commodities, the abundance of rich black soil and the low cost of labour, ensures that farming in Ukraine can
GGAI expects to exploit this opportunity to see a 13 % retur n on investment and commit to high annual divide nd returns to investors.
INVESTMENT FORECASTGGAI believes that Ukraine agricultural market has the potential for substantial growth andFarming Operator’s conservative estimate on return on Investments is between 10-15% per annum.
Return on investment (per cent)
Source: International soft-commodity Index / Olstas Lyon internal data and competitive benchmark data of international farming companies in Ukraine.
GGAI’s business model incorporates a proactive program using local labour and farming experience, combined with cutting edge Western European agro-technology in order
performance for the investors.
BACK TO BASICS
reacting as they should and companies from start-ups to old established enterprises have seen their share
Now is the perfect time to consider investments which go ‘back to basics’.
The increase in the global production of bio-diesel has
crops. With the global population anticipated to reach 9 billion over the next 40 years, the demand, and therefore the price, for basic crops consumed on a daily
investment with potential annual returns of up to 20 % .
Source: FAOSTAT, UN, Environmental Health Perspectives.Note: Data are a rough estimate and can vary depending on assumptions - data shown shows relative trend.
ha/person0.50.40.30.20.1
0
2020
2010
2000
1990
1980
1970
1960
1950
Per capita world arable land
Price/ha US$
30,000
25,000
20,000
15,000
10,000
5,000
0Source: Eurostat/USDA
Price per Metric Tonnes in US$
Production/ha
150 200 300 400 500
5 11.7 15.6 23.3 31.1 38.9
6 14.0 18.7 28.0 37.3 46.7
7 16.3 21.8 32.7 43.6 54.4
8 18.7 24.9 37.3 49.8 62.2
Denm
ark
Germ
any
UK
Spain
France
Greece
USA
Argentina
Poland
Russia
Ukraine
2
3Let’s talk +44 (0)207 100 1070
WHY AGRICULTURAL INVESTMENTS?
The Credit Crisis has turned even old, reputable,
well financially consolidated and very professionally
managed businesses into high-risk investments.
Currently, the financial markets do not react as they
used to do. Investing in Start-Ups via private equity
creates an even bigger risk, since only very few start-
up companies are likely to survive.
Imbalance in Supply and Demand Going back to basics, and investing in fundamentals
makes sense under these circumstances. The world
is heading towards a population of 6.8 billion people
(UN: in year 2015) who will need something to eat
every day. There will always be a steady demand for
basic food products. Prices may fluctuate, but there
will always be a market. Every minute of every day, 150 individuals are added
to the world population (US Census Bureau, January
2009) and they all need food. As both the population
and life expectancy grows at a fast rate, the demand
for agricultural products increases rapidly.
GGAI believes that green sustainable investments
in agriculture will perform extremely well in
the future. We are convinced that investing in green
products is a secure way to sustainable profit.
The UN conservatively predicts that the world’s
population will increase by more than 45% during the
coming 40 years. That means that the earth will have
to feed another 3,800,000,000 people.
In the same period, International Grains Council (an
association of the leading food exporting countries) is
predicting the farmland available for cereal production
to fall by 0.2% - 0.5% per annum for the coming 40
years.
The reasons for this are several:
• During Global Warming, deserts in Africa and
Asia will grow and take out millions of hectares of
potential farmland.
• The attraction and trend in growing bio-fuel and
other biological alternatives to fossils will reduce the
farmland available for food production, including for
the essentials such as wheat.
• As the population gets bigger, urbanisation and town
developments are being created at the expense of
existing and potential farmland.
• The trend has been clear during the last 5 years.
Since 2005 the production of grain has been smaller
than the demand.
World-wide, the development of available farmland per
capita has reduced by half during the last 50 years,
and further reductions are forecast.
Safety in Stormy Times
EXIT STRATEGY The Directors of Global Green Agriculture anticipate
within 36 months of the offering to secure investors an exit opportunity.
BUSINESS OBJECTIVESThrough our contacts and highly experienced management team we have identified a niche opportunity of capitalising on the yield produced from soft commodities like wheat.
Currently investors who are interested are invited
sustainable agricultural company.
Shareholders of Global Green Agriculture I Ltd are
that leases land in one of the most arable and cost effective regions in the world.
From this land the shareholders receive 70% net proceeds generated from the sale of the crop. The first crop will be wheat, the price of which has shownconsiderable gains as global prices rise on the back offailed wheat crops and increasing supply gap.
The Ukraine is recognised as one of the worlds most costeffective and suitable locations due to the quality of the soil and the cost of leasing the land.
As part of the Management Contract with the Farming Operator, the Farming Operator is obliged to cultivate the Farming Land in readiness for the planting of the first crop for harvest in 2011. The Farming Operator is retained to farm the land, harvest, dry, transport, package and sell the crop, then subsequently distribute the net proceeds of on an annual basis. The return to the Company under the terms of the Management Contract is 70% of the net proceeds from the harvesting and sale of the crop.
The five crops will be produced on the Farming Land on a rotational basis and will be determined based on market prices for seeds, fertilisers etc., as well as the global commodities price for that crop:
• Wheat
• Barley
• Rapeseed
• Sunflower
• Maize (corn)
FARMING LAND LOCATION (UKRAINE)
The land is located in the following area:Latitude: 51º35’44.27 Longitude: 31º55’24.23.See satellite photos on google.earth.
DIRECTOR’S BIOGRAPHIES
Andre RafnssonManaging Director 42 years old – Danish
Andre Rafnsson holds a MBA in marketing and, for more than 10 years, has held senior corporate management functions within regional and general management in Central
and Eastern Europe, primarily in the Life Science Sector. Andre has successfully lead and developed large global organisations, and he has negotiated highly profitable multinational licensing and trade agreements, as well as managed the growth and development of subsidiaries for international networks. With a blend of management experience and investment focus, Andre is today the Managing Director (MD) for GGAI.
Stanislav Kotenko
Director 55 years old – Ukrainian
After army service Stanislav Kotenko received his education certificate, and was working as a teacher when he was elected as the head of the student labour union of Kiev’s
Polytechnic University. In 1991 Stanislav established one of the first Ukraine private companies – OLSTAS. Under Stanislav’s governance, OLSTAS successfully dealt in wholesale-retail sales of foodstuffs, petroleum products, and constructed a network of petroleum stations. In 2001 he purchased one of the major flax factories, and established the agricultural company OLSTAS-LEN. Within 3 years it became a leading producer of flax fibres. In recognition of its success, Stanislav Kotenko was elected as a president of the All Ukrainian Association of Flax Producers.
Morten Jensen
Director 47 years old – Danish
Morten Jensen has been in the international foresting and agriculture business for more than 30 years and has a full knowledge of the total value chain and the understanding
and experience of land development, cultivation, harvesting and sales. Morten has been involved in Agro-projects all over the world and is well known in the Agricultural industry and works on various business development projects.
Andre RafnssonManaging Director
Andre Rafnsson holds a MBA in marketing and, for more than 10
years, has held senior corporate
4
www.globalgreencapacity.com
and will seek a listing on a Major European Stock Exchange
to buy shares in Global Green Agriculture I Ltd a
buying a slice of a sustainable agriculture company
UKRAINE FARM INVESTMENT STRUCTURE
5Let’s talk +44 (0)207 100 1070
Current Wheat Price as of 05th October 2011 $224.51USD/£146GBP per ton
Purchase Price @ £1,500 per Hectare
InvestmentAmount Hectares
2010 Produced 3.8 tons Per
HectareCurrent Wheat Price £146/ton
ProductionCost
30% toFarmer
AnticipatedReturn
AnticipatedROI %
£6,000
£10,500
£51,000
£100,500
£250,500
4
7
34
67
167
4 x 3.8 = 15.2 tons
7 x 3.8 = 26.6 tons
34 x 3.8 = 129 tons
67 x 3.8 = 254.6 tons
167 x 3.8 = 634.6 tons
15.2 x £146 = £2219.20
26.6 x £146 = £3883.60
129 x £146 = £18,834
254.6 x £146 = £37,171.60
634.6 x £146 = £92651.60
£1,109.60 £332.88 £776.72 12.95%
12.95%
12.93%
12.95%
12.95%
£1,941.80
£9,417.00
£18,585.80
£46,325.80
£582.54
£2,825.10
£5,575.74
£13,897.74
£1,359.26
£6,591.90
£13,010.06
£32,428.06*Exchange Rates for calculations taken from www.xe.com @ 10:52GMT 04/10/2011. 1USD = 0.649913GBP. 1GBP = 1.53867USD
*
HOW IT WORKS
Please be aware this is an example which was calculated when the document was created. Variables such as the price of wheat and land yields can change.
GlobalGreenCapacity Limited only works with highly
professional and well reputed advisors with extensive
experience. In our efforts to provide environmentally friendly
investments with sustainable return on invested capital,
it is important that our partners have the same corporate
philosophy as us.
Our partners are handpicked and operate in the forefront
of their respective business areas. They have all agreed to
work together with us in order to provide good service, well
researched investments and the highest returns possible to
our investors.
Solicitors: Paul Robert Solicitors www.prlaw.net The firm was founded in January 2000 by its principal, Paul
Roberts. It now employs several specialist lawyers most of
whom have gained experience with established practices in
the City of London. The firm’s work is principally contentious,
including litigation, arbitration, adjudication, ADR and
tribunal work on behalf of its commercial clients, but includes
a significant amount of advice on corporate matters and
contract wordings.
Paul Robert Solicitors, 60-61 Mark Lane, London, EC3R 7ND, United Kingdom
Telephone: +44 (0)207 264 0500Fax: +44 (0)207 264 0501
Keystone Solicitors www.keystonelaw.co.ukKeystone is a full service commercial law firm with over nine
distinct, but complementary practice areas. Keystone’s 95
experienced solicitors work from their own satellite
offices whilst a central London office handles the firm’s
administration, IT and compliance. They provide flexible
solicitor support to the in-house legal departments of major
corporate organisations, including entrepreneurs, funded
start-ups, small to medium-sized companies and individuals.
Keystone Law, 53 Davies Street, London, W1K 5JH, United Kingdom
Telephone: +44 (0)207 152 6550Fax: +44 (0)845 458 9398
Magisters Ukraine www.magisters.comMagisters is a full-service, international law firm, advising
leading global and domestic organisations throughout the
Commonwealth of Independent States (CIS). Magisters
employs around 100 internationally trained and locally
experienced lawyers in its Astana, Kyiv, Minsk and Moscow
offices, and in 2009 the Firm also announced the opening of
a representative office in London.
Magisters Ukraine, 38 Volodymyrska St., Kyiv, 01034, Ukraine
Telephone: 0038 (0)44 492 8282Fax: 0038 (0)44 492 8272
Millers Associates www.millersassociates.comMillers Associates is a London City-based professional
consulting group offering corporate, accounting, compliance
and executive recruitment advice to public and private
companies. Full corporate services are provided, as well as
executive recruitment services and tailor-made solutions to
suit individual requirements.
Millers Associates Limited, 4th Floor, 36 Spital Square, London, E1 6DY
Telephone: +44 (0)207 377 6969Fax: +44 (0)207 377 9454
KPMG www.kpmg.comKPMG is a global network of professional firms providing
Audit, Tax and Advisory services. They have 140,000
outstanding professionals working together to deliver value in
146 countries worldwide, helping clients to mitigate risks and
grasp opportunities.
KPMG LLP, 8 Salisbury Square, London, EC4Y 8BBUnited Kingdom
Telephone: +44 (0)118 964 2050Fax: +44 (0)118 964 2222
Bankers: Nordea www.nordea.comNordea is the leading financial services group in the Nordic
and Baltic Sea area and has a worldwide presence through
its international offices in 19 different countries. It offers a
broad range of banking services to companies and corporate
organisations operating internationally. Nordea is committed
to sustainable development by combining financial
performance with social responsibility.
Nordea Bank Finland PLC, 8th Floor, City Place House55 Basinghall Street, London, EC2V 5NB, United Kingdom
Telephone: +44 (0)207 726 9117Fax: +44 (0)207 726 9003
HSBC www.hsbc.co.ukHSBC is one of the world’s leading banks with around 8,500
offices in 86 countries and territories across the world. HSBC
provides tailored, first-class banking solutions to fulfil all
corporate needs and requirements.
HSBC Bank PLC HBEU, 38 Canada Place, Canary Wharf, London,E14 5AH, United Kingdom
Telephone: +44(0)845 760 6060 Fax: +44 (0)207 302 2101
PARTNERS AND ADVISORS IN THE DEAL
6 www.ggagriculture.com
Accounting/Corporate Consultants/Auditors:
Shares in GlobalGreenAgriculture I Limited are unquoted securities and may be considered to have more risk than quoted securities and shares. The value of investments can go down as well as up and you may not get back the money you originally invested.
The information contained in the document does NOT form a part of any offer for sale or subscription to or solicitation to buy or subscribe for any securities or investment product(s). The document is not a prospectus and/or Information Memorandum and contains no offer to the public for the purposes of the Prospectus Regulations 2005. The formal terms of this offer are set out in the Information Memorandum and applications for shares are made solely for that basis.
Any forward looking statements set out herein involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements implied by such statements.
LET’S TALK
To find out more and download the Information Memorandum with Application Form, please visit:
www.ggagriculture.com
If you have specific enquiries, please e-mail us at:
If you want to talk, call us on:
+44 (0)207 100 1070
October 2010
GLOBALGREENAGRICULTURE I LIMITED
Lloyd’s Building
12 Leadenhall Street
London EC3V 1LP
United Kingdom
T +44 (0)207 100 1070
F +44 (0)207 043 4301
www.ggagriculture.com