Our current profitability projection is 14% per year, considering the initial price of $2.60 per stock at launch.
Our business model contemplates the stock placement of common shares, where each of these shares has equal rights and benefits, and there are no preferred shares or privileged rights. For this purpose and aligned with the idea of reducing or eliminating the risks for our investors, prior to the public offering process, we proceed to buy high quality land, plant it with the best forestry practices, and incorporate all the economic resources necessary to operate the plantation. Once such process is completed, we start with the public offering of the stocks. In this way, when the investors are integrated, the plantation is properly planted and endowed with the necessary resources for its life in such a way that the placement of the shares is indifferent to the healthy economic life of the company.
By acquiring shares of our teak plantations, you are not only a beneficiary of the dividends from the first cut, but also dividends from subsequent cuts, resulting from the typical sprouts of this species.
By acquiring shares of our teak plantations, you are not only a beneficiary of the dividends from the first cut, but also dividends from subsequent cuts, resulting from the typical sprouts of this species.
*Precios proyectados de acuerdo a una tasa superior al 14% anual.
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Investment Advantages
Country environment
In Ecuador, national and foreign investors are treated the same, which means that they have the same rights according to the law. As far as the exchange risk, Ecuador’s current currency is the US Dollar. Nevertheless, political and economical risks can never be ruled out in Latin-American countries. In our understanding, being teak an export product, the exchange risk does not constitute a relevant factor.
Wood Prices
Considering that teak is a long-term crop, wood prices may vary. The historical behavior of prices has been of a constant growth, as a consequence of the demand increase in this kind of product. Also, China’s and India’s active participation in the commodities market generates the expectations that the demand for this kind of product will continue to grow.
Insurance Policy
Teak is immune to fire since its 4th year, therefore, during the first years we take all necessary precautions. Nevertheless the plantation has an insurance policy with Seguros Cóndor, which considers a payment growth rate of 15% annually in case of a sinister. With this rate, the opportunity cost of the investor is covered. This insurance has already been paid for all of our plantations.
Property Legal Status
The property is fully documented and has all the legal inscriptions required.
Privileged location and climate
Ecuador’s climate allows teak farming to be successful. In addition, the area is not prone to hurricanes and winds, allowing a successful growth of the trees. The first axis of development is in Balzar, Guayas, where there are excellent levels of precipitation (between 1200mm and 2000 a year). All the plantations have natural drainages.
Teak resistance
Teak is a species very resistant to pests, fires and fungi.
