The Company was founded in 2010 and is part of a group of 5 related grain farming companies. The Company grows crops and sells the harvest to the largest grain wholesalers and exporters. Together with related entities, the Company manages 6,300ha of agricultural land out of which approx. 2,000ha are owned by the group. The Company also has grain pretreatment and warehouse facilities to sort, dry, and store grain as well as all the necessary machinery to process the land.

Within the framework of the group's growth plans, in August 2023, the Company acquired a dairy farming business for EUR 2M. The Company acquired all machinery, a recently built farm building, herd of 800 cows, and got 800 more hectares to manage (out of which 280ha are owned by the acquired entity).

The transaction was partially financed by a business partner (EUR 1.4M); however approx. EUR 600,000 was financed by the Company's working capital. The purchase of the business led to insufficient working capital to prepare for the upcoming farming season and settle for all the necessary materials, fertilizers, plant protection products, and other goods.

As a result, the Company seeks additional financing of EUR 612,600 for 7 months to supplement its working capital. The loan will carry a 12.6% annual interest rate (1.05% monthly) with monthly interest payments and principal repayment at the end of the term. In Early spring 2024, the group plans to negotiate both with the current and other commercial banks on the increase of loan facility; therefore, the repayment most likely will come by refinancing to a commercial bank. The loan will be issued to one of the group companies while the shareholder and two other group companies with a combined equity capital of EUR 4M will provide guarantees for the loan. The project risk rate is B (81 out of 100). This project has a minimum financing threshold of EUR 408,400 in order to be executed.

There are a number of factors that make lending to the Company an attractive opportunity and the main highlights are as follows:

• The Company successfully operates in the industry for more than 10 years.
• The two largest business units of the group will provide guarantees for the loan.
• The Company has been operating with profits for the last 3 years.
• The Company is a historic client of Capitalia recently having repaid a loan of EUR 600,000.
• The Company has a strong equity capital of EUR 2.9M.