alvin donovan: equity partners websites back up: alvin donovan
http://equitypartnersfund.com/
http://funchalequitypartners.com/
alvin donovan
http://equitypartnersfund.com/
http://funchalequitypartners.com/
alvin donovan
alvin donovan
CERT and BioJet join forces for feedstock development
11 January 2012
The Council of Energy Resource Tribes (CERT), a group made up of 57 Indian tribes, has formed a business relationship with renewable jet fuel supplier BioJet International.
The CERT members, who own and manage coal, uranium, oil and gas reserves throughout the US, will work with BioJet to capitalise on supply chain projects relating to feedstock and refining projects.
for further information see
http://www.biofuels-news.com/industry_news.php?item_id=4454
and
http://www.biojetcorp.com/news.php
We are private investment group seeking to invest directly into listed public companies. Please email me to donovan@epfundspc.com and also invite me to link
on linkedin/finroad/twitter pls.
All the best,
Alvin Donovan
Managing Director
Equity Partners Fund SPC
http://www.epfundspc.com
http://www.VietnamEquityPartnersFund.com
http://www.equitypartnersfundindia.com
Join me on linkedin http://au.linkedin.com/in/alvindonovan
My blog= alvindonovanblog.com
Follow me on http://twitter.com/AlvinDonovan
Phone: + 61 415810958
Skype: alvindonovan
“Lead, Follow or get out of the way!”
http://alvindonovanblog.com/2011/09/12/website-disclaimer/
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Equity Partners Fund SPC (“epfundspc”) is both a segregated portfolio company and has several portfolio companies through which it makes fundings on a global basis based on price, volume and liquidity. epfundspc does not provide volume, liquidity nor investors, this is the responsability of the company.
epfundspc generally looks to fund amounts from $5 million up to $100 million in listed companies with consistent trading volumes for a variety of activities including working capital, acquisitions and other growth opportunities.
epfundspc focuses on equity investments in public companies with market capitalizations under $1 billion, as well as private companies that will be listed on a securities exchange within six months of a funding commitment.
epfundspc has no outside investors and is considered a private company run by its principals, similar to a merchant bank that invests its own capital and as such it is seeking capital appreciation through the identification and funding of liquid growth companies.
To date epfundspc has been approached by a number of companies with interests as diverse as manufacturing, construction, professional services, healthcare and finance who are all looking for growth or acquisition funding which is difficult to find given current global economic conditions.
epfundspc investment guidelines, apart from a company’s size and liquidity, require them to have exceptional management and long-term sustainable growth opportunities with the potential to achieve significant milestones over a developmental period.
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” The vice-president of Liberty Victoria, Anne O’Rourke, said journalists should not break the law. “Hacking is a criminal offence – whether it’s in the public interest or not it is illegal,” she said.”
what dear readers do you think? are journalists getting out of control in their bid to find stories? Do you think its okay for journalists to hack into your computers and files?
“He knew a lot about me – my date of birth, where I lived, my phone number, opinions I had shared with a local MP . . . he was hacking into my file.”
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what do you reckon?
even with the mining tax, the financial crisism, the govt on the fence on both sides, aus still has something special eh, makes you proud to be australian.
anyway, enough of the tear jerking
tims book is a good read surfari its a story about him, his wife, son and daughter doing
“the lap” which is the road trip around the whole coast of australia.
okay im jealous!
he got a free rav, a free camper, got paid for the gig to take his family suring the entire coast of australia.
plus did i say he got PAID for it!????
anyway depending on where you live, and i mean no offense to any non aussies, you may or may not agree with tims statement that aus is the best country at the best time in the planet but you most likely would agree that seeing how tim got paid for the gig that it is the best time for him to be an aussie in aus eh.
it was an easy read, in big type for older blokes who strain at the screen all day, not many too big words but i did have to look up the word skerrick (twice)
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DAX, IPO, Initial Public Offering, private equity, Frankfurt Stock Exchange, Deutsche Boerse,
investment banking, investors, equity capital, capital raise, public listing, alvin donovan
Whether you are a company thinking about an Initial Public Offering (IPO), seeking private equity investors, thinking about a capital raise there are a few important things to consider.
Having been around the investment banking and public listing arena in the USA, Australasian markets, or the Frankfurt Stock Exchange (Deutsche Boerse or DAX) has taught me a few things.
The purpose of this article is to assist you in evaluating the types of capital funding solutions you should be seeking from the various private equity institutional investors you are in contact with.
If you arranging a capital raise or talking with investment bankers one thing to consider is: should you raise all the cash now or over time? Like many things in equity capital markets, the answer is: It depends. Cash raised all at once from private equity investors is sometimes referred to as “fixed pricing” or a “conventional equity raise” by investment banks. Cash raised over time is sometimes referred to as “variable pricing”, “equity line” or “special purpose placements”.
Which format you choose really depends upon the capital raising situation of the issuer in terms of both their stock and business operations. Research based on Case studies of hundreds of companies in over 25 countries discovered that variable pricing for an equity issue works very well in certain circumstances and does not work well in others.
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When Variable Pricing Works
Variable Pricing works best when:
1. The issuer is using the proceeds to grow the business and it’s EBITDA.
2. The funds are not spent all on the first day but rather over a developmental period, typically 12 to 18 months.
3. There are significant milestones that can be accomplished during the developmental period that can be announced to the public.
4. The stock price is likely to increase due to business progress during the period of the use of funds.
5. The issuer determines when they take the capital.
6. The issuer needs the capital committed as soon as possible.
Fixed Pricing works better when:
1. All the capital is expended at closing.
2. The use of proceeds is to restructure fixed price debt.
3. The issuer’s future business prospects are not positive.
4. The issuer does not need the capital for several months and has enough time to identify appropriate institutional investors and have them conduct due diligence.
Example of Cost Savings
Variable Pricing can offer substantial savings to the issuer in terms of cost of capital under the proper circumstances.
My friend and colleague is retired RCMP Inspector, Bill Majcher. Bill is one of the most celebrated undercover officers in the history of North America and has gone from infiltrating Colombian cocaine cartels, to taking down Russian mob owned banks to spending time in jail with terrorists accused of the most horrific crimes.
At the time he left public service he was responsible for overseeing the protection and integrity of Canada’s capital market system on the Canadian West Coast.
Like my friend Bill Majcher always says “just do the math”. A numerical example perhaps best demonstrates this:
Assumptions
$40 million market cap $5 stock price at time of funding (8 million shares outstanding) $10 million funding Proceeds used over 18 months Proceeds result in EBITDA increase of 40% in ~18 months Increase in share price proportionate to increase in EBITDA, so share price at the end of 18 months is $7.
Fixed Price Financing
At 15% discount to current price, fixed price for $10 million is $4.25 per share 2,353,000 new shares issued in financing at $7 per share in 18 months, cost of newly issued shares is $16,471,000 ($7 * 2,353,000 shares)
Variable Price Financing
Assume proceeds drawn quarterly and progress towards 18 month target announced quarterly with stock appreciating proportionately. Stock issued in the financing at a 10% discount to market price. Thus, stock issuance price is:
Q1=$4.50
Q2=$4.86
Q3=$5.22
Q4=$5.58
Q5=$5.94
Q6=$6.30
Average price of stock issuance is therefore $5.40 1,852,000 shares issued to finance the $10 million at $7 per share in 18 months, cost of newly issued shares is $12,964,000 ($7 * 1,852,000 shares) Thus, in this simplified example, the issuer saved $3,507,000 in cost by using a variable price format.
This represents 35% of the total amount funded in the transaction. These savings do not include the savings from lesser warrant coverage with variable pricing. The total savings can be even greater if the stock of the issuer is undervalued to start with and/or appreciates more rapidly.
Why Variable Pricing Works
Variable Pricing works because of the stock market’s uncertainty about the issuer actually delivering future results. Typically with Fixed Pricing, the funds are delivered up front and then the positive benefits from utilizing the funds appear later over a period of time, say 12-24 months.
At the time of funding, the delivery of these future benefits is uncertain to outside investors. So the stock price at the time of funding reflects this uncertainty discount, and the issuer pays the cost of the discount.
With Variable Pricing, the stock price at the time of funding is after interim results have occurred and closer in time to immediately pending results, so the uncertainty discount is less, presumably reflected in a rising stock price.
Because of the higher stock prices during the development period, the issuer by using a Variable Pricing structure is in effect selling stock at a higher average price.
The important components to a Variable Pricing structure are that
(i) the funds are absolutely committed up front so the issuer and the market knows the issuer has the funds to complete its development program, and
(ii) the issuer determines when to draw the funds in its sole discretion, which inhibits short traders as they are potentially trading against favorable interim results and further do not know when or if additional stock would be coming to the market to cover their position.
How To Take Advantage
For issuers whose stock price is likely to appreciate during the period of the use of funds because of progress in the underlying business, a Variable Pricing structure can be ideal.
“
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i know some pretty security savvy ppl who have had their twitter, gmail etc hacked over the years. i have had it happen 4 times over the last 6 months. one twitter hack was when i clicked on a tweet someone sent me, how the person got into my gmail is a mystery (plus my gmail was shut down for 24 hours each time it happened!) but we did have someone abscond with one of our mobile phones with our passwords so maybe that was how they did it.
so when someone steals your identity how can you prove its you?
what can you do when others post as you on the internet? what about when they hack into your email account and start sending crazy flames to your friends and colleagues.
I was shocked and horrified to learn that I had challenged one of my best friends to a fight!
(besides the fact he is 30 years younger and much fitter than me he thought I was serious!)
Why not use that clever ability to make yourself look good and to market your own services, there is room enough for everyone to work together.
Why not use your photoshop abilities for good, not to follow me around taking my photo with my mouth open
They say that immitation is the sincerest form of flattery but im not flattered in this case.
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yes i know that outlook it prolly best but the problem with outlook is the outgoing smtp server issues which no matter what they say, STILL is not solved.
I had a case where I had to rush on a family emergency and found that all of the emails I sent for over 1 week never got sent to some and sent over 25 times to others using a certain smtp service i wont mention here.
any advice greatly appreciated ill post it to others on my following database its getting pretty large now thanks to you
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DAX, IPO, Initial Public Offering, private equity, Frankfurt Stock Exchange, Alvin DonovanDeutsche Boerse, investment banking, investors, equity capital, capital raise, public listing
DAX, IPO, Initial Public Offering, private equity, Frankfurt Stock Exchange, Deutsche Boerse,
investment banking, investors, equity capital, capital raise, public listing, alvin donovan
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Whether you are a company thinking about an Initial Public Offering (IPO), seeking private equity investors, thinking about a capital raise there are a few important things to consider.
Having been around the investment banking and public listing arena in the USA, Australasian markets, or the Frankfurt Stock Exchange (Deutsche Boerse or DAX) has taught me a few things.
The purpose of this article is discuss how to raise capital with a special purpose private placement from private equity investors for IPO or capital expansion.
In the capital raise market today there are two types of equity investments. One is called a conventional raise or fixed price placement. The other is called a Special Purpose Placement which we call SPP or variable pricing placement.
We answer some frequently asked questions regarding Special Purpose Placements
Why not offer “normal” equity…this looks complex?
SPPs are really quite simple, with the attendant process no more complex than standard professional placements, and a whole lot simpler than rights issues, and other underwritten issues.
The advantage is that an SPP is pre-committed (for a period up to three years) with the issue being
triggered and controlled by the company. In volatile and uncertain equity markets this pre-qualification and pre-agreed issue discount rate is superior in most circumstances.
A typical fixed pricing placement requires no less due diligence, and does not have any certainty as to quantum, timing to complete and discount to the prevailing share price pre- issue.
Isn’t this dilutive for current shareholders?
No. In fact, an SPP really suits a growing dynamic company, where the draw down of funds is aligned with
acquisitions and growth. With the certain knowledge of a SPP backing acquisitions and projects, the sponsored company is in a superior commercial and fund-raising position than from traditional raisings.
By contrast, a proposed action requiring funds should be positive for the medium term prospects
of a listed company but typically both shareholders and negotiators already know that funding for a new initiative is rarely certain under conventional equity raising scenarios.
This is why favourable news when announced to the market can in fact have the inverse (negative) impact on a share price. This occurs because an equity issue is anticipated and the outcome is not certain.
Recently, placement discounts for conventional raisings have been as high as 15% to 30%! The SPP discount is typically 10%. An SPP substantially addresses these concerns before they become issues.
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Is the SPP Transferable?
Yes, with a mutual agreement. A pre-approval of the project or company means that the investor favours keeping the commitment with those they have backed and underwritten.
What about Compliance and Continuous Disclosure Issues?
SPP disclosure requirements are no different to the day to day issues addressed by all listed companies. The regime and disclosable matters are no different to the hurdles and requirements surrounding conventional equity raisings. This facility is predominantly used internationally by superior growth
companies.
For example, at least 100 SPP style facilities have been utilised by listed companies over the last three years. Groups such as Queensland Gas and Fortescue Metals have used them to great effect. The SPP
works for companies listed on almost any recognised stock exchange.
What are chances for Market manipulation?
As the sponsored enterprise dictates the timing and quantum of the SPP draw down, the prospect for adverse price moves and manipulations is demonstrably lower than the conventional alternative.
Indeed, more often than not, experience has proved that share price movements are neutral to positive during the exercise of a draw down pursuant to the SPP.
How much flexibility is there in the terms?
As the SPP is tailored to each particular situation, there is flexibility on matters such as duration, pricing periods, trading volumes, draw down percentages, transferability etc. Even the timing of commitment and draw down fees will be negotiated to ensure the terms are fair, reasonable, and superior to
conventional raisings and underwritings.
Once an SPP is fully deployed, can another be put in place?
Yes, subject to the due diligence processes and pre-qualification processes. Indeed, the experience of many internationally listed companies proves that a number of these successful companies have used multiple SPPs, some as many as four.
Once the SPP is drawn down, doesn’t the resulting new stock overhang the market?
No, a potential stock overhang post issue is considerably diminished than (say) a standard professional placement. Think about it…the stock is in the hands of one party who has committed to a three year SPP. They have backed the company with visible, tangible commitment. They are likely to do more draw-downs, and own more stock. They only make money when the share price appreciates
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DAX, IPO, Initial Public Offering, private equity, Frankfurt Stock Exchange, Deutsche Boerse,
investment banking, investors, equity capital, capital raise, public listing, alvin donovan
Whether you are a company thinking about an Initial Public Offering (IPO), seeking private equity investors, thinking about a capital raise there are a few important things to consider.
Having been around the investment banking and public listing arena in the USA, Australasian markets, or the Frankfurt Stock Exchange (Deutsche Boerse or DAX) has taught me a few things.
The purpose of this article is to assist you in evaluating the types of capital funding solutions you should be seeking from the various private equity institutional investors you are in contact with.
If you arranging a capital raise or talking with investment bankers one thing to consider is: should you raise all the cash now or over time? Like many things in equity capital markets, the answer is: It depends. Cash raised all at once from private equity investors is sometimes referred to as “fixed pricing” or a “conventional equity raise” by investment banks. Cash raised over time is sometimes referred to as “variable pricing”, “equity line” or “special purpose placements”.
Which format you choose really depends upon the capital raising situation of the issuer in terms of both their stock and business operations. Research based on Case studies of hundreds of companies in over 25 countries discovered that variable pricing for an equity issue works very well in certain circumstances and does not work well in others.
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When Variable Pricing Works
Variable Pricing works best when:
1. The issuer is using the proceeds to grow the business and it’s EBITDA.
2. The funds are not spent all on the first day but rather over a developmental period, typically 12 to 18 months.
3. There are significant milestones that can be accomplished during the developmental period that can be announced to the public.
4. The stock price is likely to increase due to business progress during the period of the use of funds.
5. The issuer determines when they take the capital.
6. The issuer needs the capital committed as soon as possible.
Fixed Pricing works better when:
1. All the capital is expended at closing.
2. The use of proceeds is to restructure fixed price debt.
3. The issuer’s future business prospects are not positive.
4. The issuer does not need the capital for several months and has enough time to identify appropriate institutional investors and have them conduct due diligence.
Example of Cost Savings
Variable Pricing can offer substantial savings to the issuer in terms of cost of capital under the proper circumstances.
My friend and colleague is retired RCMP Inspector, Bill Majcher. Bill is one of the most celebrated undercover officers in the history of North America and has gone from infiltrating Colombian cocaine cartels, to taking down Russian mob owned banks to spending time in jail with terrorists accused of the most horrific crimes.
At the time he left public service he was responsible for overseeing the protection and integrity of Canada’s capital market system on the Canadian West Coast.
Like my friend Bill Majcher always says “just do the math”. A numerical example perhaps best demonstrates this:
Assumptions
$40 million market cap $5 stock price at time of funding (8 million shares outstanding) $10 million funding Proceeds used over 18 months Proceeds result in EBITDA increase of 40% in ~18 months Increase in share price proportionate to increase in EBITDA, so share price at the end of 18 months is $7.
Fixed Price Financing
At 15% discount to current price, fixed price for $10 million is $4.25 per share 2,353,000 new shares issued in financing at $7 per share in 18 months, cost of newly issued shares is $16,471,000 ($7 * 2,353,000 shares)
Variable Price Financing
Assume proceeds drawn quarterly and progress towards 18 month target announced quarterly with stock appreciating proportionately. Stock issued in the financing at a 10% discount to market price. Thus, stock issuance price is:
Q1=$4.50
Q2=$4.86
Q3=$5.22
Q4=$5.58
Q5=$5.94
Q6=$6.30
Average price of stock issuance is therefore $5.40 1,852,000 shares issued to finance the $10 million at $7 per share in 18 months, cost of newly issued shares is $12,964,000 ($7 * 1,852,000 shares) Thus, in this simplified example, the issuer saved $3,507,000 in cost by using a variable price format.
This represents 35% of the total amount funded in the transaction. These savings do not include the savings from lesser warrant coverage with variable pricing. The total savings can be even greater if the stock of the issuer is undervalued to start with and/or appreciates more rapidly.
Why Variable Pricing Works
Variable Pricing works because of the stock market’s uncertainty about the issuer actually delivering future results. Typically with Fixed Pricing, the funds are delivered up front and then the positive benefits from utilizing the funds appear later over a period of time, say 12-24 months.
At the time of funding, the delivery of these future benefits is uncertain to outside investors. So the stock price at the time of funding reflects this uncertainty discount, and the issuer pays the cost of the discount.
With Variable Pricing, the stock price at the time of funding is after interim results have occurred and closer in time to immediately pending results, so the uncertainty discount is less, presumably reflected in a rising stock price.
Because of the higher stock prices during the development period, the issuer by using a Variable Pricing structure is in effect selling stock at a higher average price.
The important components to a Variable Pricing structure are that
(i) the funds are absolutely committed up front so the issuer and the market knows the issuer has the funds to complete its development program, and
(ii) the issuer determines when to draw the funds in its sole discretion, which inhibits short traders as they are potentially trading against favorable interim results and further do not know when or if additional stock would be coming to the market to cover their position.
How To Take Advantage
For issuers whose stock price is likely to appreciate during the period of the use of funds because of progress in the underlying business, a Variable Pricing structure can be ideal.
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DAX, IPO, Initial Public Offering, private equity, Frankfurt Stock Exchange, Deutsche Boerse,
investment banking, investors, equity capital, capital raise, public listing, alvin donovan
Whether you are a company thinking about an Initial Public Offering (IPO), seeking private equity investors, thinking about a capital raise there are a few important things to consider.
Having been around the investment banking and public listing arena in the USA, Australasian markets, or the Frankfurt Stock Exchange (Deutsche Boerse or DAX) has taught me a few things.
The purpose of this article is to discuss The Solution To The Diminishing Computer Screen Challenge.
How many people do you know have at least an iphone or blackberry PLUS a desktop or laptop computer. Why do they spend good money to buy a computer when they already have a blackberry or iphone?
I know I find it irksome as well as physically painful to be constantly lugging around a laptop. I already have a blackberry. So why do I do it?
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On my last trip I decided I would try to go with my mobile device alone. I laughed silently as i went through the scanners and watched frustrated businessmen wrestling their laptop out of one hand while trying to marshall sundries in the other. Boy I am now liberated from all this fol de rol!
I was king! All of that bulky, spine mis alingning metal mass was gone from my burdens.
Next I tried to read my email, review and edit redlined documents and look at over 400 investment proposals that had arrived in my inbox during the trip. Okay, now I know why ppl have computers. It is for their screens.
So they can read what the heck people are writing them. Otherwise get used to having a permanent squint.
The reason I keep buying the newest biggest screen laptop every six months only to retire the latest dinosaur is simple. I need a big screen to really see stuff well. Right?
In my mind people have the whole screen technology approach all wrong. They are working on the wrong end of the visual data processing delivery method. It is always going to be incompatable to have smaller mobile devices with viewable screens.
What we really need in this mobile world is for a 3d virtual screen that is as large as you want it. 100 meters by 100 meters if you want. Get right up in front of it, look at it from the side, from behind, on top, from the inside looking out.
The simple solution is to focus on a pair of 3d glasses that would project the screen so that you can actually see as much or little details as you want. For the keyboard functions again lets go light. I would have some sort of light gloves or if we still go the iphone or blackberry way you could use the entire face of the mobile device.
I would be very interested to back this sort of device both for myself and all my fellow laptop burdened.
This glass and glove approach can be the next step in this wired world of ours. the next step will be to install a chip in our brains that will allow us to have direct connectivity with the rest of the wired world.
There will be no real reason to travel for business meetings, social gatherings or educational purposes. It will all be there for virtual meetings and virtual events.
The future is coming, get ready.
DAX, IPO, Initial Public Offering, private equity, Frankfurt Stock Exchange, Deutsche Boerse,
investment banking, investors, equity capital, capital raise, public listing, alvin donovan
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