Welcome to Forward Trade Contracts
FTC offers an alternative to equity investment where a company has, or may have in the future, an underlying asset class such as a natural resource commodity. We are able to advance via a Forward Trade Contract working capital which is not necessarily equity linked.
FTC Buyers have a contracted return being paid quarterly once the contract starts to become serviced. The instrument can be used by itself, or by existing investors and new contract buyers to compliment an IPO or subsequent placing.
The FTC product is particularly relevant given current equity markets and the prospect of difficult and sometimes expensive equity fund raising being the only option, which in turn can be very dilutive for the existing stake holders along with the true value of any asset not always being reflected in illiquid markets.
Why Forward Trade Contracts?
- Less equity, no equity or delayed dilution in fund-raising exercises.
- Significant sums can be advanced in excess of market capitalisation.
- Contracts can be used to help underwrite other funding requirements.
- Fixed buy out or % buy out to future market price.
- Agreed notice period to opt-out of contract.
- Hedged future pricing strategy for part of supply capacity.
- Unambiguous contract end, sight of costs at inception of contract.
- Access to a broad range of contract buyers / investors.
- Forward Trade Contracts' fee largely based on success.
- Contracted returns from inception*.
- Contract Buyer / Investor returns not subject to stock pricing and liquidity of markets.
- Protection offered against commodity price movements.
- Protection offered against production volume downward movements.
- Protection offered against production cost increases.
- Investment monies outflow controlled.
- Securities taken.
- Board position where applicable (via LLP / LP / LTD).
- Fixed buy out or % buy out to future market price.
- Agreed notice period to opt out of contract.
- Unambiguous contract end, sight of costs at inception of contract.
*subject to ongoing viability of underlying asset