The wait is over! Today marks the historic day for SWMBRD Sports Inc. (formerly Zambezi Sports Inc.) becoming a publicly listed company as the start of trading on the Canadian Stock Exchange (CSE) is expected at market open today under the symbol SWIM. With less than 66 million shares issued and mass production to start in 2022, the newly branded company with its innovative Swimboard aims to benefit from one of the largest and fastest growing industries globally: Outdoor Recreation.
2021 was another record-smashing year for the number of people heading outside and exploring the great outdoors. No doubt, this global phenomenon was fueled by the global pandemic.
However, the booming outdoor recreation economy shows no signs of receding as the world is opening up again and people continue to spend time outside by doing fun activities with their loved ones. Innovative products supporting such nature-based lifestyles, along with fostering mental and physical health, are in great demand, especially when coupled with fun, experience and exercise.
As such, the timing couldn‘t be any better for SWMBRD Sports Inc. to start trading on the Canadian Stock Exchange and – together with its loyal shareholder base – build its new brand around a new sport that is based on the company‘s proprietary Swimboard and its unique swimboarding experience.
Having tried SWMBRD‘s pre-production Swimboard myself, it seems like for the first time ever there is a product with the power to reconnect people with nature while at the same time promoting a healthy lifestyle hand in hand with an eco-friendly attitude.
Full size / All eyes on SWMBRD: Introducing the uniquely designed Swimboard at Zen Beach (Athens Riviera) in the summer of 2021 attracted much attention.
Since initiating coverage on SWMBRD Sports Inc. in March 2021, major strides have been made by management to prepare for market launch of its unique sports and recreation lifestyle product, the Swimboard.
Spring 2021: The new board design was finalized with SWMBRD‘s experienced, high-quality board manufacturing partner from France.
• Subsequently, 18 pre-production boards in 4 sizes were created for intense testing in real-life situations in Canadian, Greek and Swiss waters.
• The performance and versatility of the Swimboard surpassed even the founders‘ expectations.
Full size / Fitness, Fun & Friends: Human beings are social. SWMBRD is social. The ability to swim closely together makes the Swimboard very attractive for families, couples and group activity.
Summer 2021: Management traveled to Greece for the introduction of 18 swimboards into the Athens Riviera.
• During the 3-month stay in Athens, SWMBRD‘s executive team forged strategic relationships with key allies.
• For instance, 6 pre-production boards are already in use at the Divani Apollon Hotel. Guest outings to nearby islands have been successfully demonstrated and a menu of such outings is being planned for summer 2022. The Divani Apollon Hotel plans to promote SWMBRD rentals and outings on its in-house TV channel.
Full size / SWMBRD‘s Swimboard available for use at the Divani Apollon Hotel.
• Intense exposure to organized beaches, hotels and resorts and their guests at the Athens Riviera.
• Most of the 18 pre-production boards are still in use at various estates in Greece, managed by SWMBRD‘s new Regional Team Leaders Alex Topsoglou and Fania Zaklakouti.
• Initial focus on the Athens Riviera: Greece is SWMBRD Heaven. There is no product more singularly suited to exploring Greece’s endless aquatic environments, enjoyed by tens of millions of locals and tourists alike, every year. By focusing on becoming the dominant aquatic recreational product and activity in this key area, SWMBRD is quickly spreading awareness and demand to other major Mediterranean target regions.
Full size / “The Athens Riviera is changing its looks, offering millions of visitors a unique opportunity to experience singular moments at one of the most magnificent Mediterranean sites. There are many works currently underway, in different stages of construction, along the entire coastline. The seafront of Attica is inundated with construction sites, renovations of buildings, re-development of existing features, investment plans, road and transport functions and many extension works. The demolition of buildings that used to make up the Eastern Airport of Helliniko, has opened the flood gates to a new era of ambitious investments, the era of the Hellinikon Project. This is one of the most groundbreaking constructions in Europe, with special attention paid to the creation of a metropolitan park of international scope and the highlighting of a seafront wide open and welcoming to all. Homes, hotels, skyscrapers, restaurants, casinos and a large aquarium are all works in progress due to be completed in the near future, in an area of 6.200.000 sq.m. Alimos marina is one of the largest marinas in the Balkans, and it is also entering a new era. The development plan comprises a state-of-the-art marina which will be a point of attraction for relaxation, pleasure and recreation as well as business entrepreneurship due to its highly developed and functional outdoor areas. Within this new, multi-functional, protected area, a whole new line of professional and recreational activities will be added to the choices and services that will be on offer, making Alimos marina a point of reference not only for the Athens Riviera but for the whole of the Mediterranean Sea basin. The entire coastline is getting upgraded, contributing to the financial growth of the Athens Riviera and establishing this coastline as absolutely the most magnificent Mediterranean destination.“ (Source)
Launch Strategy: SWMBRD’s market-entry strategy is to focus on key high-influence hotels, resorts and organized beaches in the Athens Riviera, and on key islands such as Mykonos and Corfu.
• Success in this high-influence region will accelerate broader market awareness. Several hotels, resorts and organized beaches already showed interest in offering the Swimboard to its guests.
• The new sport and leisure activity of Swimboarding is safe and easy to learn for almost everyone. The whole family can participate. SWMBRD delivers simple, uncomplicated, physical fun in the water that many people desire. SWMBRD is small, light and much easier to store than SUPs, kayaks etc.
Key strategic objectives for 2022:
– Build on existing relationships
– Expand SWMBRD footprint
– Pre-orders for first 500 Swimboards
– Mass production
• Spring 2022: The first 50 Swimboards are scheduled to be produced by SWMBRD‘s OEM manufacturer in France, using SWMBRD‘s proprietary aluminium mold (see below) and state-of-the-art thermoforming production technologies to yield a durable, impact-resistant skin over fiberglass, epoxy resin and a molded, watertight EPS foam core.
• Spring-Summer 2022: Management plans to return to Athens to build on the successful foundation of 2021 and to prepare its key allies, along with other potential customers, for market launch.
• The first 50 production boards are to be allocated within the Athens Riviera, as well as on key strategic islands, in particular Mykonos and Corfu.
• Following vigorous quality testing of these 50 Swimboards at select estates, the first full production cycle of 500 boards is planned for delivery, with the majority to be shipped to the Athens Riviera for distribution into SWMBRD’s priority inception market.
• The goal is to establish a firm foothold within key hospitality chains.
Full size / New Frontiers – A Radidly Growing Market: SWMBRD‘s unique empowerment and ease-of-use opens up a vast world of aquatic activity and tourism. Places which were previously very difficult for people to access, can now be experienced by all.
Vancouver-based SWMBRD Sports Inc. is on a mission to develop its brand into a global aquatic sports and lifestyle brand built around the new sport of swimboarding.
• SWMBRD is the world’s first true swimboard.
• The board’s unique, patented design unleashes the human body’s natural abilities without need for waves, paddles or sails. This opens up a vast, entirely new aquatic sports and lifestyle market.
SWMBRD has invested heavily in intellectual property:
• 26 design patents granted. An additional 12 patents are pending.
• Trademark approval underway in key markets.
• SWMBRD’s intellectual property covers approximately 1 billion consumers in key strategic markets.
Ease of ownership:
• SWMBRD’s small size and lightness makes it practical and easy to fit into your life. In other words, SWMBRD is a board designed for the reality of the modern world. This simple fact alone, gives SWMBRD a huge competitive edge.
• Ease of ownership couples with the obvious, unique similarity of SWMBRD to swimming is of major importance.
Swimming is the 2nd most popular recreational activity in the world (after walking). It is the most popular sport for children and teens aged 7-17 years.
“Professional sports like running, cycling and football (soccer in the U.S.) often get the limelight on the global stage. But the percentages of swimmers in different regions of the world show that the recreational activity is more universal – for adults and children alike – than you might think. Roughly 6 million adults in Australia (about 23% of the population) swim, making it the country‘s No. 1 sport. About 91 million Americans (about 31% of the population) over the age of 16 swim in oceans, lakes and rivers each year. Swimming is the fourth most popular recreational sport in the country [...] after walking, running and cycling.“ (Source)
“Families should be encouraged that building patterns in outdoor recreation can give kids tools to weather the storms to come. Things happen in life, and getting kids outside regularly is an easy way to build some mental resilience.“ (Kathryn Stevenson, Assistant Professor of Parks, Recreation & Tourism Management at North Carolina State University, in March 2020)
Full size / Molds for 2 additional sizes by 2023: A 14-year-old boy on a Z5 sized pre-production SWMBRD, in very choppy conditions, rounding Kioski Islet, Athens Riviera, Greece. It was only his second time on a SWMBRD.
Excerpts from “Trends in Outdoor Swimming Report“ (2021):
• “An argument for learning to swim is that it could save your life. However, our findings suggest that this may be the tip of the iceberg when it comes to reasons to learn to swim. We show, for example, almost everyone who swims outside says it supports their mental and physical health, it keeps them fit and is important for their social lives. Being able to swim gives you access to a lifetime supply of self administered mental and physical health support, a means to exercise at almost any age and it is a source of great friendships. Moreover, becoming an outdoor swimmer may change how you think about a range of issues such as climate change, the environment and pollution. It could make you a more caring person as well as a healthier and happier one.“
• “The pandemic has encouraged more people to swim outside... The consensus is that outdoor swimming is growing, that it has been growing for a number of years and that the corona virus pandemic gave it a boost. In fact, every single one of the respondents to our survey of swimming-related businesses said they thought the pandemic had made outdoor swimming more popular and 87% think it’s growing rapidly.“
• “A mere 1% of women said that outdoor swimming was not at all important to their general sense of wellbeing. Nearly everyone who swims outside believes it is beneficial to their physical and mental health to some degree.“
“Two years into the pandemic, people continue to find enjoyment in their newly acquired and rediscovered outdoor passions. We continue to see increasing levels of activity and participation across outdoor recreation...” (Chris Metzs, CEO at Vista Outdoor Inc. in February 2022)
“Almost two years since the world witnessed incredible upheaval, the events of 2020 continue to drive lasting change in consumer behavior in the active lifestyle and outdoor markets. As we make the return to normalcy, consumers continue to take to the outdoors and focus on their health and wellness at record rates and well above pre-pandemic levels. While participation has surged in many pursuits, we remain bullish in 2022 and beyond as consumers have now adopted or re-adopted, these activities as habit.“ (John Bastian, Director of Enthusiast Brands & Active Lifestyle at Robert W. Baird & Co Inc. in January 2022)
“We believe 2022 will provide a number of opportunities for our business, as people want fun experiences with their families focused on health and wellness. The new year will allow customers to expand on their new hobbies... People are looking for experiences coupled with fun...“ (Steve Lawrence, EVP & Chief Merchandising Officer at Academy Sports & Outdoors Inc. in January 2022)
Full size / With a share price increase of +416% since 2020, US-based outdoor sports and recreational product manufacturer Vista Outdoor Inc. (NYSE: VSTO; market cap: $2 billion USD) has strongly outperformed other stock market indices, such as the NASDAQ (+58% during same period), DOW (+23%) and the HUI Gold Miners Index (+10%). Other sportsgear and sportswear companies performing strongly since 2020 include Academy Sports & Outdoors Inc. (+178%; NYSE: ASO; market cap: $3 billion USD), Yeti Holdings Inc. (+91%; NYSE: YETI; market cap: $6 billion USD); Deckers Outdoor Corp. (+86%; NYSE: DECK; market cap: $8 billion USD), Brunswick Corp. (+68%; NYSE: BC; market cap: $7 billion USD), Nike Inc. (+46%; NYSE: NKE; market cap: $179 billion USD), and Vancouver-based Lululemon Athletica Inc. (+37%; NYSE: LULU; market cap: $39 billion USD).
“If anything positive can be said about the coronavirus pandemic, it‘s that it caused a lot of people to take their health more seriously. Smoking, obesity, and unhealthy lifestyles in general are all risk factors for COVID-19. Many people took that as a sign it was time to clean up their act. Coupled with the fact that being locked down at home gave them more leisure time and made them want to get outside more, suddenly the great outdoors became just that, a great place to be. The Outdoor Industry Association says 8.1 million more people hiked [in the USA] in 2020 than they did in 2019; freshwater fishing saw participation grow more than 8%, adding 3.4 million new anglers to the sport; and camping surged 28% with 7.9 million more people spending a night outdoors. Perhaps more importantly, over 60% of those who started or resumed some outdoor activity during the pandemic – whether it was walking, biking, fishing, or jogging – intend to continue once restrictions are lifted.“ (Source)
“[The] simple desire to get out of our homes, breathe fresh air, and visit new sites close to home, has meant huge upticks in the use of outdoor space and activities. Normally quiet hiking trails have become jam-packed with visitors; lakes have seen a bustle of boats, kayaks and canoes; and cultural institutions have seen immense gravity around their vast outdoor assets.“ (Source)
Full size / The Market Gap: A small, user-friendly, easy-to-own board that appeals to the vast majority of consumers, which can be used in any aquatic environment (including swimming pools) and has similarities of motion to already popular sports such as running, swimming, cycling, skating, snorkeling/scuba – and which is patented – commands a far larger target group than existing aquatic sports products, especially in resort and vacation areas.
“Outdoor recreation participation sky-rocketed during the pandemic and shows no signs of receding. Overwhelmingly, recreational boating and fishing is the number one contributor to the outdoor recreation economy and is the largest activity in 39 states and the District of Columbia. In 2020, traditional outdoor recreation – such as boating, fishing, hiking, and RVing – thrived, with these activities increasing their contribution to the overall outdoor recreation economy by 22%.“ (Source)
“There is no doubt that the outdoor recreation industry is having its day in the sun. According to a study commissioned by the Outdoor Foundation, 53% of Americans ages 6 and over participated in outdoor recreation at least once in 2020, the highest participation rate on record. And new consumers appear to be seeking solace or an endorphin rush in the great outdoors: In 2020, 7.1 million more Americans participated in outdoor recreation than in the year prior. New participants are bringing greater diversity to the industry... This could be just the beginning of a mountainous shift toward an interest in greater health and happiness through nature. We will likely continue to see an influx of novice consumers entering the industry as they join the already fiercely loyal and active enthusiasts. I expect our outdoor experiences to become brighter, more inclusive and more meaningful than ever.“ (Source)
“Results indicated that nearly half of adults from across the United States now participate in outdoor recreation on at least a monthly basis, and approximately 20% may be new to outdoor recreation during the pandemic. “A 20% increase in outdoor recreation in the U.S. is good news for anyone who cares about people’s health or the environment,” said Taff. “It is encouraging from the public health perspective that – amidst one of the more challenging periods in recent history – a new group of outdoor recreationists have emerged, and, because of their participation, they likely benefit from improved health... Additionally, research suggests that people who recreate in nature have a more favorable view of environmental protection, so this development could increase support for future conservation efforts.” (Source)
“The primary factor driving the market growth is the push by surfing equipment manufacturers, marketers, and associations to make surfing much more approachable than it has been in previous years. In addition, increased interest in surfing due to the growing focus of consumers on wellness and fitness will support the market growth... People are spending an increasing amount of money on surfing as the sport‘s culture grows.“ (Source)
Full size / The SUP (Stand-Up Paddle) market is dominated by general purpose SUP boards, averaging about 335-366 cm for adult riders and weighing about 14-16 kg (depending on construction). Smaller SUP versions are available for smaller adults and children, but particularly at beach rentals or resorts these are far less available than standard adult SUPs. Inflatable SUPs are currently surging in market share, underlining the average user‘s demand for light and easy-to-transport boards. While the Swimboard is always ready to go, inflatable SUPs must be pumped up before use (and deflated after use) and come with more trade-offs such as wobbly, less stable feel and low board speed, performance and longevity.
“In just 5 years, the value of the SUP board market worldwide has doubled from $5 billion USD in 2015 to $10 billion USD in 2020.“ (Source)
“For many people around the world, if there was one upside to the pandemic, it was rediscovering a love for the outdoors. Fitness tracking app Strava’s 2020 Year In Sport report showed a 33% increase in activity participation globally compared to 2019, with 1.1 billion activities uploaded to the platform last year... As the popularity of everything from trekking to cycling surged, so did the need for the clothing and gear to perform these activities.“ (Source)
“After years of sustained growth, the pandemic supercharged the outdoor recreation industry. In the pandemic year, [US] consumers spent $887 billion on outdoor recreation according to the Outdoor Industry Association, more than pharmaceuticals and fuel combined... But a report commissioned by the Outdoor Industry Association showed that the most popular outdoor activities were ones that people could do close to home... The three most popular outdoor activities for newbies: walking, running and bicycling.. But getting into the outdoors can be overwhelming: there’s gear to buy, skills to learn, exploring unfamiliar areas and the added stressor of safety. Outdoor startups are working to lower the barrier to entry to help grow their businesses. “I think anytime you have like 2,000 articles with two dozen tips on how to use a product, that tells me that it is really, really too hard to use,” said Cabana founder Scott Kubly. “To me, that says there’s nothing but friction in this process. If you want to build something that’s mainstream, you need to make it super consistent and really easy to use.” (Source)
“In a review of many studies, researchers found that people more connected to nature (seeing themselves as part of nature and caring about the natural world) tended to have more positive feelings, vitality, and life satisfaction compared to those who were less connected.“ (Source)
“Johnson Outdoors Inc., a global innovator of outdoor recreation equipment and technology, announced higher revenue and earnings for the fiscal year ending October 1, 2021.Continued high demand for products in Fishing, Camping and Watercraft Recreation propelled a 26% increase in sales as operating profit grew 56.6% and net income rose 51% over the prior fiscal year. “Johnson Outdoors had an exceptional year, driven by people’s continued interest in spending time outdoors. Fishing, Camping and Watercraft Recreation saw strong sales during all four quarters, with Diving beginning to recover in the third and fourth fiscal quarters...,” said Helen Johnson-Leipold, Chairman and chief executive officer. “Looking ahead, we remain focused on our key strategic drivers – understanding our consumers, sustaining innovation leadership, identifying new sources and paths of growth in our markets, and continually optimizing our digital consumer experience – to ensure our portfolio of market-leading brands is well-positioned for success.” [...] Watercraft Recreation sales rose 59% due to continued high demand across all product categories.“ (Source)
“The U.S. Bureau of Economic Analysis (BEA) released new data on the economic impact of outdoor recreation in 2020. BEA found outdoor recreation accounted for $689 billion in gross output (consumer spending) and 1.8% of gross domestic product in 2020. “Throughout this pandemic, outdoor recreation has been a cornerstone of American life,” said Lise Aangeenbrug, Outdoor Industry Association (OIA) executive director. “As stay-at-home orders forced people to adapt their lifestyles, new groups of people, including more women, more urban-dwellers, and more minority populations turned to the outdoors as a place for recreation and refuge. Declines in indirect spending like dining out, air travel, and hotel stays may have impacted our industry’s output, but we saw a significant uptick in outdoor recreation participation. At a time when people needed an outlet for social connection and physical activity, the outdoors was there to provide countless mental and physical health benefits. “As we look forward, it’s clear the outdoors will be an important part of America’s economic future. Many OIA member companies had exceptionally strong sales over the past year, pointing to how increased participation and newfound respect for the outdoors is putting the outdoor industry on a path toward continued success. Further, lawmakers have introduced new legislation to expand access to the outdoors and invest in climate resiliency, positioning the outdoor industry to continue to grow, create new jobs, and contribute to the national economy. Together, the outdoor industry is a force, and OIA is determined to ensure our industry and the outdoors will thrive for years to come... A recent poll showed 69 percent of Americans have gained a renewed appreciation for the outdoors during the COVID-19 pandemic.” (Source)
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Click above player or here to watch a video by SWMBRD.
• The global athleisure market size was valued at $285 billion USD in 2020, forecasted to reach $549 billion by 2028, growing at a CAGR of 8.6%.
• The global swimwear & beachwear market was valued at $19.5 billion USD in 2020, projected to reach $27.6 billion by 2027, growing at a CAGR of 5.1%.
Full size / SWMBRD Management & Directors
Full size / Alex Topsoglou, SWMBRD Team Leader Athens, Greece
Full size / Fania Zaklakouti, SWMBRD Team Leader Athens, Greece
• Billabong and Quicksilver do not make surfboards.
• Speedo does not own swimming.
• SWMBRD is the only lifestyle brand that controls the product and sport on which the lifestyle is based.
• SWMBRD is poised to become synonymous with ‘the Good Life’ and travel to the world’s most beautiful places.
Branded Clothing & Accessories
• SWMBRD plans to not only offer the Swimboard but also all kinds of apparel and gear.
• If consumers love the Swimboard and the sport, they will be inclined towards SWMBRD branded products.
SWMBRD Sports Inc.
Suite 1450 – 789 West Pender Street
Vancouver, BC, V6C 1H2 Canada
Phone: +1 778 870 1497
Date of Incorporation: September 15, 2015
Date of Listing: February 16, 2022
Shares Issued & Outstanding: 65,490,872
Fully Diluted: 99,209,424
Canadian Symbol (CSE): SWIM
Current Price: --- (02/15/2022)
Market Capitalization: ---
Stephan Bogner (Dipl. Kfm.)
8260 Stein am Rhein, Switzerland
Disclaimer: This Rockstone report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Rockstone Research, SWMBRD Sports Inc. and Zimtu Capital Corp. caution investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to SWMBRD Sports Inc.´s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through its profile on SEDAR at www.sedar.com. Please read the full disclaimer within the full research reports as a PDF (here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds an equity position in SWMBRD Sports Inc., as well as in Zimtu Capital Corp., and is being paid by Zimtu Capital Corp. for the preparation, publication and distribution of this report, whereas Zimtu Capital Corp. also holds a long position in SWMBRD Sports Inc. Note that SWMBRD Sports Inc. pays Zimtu Capital Corp. to provide this report and other investor awareness services.