Founded in 2012, the Company develops and sells dietary supplements (primarily vitamins and fish oil products). Currently, the primary sales markets of its products are Latvia and Lithuania via pan-Baltic distributors. The key clients of the Company are well-known retailers and wholesalers of medicine and dietary supplements, such as Tamro, Magnum Medical, Recipe Plus, and Wellman Logistics. The Company reported EUR 2.3 million turnover last year (growing on average 15% per year) and is expecting to reach EUR 2.8 million turnover by the end of 2023.

The Company has established itself as a market leader in the probiotics market in Latvia and has decided to scale its operations by expanding its target markets via online sales channels. The Company has identified Sweden and the Netherlands as the first steps for its expansion.

Historically, the Company has a minority shareholder – a Russian private individual who owns 25% of the Company. Due to the planned expansion to Western Europe and Scandinavia, in the eyes of the Company's manager, it is burdensome to continue with the Russian shareholder. Therefore, the Russian partner will exit the business and has agreed to sell his shares to the majority shareholder.

As a result, the Company is seeking financing of EUR 505,000 for 6 months to acquire 25% of shares from the minority shareholder. Investors are offered a 13.44% annual interest rate (1.12% monthly) with monthly interest payments and principal repayment at the end of the term. The loan repayment is based on refinancing to a commercial bank or attracting an equity investor. Negotiations with the bank are ongoing already, while Capitalia is organizing private equity investor group to acquire the shares in the Company and provide further capital for expansion.

The sole shareholder with a net worth of at least EUR 500 thousand (not including the value of the shares in the Company) will provide a guarantee for the loan. The project risk rate is B (80 out of 100).

The Company has been a historical client of Capitalia since 2018 and has repaid 9 loans for a total amount of more than EUR 500 thousand with excellent payment discipline.

Update: To execute share purchase deal without delay, the client agreed with the seller on partial delayed payment for shares. The project Target amount was reduced from EUR 707,000 to EUR 505,000.

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

• Stable operating results with profits for the last 6 years with an average profit margin of 8%.
• The Company has a strong equity-to-assets ratio of 72%.
• The Company has been a historic client of Capitalia since 2018 and has repaid 9 loans for a total amount of more than EUR 500 thousand.
• Clear exit plan for the loan with a number of potential scenarios.
• Investors in this debt financing round will have first-hand rights to participate in the potential equity financing syndicate of the Company.
• The majority shareholder with a net worth of at least EUR 500 thousand (not including the shares in the Company) will provide a personal guarantee for the loan.