ROOM & RESIDENCE INC.

DEFINE | CAPTURE | INVESTMENT | RESULTS

R&R INC. IS DEFINED AS A FEE FOR REFERRAL SERVICE THAT OPERATES WITHIN THE FIELD OF PRIVATE PAY ASSISTED LIVING, INDEPENDENT LIVING AND NURSING FACILITIES, WHILE ASSISTED LIVING MAKES UP 90% OF OUR REVENUES. WE ARE PAID A FEE FOR REFERRAL BY THESE OPERATORS TO REFER RESIDENTS TO FILL THEIR VACANT BEDS IN PERPETUITY. THERE ARE AN ESTIMATED 40,000-ASSISTED LIVING FACILITIES OPERATING IN THE U.S. ALONE. CENSUS DATA SHOWS THE AVERAGE TURNOVER RATE IS 40% PER FACILITY. R&R INC. INTENDS TO CAPTURE BETWEEN 1% AND 4% OF THIS $2.24 BILLION DOLLAR VACANCY ECONOMY. ACQUISITION DATA: AT APPROXIMATELY $50 MILLION IN ANNUAL REVENUES, OUR LARGEST COMPETITOR WAS ACQUIRED IN JUNE OF 2010 BY NYC PRIVATE EQUITY FIIRM. THIS COMPANY CURRENTLY OPERATES IN THE UNITED STATES AND CANADA RESPECTIVELY. INVESTMENT: CONVERTIBLE CORPORATE BONDS THAT PAY A 7% ANNUAL YIELD. AT THE 5 YEAR MATURITY MARK, PRINCIPAL CONVERTS TO A 20% EQUITY STAKE IN R&R INC. EXIT STRATEGY: A LIQUIDITY EVENT CONSISTING OF A MERGER | ACQUISITION CAN RESULT IN A POTENTIAL 1,289% RETURN OR A MULTIPLE OF 12.89 TIMES YOUR PRINCIPAL INVESTMENT IF R&R INC. CAN ACHIEVE A 4% MARKET CAPTURE.

TO RECEIVE DETAILED INFORMATION AND A PROSPECTUS-PLEASE EMAIL INVESTOR.RELATIONS@ROOMANDRESIDENCE.COM | NOTE: MUST BE AN ACCREDITED INVESTOR

DATA | FORECAST | CAPTURE | ROI | INFOGRAPHIC

ROOM & RESIDENCE INC. U.S. ASSISTED LIVING FACILITY CENSUS DATA

CENSUS DATA SHOWS A GROWTH RATE OF 5% PER YEAR AT 85% OCCUPANCY SINCE 2010

R&R INC. POTENTIAL RATE OF RETURN REFERENCE POINTS:

MARKET SURVEY SUGGESTS THERE ARE AN ESTIMATED 40,000 PRIVATE PAY ASSISTED LIVING FACILITIES IN THE U.S. AS OF 2015. THE AVERAGE PRIVATE PAY FACILITY HAS 40 BEDS AND THE AVERAGE TURNOVER RATE FOR THESE BEDS IS 40% PER YEAR. THE AVERAGE BASE RENT FOR THESE BEDS IS $3,500.00 PER MONTH. ESTIMATED TO CAPTURE 4% OF THE MARKET SHARE, R&R INC. WILL OPERATE IN THIS SPACE BY NAVIGATING & PLACING RESIDENTS TO FILL THE VACANCIES IN THIS $2.24 BILLION DOLLAR U.S. BASED ECONOMY. BELOW ARE THE NUMBERS THAT WILL DEMONSTRATE THE POTENTIAL RATE OF RETURN BASED ON A $100K INVESTMENT IN R&R INC. PLEASE NOTE: THESE NUMBERS ARE CONSERVATIVELY BASED ON YEAR 2015 ASSUMED DATA AND DOES NOT ACCOUNT FOR FUTURE GROWTH OR THE CONSTRUCTION OF NEW FACILITIES INTO YEAR 2020. THIS CHART ALSO DOES NOT INCLUDE INDEPENDENT LIVIING & PRIVATE PAY NURSING FACILITIES, WHICH WILL MAKE UP +10% OF OUR ESTIMATED ANNUAL REVENUE.

40,000 ASSISTED LIVING FACILITIES X 40 BEDS PER FACILITY= 1,600,000 TOTAL BEDS 1,600,000 BEDS X 40% TURN-OVER RATE PER FACILITY LEAVES 640,000 VACANT BEDS

MERGERS & ACQUISITIONS ESTIMATES THE AVERAGE BUYOUT IS EQUEVELANT TO THREE TIMES (3X) THE ANNUAL REVENUE OF A GIVEN COMPANY

 

Regulation D 506(c) Mandated Advertising Legends

1. Any historical performance data represents past performance. Past performance does not guarantee future results;

2. Current performance may be different than the performance data presented;

3. The Company is not required by law to follow any standard methodology when calculating and representing performance data;

4. The performance of the Company may not be directly comparable to the performance of other private or registered funds or companies;
5. The securities are being offered in reliance on an exemption from the registration requirements, and therefore are not required to comply with certain specific disclosure requirements;
6. The Securities and Exchange Commission has not passed upon the merits of or approved the securities, the terms of the offering, or the accuracy of the materials.