Why FTC?
FTC can offer various benefits when you are looking for an alternative to equity investment. These are detailed below.
Company Benefits
- Less equity, no equity or delayed dilution in fund-raising exercises
- Significant sums can be raised 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 investors
- Forward Trade Contracts' fee largely based on success
Investor Benefits
- Contracted returns on investment from inception*
- Annual returns from inception*
- Investor returns not subject to stock pricing and liquidity of markets
- Protection offered against commodity price movements
- 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