Preferred Stock Funding
Creating Value through Partnership!
Please note that we are not a broker, an agent, or an intermediary. Of course, we work with many brokers, agents, and intermediaries to get the best projects, and we compensate them from the executed investment fund. There is set aside fund allocated for that purposes. Therefore, you do not need to make any separate agreement with any broker, intermediary’s, or agents to get funding by us. If you have already signed up an agreement with any 3rd party or with any broker, agent or an intermediary then you have to work with them separately outside of our funding program. If any broker, agent or intermediary introduces us to you then all of their compensation will come from the same pool of funds that are allocated for that purposes and will be disbursed to them at the closing. We fund from our own family of funds that are managed by us in the US and many other parts of the world. Therefore, it is better to contact us for further discussion and evaluate your Acquisition needs.
We let the owners or founders keep all their existing shares, and we create a new pool of Preferred Shares. Then we participate in that Preferred Shares based on the invested company’s available equity. All Preferred shares usually remain as a preferred so long any share changes required or in the event of a merger, acquisition or IPO. In that scenario, we will convert our Preferred shares into common shares prior to making the new investment or we may completely exit with a preferred share value. Most of our successful investment take place under this category of the investment of our equity funding.
Attention Please:
Please note that it is not a lending or borrowing capital like traditional loan or mortgage. Our funding is strictly an investment based on the company’s current and future equity.
Engagement Agreement:
This is the initial step of our entire funding process. When we preapprove your project upon reviewing your initial documents such as executive summary, business plan, Financial summary and any other documents or presentation you may want to share with us, upon discussion with you and briefed by your management team.
When we accept your project for the investment, then our project manager will send you the Engagement Agreement to accept and signed by you. This will allow us to begin work on your project in cooperation with you and prepare you for the desired investment capital that you need to reach your next goal. Simultaneously, we will work with the underwriting process for the desired investment capital and all documents are going to be shared with our underwriting team as well.
This process is the very beginning of our investment process. We begin to work with you by Organizing all your business strategy; your current and future share structures; prepare the business to a properly organized corporate structure; creating your corporate governance, advising committee, Board of Directors, clean up all other issues you may have, such as your debt, or unnecessary loans which can be combined with our new funding, and pay off all your small loans, or any kind of debt notes that is causing harm to your day to day operation. Our expert team will work with you to prepare your Complete Business Plan, Business Administration model, accounting and bookkeeping model, marketing model, sales model, revenue model, and more without interfering with your operation or employees. We may even pre-fund you to clear your all previous issues in consultation with our underwriting team.
We will take a Retainer from you under this agreement and your retainer is going to be refunded upon final tranche of the funding. It is because we invest in your project or businesses only in the form of Stock without any collateralized asset or any kind of guarantee. This is an added service that comes with the investment program. We prepare you to take your company to the next level of the industry standard business model. Even if you want to take your company to the public by an IPO then you are going to be fully prepared and ready. It may look like nothing but it is a huge task to accomplish. It is the beginning of our investment in your project and becoming your future partner. We will prepare upon your approval your Offering Memorandum. As soon as we finish this step, we will forward your project to our funding team to you the Term Sheet.
Offering Memorandum:
We prepare on behalf of the entrepreneur a Private Placement Offering Memorandum under the Regulation D 506 if it is a US investment. If it is a foreign country then we process such documents based on that country’s appropriate laws and regulation in the Financial industry. The entrepreneur must approve such Offering Memorandum before it goes to our fund management team to fund the project.
Term Sheet:
We provide a Term Sheet before any funding process take place. Which will describe in details about the funding, including all share structures, the value of the shares, and the duration of the investment. Term Sheet also describes for the breakdown of each tranche, and about the total transactions. The Entrepreneur must accept the Term Sheet before we can take the next step and make the fund available for the project.
Funding Volume:
Minimum $5,000,000.00 and the maximum is the basis of the Project need.
Retainer:
US Projects:
$75,000.00 or 0.1% of the Total Fund seeking, whichever is greater. This Retainer is required to cover the initial administrative, accounting and legal expenses before we can begin any funding activity to take place. We will reimburse this Retainer at the last tranche of the investment capital.
Non-US Projects:
$95,000.00 or 0.15% of the Total Fund seeking, whichever is greater. This Retainer is required to cover the initial administrative, accounting and legal expenses before we can begin any funding activity to take place. We will reimburse this Retainer at the last tranche of the investment capital.
Closing Cost:
US Projects:
We will deduct a 2% Annual Administrative and Management Fee at the closing of each tranche of the Funding for the first year.
Non-US Projects:
We will deduct a 3% Annual Administrative and Management Fee at the closing of each tranche of the Funding for the first year.
Performance Compensation:
US Projects:
Maximum up to 7% for the most of our investments.
Up to 5% for all real Estate Acquisition and Development Projects.
Non-US Projects:
Maximum up to 9% for the most of our investments.
Up to 7% for all real Estate Acquisition and Development Projects.
Brokers:
We welcome Brokers, Broker-Dealers, and Intermediaries.
All participate in the Performance Compensation pool.
Administrative Fees:
US Projects:
1.5% annual Administration and Management Fees.
Non-US Projects:
2% annual Administration and Management Fees.
Equity types:
Preferred Shareholder Equity or other types of Equity.
Or all deals are negotiated project by project.
Agreements:
Before we invest in the project, our attorneys will prepare all necessary agreements based on the Term Sheet offerings. Example: Project Partnership Agreement, Preferred Stock Investment Agreement, etc.