Инвестиции в оптовая торговля зерном

LETTER FOR POTENTIAL INVESTOR OR BUSINESS PARTNER

INTRODUCTION OF THE COMPANY AND MARKET VIEW:

GRAINPROM LLC is a company founded in 2017 by Casillo Commodities Italia S.p.A. (51%), the world leading company for the trading and processing of durum wheat, Maxim Antonov (24,5%) experienced trader in the procurement of Russian wheat market with special focus on durum wheat and Aurelio Di Carlo (24,5%) sales worldwide expert in trading of agricultural commodities with special focus on durum wheat.

The company was created since the great synergy of the 3 shareholders matched with the mutual goal to acquire an important share of this niche market and originate and trade Russian durum wheat.

The Russian Durum wheat production is about 600K metric tons/year and the total export is about 200K metric tons/year and the production is growing constantly every year.

In this environment Grainprom was able to achieve, already in MY 2018/2019, a market share above the 50% of the export market reaching the position in the top 3 russian durum wheat exporter.

The main destination market of Grainprom are: Italy, Turkey and Latvia.

As for local Russian market Grainprom is also active to supply the main Russian milling factory (e.g. MAKFA, Moscow mill n°3 and others).

The above explained structure and the expertise of the shareholder is bringing to Grainprom the capacity to expand its business year by year considering also the increasing of demand (locally and internationally) of Russian durum wheat.

BUSINESS MODEL OVERVIEW:

Grainprom is buying on EXW/FCA/CPT in the Russian local market and selling mostly to export on FOB and CIF basis  (by 3/5K MT vessel) organizing the storage of the cargo purchased and the logistic.

Grainprom has rent a flat storage in Rostov Korvet port that can allow to store approximately 5K MT.

Basically cargo is bought all over Russian territory and collected in the most convenient place depending on the position of the cargo itself and on the destination (e.g. Samara port, Rostov Port,etc.).

Before buying and after the collection Grainprom instruct their surveyor company (GAFTA Approved one – SGS – CONTROL UNION – COTECNA) in order to guarantee the quality to the Buyers and to avoid any litigation problem.

BUSINESS NUMBERS:

Grainprom achieved in the 2018 a net profit after tax of 36.281.000 Rubles trading in total 48000 MT with an average margin of 13 $ pmt   and in 2019 doubled it reaching about 72.000.000 Ruble trading in total 64 000 MT with an average margin of 17 $ pmt.

All above was done through a credit line of EUR 5 Million but sometimes partially used (approximately 3 millions).

The above since our business model is to enter into buying position only once we see the presence of a margin of minimum 5-7/usd per metric ton.

OUR NEEDS NOW:

We are in process to do a Management Buyout where Aurelio Di Carlo and Maxim Antonov will acquire the shares of Casillo Commodity and will own 50-50 the shares of Grainprom.

This will be done with the full consent and approval of Casillo who, thanks to the good relation we have, will keep being an active partners in terms of support in purchasing the cargo and information sharing.

In this respect we believe that we could keep growing our business with Private investor financing which can be :

Investor will enter into the capital of the company and will finance the activity receiving both interest rate from the Credit line and the quota of the profit.

In this case the revolving credit line (or guarantee for the issuance of the credit line) should be approximately 2-3 million/year to allow to operate in a smooth way.

The above options to be discussed more in detail