THE
FREE SPIRIT
OF AFRICA

By focusing on sustainability and a strong brand story within the world's fastest-growing beverage segment, we are able to create movement in the market. In addition to our dedicated focus on environmental sustainability (specifically nature conservation), we offer distinct and unique flavor combinations. Under the leadership of Tess Posthumus, Selati has created a mature complexity that is unparalleled in the category. This provides the opportunity to create non-alcoholic mixed drinks and cocktails that have the same quality as alcoholic cocktails and mixed drinks. Our secret lies in the special non-alcoholic base, which we blend with unique South African products such as marula, wild thyme, rooibos, and bush pepper. This results in an African-inspired alcohol free spirit with pronounced and characterful flavors that truly surprise the consumer.

Selati has four specific unique selling points (USPs):

1. Unparalleled, irreplaceable flavor profiles based on unique South African flora, fruits, herbs, and spices.
2. Created by iconic bartender Tess Posthumus, with intensity of flavors as the primary focus during the development phase.
3. A long finish; a rarity in non-alcoholic cocktails and mixed drinks.
4. Perfectly complements a wide range of mixers as well as "low alcohol cocktails." "Selati lifts up every drink!"

Selati also focuses on a specific area to make the most impact and exert positive influence: Kruger National Park in Africa. To effectively contribute to Kruger National Park, Selati collaborates with the Kruger Park Wildlife Foundation and the South African Pure Wild Fund. For each bottle of Selati sold, €0.50 is donated to the Kruger Park Wildlife Foundation. They also organize special events and take passionate nature lovers on trips to raise more funds for conservation. The Foundation and the Pure Wild Fund develop effective solutions to maintain a more sustainable and nature-driven park and protect species like the rhinoceros. To date, the Foundation has donated over ZAR 650k.

Selati is strongly committed to sustainability and has taken various initiatives to make our products and production methods as sustainable as possible.

With growing concern about climate change and environmental sustainability, people are seeking ways to reduce their impact on the planet. Selati offers a sustainable and environmentally friendly alternative to traditional alcoholic beverages and focuses on sustainability by effectively making an impact in the following areas:

1. Reduced carbon footprint
2. Healthier choice
3. Innovation

Reduced carbon footprint
Selati's local production process in The Netherlands reduces our ecological footprint radically. We brin highly concentrated ingredients by boat from South Africa to the Netherlands. The products are converted into consumer units in the Netherlands and stored in a warehouse that is partly powered by solar energy.

Healthier choice
By opting for alcohol-free beverages, people can enjoy the taste and social benefits of alcohol while avoiding the negative consequences.

Innovation
Developing new methods, products, and processes is an ongoing process at Selati. As a result, Selati has more and more innovative options to bring to the market in response to the growing demand for alcohol-free beverages.

When you invest in Selati, you are buying a certificate of shares from Stichting Administratiekantoor Selati of African Free Spirit Company B.V. Officially, you are not buying a share, but a certificate that is similar to a share. By purchasing a certificate, you become an economic co-owner of Selati and are entitled to dividends (profit distribution) if the management of African Free Spirit Company B.V. and the shareholders' meeting approve it. Additionally, you can benefit from any increases in the value of the certificates.

Stichting Administratiekantoor (STAK) Selati can be seen as an "intermediary" that acts as the administrator of the shares. STAK separates the voting rights from the profit rights, which means that as an investor, you do not have voting rights but can still participate in the success of Selati.

Selati is selling a portion of its shares to further spread its brand and vision. Collaboration is at the heart of Selati, which is why we are taking this step.

The raised investments will mainly be used for the following purposes:

1. New Product Development: 5%
   Selati is an innovative brand, and we aim to keep it that way. Therefore, we are constantly working on developing new products and improving existing ones.
2. Inventory: 55%
   Before we can expand Selati internationally, it is important to have sufficient inventory to meet the demand.
3. Personnel: 20%
   To scale up our sales and establish long-term international relationships, we want to invest in top talent.
4. Marketing: 20%
   Investments in marketing are necessary to position our brand internationally from the start.

We strive for transparency in our campaign and believe it is important to provide clarity on the valuation. Our advisors and specialists calculated the value of African Free Spirit Company B.V. based on the business case for the next 5 years. After using the discounted free cash flow method and the market multiples method, the pre-money valuation of Selati's equity was determined to be €1.76 million.

Although Broccoli does not provide an accountability for the valuation of the shares, they do ensure that the valuation is acceptable, and if it is not accepted by the Broccoli management, we engage in discussions. We aim to reach a consensus on the valuation until an acceptable level is achieved.

Would you like to know more about the valuation? Download the valuation of the company here.

The objective of Selati is to raise €500,000 in funding. To achieve this, 5,000 certificates are issued at €100 each, which corresponds to 19.69% ownership of Selati. With an investment of €1,000, you will receive 10 certificates as an investor.

From the date stated, it is possible to invest in Selati and become a co-owner starting from €1,000. Before the investment round begins, you have the opportunity to reserve certificates. This gives you, along with other reservation holders, the exclusive ability to redeem your reservation for 48 hours. After this period, it will be possible for anyone to invest in Selati.

The sale of certificates is facilitated through the Broccoli platform, which focuses on sustainable companies in the food and agriculture sector. The platform brings together entrepreneurs and investors and provides companies with the opportunity to deploy their share capital for sustainable growth.

Once you have purchased certificates in Selati, you will receive an email from Broccoli as confirmation of your successful transaction. This email serves as proof of your investment and contains information about your purchase for your own records. The certificates will then be visible in your dashboard. The administration of your certificates will also be handled through Broccoli.

The sale of shares is possible once the "time-lock" period has expired. In the case of Selati, the time-lock period is 730 days (2 years). Therefore, starting from a certain date, you can offer your shares for sale.

The bulletin board, where you can offer shares to other co-owners, works as follows: When you decide to sell your shares, you can offer them to other Broccoli users on the bulletin board. It is not like a stock exchange where a "sell order" can be placed and executed automatically.

Selati determines the range within which an offer can be placed. This range is based on the latest company valuation, which in turn is derived from the latest financial performance and market segment. As the seller, you determine the selling price within the specified range. Potential buyers can place bids, and ultimately, it is up to you to accept the desired offer.

Broccoli charges a transaction fee of 2.5% of the total sales amount to you as the seller when selling shares.

It is important to emphasize that the return on investment can never be predetermined. However, as a co-owner, there are two ways in which you can potentially achieve returns:

• Dividend payout: This is determined each year after the annual financial statements are established. During the shareholders' meeting, Selati's board decides whether the profits will be distributed or reinvested in Selati.
• Gains from the potential sale of your certificates: When value is added to Selati, it will impact the revenue, results, and thus the value of the certificates you purchased.

No, there are no costs for you as the buyer when purchasing certificates through the Broccoli platform. Transaction costs or issuance fees are charged to the seller, which in this case is Selati.

Please note: If you decide to sell your certificates, you, as the selling party, will be responsible for the transaction costs. This amounts to 2.5% per transaction based on the sales amount for administrative processing. The buyer, once again, does not pay any fees.

As a certificate holder, you are completely exempt from any liabilities. Therefore, as an investor in Selati, you cannot be held responsible for decisions made by Selati in the past or in the future.

There are always risks associated with an investment, so it's important to invest only with money you can afford to lose. Selati takes into account risks that may negatively impact its financial performance and the value of Selati. These negative effects can also have implications for the value of your certificates.

The general risks that Selati faces are as follows:

• The revenue may fall short of expectations, either independently or in combination with higher costs, resulting in lower profits than anticipated.
• The loss of foreign suppliers.
• The departure or death of founder(s).

In the Key Investor Information Sheet, which can be found under "Documentation" on the Broccoli platform, you will find more explanation about these risks. Selati delves deeper into the specific risks and precautionary measures related to these risks.

For your own administration, you will receive an investment proof immediately after purchase. Additionally, Broccoli provides the option to export your transaction(s) at any time of the day.

On January 1st of each new year, you can also export your annual overview from the Broccoli platform. This overview includes the number of certificates you own in each company and their respective values. You can use this information for your own administration or for your tax return.

For questions regarding the administration of your certificates, you can contact Broccoli by emailing support@broccoli.eu.

When you have investments, you must declare the value of your investments. The investments on Broccoli do not fall under "green investments," so you cannot receive any extra exemption or additional tax credit for them.

A portion of your wealth is exempt from taxation; this is known as the tax-free threshold (heffingsvrij vermogen). The value of the certificates falls under Box 3 (income from savings and investments), which has a minimum tax-free threshold of €57,000 (and €114,000 if you have a fiscal partner) in 2023. You can use a tool provided by the tax authorities, which you can find here, to calculate your Box 3 income. Unfortunately, you do have to pay taxes on your income from wealth. In the case of an investment like this, we are referring to "Investments/other assets," and the taxable rate is 6.17%. In 2023, you will pay 32% tax on the rate of 6.17% on the total achieved return in 2023.

For more information on how to calculate your Box 3 value, you can refer here.

This is not tax advice, and we always recommend contacting your tax advisor or conducting your own research.

Yes, that is possible. To make a business investment on the Broccoli platform, you need to create a business account and make the investment using your business bank account. After successful payment, you will have made a business investment. If you have any questions, you can contact support@broccoli.eu.

Taxation depends on your specific situation. Generally, the proceeds from your investment are taxable under corporate income tax. Both received dividends and realized capital gains are taxable income for the company and subject to corporate income tax. The corporate income tax rate is 19% for profits up to €200,000 and 25.8% for profits above that threshold in 2023.

With dividend distributions, withholding tax is also deducted, which can be offset as an advance payment towards the corporate income tax due.

This is not tax advice, and we always recommend contacting your tax advisor or conducting your own research.

Yes, the Stichting Administratiekantoor Selati is a Dutch entity established and passed at Elements of Legal in Amsterdam and is subject to Dutch legislation. The share funding round of Selati is registered with the AFM (Authority for Financial Markets). You can find this document under the "Documentation" section on the Broccoli platform. Please read this document carefully before finalizing your investment.