New partner Foresto LLC Launches Secured Notes
About Secured Notes:
The issued Notes will be secured by a commercial pledge over the Issuer’s aggregate of properties, with its existing and also future components. The commercial pledge will be registered in favor of SIA DN Operator in the Register of Enterprises in Latvia, which will act as security agent for the secured Note holders (Debitum Investments Investors).
More general information on the financial instruments Notes can be found HERE.
About the issuer:
Foresto LLC (hereinafter – the Issuer) is a Latvian company established in 2021, specializing in the acquisition and merger of small and medium-sized real estates, mainly forest properties, in Latvia, with the strategic objective of creating a real estate fund to be sold as a whole or in separate parts to Nordic, Baltic or Polish real estate or forest funds. The Issuer is currently already working with 10 partners, most of them of Scandinavian origin.
The Issuer possesses 42 forest and agricultural properties spread across 20 administrative regions in Latvia. The combined area of these properties is 423 hectares, with an estimated total market value of approximately EUR 1,290,000.
The Issuer’s stock (forestry and timber) is 90% made up of stock less than 6 months old.
Main business activities:
The Issuer is established with the primary purpose of managing a portfolio of real estates, guided by the expertise of Juris Andžejevskis, an experienced professional in the forestry sector and an owner and board member of several well-established companies in the industry
The Issuer’s business model leverages the trade secrets and industry expertise from companies where its beneficial owner, Juris Andžejevskis, serves as owner or board member. These companies operate primarily in forestry and agriculture, the Latvian real estate market, and are involved in detailed cost and market analysis of forestry activities and timber trading
The process of assessing potential real estates to be acquired by the Issuer consists of legal, technical and, if necessary, geodetic due diligence of the real estate, including verification of information and data extraction from public databases and third parties. The Issuer assesses the location of the potential real estate to be acquired from a logistical perspective as well as its proximity to other real estates owned by the Issuer. After all the evaluation processes have been successfully completed, the Issuer decides whether or not to acquire the real estate.
About the Owner:
Juris Andžejevskis has been a well-known and highly valued player in the forestry industry in Latvia since 2007, having founded and managed several highly successful forest management companies. In 2019, Juris Andžejevskis was honored as the Vidzeme Region Entrepreneur of the Year. Juris Andžejevskis has also received Forbes magazine awards in Latvia in 2020 and 2021 for sound investment acquisitions and successful business strategies. He has been recognized as a pioneer in the implementation of advanced technologies that improve the accuracy of real estate valuations.
(2018: Pictured from the left: Valmiera City Council Chairman Jānis Baiks, President of the Republic of Latvia Raimonds Vējonis, Juris Andžejevskis.)
Current Financial standings of Foresto LLC:
Total assets for the Issuer are reported at EUR 1,376,154, providing a solid foundation for both immediate operational needs and future investments. Importantly, the company currently holds no external debt, enhancing its financial stability and independence. The company’s profit margin for the first quarter of 2024 is approximately 56.5%, reflecting efficient operational management without significant financial or extraordinary expenses.
The equity stands at EUR 117,455, suggesting the company maintains a reasonable equity base. Given these conditions, we consider the Issuer to be a stable enterprise with good profitability and prudent financial management, eligible for issuing secured Notes on the Debitum Investments platform.
Purpose of the Issuance of secured Notes:
The Issuer issues the secured Notes within the Issue Limit as a method of raising funds to use the proceeds from the issue of the secured Notes for the Issuer’s business activities, i.e. to finance the acquisition of real estates, mainly forest properties, in the ownership of the Issuer for development purposes and to provide the Issuer or its related parties with working capital.
To explore opportunities to invest in Foresto Secured Notes, please visit INVEST section.
BuyBack Obligation description:
In addition to the commercial pledge provided by the Issuer, also JSC “JUNO”, registration number: 40203024821, has undertaken to repurchase (buyback) the Notes from the investors within 20 business days of the request of SIA DN Operator in the event that the Issuer is unable to make the full payments due under the Notes for more than 20 business days and if, following the realization of the commercial pledge and recovery against other assets of the Issuer, all claims of the investors against the Issuer under the Notes and the Terms of Issue remain unsatisfied.