Why FTC?
FTC can offer various benefits when you are looking for an alternative to equity investment. These are detailed below.
Client / Company Benefits
- 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.
Buyer / Investor Benefits
- 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