Lendway, Inc. (Lendway) operates as a specialty agricultural (‘ag’) and finance company.
The company is focused on making and managing its ag investments in the United States (‘U.S.’) and internationally. The company is the majority owner of Bloomia B.V. and its affiliated entities, representing a significant producer of fresh cut tulips (‘stems’) in the U.S. The company also fully owns and operates FarmlandCredit.com, a non-bank lending business that seeks to purchase existing loans and/or ori...
Lendway, Inc. (Lendway) operates as a specialty agricultural (‘ag’) and finance company.
The company is focused on making and managing its ag investments in the United States (‘U.S.’) and internationally. The company is the majority owner of Bloomia B.V. and its affiliated entities, representing a significant producer of fresh cut tulips (‘stems’) in the U.S. The company also fully owns and operates FarmlandCredit.com, a non-bank lending business that seeks to purchase existing loans and/or originate and fund new loans domestically. During the past twelve months, the company took three major steps in its evolution.
The company is building a scalable non-bank lending business (‘Lending Business’) to purchase existing loans or originate and fund new loans, all of which will be secured by collateral. Initially, the company intends to focus on loans secured by real estate, primarily for agricultural purposes. The company expects to expand its product offerings over time as the company identifies needs and opportunities in the marketplace for loans generally. The company’s plan, therefore, is to build a portfolio of well-secured loans, with a portion of the credit risk being participated to third parties in most cases, to maintain a low net loss experience and to charge fully compensatory rates and fees.
On August 3, 2023, the company completed the sale of certain assets and certain liabilities relating to the company’s legacy business of providing in-store advertising solutions to brands, retailers, shopper marketing agencies and brokerages (the ‘In-Store Marketing Business’).
On February 22, 2024, the company acquired Bloomia B.V. (‘Bloomia’). Bloomia is one of the largest producers of fresh cut tulips in the United States, nurturing over 75 million stems annually. Bloomia purchases tulip bulbs, hydroponically grows tulips from the bulbs, and sells the stems to retail stores. The company’s primary focus in the near-term will be on the Bloomia business.
Segments
With the February 2024 acquisition of Bloomia, the company operates in two industry segments: Specialty Ag, consisting of the Bloomia business; and Non-bank Lending, consisting of the Lending Business.
Specialty Ag
The company’s Specialty Ag segment consists of Bloomia’s operations. Bloomia was founded in the Netherlands and has grown to become a leader in the fresh cut tulip industry in the U.S. Bloomia nurtured over 75 million stems annually in 2023. Bloomia operates from three strategically positioned locations in the United States, the Netherlands and South Africa; and also has a 30% interest in a greenhouse business in Chile.
Bloomia operates greenhouses to hydroponically grow tulips at its United States and South Africa locations. Bloomia has invested in automation in its U.S. greenhouse in recent years that has increased production efficiency. Bloomia has historically sourced tulip bulbs from producers in the Netherlands, Chile, and New Zealand, which provides for year-round supply. Bulbs from the Southern Hemisphere are generally used from the end of August to early December, with the Northern Hemisphere produced bulbs used the remainder of the year.
Bloomia has established business relationships with prominent retailers. A small number of mass-market retailers in the U.S. have historically accounted for more than 99% of Bloomia’s total annual sales. Revenues are mainly generated on the East Coast, leaving potential for growth on the West Coast. Bloomia intends to offer premium tulip stems, the result of sourcing larger bulbs, that have a longer shelf life than imported stems.
In the Netherlands, Bloomia’s office facilitates the sourcing of bulbs, conditioning to prepare bulbs for planting, and shipping of bulbs to its United States and South Africa facilities.
In South Africa, Bloomia’s wholly owned subsidiary operates a greenhouse that has produced an average of approximately 3.5 million tulip stems per year over the last five years. The facility is capable of growing tulips hydroponically year-round.
In Chile, Bloomia has a minority ownership interest in Araucania Flowers S.A. (‘Araucania’). The operation grows tulips hydroponically year-round. Its growing and production complex consists of about 8,600 square feet of greenhouse, 7,000 cubic feet of cold storage, and more than 2,400 square feet of processing space. Araucania traditionally sells to retailers located in Chile, Bolivia, and Peru.
Customers
Bloomia has well established customer relationships. In the U.S., Bloomia sells stems to some of the largest mass-market retailers. During 2023, Bloomia had approximately 15 customers in the U.S. Of those customers, three individually represented greater than 10% of Bloomia’s revenue, accounting for 37.7%, 16.2%, and 10.4% of its U.S. revenue during the 12 months ended December 31, 2023.
Seasonality
In the U.S., the tulip industry has historically been highly seasonal due to peak demand between January to May, supported by the Valentine’s Day, Easter, and Mother’s Day holidays, and also because of the tulip bulbs’ growing season in traditional sourcing areas. The tulip market is growing outside of the peak season, as demand increases for other events such as birthdays and weddings. As one of only a few tulip producers in the U.S. with sourcing of bulbs from the Southern Hemisphere, Bloomia is well positioned to fill this growing demand.
Non-Bank Lending Segment
The company is building a scalable Lending Business to purchase existing loans or originate and fund new loans, all of which will be secured by collateral (individually or collectively, ‘Secured Loans’). In April 2023, the company launched its Lending Business, through the hiring of a Senior Vice President of Lending with over 20 years of experience in credit and lending.
Initially, the company intends to focus on loans secured by real estate, primarily for agricultural purposes. The company expects to expand its product offerings over time as the company identifies needs and opportunities in the marketplace for loans generally. The company’s plan, therefore, is to build a portfolio of well-secured loans, with a portion of the credit risk being participated to third parties in most cases, to maintain a low net loss experience and to charge fully compensatory rates and fees.
The company is building its strategy and long-term growth initiatives through development of customized niche products to support identified customer needs and opportunities in the marketplace, and effective funding structures to maximize returns.
Governmental Regulation
The company and its subsidiaries are subject to regulation by various governmental agencies. Bloomia has an import permit from the USDA for shipments of tulip bulbs. For import of bulbs from the Netherlands to the U.S., Bloomia participates in a pre-clearance program with the USDA where the climate-controlled tulip bulb shipments are inspected in the Netherlands, and the containers are sealed in the Netherlands.
History
The company was founded in 1990. It was incorporated in Minnesota in 1990. The company was formerly known as Insignia Systems, Inc. and changed its name to Lendway, Inc. in 2023.
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