Brazil Nut ePPNs
Brazil Nut ePPNs | 8–13% Cash Yield
Brazil Nut ePPNs give access to a niche sustainable agro strategy seeking strong cash returns, by leveraging the established and growing Brazil nuts market. The large spread between raw nut purchase price and sale to wholesale distribution offers investors a quarterly cash yield in the range of 8–13% per annum with low downside risks.
This niche sustainable agro strategy seeks above inflation cash returns, by leveraging the established and growing Brazil nut market. The approximate 50% spread between raw nut purchase price (from harvesters in the Amazon) and sale to wholesale distribution offers good yield with low downside risks.
A global leader in the production of Brazil nuts will act as the Program Manager, sourcing, producing and selling the product to the market with state-of-art facilities and sales network.
The ePPNs represent fractional beneficial interest in existing, purchased raw Brazil nuts, and an obligation of the Program Manager to process and distribute the final product. The standard quantities sold are 16,000 kg of the final product, which represent one shipping container.
Cashflows are generated by sale to wholesale distribution, where profit is shared between Program Manager and ePPN holders on a quarterly basis.
The proceeds from the issuance of the Notes will be used to purchase raw Brazil nuts from WHITE LION FOODS PTE. LTD., which ultimately will entitle the Issuer to the ownership of Brazil nuts and a share in the proceeds from sale of the nuts after processing.
Issuer will use the proceeds of the Notes to purchase monthly during the harvest season allocation up to 70% of Brazil nuts purchased from farmers by WHITE LION FOODS PTE. LTD. (“WLF”) incorporated and registered in Singapore with registration number 201220949G, having its registered office is at 1 George Street #16–01, Singapore (049145).
The raw Brazil nuts, previously acquired on behalf of WLF by their subsidiary, White Lion Nuts SAC (incorporated in Peru) , directly from harvesters in the Amazon rainforest, will be processed into a fixed number of shipping containers of processed Brazil nuts.
The Program Manager is responsible for all costs associated with the development, distribution, and sale of the assets from their share of the profits. Investors’ returns are ring-fenced from all other expense and liabilities in WLF’s business.
The Advisor on behalf of the Issuer generally oversees the Program Manager and the Program Manager’s principal service providers, but does not exercise day-to-day oversight of the Program Manager nor such service providers.
BRAZIL NUT MARKET & TRENDS
Brazil nuts are harvested seasonally, but purchased throughout the year. In addition to being a food, the nuts have wide applications across cosmetics and hygiene (shampoos, conditioners, soaps, skin-care products, etc…).
Due to the wide range of applications, the Brazil nut market has been consistently growing for many years.
Net Global Brazil Nut Trade, 2020
ABOUT WHITE LION FOODS
White Lion Foods is the global leader in the production and exportation of Brazil nuts. Incorporated in 2012 by British co-founders, Gareth Lloyd and Gregory Vickers, the company has expanded from a single site to 5 production facilities in Peru and Brazil delivering thousands of tons of fresh product to over 30 countries across the globe.
In 2016, WLF incorporated White Lion Nuts S.A.C. in Tambopata — Madre de Dios, Peru, and began acquiring land and building a state-of-the-art processing facility.
WLF’s facilities are strategically positioned in Brazil’s, Peru’s, and Bolivia’s Amazon region. By basing facilities in proximity to the source, WLF is able to procure the highest quality and freshest raw products at the lowest prices — enabling them to deliver the highest quality end-product at a highly competitive price, while still maintaining strong margin.
In 2019, WLF had grown to the point where they were producing 129 metric tons of Brazil nuts per year, amounting to a little under $1 million, or about 2.41% market share. The completion of their primary factory has enabled them to significantly increase that, to the point where they are on track to exceed 50% market share in 2023.
Gareth Lloyd, Gregory Vickers, Amir Khayat (from left to right)
Gareth, co-founder of the global recruitment and consulting group Amoria Bond, is an international entrepreneur and business executive. Having expanded Amoria Bond to trade in over 35 counties globally and generate sales in excess of $100m annually, Gareth has the expertise and resources to develop businesses on a global scale. Having graduated from the University of Manchester in 2000 (where he met partner, Greg), Gareth has grown a business footprint and property portfolio across five continents.
Chief Executive Officer
Since graduating from the University of Manchester, Greg has run several successful ventures in the UK and has spent the last 15 years working across Latin America. Greg has been at the heart of the business since its inception, responsible for the acquisition of land, construction of facilities, setup and recruitment, and remains an active main shareholder. Fluent in Portuguese and Spanish, Greg is an international sales and operations executive whose global experience has helped the Company expand rapidly. Greg is based out of Peru.
Chief Financial Officer
A chartered accountant by background, Amir has accumulated a wealth of international experience and expertise since graduating from Manchester Business School and training with KPMG in the UK. Amir has held senior finance positions responsible for building and developing finance functions with publicly listed, private equity backed and SME companies. His skills span financial reporting, taxation, compliance, corporate finance and M&A across several sectors including agriculture, power, engineering, oil & gas and professional services.
Brazil Nut ePPNs are profit-participating notes, representing 100% ownership of the corresponding amount of Brazil nuts, sourced, processed and managed by White Lion Foods PTE LTD.
The profit is the difference between the average sale price in the month of sale and the average purchase price in the month of purchase.
The distribution of profits is such that 50% of the profit up to 110% of the purchase price is attributed equally to the Issuer and the Program Manager.
If there is any additional profit, 13% of all additional profit is retained by the Issuer, and the remainder is paid to the Program Manager.
The expected annual yield for Brazil Nut ePPNs investors on their investment is in the range of 8% — 13% with a quarterly distribution of profits. (see Brazil Nut ePPNs Yield Projections document for details)
Step 1: Register and qualification as professional investor
European investors interested in purchasing Brazil Nut ePPNs must register with BMCP GmbH and qualify as a professional client according to Annex II of DIRECTIVE 2014/65/EU.
Investors can subscribe to Brazil Nut ePPNs using the Globacap platform (the “Globacap Platform”) accessible through the Internet. You will receive a registration email with further information about the qualification process with links to the GlobaCap platform after registration on on this landing page.
The Globacap Platform is operated by (and its related services are provided by) Globacap Limited, registered and incorporated in England, with its offices at 322 High Holborn, London WC1V 7PB, United Kingdom (“Globacap”). Globacap is regulated by UK Financial Conduct Authority with FCA No: 811661. Investors must register an individual or institutional account at the Globacap Platform to subscribe, hold, receive distributions and redeem Brazil Nut ePPNs.
Step 2: Know Your Customer (KYC) and Anti-Money Laundering (AML) Compliance
We will walk you through a quick and easy identification and accreditation process online. This process protects investors and ensures the integrity of the company. All potential investors must provide such information to IDAP Alternative Investment S.à r.l., as set forth in the Subscription Form to allow the Company to conduct its required KYC and AML analysis and to otherwise confirm that the investor satisfies any other suitability requirements. IDAP Alternative Investment S.à r.l. reserves the right to reject any investment at its sole discretion.
Step 3: Complete subscription process
Investors must read the Private Placement Memorandum (PPM) and Subscription Form of IDAP Alternative Investment S.a r.l..
Step 4: Purchase Brazil Nut ePPNs
Send USD, EUR or GBP to Globacap as the custodian and Paying Agent of Brazil Nut ePPNs and obtain an economic interest in the Brazil Nut project in the form of Brazil Nut ePPNs.
Brazil Nut ePPNs
Target Fund Raise
For professional investors from
|Issuer||IDAP Alternative Investments S.à r.l. (Arion)|
|Total Investment Volume||$10,000,000|
|Min. Investment Amount||$5,000|
|Max. Investment Amount||$10,000,000|
|Instrument Type||Profit-Participating Note|
|Expected Annual Yield||8–13%, paid quarterly|
|Currencies||USD, GBP, EUR|
|End of Offering||31 March 2023|
|Maturity||30 April 2026|
Interested investors must register and qualify as professional client according to Annex II of DIRECTIVE 2014/65/EU. A professional client is a client who possesses the experience, knowledge and expertise to make its own investment decisions and properly assess the risks that it incurs.
If qualified as a professional client, BMCP will contact you directly.
The information of this ePPNs Offering is exclusively intended for persons who are not located in or resident of certain other restricted jurisdictions, and who are otherwise permitted to receive such information.
According to Article 1 (4) of the EU Prospectus Regulation (Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC), there is no obligation to publish a prospectus if the securities are only offered to legal entities or individuals which are “qualified investor” as defined in the Prospectus Regulation.
Globacap Limited, incorporated and registered in England and Wales with registration number 11046987, whose Registered Office is at 322 High Holborn, London WC1V 7PB, United Kingdom, with FCA No: 811661, acts as Authorized Arranger in the United Kingdom for investors from the United Kingdom.
The information of this ePPNs Offering does not constitute an offer or an invitation to purchase securities in any jurisdiction in which such offer or invitation is not authorised or to any person to whom it is unlawful to make such offer or invitation. Users of this information are requested to inform themselves about and to observe any such restrictions.
An investment involves considerable risks and can lead to the complete loss of the assets invested. In the interests of risk diversification, only those amounts of money should be invested that are not required or expected to be returned in the near future. However, the risk is limited to the investment sum made and there is therefore no obligation to make additional contributions.
The Issuer is solely responsible for all contents and information provided regarding the offering. BMCP GmbH acts as a pure intermediary and assumes no liability for the accuracy of the provided content. BMCP GmbH works on a success fee basis of up to 5% of raised capital.
THIS PAGE DOES NOT CONSTITUTE AN OFFER OF SECURITIES OR A SOLICITATION OF AN OFFER TO PURCHASE SECURITIES MADE TO ANY PERSON IN ANY JURISDICTION IN WHICH IT IS UNLAWFUL TO MAKE SUCH AN OFFER OR SOLICITATION. THE DISTRIBUTION OF THIS OFFERING IN CERTAIN JURISDICTIONS MAY BE RESTRICTED BY LAW. FAILURE TO COMPLY WITH SUCH RESTRICTIONS MAY CONSTITUTE A VIOLATION OF THE SECURITIES LAWS OF THE RELEVANT JURISDICTION. NO ACTION HAS BEEN OR WILL BE TAKEN TO ALLOW A PUBLIC OFFERING OF SECURITIES IN ANY JURISDICTION. THE SECURITIES ARE INTENDED TO BE DISTRIBUTED ONLY ON A PRIVATE PLACEMENT BASIS.
THE OFFERING IS ONLY AVAILABLE TO INSTITUTIONAL OR PROFESSIONAL INVESTORS WHO HAVE EXPRESSED AN INTEREST IN INVESTING IN THE OFFERING.