IT IS IMPORTANT THAT THE POTENTIAL INVESTOR/S KNOW THAT:
- One of the 3 founders grew up in Macedonia and has an intricate knowledge of the country and infrastructure;
- He also traded in botanical products while busy putting himself through University;
- In addition, he also spent 6 weeks in the Balkans in Dec 2016/Jan 2017, so as to establish contacts and get interest for products from Africa;
- Another partner joined the project in April 2015,even though the company was only formed in April 2017;
- The third partner spent a lot of cash on developing the project - it is not brought into the company as a loan, but is reflected as equity in the company.
The Company plans to import botanicals and plant derived materials from Africa, in bulk as well as in processed format.
The Trading Products presenting the opportunity will initially be comprised of
a) Bulk plant derivative materials both indigenous and derived from exotic plants, which are readily available in South Africa and from the Southern African region, such as fruit powders, seed oils, leaf powders, leaf juice extracts and teas.
b) Finished goods products.
Processed and packaged, initially available from Southern Africa, such as cosmetic creams, soaps, oils, capsules, powders, teas, shakes, nutritional energy bars and supplements, essential oils, tea bags and jams.
Products will be marketed locally in the market of Macedonia and at the same time into Albania, Serbia, Kosovo, Bosnia and Herzegovina and the CEFTA member states because of the free trade agreement. CEFTA countries have a population of 18,3 million people in total.
The next target markets are the rest of the Balkan states, where the market has a population of 123,7 million and is supported by cross-border agreements.
The third layer of the market will be Slavic speaking countries, including The Czech Republic, Slovakia and Poland (a market with 76,3 million people). Later on also Belarus, Ukraine and Russia, with 190 million people in total. At the same time, also Hungary (with a population of 9,8 million, which although not a Slavic speaking nation is located directly north of Croatia and Serbia.
FEASIBILITY - PROJECTIONS
The financial data is recorded in Euros - (Gross Revenue and EBITDA) reflected above, is based on the average two years projections ending May 2018 and 2019, and the profit above and return illustrates on the Investor/s 25% equity in the Company.
Detailed financial projections (Income Statements, Balance Sheet and Cash Flow forecasts) will be made available by the Vendors to approved Investors on application.
An extract from the projections reflect the impressive growth from year 2.
The shareholder/s loan funding component is subordinated debt which bears no interest and has no fixed term for the repayment thereof.
Notwithstanding the aforegoing, the Company shall use its best endeavours to:
Supplier margins are attractive, making the project viable and a detailed financial model has been prepared, which sets out the capital requirement; and supports the value proposition for investment into the company.
- Pay interest at the Macedonian prime overdraft lending rate (multiplied by 1,2); and
- Repay all shareholders loans over a period of 12 months commencing from month 13.
- All payments shall be monthly in arrears and Interest shall accrue monthly, or shall be compounded monthly if not paid; and shall be paid monthly in arrears on the last day of each month.
- DIVIDENDS ARE PROJECTED TO COMMENCE DISTRIBUTION DURING OR AT THE END OF THE 2ND YEAR OF TRADING
The feasibility of the project indicates a strong cash generative business, underpinned by strong profitability.
The founders have set out to prove the demand for the products referred to in this document by commencing trade with their own limited funds, having invested close to R600 000 in cash to date in exploring various avenues for trading in botanicals and much more in time and effort and personal expenses.
The objective of the initial trades are to demonstrate that the administrative risks in the importation and trading of products are ironed out and that the investor will not be subject to an unnecessary learning curve in the international trading of those products.
PROOF OF FUNDING REQUIREMENT
Interested parties MUST be able to demonstrate that they have access to the required funds to finance a the full transaction.
In terms of the signed Broker mandate, the Principals will not entertain any discussions, or consent to provide any details or documentation; or accept any offer unless the potential Investor can first meet this criteria.
The Potential Investor will need to provide proof of these financial requirements in your initial enquiry.
FULL DETAILS WILL BE PROVIDED BY THE APPOINTED INTERMEDIARY SUBJECT TO SIGNING A CONFIDENTIALITY AGREEMENT (NDA).
DISCLAIMER REGARDING INFORMATION
- No representation or warranty, express or implied, is given as to the accuracy or completeness of the contents of this profile.
- The only representations and warranties that will be made are those that may eventually be included in a definitive agreement to the proposed sale of the vendors interests in the business.
- Neither this profile nor any of the information contained in it shall form the basis of any contract for such sale, nor does it constitute an offer, invitation or inducement to purchase or acquire any shares in the business or any interest in it.