Inviting investors to the project for the operation of cargo vessels

Hello,

Herewith I invite investors to implement a project for the acquisition and operation of 5 modern dry-cargo vessels of the sea-river class, with a cargo capacity of about 6,000 tons.

The project is drawn up and is ready for implementation.

The project objective is to acquire ownership of dry-cargo vessels on raised funds, return in full of investments attracted for the purchase of ships and profit earning.

The planned implementation period for this project is 5.5 years.

Investment funds in amount of USD 18,250,000 are required for acquisition of 5 vessels at the secondary market and taking them in operation.

To implement the project, it is planned to search for and purchase 5 sea-river class vessels with a deadweight of about 6,000 metric tons on draft of 4.2-4.5 meters, built in 2006-2012.
Within the project management company is established in Malta or a jurisdiction that meets the conditions of raised funds. The founders of management company are individuals/legal entities who are the project participants or are associated with them.
The management company is recipient and debtor of financial resources required to implement project. For acquisition of each vessel, the management company establishes shipowner company in Malta or similar suitable tax jurisdiction. Each new shipowner company founded in this way is the registered owner of acquired vessel.
Vessels purchased are registered under Maltese flag or a flag of similar suitable tax jurisdiction recognized by international communities.
On basis of BIMCO Standard Ship Management Agreement the management company transfers full management of acquired vessels to ship management company registered and located in Ukraine, which will operate the vessels for and on its behalf for fixed management fee. Thus, all cash flows related to implementation of the project will pass through bank account of the management company.
The ship management company will have necessary experienced staff, licenses and certificates to carry out activities related to operation of dry cargo ships.
Vessels will be employed for carriage different kinds of cargoes in Azov-Black Seas and Mediterranean Sea market.

Market of vessels considered in this project is low competitive due to their shortage in the Azov-Black Sea region, especially in seasons of export of grain and agricultural products. This shortage of ships will not be fully replenished during the project implementation period.

The source of project revenue is freight payments received from Charterers (Customers) for carriage of cargoes by vessels acquired in ownership.
Estimated average annual revenue of 5 vessels operation is USD 7,455,000.
Estimated annual administrative expenses and running costs of 5 vessels are USD 4,110,000.

Raised investments are estimated to be returned in full within 4.5 years by equal monthly or quarterly payments, beginning from the second year of project implementation.
The offer to Investor is full return on investment and the agreed share in the ownership of vessels acquired on investment.
All net profit received within the the project is used to return investments until their full repayment.

The value of assets (vessels) after the implementation of this project will be about USD 15,000,000. The investor's profit is a share in the ownership of vessels. The profit to the investor can be paid either by buying out his share of ownership, or from the income from the sale of vessels.
With further operation of the vessels, the estimated annual net profit will be about USD 3,300,000.