How does the rolling investment schedule work?

The company uses a rolling model where the investment round does not close after an initial contribution. Investors can make an initial investment and continue to add money throughout the life of the raise. Unlike traditional models with a “first or final close,” this structure ensures investors are not shut out after their first contribution.

Why does the timing of the investment matter?

Timing is critical because it determines when an investor begins participating in royalty payments. The sooner an investor joins, the quicker they start receiving royalties, with the first distributions scheduled to begin in May 2026. Additionally, earlier entry allows investors to take better advantage of potential share price appreciation in common shares as the company grows.

What does the May distribution milestone mean for investors?

This milestone makes the investment tangible. Since the distributions are based on revenue from companies with proven track records—rather than earnings after all expenses—it provides credibility via immediate returns for the investors.

How are distributions calculated?

Distributions are based on the total amount invested. Contractually, Fundamental Brands provides a minimum 8% annualized return, though we are targeting 14% and have capped the return at 20%.

• Example: For a $1,000 investment at the 14% target, an investor would earn $140 annually.
• Monthly Breakdown: This annualized amount is paid monthly, resulting in approximately $11.66 per month for every $1,000 invested.

How is the company adding to revenue to impact royalties?

Instead of relying on “overnight sensation” social media tactics, the company uses proven marketing strategies to gradually increase brand elevation. A major immediate revenue driver is the launch of a private label product (Fundamental AB Solutions) being shipped to 8,700 CVS locations and sold online.

What is the difference between “private label” and “white label”?

While often used interchangeably, the speakers noted they are different:

• Private Label: A unique formulation and design created specifically for a retailer (like CVS, Costco, or Target) based on their specific needs.
• White Label: A standard “menu” product (like bottled water) where the same product is sold to multiple companies who simply put their own label on it.

Live Chat Questions

Are there more brands coming on board?

Yes. In addition to Great American Beauty, there are three other brands in the pipeline. The company expects to make a new announcement regarding these additions in approximately two weeks. They are also looking into a technology component to assist with brand growth.

Why should someone invest in Fundamental Brands?

The speakers highlighted two primary reasons for investment:

1. Immediate Income: Investors participate in monthly royalties from revenue-producing companies starting almost immediately (May 2026).
2. Long-term Upside: Every investment provides two classes of shares. While Preferred Shares provide the monthly royalty stream, Common Shares offer the potential for price appreciation during a future “liquidity event,” such as a purchase or exit.