Propane dealer aiming to raise $3M through crowdfunding

Propane dealer aiming to raise $3M through crowdfunding
Nassau Gas

NASSAU, BAHAMAS — A Nassau-based propane dealer is eying expansion into the Family Islands and an upgrade to its fleet as it aims to raise up to $3 million in funding through the ArawakX crowdfunding platform.

Mark Newell, Nassau Gas & Tank’s managing director said yesterday that adding more inventory would increase the company’s revenue by 30 percent within the first year.

Noting that the propane retail business is “very capital intensive”, Newell said the 18-year-old company was looking to secure as much inventory as it can now that prices have declined.

“I have to admit that the last three years have been very tough with the pandemic,” said Newell.

“A few months ago all of us were struggling with high gas prices, now it’s come down a lot. The supply chain is loosening. By March or April, it should be back to normal.

He added: “This is a very capital intensive business. We want to upgrade the whole fleet of trucks and get lots of inventory. We want to venture out into the family islands. It’s tough in the family islands because they have to send tanks on a mailboat and sometimes they are out of gas for two to three weeks. We want to do little mini depots on the Family Islands.”

Nassau Gas & Tanks services some 72,000 households in Nassau, 106,000 households in The Bahamas, and 430 restaurants. The company has a dozen employees and plans to grow from seven percent to 14 percent through client acquisition and is looking to raise a maximum of $3 million and a minimum of $150,000 for new inventory, and trucks to increase delivery and warehousing. 

Winston Rolle, chief of equities at ArawakX said that shares in the company are priced at $11, with a minimum investment of just under $100.