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Axel Reijmers | Managing Director
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(201) 747-4718
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Overview
Seeking $4 million loan against a pledge of >$10 million of listed securities
Collateral: existing shares owned by borrower, and shares borrower will acquire with the proceeds of this loan
The combined market value of the collateral at current pricing is $10.3 million (39% LTV)
The shares are owned by Calu Opportunity Fund LP, a Delaware limited partnership that invests in natural resources and the agri-food sector
Structure
The shares are owned by Calu Opportunity Fund LP, a Delaware limited partnership formed to invest in natural resources and the agri-food sector.
Calu Financial LLC is the general partner.
Collateral 1: Luca Mining Corporation
Collateral 1: 34,483,525 shares of Luca Mining Corp (TSX-V: LUCA, OTCQX: LUCMF) (“Luca”)
Market value of collateral: ~US$ 8.0 million
Company info: Luca is a diversified Canadian mining company with two 100%-owned mines in Mexico that produce gold, copper, zinc, silver, and lead
Collateral 2: Organto Foods Inc.
Collateral 2: Shares of Organto Foods Inc. (TSX-V: OGO, OTC: OGOFF) (“Organto”)
Market value of collateral: ~US$ 2.3 million
Company info: Organto is an integrated provider of branded, private label and bulk distributed organic and non-GMO fruit and vegetable products Organto grew sales from ~US$1.1 million in 2018 to ~US$20.7 million in 2023, representing five consecutive years of sales growth. It targets annualized 2024 sales in the range of current analyst estimates of CDN $35 to $38 million, and expects to achieve positive EBITDA during the first half of 2024
Specific Risks
- Calu Opportunity Fund LP is an investment vehicle with Calu Financial LLC as the general partner. The entities do not have other cashflow generating operations other than from investment activities
- An important source of income and value creation is income from the ownership and/or sale of investments. There is no certainty that the investments will provide sufficient income or value to pay the interest and principal of a loan. Even if the investments have sufficient value to cover interest and principal repayment, there is a risk that there is not sufficient liquidity to timely divest such investments at a value sufficient to make timely payment of interest and principal
- An alternative source of funds to pay the interest and principal of the loan is additional funds being contributed to the Calu Fund by existing or new limited partners. There is no certainty that additional funds will be contributed by existing or new limited partners
- Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment