Under the N.C. Providing Access to Capital for Entrepreneurs and Small Businesses Act, Boone couple Angela and Brad Heavner have raised $20,000 to pass their target minimum in their efforts to open a float spa business by the end of 2019.
“180 Float Spa is excited to be the first North Carolina company to successfully raise the minimum offering amount and complete escrow requirements under the NC PACES Act for investment crowdfunding,” 180 Float Spa co-founder Angela Heavner said in a statement.
Passed in July 2016 by the North Carolina General Assembly and signed into law, the N.C. PACES Act allows small businesses like 180 Float Spa to issue Local Public Offerings to raise amounts less than $250,000. The minimum investment for 180 Float Spa is $250, which Heavner said was by design to attract a larger group of people.
According to 180 Float Spa, LPO investors, required by law to be N.C. residents, will each receive in the aggregate 1.33 times, or 33 percent gross return of their original investments, to be paid out of the business’s gross revenue quarterly for three years. Revenue sharing for investors is 7 percent and includes float perks. The maturity for the LPO is 36 months, which will start once the first disbursement is made to investors, which is the quarter in which the company has revenue greater than $0.
Locals for 10 years, 180 Float Spa founders and owners Brad and Angela Heavner have lived in Boone following Angela’s graduation from Appalachian State University in 2011.
“After graduation we continued to live in Boone for our love of nature and Boone’s friendly small-town vibes,” Heavner said. “After working for other small businesses in Boone for many years we desired to build our own business that could have a positive impact in the community.”
In floatation therapy, an individual floats on a heated mix of epsom salt and water in an enclosed individual pod. The therapy is designed to decompress the body without putting stress on any joints, allowing a fully restorative experience.
The idea for 180 Float Spa came after Brad’s back was seriously injured in a 2016 car wreck.
“It was during this stressful season of our life that we both we both realized the negative effects that stress, anxiety and chronic pain have on our mind and body,” Heavner said. “It was after trying float therapy for the first time in Asheville that our passion for float therapy developed. We felt a 180-degree difference in ourselves after floating. We knew immediately we wanted to share float therapy with our community, something that has a profound impact on our lives and has truly changed our lives for the better.”
On March 18, the N.C. Department of the Secretary of State announced that 180 Float Spa was the first crowdfunding filing to reach its minimum offering amount after having started its offerings in October 2018.
“This is a big benchmark moment for NC PACES; crossing that target minimum threshold is where the rubber meets the road in crowdfunding,” N.C. Secretary of State Elaine F. Marshall said in a March 18 statement. “Building in the minimum offering amount and escrow agreement was just one part of balancing economic opportunity and investor protection in this law. It is vital that investor funds are protected in escrow until that target minimum is reached.”
“As an early stage company, investment crowdfunding is important for building and growing our business,” said Heavner. “The Local Public Offering option opens the door to a wide pool of investors, including non-traditional investors whose relatively small investments can make a big difference for a small company like ours. Working with the (Department of the N.C.Secretary of State) made the process easy; they answered all our questions and reviewed our information in a timely manner.”
Heavner said on May 2 that they are currently finalizing a location located in the Boone town limits, then will combine the LPO funds raised with traditional business loans to start the building process.