FAQ

It is calculated based on the volume of wood production -200 cubic meters per hectare approximately- and a conservative estimate of the increase in the price of wood at 5% yearly, which is much lower than the average of the last 40 years. Projections of expenses are also taken into account.

The shareholders own the land, the forest plantations until its harvest and the revenue from the indefinitely successive cut downs. They are owners of the company in proportion to the number of shares acquired. The company owns the plantation and all the necessary resources to keep its maintenance. Meaning that, the shareholder owns in a proportional way, the plantation (soil and trees), as well the company resources. The investor is a permanent owner without a time limit, as long as he keeps his shares, of course.

14% yearly until the plantation’s cut down

Profits are gained from the moment shares are bought. It is important to distinguish the profit components. Profitability is obtained by the price variation of the shares over time; and by the perception of dividends. Essentially, dividends are distributed when the plantation cut down occurs, in the year 20 from the sowing. Furthermore, while the trees are growing over time, its wood price rises, meaning share prices will rise as well. This generates an increase in the value of the investor’s investment.

The recommended minimum is $2600, equivalent to 1000 shares for local investors, and $6000 or its equivalent to 2300 shares for foreign investors, at the time of the public offering.

The minimum investment amount is technically possible with $ 2.60, which is the value of one share. The maximum amount of investment desired by the promoters is 10% of the company; However, being a publicly traded company, we can not prevent the purchase of a larger amount. The promoters participate in approximately 25% of the share capital, thus protecting a hostile participation to the detriment of the small investors.

You have to be able to present an identity card for Ecuadorians and for foreigners a passport. Additionally, it is the responsibility of whoever receives the value of the investment, Bank or Stock Exchange, to establish that the funds they receive have a lawful origin.
It is not necessary to come to Ecuador to make an investment; you only have to fill out an account opening form and mandate in a Securities House (we recommend Albion Casa de Valores), and instruct the purchase of the quantity of shares wanted. Undoubtedly, the Stock Exchange will request a transfer of funds and will operate with liquid funds at its disposal. For your safety, you can consult via email to the Stock Exchange of Guayaquil about Albion Casa de Valores.
The opening of your investment account can be done with a minimum amount of $ 2,400. It is important to note that in Ecuador there are regulations for the prevention of money laundering, which is why the information requested by the Securities House will be essential to make an investment. This protects your investment and that of other shareholders.

The only assets foreseen in each one of the companies correspond to the plantation and the investments (liquid assets mentioned above). There will also be a small investment corresponding to 1% participation in a sawmill, because all the forestry companies that we promote and operate have a stake in this sawmill, which corresponds to an integration process designed in the long term, for the benefit of the shareholders.

The companies do not expect to have liabilities of any kind.

The shareholders democratically choose the managing team during theShareholders’ Meeting established for that purpose.

The land is, and will continue to be a property of the company, thus, property of the shareholders in proportion of their participation.since the land is fully owned by the company, the successive cuts of the plantations are owned by the company and therefore by its shareholders.

Teak is immune and very resistant to fire from its fourth year of sowing. If a fire occurs after the fourth year, teak would not suffer. If the fire is prior to that period, the most likely scenario is the resuscitation work of the plantation, consisting of cutting to a level of 15 centimeters from the ground and subsequent application of water. Because the plant has the root system underground, it is most likely that it will not be affected, so in the following winter the parts affected by the fire will be restored.

In the unlikely event that a fire destroys the plantation, we will claim the loss to the insurance company and make a reseeding on the following season.

It is important to know that since the beginning of SIEMBRA, we have never had to claim an insurance due to an accident.