Company Overview
| Company Name |
LOAD GUARD LOGISTICS, INC. |
| Company Address |
6317 SW 16TH STREET
MIAMI, FL 33155 |
| Company Phone |
786-250-1410 |
| Company Website |
www.loadguardtransportation.com |
| CEO |
Yosbani Mendez |
| Employees (as of 4/1/2013) |
3 |
| State of Inc |
NV |
| Fiscal Year End |
10/31 |
| Status |
Filed (1/30/2013) |
| Proposed Symbol |
-- |
| Exchange |
OTCBB |
| Share Price |
$0.04 |
| Shares Offered |
3,345,000 |
| Offer Amount |
$133,800.00 |
| Total Expenses |
$15,000.00 |
| Shares Over Alloted |
-- |
| Shareholder Shares Offered |
845,000 |
| Shares Outstanding |
5,647,500 |
| Lockup Period (days) |
180 |
| Lockup Expiration |
-- |
| Quiet Period Expiration |
-- |
| CIK |
0001516551 |
The following table details the Company’s intended use of proceeds from this
Offering, for the first twelve (12) months after successful completion of the
Offering. None of the expenditures itemized are listed in any particular order
of priority or importance. Since the Company does not intend to pay any
Offering expenses from the proceeds from this Offering, and assuming that
$100,000 (100%), $50,000 (50%), or $25,000 (25%) of the Offering is sold, the
gross aggregate proceeds will be allocated as follows:
Expenditure Item** 100% 50% 25%
Professional Fees $ 15,000 $ 15,000 $ 15,000
Truck(s) 65,000 25,000 -
Trailer 20,000 10,000 -
Working Capital - - 10,000
Total $ 100,000 $ 50,000 $ 25,000
There is no minimum amount we are required to raise in this Offering and any
funds received will be immediately available to us.
**The above expenditures are defined as follows:
Professional Fees: Pertains to legal services and accounting fees that will be
incurred by the company, for the next 12 months.
Truck(s): Pertains to the cost of purchasing a tractor for hauling goods. If we
raise 100% we estimate that $65,000 will allow us to buy two quality used
tractors.
Trailer: Pertains to the cost of buying a fully enclosed 53-foot trailer.
Working Capital: Pertains the funds allocated to general working capital.
There is no assurance that we will be able to raise the entire $100,000 with
this Offering. Therefore, the following details how we will use the proceeds if
we raise only 50% or 25% of this Offering:
If only 50% of this Offering is sold, Load Guard Logistics estimates that this
would provide sufficient capital to expand its current business by being able to
buy a quality used tractor and enclosed 53-foot trailer. Under this scenario, we
estimate that we would be able to generate enough revenues to sustain our
business. Should we be unable to generate sufficient revenues to sustain our
business, we will have to find other sources of financing.
If we raise less than 50% we will not be able to expand our business by buying
an additional truck and/or trailer. Our expenses would be prioritized in order
of importance and would affect how we allocate funds for developing the
business.
If only 25% of the Offering is sold, we would still incur expected professional
(legal and accounting) fees of $15,000, which will have to be paid to maintain
reporting status during the next 12 months. The remaining $10,000 would pay for
expenses prioritized in order of important. Based on raising only 25% or
$25,000, we will not be expanding our business by the acquisition of an
additional tractor and/or trailer. This would hinder the development of our
business and our ability to generate additional revenues.
If we do not raise sufficient funds to cover professional fees, estimated to be
$15,000 for the first 12 months, we would have to pay for this from current
operations. We may not be able to generate sufficient revenue from our current
operations and if so we would not be able to remain reporting with the SEC, and
therefore we would not be able to obtain an OTCBB quotation.
The freight transportation industry is highly competitive and includes thousands
of trucking and non-asset-based logistics companies. We have no share of the
markets we target. Competition for the freight we transport is based primarily
on service, efficiency, available capacity and, to some degree, on freight rates
alone. We are insignificant in the truckload transportation industry.
The principle means of competition in the truckload segment of the industry are
service and price, with rate discounting being particularly intense during the
economic downturns. We are forced to compete primarily on the basis of rates,
although we strive to offer the best service possible. However, we are dependent
on large freight brokers to post rates in public that are then bid on by other
smaller trucking companies, such as ourselves, and have no control on what other
companies will accept for shipments. We are striving to build strong service
relationships with companies for specific routes in our geographic area. It is
our desire to move toward the dedicated freight segment, whereby we agree to
make our equipment and drivers available to a specific customer for shipments
over particular routes at specific times. We feel offering drivers specific
routes will further aid us in driver recruitment and retention. Not being able
to get stronger revenues more consistently will hamper our cash flow and thus
our ability to purchase newer equipment. We are extremely sensitive to price
fluctuations in fuel, maintenance costs and driver expenses.
Company Description
Load Guard Logistics, Inc. was incorporated in the State of Nevada on March 16,
2011 as Load Guard Transportation, Inc. The Company changed its name to Load
Guard Logistics on November 16, 2012. On March 18, 2011, Load Guard incorporated
a wholly-owned subsidiary in the state of Florida, called
LGT, Inc., which
operates under the DBA of Load Guard Transportation.
---
We are a transportation and logistics company engaged primarily in hauling
truckload shipments of general commodities in both interstate and intrastate
commerce. Our truckload shipments are comprised of regional short-haul transport
of a variety of consumer nondurable products and other commodities in truckload
quantities within geographic regions across the United States using dry van
trailers. We can operate throughout the 48 contiguous U.S. states pursuant to
operating authority, both common and contract, granted by the DOT and pursuant
to intrastate authority granted by various U.S. states. The principal types of
freight we transport include retail store merchandise, consumer and grocery
products and manufactured products. We focus on transporting consumer nondurable
products that generally ship more consistently throughout the year and whose
volumes are generally more stable during a slowdown in the economy.
We aim to provide superior on-time customer service for our brokers. We do this
by maintaining our equipment in the best possible condition and monitoring our
drivers on performance. We are not large enough to engage specific shippers
directly, and thus, focus on building relationships with large brokers. By
providing reliable service to our brokers we have been able to obtain repeat
contracts and are offered more lucrative routes on occasion. Being based in
Miami, FL we strive to serve mainly the southern states. We frequently service
FL, AL, SC, NC, LA, MS, GA, and TX. We occasionally will go further north and
provide service to states such as IN, VA, OH and IL. We try to maintain routes
that our drivers are most familiar with for consistency and to avoid extreme
weather conditions in the winter months.
As we grow our business, we would aim to deal directly with customers on their
shipping needs. At this time we are not equipped to provide consistent service
to select customers, and as a consequence large trucking companies and brokers
dominate direct access to shippers. While brokers are reliable for finding
loads and for providing quick payment, they are also earning fees for these
services. Further, brokers advertise their loads internally amongst all brokers
and externally on their websites. Small trucking companies, such as ourselves,
do actively monitor these postings and all loads are contracted on a first come
tender basis. During slow periods we can encounter excessive competition for
loads on our routes. For example, we have found that being located in Miami, FL
it is frequently difficult for obtaining good rates leaving the state, whereas,
we tend to earn a premium on rates coming back to Miami. We recently added a
temperature-controlled (“reefer”) trailer to assist with our shipments out of
FL, as we feel we can earn premiums on loads that are perishable and that need
to be shipped out of Florida. Additionally, our reefer can operate as a regular
dry van for non-perishable loads.
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Load Guard’s business and corporate address is 6317 SW 16 th Street, Miami, FL
33155. Our telephone number is 786-250-1410 and our registered agent for
service of process is Corporate Direct, Inc., 2248 Meridian Blvd, Ste H, Minden,
Nevada, 89423. Our website: www.loadguardtransportation.com.
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