CHOREOINVEST SME Financing Program
CHOREOINVEST has developed a structured financing program for business opportunities in Russia and Eastern Europe in the range of USD 1 million to USD 10 million that provides a means for wealthy individuals and smaller institutions to participate. This investment structure is a “syndication” of a group of wealthy individual investors and small institutions into a Cyprus company structured around a specific business opportunity. This structured financing was developed with the assistance of a leading professional services firm in Cyprus.
With this structured financing, investors are offered units of investment, usually consisting of common and preferred shares, in a Cyprus company, which in turn will invest in a specified project, asset or business. The Cyprus structure gives investors the assurance of protection of law in a EU country that has low tax rates. The promoters of the project or business opportunity may be the current business owners or other person(s) who will be the principals or management of the operating business.
The offering of investment units is made through a Private Placement Memorandum that describes the terms of the investment and the opportunity. Depending on the business and financing required, the total offering might range from USD $500,000 to USD 10 million and unit investment size could range from USD 10,000 to USD 500,000. The costs and fees of the offering are paid from the proceeds.
The units of investment are sold during a fixed selling period that normally extends for six months. During the offering period there may be interim closings that provide phased funding of the business opportunity or project. Upon closing, investment proceeds are made available to the Company in the form of equity and debt financing depending upon terms of a Shareholders’ Agreement.