

Work Bitch

 

By: Britney Spears

 

Q: OK, gimmicky stuff aside, What ARE YOUR PRIMARY REVENUE STREAMS?

 

A:

Retail sales of cannabis (cultivated & harvested on-site)

 

Retail sales of wholesale cannabis (purchased from NY-based sources)

 

Events Coordination for High-End Clientele, an implementation or our CaaS model

 

Per-strain cultivation data & analysis

 

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Eventually, B2B consulting & Sales (read more below)

 

 

NEXT SONG:

 

"High" Hopes

 

By: Panic! At The Disco

 

OK, SO WHAT AM I INVESTING IN?

 

Q: Luxury sport car rental? Cannabis cultivation? Snoop Dogg vibes? What even is this business?

 

A: You are investing in HOOG LLC DBA "HOOG", a registered New York State corporation - a burgeoning tech firm and specialty nursery.

 

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You are investing in a brand, a brick & mortar headquarters, and a driven Founder with a big dream in mind, an eye for disruption, and a technical vision to anchor it.

 

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Q: How are you going to achieve that? For only $3M?
A: $3M is simply to secure HOOG HQ, recruit a nimble team, & launch a local brand, on the cheap (relatively speaking, for Westchester). Approximately 1-2 years into operations we expect to raise a Seires B to begin elevating our regional brand awareness and advocating for the state-wide adoption of our CaaS model.

 

 

HOW DO YOU INTEND TO LAUNCH A NEW BRAND for just $3m?

 

  1. Scoop up a brick & mortar HQ during favorable market conditions, where we can begin building local & regional brand awareness while operating a 100% legal specialized nursery (hydrangeas, shiitake mushrooms, etc.). Simultaneously, file for NY State OCM licenses.
  2. Hire smart, trusted staff and build a small tech firm to build out the CaaS standard using tomatoes as a (genetically near-identical) "practice' crop until cannabis license(s) is/are secured.
  3. Upon securing an OCM license, begin operations as a cannabis dispensary/small-scale farm, achieve operational self-sufficiency using modern tech & software, documenting every internal process along the way. Figure out the best ways to interact with local & state government, adhere to oversight, and stringently obey regulations.
  4. Leverage software & hardware automation to remove human error from every step of the process, except for harvesting & pruning of course, which need a human touch. Automate our obligations to government testing standards.
  5. Set the state-wide cannabis standard for operational efficiency, government oversight and interaction, defined as the CaaS model.
  6. Finally, elevate this operational standard to a regional bar for everyone in the cannabis industry to meet - maybe even a national standard. Leverage this "free" notoriety to build HOOG into a regional brand.

Q: What makes your brand so valuable?

 

A: Modularity & potential, as well as the brand's humble origins and noble vision.

 

Q: Can you elaborate?

A: The original trademarkless logo (see right) was designed by our Founder in about 10 minutes, during a flash of creativity. It's sleek, sexy, modular, and simple (there's strength in simplicity). Since then, we've secured our preliminary trademark and created high-resolution versions as well as variations for marketing & merchandising.

 

Since then, he's used GIMP to create hires versions with a trademark (to represent the provisional trademarks we've secured in 2 categories of commerce) and new designs to adapt the corporate brand to various eCommerce applications.

 

Potential:

Just imagine how powerful this brand can become with a competant CMO at the helm.

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Modularity:

HOOG can be a nimble brand, fueling its endless potential. For example:

 

Our Pre-Application Status 501c3 is called NOOG, the non-profit arm of HOOG.

 

Our future B2B spinoff could be called BOOG, 2OOG, HOOG2B, etc.

 

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NEXT SONG:

 

Bom Bom - Radio Edit

 

By: Sam And The Womp

 

Q: What's a CMO?

A: Chief Meme Officer

 

Q: Are you kidding? You expect me to invest in a meme? A joke of a business?

 

A: Not kidding even a little bit.

 

Yes, the title is funny and one might even balk at it - but the position is very real. Our "Chief Marketing Officer", as a lame company might title their executive, will be responsible for taking the HOOG logo and elevating it into a regional brand. They'll also be the caretaker of ALL our social media accounts, so yeah, they'll certainly be shitposting memes every so often too.

 

The creativity and spunk, with which we would want our CMO to approach their job, is best encapsulated by this formal title change.

 

If this branding style isn't for you, thank you for your consideration but we kindly recommend you read no further.

 

Q: Woah, isn't that a bit of an aggressive tone to take with potential investors?

 

A: Yeah, it is. When HOOG innovates CaaS into a regional standard, a talented CMO may be able to leverage that in order to catapult HOOG into a national brand.

 

If you still find the CMO title distasteful, this brand isn't the right investment opportunity for you - please read no further, the technical potential of this company will be difficult to comprehend, if you aren't already on board with our style thus far.

Q: What's CAAS?

 

A: Cultivation as a Service.

 

Q: What does that mean?

A: Modelled after SaaS - HOOG is defining an open-source operational guide to launching a cannabis business or improving an existing one's operational efficiency.

 

Q: Why on earth would you do that?

A: Well, if the HOOG team happens to invent any patent-able processes or methodologies, we could spin up a B2B business to monetize those, but we'll cross that bridge when we get to it. MUCH more realistically, HOOG can count on documenting its own internal cannabis production methodologies, then using that standard to spin up a B2B consulting business, to help integrate our CaaS model into existing businesses or new startups alike.

 

Q: What are these internal processes you would document?

A: Everything from how we MIGHT manufacture cannabis to achieve operational self-sufficiency to how we effectively meet government regulations, comply with oversight, and interact with local officials.

 

The technical spec will be made available here.

 

 

NEXT SONG:

 

Into the Unknown - Frozen II

 

By: Panic! At The Disco

 

Q: What makes your internal process special ENOUGH TO DOCUMENT?

 

A: At the risk of making HOOG and CaaS sound like vaporware - nothing, yet.

 

Q: Then why should I invest?

A: Call it arrogance, call it ambition, call it a hunch - HOOG's Founder has a quintuple-threat background for launching this EXACT type of disruptive startup and understands the entire cannabis production process from seed to harvest first-hand.

 

HOOG is going to think of a way or two to grow better crops in smaller spaces with increasingly human-intervention-free methodologies, guaranteed. Furthermore, we're going to take a novel, experienced approach to interacting with state government, submitting to oversight, and obeying regulation. HOOG might even find a way automate parts of that process too, which we will document under the open-source CaaS standard, opening up a number of brand-elevation opportunities as well as a future revenue-generation stream in B2B consulting & sales.

 

Many big players in the cannabis industry across the nation rely on inefficient production methodology because, well, cannabis grows like a weed. HOOG's optomized approach isn't going to revolutionize our business overnight nor threaten regional competitors - but if we document it as an open-source standard CaaS we could revolutionize the entire tri-state region in just a few years.

 

 

Q: if your internal process might be special one day, why share it? for free?!

 

A: HOOG's Founder is taking a pragmatic approach to building a tristate regional brand. It's unrealistic to think we will come up with a process so efficient that we'll be able to out-produce and out-compete our competitors year-over-year sustainably. Even if we did, it would take 5 to 10 years of sustained out-competition, at scale. That's a tall order for a well-financed existing cannabis brand trying to break into NYS, let alone a plucky start-up like HOOG.

 

Instead, HOOG's approach is to divide our competitors into five (5) buckets:

 

  1. Suppliers - although not currently a legal possibility, it's possible that one day HOOG may be able to advocate for, and then obtain, an inter-state import license (may need to wait for Federal legalization). That way we aren't competing with MA brands, we're buying some of their supply at wholesale prices to bring into our premier Westchester location.
  2. B2B Clients - once we are able to successfully execute on building the CaaS model out and elevating it into a state-wide standard, we can charge select "competitors" consulting fees to integrate our modern standard into their existing operations, or aid in the launching of new businesses.
  3. Collaborators - Medium-to-large cannabis brands will have to adopt our CaaS standard, maybe contribute to it, and ultimately risk being left behind otherwise.
  4. Soon-to-be has-beens - no sensible brand would want to risk becoming the Dell of cannabis, so they'll adopt our standard, maybe contribute to it, and even consider paying HOOG consulting fees to integrate our optomizations under the CaaS standard into their existing businesses.
  5. Actual Competitors - see below.

 

Q: Did HOOG just "crowd-source" the out-competition of more stale players in the cannabis industry?

 

A: Well, we still have a long road to executing on this vision, but that's the idea yes. Instead of taking 5 to 10 years minimum to out-compete a handful of inefficient brands that rely on lazy production technologies, HOOG will empower the more nible members of the tri-state region using modern technology. Consequently, the speed with which HOOG and these "CaaS adoptors" can out-compete and crush regional competition becomes a more pragmatically achievable goal.

 

But in a word, yes!

 

Our biggest regional threats to success & propserity are no longer threats. They're either collaborators or soon-to-be left in the dust as our standard spreads across the tri-state area like wildfire. The more well-funded brands that are resistent to modernization will eventually collapse under intense market pressures, which HOOG will have literally no hand in organizing or manipulating, but will simply plant the seed for this type of competative environment, by establishing THE open-source cannabis standard, CaaS, and lead its implementation by example, in terms of operational efficiency and transparent pricing models.

 

 

 

NEXT SONG:

 

Heads Will Roll - A-Trak Remix

 

By: Yeah Yeah Yeahs, A-Trak

Q: This all sounds legally murky and like a high-risk investment...

 

A: Our legal counsel's job is to deal with the legality of these potential revenue streams. Nothing will be grown, produced, or sold by HOOG without New York State, county, & local supervision/approval.

 

At the pre-seed funding stage, this is in fact a moderate- to high-risk investment, yes. Please review our Risk Factor analysis (in full here) or a Summary of the top 4 risks below.

 

Status:

We have signed legal counsel to a monthly retainer to represent HOOG and its Founder. We will work toward accepting equity investments beginning on 04/16/2021 ahead of our exit from stealth mode on 04/20 via an official press release.

 

Q: Who are your direct competitors?

 

A: Established cannabis brands in the NY tristate region that are well-financed and resistant to change. Several HUGE US national and Canadian brands that are (undoubetdly) making big plays in NYS or tristate region. Nimble start-ups like ours that will probably try to rip off our open-source model, tweak/improve one thing, and try to sell it to "suckers".

 

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Businesses that a less-savvy investor might think of as additional competitors will actually be in one of the "buckets" defined above. For example:

 

Existing medical cannabis producers - any medium to large scale producers moving into the recreational space will benefit "for free" from reading about, adopting, and advocating for the open-source CaaS standard to streamline their commercial production model. Some will become Suppliers, some Collaborators, and some remaining would be a direct competitor at our initially-planned small production scale (at HOOG HQ).

 

Leaf.ly - an online resource to learn about strains and find local dispensaries; we'd be their client/customer, not a software/web-service competitor.

 

LeafLink - although listed as a cannabis software company in NYC, HOOG will likely be applying to be a wholesale client to fuel our retail business channel, rather than being a direct competitor in the cannabis software or future B2B consulting space.

 

This song applies nicely to both competitors and potential investors.

 

NEXT SONG:

 

Come & Get It - Dave Audé Club Remix

 

By: Selena Gomez

Q: ISn't this CAAS model, nay hoog in general, just vaporware?

 

A: Yeah sure. If that's the takeaway you've gotten thus far, you either haven't been listening to the Founder's Spotify playlist or you take him for a fool. The CaaS standard is currently being developed in a private repository, behind closed doors, for now.

 

The CaaS standard will be open-sourced once HOOG has achieved its vision in implementing a (documented) operational efficiency standard to legally produce recreational cannabis in NYS under OCM supervision.

 

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Ready to invest? Please reach out to legal@hoog.biz

Q: What are hoog's risks?

 

A: Although ALL of HOOG's risks are identified (with risk analysis & mitigation strategies) in our Prospectus, four (4) primary/key risks are covered here for your convenience as a potential investor.

 

Risk 1

1. Key Risk: localized bans of recreational sales at the county or town level (see: MA) and/or a change in "Green Zones" that affect HOOG's proposed HQ in Mt. Kisco, NY.

 

Current Risk Factor

For insight on how HOOG approached this Risk Factor analysis, please visit our About Us page.

 

Westchester County: Low

Mt. Kisco: Low

 

 

Impact: Severe, but not life-threatening

Mitigation: Already mitigated by our plan to establish operations as a 100% legal nursery immediately. Work twice as hard to become a pillar of the local community, using the status symbol of our upgraded, modern HQ and our Corporate Mission to gain local noteriety and positive press.

 

If our HQ (wherever it may end up being) is directly impacted, HOOG will temporarily shift focus to a business model anchored around securing a medical cultivation & dispensary license, while still operating a specialty nursery & garden center and defining the CaaS standard FROM A SOFTWARE STANDPOINT ONLY (until HOOG is licensed to cultivate).

 

 

 

NEXT SONG:

 

Sitting, Waiting, Wishing

 

By: Jack Johnson

Risk 2

 

Standard Risk: retail sales - it’s a cut-throat market during generous conditions, it’s brutal during a pandemic.

 

Current Risk Factor: Moderate

Impact: Low to Moderate

 

Mitigation:

Business Model-based Diversification

This isn’t simply a retail operation - by immediately entering several key aspects of the cannabis supply chain (production, medical/recreational sales, public education, government regulation adherence) we are not shackled by the conventional challenges of a brick & mortar retail business. By building a tech-firm-esque HQ we can also spin up multiple subsidiaries or invent new revenue streams, to further diversify away from a conventional retail business model.

 

Geographic diversification
One of the best ways to mitigate risks is to rapidly expand our retail presence - while a ~4,500sqft space is surely gargantuan for a startup, with the right investments and partners we can rapidly expand across Westchester County via small 450 to 800sqft retail spaces - these can sell our own products as well as third party imports, as well as expand our brand and regional presence.

Risk 3

 

Standard Risk: normal horticultural risks, such as pest infestations, mold, unwanted fungi, or other horticultural problems.

Current Risk Factor: Low to Moderate

Impact: Significant, but not Severe. Loss or delay of revenue streams, potentially crippling growth but should not be severe enough to threaten bankruptcy barring unforeseen circumstances.

 

Mitigation:

Although the Founder is already an experienced indoor gardener, an Angel Investor or Co-Owner with professional experience in argibiz or horticulture would greatly mitigate this risk, reducing risk factor to Low.

 

As would hiring a ‚ÄúChief Cannabis Officer‚ÄĚ with extensive legal growing¬†experience and skill sets in a professional agriculture or horticulture. However,¬† there is no anticipated need for such a role at this time. Likely would begin hiring for sure a role in Year 2 or 3 of HOOG operations.

 

 

 

FINAL SONG:

 

Call Me Maybe - Manhattan Clique Remix

 

By: Carly Rae Jepsen, Big Dog Media

 

 

For those you listened along, thank you!

Thoughts on our auditory-sensory investing experience?

Let us know on your favorite social platform @HoogGrowing

Risk 4

 

 

4. Key Risk: slow or unsuccessful licensing application process

Current Risk Factor: Moderate

Impact: Significant, but not Severe. Loss or delay of revenue streams, potentially crippling growth but should not be severe enough to threaten bankruptcy barring unforeseen circumstances.

 

Mitigation:

  • Part of ouir ¬†Series B may be needed to extend operational lifespan, if the process proves slow¬†in the first year of operations but still looks acquirable.
  • At the risk of sounding like I‚Äôm looking for investment based on race...a partnership or co-ownership with another proud, hard-working minority more directly impacted by the failed War on Drugs could serve as a possible mitigation. This could, somehow, expedite the licensing process though by how much, if at all, is opaque at this time. I‚Äôd like to partner with such an individual regardless of that potential benefit, as I value working closely with a diverse team - it doesn‚Äôt matter if it‚Äôs software or sales, different backgrounds make us stronger, together. #diversityandinclusion
  • HOOG¬†can shift focus on pursuing a medical dispensary license if the creation of the OCM itself, or the application process for recreational licenses to cultivate/sell/import, etc. are¬†not expedient or in our favour for any reasons.

 

 

Unconvinced? Questions?

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Direct Message us on your favorite social platform @HoogGrowing to open a dialogue.