Allany’s Agriq (‘’the company’’) is an Agro-commodity company and formerly traded as Easylink Foods Limited. The Company has been in operation for over six years with a focus on cashew and sesame seeds trading. The name change was registered in August 2017 under the Companies and Allied Matters Act 1990 (CAMA) of the Federal Republic of Nigeria, with the registration number – BN2532778.Allany’s Agriq engages in the sourcing and purchasing of high-quality raw cashew nuts and sesame purchased from the various Local Buying Agents and aggregators.
Allany’s Agriq is currently looking to raise funds for upcoming cashew season that commences at the end of January to late May. The cashew nuts (which are more common in Kogi, Oyo and Kwara States) are usually purchased fresh or wet from the LBAs, sun-dried for 2 days to achieve 10% moisture level, then bagged in 80kg jute bags and sold to exporters.
Allany’s Agriq are usually paid by the exporters within one week. The company is known for their ability to meet the required export grades, through a network of 30 – 50 LBAs, delivering high grade quality cashew nuts and sesame seeds, and for credibility in the market. Over the last three years, as Easylink Foods Limited now Allany’s Agriq, turnover has steadily witnessed growth to over N1 billion as at the end of 2017 season. An opportunity to augment working capital during the upcoming season will give the company the ability to increase turnover, dictate better terms of trade and increase weekly trade volumes. The Company currently does over 5000mt of cashew nuts and Sesame seeds annually.
For Allany’s Agriq to truly position itself, take advantage of the 2019 upcoming season that commences shortly and keep meeting the demand for its products, an additional sum of 50 Million Naira is required to augment the company working. PearlMutual Consulting facilitated N20Million working capital Investment from investors for the company in September 2018 and all interest payments have been paid as at when due to investors, while the initial principal is due for pay down on 3rd January 2019. These funds will be returned to investors before any additional investment from investors will be accessed by the Company.
Borrower – Allany’s Agriq
Loan Size – N50m (Fifty Million Naira)
Debt issuance Structure – Units of N1 million per unit
Tenor – 3 months
Interest rate – 21% per annum
Repayment Interest – Payable monthly
Principal – Bullet payment at maturity Use of proceeds Working capital for operations
RISK AND SECURITY
1. Credit risk – is the risk that principal or interest or both may not be paid as at when due.
2. Diversion risk – is the risk that fund requested may not be used for its sole purpose or what it was originally intended for.
3. Operational risk – is the prospect of loss arising from business processes such as mechanical failure, human error etc.
4. Inflation risk – is the prospect of loss arising from a decline in purchasing power of money.
The following mitigants have been provided to reduce and/or negate the above risks and other uncertainties;
1. Personal guarantee of the key promoter with notarized statement of net worth.
2. Undated cheque(s) for the principal amount.
3. PearlMutual shall continually monitor the business closely by visiting the warehouse regularly and requesting management account information monthly.
4. Letter of Stock Hypothecation
5. An insurance policy of Allany’s Agriq’s warehouse with our insurance partner- Leadway Assurance Company