Raise Capital Without Reducing Your Ownership or Selling Stock
The sale of a revenue royalty (royalty), which is a percentage of the Company’s defined revenues
for an agreed period can provide funds for expansion.
As with any contract, the parties negotiate and agree to the terms of the transaction.
The negotiated terms are based on the Company’s minimum projected annual revenues for the period of the royalty.
The terms can address the possibility of projections not being achieved, as well as the termination of the royalty
earlier than the maturity of the contract period. Also, the royalty, as any contract, can be changed by the contracting parties.
We have conceived, developed, and patented approaches for royalties to be used in the financing of companies seeking growth capital.
The terms of these approaches protect the interests of both the royalty issuing companies and the investors purchasing the Company’s royalty.
The royalty investor has a contractual interest in the defined revenues of the company issuing the royalty and not in the company.
Therefore, the royalty investor is not concerned with the declared profitability of the company or valuation.
Levels of executive compensation, health and retirement plans, policies regarding expense reimbursement and a range of Company policies are not of concern to the royalty investors.
Royalty investors are concerned with the verification of revenues,
the timing of royalty payments, and contractual terms regarding the relationship.
The service which we offer is to structure a royalty for the company based on data supplied by the company.
The data to include the amount of funding sought, minimum annual levels of revenue, estimated pre-tax and
Net-After-Tax profit margins and the P/E of publicly traded companies believed to be comparable to the Company.
We are neither capital providers, nor introducers to possible royalty investors.
We do believe that owners of the Company will be able to interest both investors seeking a higher than alternative
risk providing return or firms representing the interest of such investors.
We are prepared to collaborate with attorneys and others retained by the Company.
Interested in learning more, including the terms of our involvement, please contact:
Arthur Lipper, Chairman
British Far East Holdings Ltd.
