An Offer for Investing in Racehorses, Really

There are often some very interesting S-1 filings with the SEC, some of which are true initial public offerings and some of which are more or less solicitations to raise private capital. Before you think we are bashing this just because of its description, the decision is up to you and you alone.  There is a series of S-1 filings today allowing investors to invest in a group of 20 thoroughbred racehorses.

The description is the same throughout each filing at the start: “a recently formed corporation that has acquired 20 thoroughbred racehorses… offering 405,000 shares of common stock at $10.00 per share on a best efforts, all or none basis. Golden Pegasus Racing Incorporated, an entity controlled by The Stronach Group, is currently the sole stockholder.”  The filing also notes that the group(s) may seek to have shares traded on the OTC Pink market, although no assurance can be given that our shares will trade on the OTC Pink or any other market.

About The Stronach Group: “The Stronach Group, a privately-held consortium, is a leading owner of thoroughbred horse racing tracks. It owns and operates a number of tracks, including Pimlico Race Course in Baltimore, Maryland; Laurel Park in Laurel, Maryland; Santa Anita Park in Arcadia, California; Golden Gate Fields in Berkeley, California; Portland Meadows in Portland, Oregon; and Gulfstream Park in Hallandale Beach, Florida. Other assets of The Stronach Group include a joint venture interest in an associated retail development at Gulfstream Park; certain horseracing technology assets, including Xpressbet® and AmTote; and a majority joint venture interest in HRTV, a cable and satellite television network dedicated to the sport of horse racing. The companies making up The Stronach Group are owned, directly or indirectly, by trusts for the benefit of members of the Stronach family.”

• Awesome Again Racing Corp (0001537408) (Filer) S-1
• Perfect Sting Racing Corp (0001537413) (Filer) S-1
• Ginger Punch Racing Corp (0001537409) (Filer) S-1
• Macho Uno Racing Corp (0001537397) (Filer) S-1

Sound fishy?  To outsiders maybe, but before you chuckle you might want to remember that a syndicate named Team Valor International with some 20 investors owned the 2011 Kentucky Derby winner named Animal Kingdom.  Either way, this is not exactly an investment suitable for widows and orphans.