Topic | Summary |
Strong market for product | - The primary market for Greenlip Abalone - both cultured (grown) and wild caught is China.
- The "ocean grown" cultured variety allows the Manager to meet demand at any time and the ability to schedule pre sales.
- Supply is perfectly poised for the proposed Australia/China Free Trade Agreement
- Positioned for deregulation of Chinese currency.
- World trend is toward cultured seafood.
- Stagnant "wild" caught quotas unlikely to change.
- Asian markets view Abalone as delicacy.
- Massive growth in Chinese middle class.
- Demand can only be met through Aquaculture.
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Excellent Risk Mitigation | - Significant participation by the Manager in sale price risk.
- Breakeven sale price approximately 51% discount from market price estimates.
- Investment model assumes no sale price inflation.
- Investment model factors cost indexation.
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Quality Aquaculture Lease selected for the Project | - Optimum selection of Project site
- Project site within current "wild catch" zone. (i.e. Abalone grow naturally around the project area)
- Abalone grown in their natural environment.
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ATO Product Ruling | The Australian Taxation Office has issued Product Rulings in respect of the Project which confirms the tax treatment of the Investment Opportunity. Broadly this means that the: - Application Fee per Interest is 94.00% tax deductible where the Investor is an STS taxpayer.
- GST will be recoverable if a Grower registers for GST. If a Grower is not registered for GST, the amount is fully deductible as per the ruling;
- All subsequent Management Fee payments are tax deductible in the year in which they are paid.
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Ability to pool produce at Harvest | The Marketing pool provides diversity amongst Produce returns for individual Growers. Unless the Manager is notified at the commencement of the Project, all Growers' Produce will be pooled for sale at harvest. |
