Opportunity Snapshot
- Country: Brazil
- Industry: Energy, Natural Resources, Mining
- Stage: Start-up
- Investment size: $15,000,000 / min. $12,000,000
- Type of investment: Equity
Investment Opportunity
Our prospective clients are 50+ municipalities in Brazil. Our goal is to provide waste-to-energy and biofuel solutions for these municipalities. Our job is to help each municipality by providing an analysis of their specific needs and developing specific waste treatment solutions to those needs with respect to the end goal in compliance with the newly enforced law.
The Holding company will provide technology partners in the area of plasma gasification and biofuel plants for the treatment of various types of waste produced by the municipalities. The types of waste to be processed are municipal solid waste (MSW), hospital waste, commercial waste, and tires. We will also provide sales and marketing services in Brazil to help each municipality finalize off taker agreements for the by-products such as Power Purchase Agreements (PPA’s) with the local utilities, along with feedstock agreements, permitting, etc. Finally, we will call upon their international financial connections that provide renewable energy funding for projects to help fund each brazilian project.
Typically this funding will be in the form of a 20% equity investment and an 80% loan. We are looking for partners such as a bank or Renewable Energy Fund.
Our company will also be participating in other renewable energy opportunities such as solar farms and wind farms in Latin America and the Caribbean Islands. Waste-to-energy opportunities will be targeted throughout whole Latin America.
We will be developed and managed by a hand-picked critical staff of experienced leaders and management personnel. These executives come from various backgrounds in technology, finance, renewable energy, and import-export. They are all experienced leaders that have worked for many years in management and supervisory roles where high quality and customer commitment are keys to success. See resumes attached.
The projected payback to the investor for his/her $5M/$10M investment is detailed in Appendix A. The projected (Pro-forma) financials for the first municipality (City of Santarem) are detailed in Appendix B (document upon request). The second municipality with a signed 25 year agreement with the Mayor (City of Barcarena) will be identical to Santarem as it also has the same daily waste volume and waste mix.
Opportunity for the investor
The amount required to participate in our company as an investor is either $5M or $10M as a one-time investment. There will be no instance where the investor will be asked for additional funds. In exchange for the $5M investment the investor will receive 25% of the shares of our company and for the $10M investment the shares received of the company will be 50%.
Sample Projected Income Distribution for Year 3:
20% equity investor with 20% shares in the project = $11M ($55M X .20)
Ermel with 40% of the remaining shares in the project = $17M ($55M X .80 X .40)
Holding company with 40% of the remaining shares in the project = $17M ($55M X .80 X .40)
Holding company $5M investor with 25% of holding company shares = $4.2M ($17M X .25)
Holding company $10M investor at 50% of holding company shares = $8.4M ($17M X .50)
In summary, by just looking at the first 5 years of operation, given the project’s projected earnings for the $5M and $10M investors ($30.2M and $60.8M respectively) and the partners participating in the City of Santarem project, we can say that our proposal is quite lucrative and we can offer a compelling financial picture for the potential holding company investor for the 25 year life of the project. This investment pays off from one city project - the remaining 28 municipal projects are all profit for years to come.
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