Principal Product
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.
- Significant sums can be raised in excess of market capitalisation.
- Contracts can be used to help underwrite other funding requirements.
- Investors have a contracted return.*
As a headline FTC can normally consider the following:
- Providing an advance via a Forward Trade Contract.
- Paying / buying on inception.
- Buying forward at a discount up to circa 10% of projected production.
- Production purchased for up to 2/3 of resource life.
- Security taken where applicable.
A real understanding of our product is essential if you are considering any type of funding for a natural resource project; FTC will run a headline pricing model that requires no obligation, please contact us directly.
*subject to ongoing viability of underlying asset