The Company, established in 2006, is involved in the wood trade business. The trade process includes several steps: round wood is bought from logging companies, with the Company’s trucks transported to the Company’s sorting areas, sorted according to quality and the Company buyers' needs. The main added value of the process is sorting the wood according to various quality criteria, therefore delivering the precise quality wood to its clients according to their preferences. In addition, the Company has a subsidiary that complements the business by producing firewood from the lowest quality wood. The Company operates in the Vidzeme region of Latvia, as well as in southern Germany where it has several trucks operating in cooperation with another larger Latvian company.

At the start of 2026, the forestry sector has experienced a period of high logging activity, leading to increased timber stockpiles among forestry companies. As a result, this temporary surplus has created a favorable market condition, allowing the Company to procure timber at lower prices.

Therefore, the Company is seeking EUR 410,087 financing for 10 months to acquire more roundwood for further sale and processing. The loan will carry a 9.12% annual interest rate (0.76% monthly) and it will be amortized starting from May, 2026. The sole shareholder and its subsidiary will provide two guarantees for the loan. The project risk rate is A (91 out of 100).

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

• A personal guarantee of the owner and a guarantee of the Company’s subsidiary is provided.
• The Company has over 18 years and the owner has over 25 years of experience in the wood trade industry.
• The Company is an existing client of Capitalia with an excellent payment discipline.
• The Company has been profitable for the last 15 years.