5/Token Sale

Tokens Offered Tokens allocated: 50,000,000.00

Minimum Investment amount: 2,000.00 MYR

Maximum Investment amount: 2,000,000.00 MYR

Token selling price: 0.13 MYR

Minimum Fundraising Target: 1,500,000.00 MYR Maximum Fundraising Target: 6,500,000.00 MYR

In the event where the maximum target of 6,500,000.00 MYR is not fully subscribed through the pitchIN platform, tokens may be sold via private placement, and this would be updated to pitchIN investors via Frac's TCF Campaign Page on the pitchIN platform.

Token Distribution Policy

Token Minting: Completed

Targeted Distribution Date: Q1 2025

Vesting Start Date: Q1 2025

Vesting Period: 18 months

Cliff Period: 6 months from Listing

Token Unlock Schedule: Linear release monthly till full unlock

Distribution Plans

For the pitchIN community, the tokens will be held by pitchIN and released to the investors. All $FRAC will be distributed on the BNB Smart Chain, to lower gas fee-related costs for all parties. In terms of abiding by the vesting schedule, Frac will be endorsing the use of https://sablier.com/, a tool trusted by many major organizations within the blockchain industry. Sablier is a tool created for projects to professionally vest the tokens of the project and makes sure all parties follow the vesting schedule strictly. The tokens can only be unlocked for withdrawal when the time-period is met. During TGE (Token Generation Event), pitchIN will send an email to investors with clear instructions on how to receive their $FRAC in their designated wallet addresses. Frac will cover for all gas fees incurred in this process. Most importantly Sablier's smart contracts are heavily audited to ensure no backdoor control of vested tokens can be exercised.

Over 1.5B+ volume of tokens have been vested/distributed via Sablier

All security and function audits are made fully transparent - https://github.com/sablier-labs/audits

Discussions for Token Valuation

1. Benchmark Against Similar Tokens in Terms of Fully Diluted Valuation

A common method to value new tokens is to take reference from comparable tokens that have been listed or raise funds recently. These benchmark can be adjusted based on industry, asset class, technology stack, and market presence. Analyze their angel and seed round valuations to establish a benchmark. Adjust these valuations based on $FRAC's specific characteristics, such as maturity, technology differentiation, and market potential. Based on Frac’s research, while there are no directly comparable companies to Frac. Readers may refer to other on-chain Real World Asset (RWA) projects for valuation comparison, such as:

1/Ondo Finance Fully Diluted Valuation as of 31st August 2024: USD6.45B Token listed on: 18 Jan 2024 Reference Link: https://cryptorank.io/price/ondo-finance 2/Centrifuge Fully Diluted Valuation as of 31st August 2024: USD 187.36M Token listed on: 14 Jul 2021 Reference Link: https://cryptorank.io/price/centrifuge 3/Pendle Finance Fully Diluted Valuation as of 31st August 2024: USD 844.55M Token listed on: 28 Apr 2021 Reference Link: https://cryptorank.io/price/pendle 4/Polymesh Fully Diluted Valuation as of 31st August 2024: USD 235.34M Token listed on: 30 May 2022 Reference Link: https://cryptorank.io/price/polymesh

The current FDV (Fully Diluted Value) of comparable projects stands at approximately, 200M USD FDV, this is the minimal level which we see in the market, after approximately 2 years into the lifecycle of the project. Taking this as a gauge we estimate the FDV of $FRAC to be approximately 50M USD in 6 months' time.

Based on the above, we use 40M USD divided by the total amount of tokens in the token supply, (500,000,000.00 $FRAC) and we arrive at 0.08 USD per $FRAC, which is approximately 0.33 MYR. Current offer price to the pitchIN community is 0.13 MYR, which is a 40% discount from 0.33 MYR.

2. Market Capitalization of the Luxury Asset/NGO/Intellectual Property Markets

The value of $FRAC is correlated with the market dynamics of the underlying assets (Luxury Assets, NGO Campaigns or Intellectual Property). Readers may use the market size and trends of these market segment as a benchmark for potential growth of $FRAC. Several key statistics have been provided below for reference:

Asset Type	Category Type	Forecast Type	Number
Luxury Assets	Jewelers in Asia (Potential Asset Owners/Customers)	Holders	30,546 https://rentechdigital.com/smartscraper/business-report-details/asia/gemstone-jewelers)
Luxury Assets	Twin gem and jewellery shows organised by the Hong Kong Trade Development Council (HKTDC).	Holders	Approximately 90,000 buyers turned up https://gjepc.org/solitaire/hong-kong-where-the-jewellery-world-comes-together/
Luxury Assets	Export value of Gemstones from Thailand each year	Market Capitalization	USD 600M https://www.cnn.com/travel/article/buying-gems-asia/index.html
Luxury Assets	Value of selected, exquisite gemstones	Market Capitalization	USD 57.4M https://www.scmp.com/magazines/style/luxury/article/3180815/why-rare-gems-are-breaking-records-auction-hong-kong
Luxury Assets	Jewellery Market Sizing in Asia	Market Capitalization	USD 8.1B https://www.statista.com/outlook/cmo/accessories/watches-jewelry/jewelry/asia
Luxury Assets	Biggest Gemstones market in the world	Holders/Market Capitalization	Asia dominates: https://www.linkedin.com/pulse/biggest-gemstone-markets-world-spencer-whitfield
Luxury Assets	Marketing Sizing for Scotch in Asia	Holders/Market Capitalization	Six of the top 10 export destinations for Scotch Whisky are now in Asia: https://www.bloomberg.com/news/articles/2023-09-13/the-7-5-billion-scotch-whisky-market-is-now-bigger-than-ever-in-asia
Luxury Assets	Market Sizing for Whisky in Asia	Market Capitalization	Revenue in 2024 for Whisky in Asia, is projected to be US 31.2B: https://www.statista.com/outlook/cmo/alcoholic-drinks/spirits/whisky/asia
Luxury Assets	Profile of Whisky Drinkers	Holders	Whisky grows in popularity in Asia, among female drinkers: https://www.scmp.com/destination-macau/article/1952621/whisky-continues-gain-popularity-asian-market-growing-number
Luxury Assets	World's fastest growing whisky market	Holders/Market Capitalization	South Korea takes the top spot for world's fastest growing whisky market: https://www.bloomberg.com/news/articles/2023-07-13/why-south-korea-is-the-world-s-fastest-growing-whisky-market
NGOs	Donor Concentration	Holders	4.2 billion people gave money, time, or helped someone they didn’t know in 2022: https://www.cafonline.org/docs/default-source/about-us-research/world-giving-index-2023.pdf?sfvrsn=44dd5447_2
NGOs	Donation Amount	Market Capitalization	In 2022, Americans gave $499.33 billion to charity: https://doublethedonation.com/nonprofit-fundraising-statistics/
NGOs	Donor Preferences	Holders	The largest source of giving came from individuals, who contributed $319.04 billion, representing 64% of total giving: https://doublethedonation.com/nonprofit-fundraising-statistics/
NGOs	Donation Amount	Market Capitalization	Remittances to low- and middle-income countries have grown to an estimated £513 billion*, while cross-border philanthropy totals an estimated £57 billion: https://www.cafonline.org/docs/default-source/about-us-research/world-giving-index-2023.pdf?sfvrsn=44dd5447_2
NGOs	Donor Preference	Holders	31% of donors worldwide give to NGOs, NPOs & charities located outside of their country of residence: https://nonprofitssource.com/online-giving-statistics/
NGOs	Donor Preference	Holders	More people than ever reported donating to charity in 2021, rising to more than one in three (35%) individuals around the world: https://www.cafonline.org/docs/default-source/about-us-research/caf_world_giving_index_2022_210922-final.pdf
NGOs	Donor Concentration	Holders	Indonesia ranks #1 on the World Giving Index for the sixth year in a row: https://www.cafonline.org/docs/default-source/about-us-research/world-giving-index-2023.pdf?sfvrsn=44dd5447_2
NGOs	Donation Amount	Market Capitalization	Asian philanthropists can potentially give twice as much as US: https://asia.nikkei.com/Economy/Asian-philanthropists-can-potentially-give-twice-as-much-as-US
NGOs	Donor Concentration	Holders/Market Capitalization	83 percent of people in Myanmar and 82 percent of people in Indonesia made a donation to charity in the month prior to survey: https://www.statista.com/chart/16417/share-of-people-who-donated-money-to-charity/
NGOs	Donation Amount	Market Capitalization	Those voluntary, private donations -- known as Zakat -- amounted to between $232 billion and $560 billion globally in 2015, according to a United Nations report citing Islamic Development Bank research: https://money.cnn.com/2017/05/25/news/economy/gulf-arabs-philanthropy-charity
Intellectual Property	Intellectual Property Management	Market Capitalization	Intellectual Property Management Market Sizing projected to reach $37.7 billion by 2032: https://www.alliedmarketresearch.com/intellectual-property-management-market-A108500
Intellectual Property	Asia Intellectual Property Valuation	Market Capitalization	China's IP financing market worth 486.9 billion Chinese yuan: https://www.iam-media.com/report/special-reports/q2-2024/article/ip-valuation-and-finance-in-asia-where-are-we
Intellectual Property	Global patent applications from Asia	Holders/Market Capitalization	Asia leads global patent applications: https://asia.nikkei.com/Economy/Asia-leads-global-patent-applications-with-Huawei-top

Use of Proceeds The purpose of the fundraising for Frac is to support the expansion and enhancement of its technology and platform. Specifically, the funds will be used for the following purpose:

1. Licensing Application and Fees

Despite Frac being a SaaS (Software-as-a-Service) company now, there are plans to turn the Frac platform into a full-fledged marketplace in the near future. This allows partners to leverage on Frac to issue offerings. This allocation is directed towards securing the necessary licenses and paying associated fees that are critical for the operation of Frac in various jurisdictions. Given the regulatory scrutiny around blockchain and crypto-assets, it's vital to comply with legal standards to operate legitimately. This fund will cover:

• Costs for applying for licenses in each jurisdiction Frac plans to operate, particularly focusing on Asian markets.

• Fees associated with legal consultations to navigate the complex regulatory landscape of tokenizing real-world assets (RWAs).

• Expenses related to compliance audits to ensure that Frac's operations meet the required financial and operational standards.

• In the case where only Minimum sum of funds are raised, Frac will focus solely on working with partners who are already licensed and regulated instead of attempting to enable partners through Frac's acquired licenses.

2. Product Enhancement Roadmap

This substantial portion of the budget is earmarked for significant technological advancements and product enhancements including:

• Deploying to other Layer 1 chains: This will enhance the platform's interoperability and accessibility, allowing a broader range of users and assets to participate in the ecosystem. We are currently studying the Solana and AVAX chains to assess it's suitability for the Frac product.

• Integrating plug-ins to ease Web2 to Web3 onboarding: Simplifying the transition for users unfamiliar with blockchain, enhancing user experience, and broadening adoption.

• Deploying compliance-related smart contracts: Implementing smart contracts like ERC-3643 for tokenized bonds, ensuring regulatory compliance in token operations.

• Building a buyout-all fractions offer function: This feature will enable users to make offers to buy out all fractions of an asset, adding liquidity and flexibility to the marketplace.

• In the case where only Minimum sum of funds are raised, Frac will focus on sharpening current technological domains such as improving user experiences, user interfaces and debugging.

3. Legal and Compliance Team

Funds allocated here will support the building or expansion of a dedicated legal and compliance team. This team's responsibilities will include:

• Ensuring ongoing compliance with the legal requirements in each market Frac operates.

• Staying ahead of regulatory changes and adapting Frac's operations accordingly.

• Handling legal matters related to asset tokenization, IP rights, and investor relations.

• In the case where only Minimum sum of funds are raised, Frac will focus solely on working with partners who are already licensed and regulated instead of attempting to enable partners through Frac's acquired licenses.

4. Sales and Marketing

A significant investment in sales and marketing efforts is crucial for building brand awareness, attracting new users, and establishing partnerships. This allocation will fund:

• Digital marketing campaigns targeting potential users and investors.

• Community building efforts across social media and blockchain communities.

• B2B marketing initiatives to forge partnerships with asset owners, developers, and other potential clients.

• In the case where only Minimum sum of funds are raised, a substantial portion will still go to Sales and Marketing, as this is required to drive demand for the $FRAC.

5. BD & Partnerships (3 pax): Included in Sales and Marketing

This focuses on expanding the business development team and forging strategic partnerships. The team will:

• Identify and engage potential partners in real estate, gemstones, and precious liquids sectors.

• Negotiate and close deals that will bring valuable assets onto the Frac platform.

• Work closely with marketing to align partnership announcements with broader marketing strategies.

• In the case where only Minimum sum of funds are raised, Frac will work with specialized Business Development Agencies who can help to funnel leads whereas only hire 1 in-house Business Developer, to follow up on those leads.

6. Operations

Operational funds are allocated to cover the day-to-day running of the company, including:

• Salaries for the operational staff.

• Office rent, utilities, and other administrative expenses.

• Technology infrastructure costs, including servers, cybersecurity measures, and blockchain node operations.

The quantum used for each category will depend on the total fundraising amount received for the campaign. The table below summarises the allocation of proceeds in for the minimum and maximum fundraising target respectively

Category	Min Target	Max Target
Licensing application and fees	N/A	700,000.00
Product Enhancement Roadmap - Development of features found in 10/Future Plans - Deploy to other Layer 1 chains; increase inter-operability, widen adoption - Integrate plug-ins to enhance web2 to web3 onboarding - Deploy compliance-related smart contracts for example (ERC-3643) - Build buyout-all fractions offer function	300,000.00	2,000,000.00
Legal and Compliance Team	100,000.00	800,000.00
Sales and Marketing B2B Marketing Activities: BD & Partnerships 3 pax:	700,000.00	2,000,000.00
Operations	400,000.00	1,000,000.00