Investment Breakdown

Investment Rules and Guidelines

1. Investment Cycles

Inventory investments operate in cycles. A cycle is defined as the complete sale and utilization of the inventory purchased with invested funds.

2. Transparency and Participation

Investors will receive visibility into how inventory is allocated across projects and the extent to which inventory has been utilized during each cycle.

At the end of a cycle, investors may choose to:

• Continue into the next investment cycle; or
• Withdraw their investment in full.

3. Additional Capital Requirements

At the commencement of a new cycle, investors may be required to increase their investment contribution if market conditions, supplier pricing, or inventory requirements necessitate a higher capital base to maintain target margins and secure bulk purchase discounts.

The objective is to preserve a minimum target return of approximately 10% on inventory sales where market conditions permit.

4. Variable Returns

Returns are not fixed and may vary from project to project. Factors influencing profitability include:

• Project location and terrain
• Client relationship and negotiation dynamics
• Project complexity
• Operational and execution risks
• Prevailing market conditions

Investors should therefore understand that returns will fluctuate based on actual business performance.

5. Business Cost Considerations

Operating costs are dynamic and subject to changes in market realities, logistics, exchange rates, labor costs, and material pricing. Investment expectations should be aligned with this reality.

6. Withdrawal Policy

Full withdrawal of invested capital is only guaranteed at the completion of an investment cycle.

7. Early Withdrawal

Investors who elect to withdraw before the completion of a cycle will be subject to:

• A 10% processing fee applied against the remaining investment balance.
• A reduction in their ownership percentage within the investment pool.
• A corresponding reduction in future profit participation.

8. Profit Distribution

Profits are distributed every two months, subject to the amount available for distribution and prevailing business requirements.

9. Duration of Investment Cycles

Investment cycles do not have a fixed duration. Depending on market conditions and inventory turnover, a cycle may be completed in as little as one week or may extend up to one year.

Cycle duration is determined entirely by market realities, project demand, inventory movement, and overall business conditions.