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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
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.
Price/ha US$
30,000 25,000 Ukraine Russia Poland Argentina USA Greece France Spain UK Germany Denmark 20,000 15,000 10,000
5,000 0
Source: Eurostat/USDA
INVESTMENT FORECAST
GGAI believes that Ukraine agricultural market has the potential for substantial growth and Farming Operators conservative estimate on return on Investments is between 10-15% per annum. Return on investment (per cent)
Price per Metric Tonnes in US$ Production /ha 5 6 Per capita world arable land 7 8 150 11.7 14.0 16.3 18.7 200 15.6 18.7 21.8 24.9 300 23.3 28.0 32.7 37.3 400 31.1 37.3 43.6 49.8 500 38.9 46.7 54.4 62.2
ha/person
0.5 0.4 0.3 0.2 0.1 0
1950 1960 1970 1980 1990 2000 2010 2020
Source: International soft-commodity Index / Olstas Lyon internal data and competitive benchmark data of international farming companies in Ukraine.
GGAIs 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.
Source: FAOSTAT, UN, Environmental Health Perspectives. Note: Data are a rough estimate and can vary depending on assumptions data shown shows relative trend.
other biological alternatives to fossils will reduce the farmland available for food production, including for
World-wide, the development of available farmland per capita has reduced by half during the last 50 years, and further reductions are forecast.
DIRECTORS BIOGRAPHIES
Andre Rafnsson
Managing Director
42 years old Danish
BUSINESS OBJECTIVES
Through 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 to buy shares in Global Green Agriculture I Ltd a sustainable agricultural company. Shareholders of Global Green Agriculture I Ltd are buying a slice of a sustainable agriculture company 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 shown considerable gains as global prices rise on the back of failed wheat crops and increasing supply gap. The Ukraine is recognised as one of the worlds most cost effective 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:
Andre Rafnsson holds a MBA in marketing and, for more than 10 marketing and, for more than 10 years, has held senior corporate 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 Kievs Polytechnic University. In 1991 Stanislav established one of the first Ukraine private companies OLSTAS. Under Stanislavs 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.
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. Current Wheat Price as of 05th October 2011 $224.51USD/146GBP*per ton Purchase Price @ 1,500 per Hectare Investment Amount Hectares 6,000 10,500 51,000 100,500 250,500 4 7 34 67 167 2010 Produced 3.8 tons Per Hectare
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 634.6 x 146 = 92651.60 46,325.80 13,897.74 32,428.06
*Exchange Rates for calculations taken from www.xe.com @ 10:52GMT 04/10/2011. 1USD = 0.649913GBP. 1GBP = 1.53867USD
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www.ggagriculture.com
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:
info@ggagriculture.com
If you want to talk, call us on:
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.
GLOBALGREENAGRICULTURE I LIMITED Lloyds Building 12 Leadenhall Street London EC3V 1LP United Kingdom T +44 (0)207 100 1070 F +44 (0)207 043 4301 E info@ggagriculture.com www.ggagriculture.com
October 2010