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CROWDESTOR Energy Holding ǀ Round 01
Remaining 2 days

Need:39 739.00€
Target Return:36.3%
Period:2 - 3 years
Target: 300 000€
Opens: 2021/05/14
Expires: 2021/06/14
Type: Equity
Location: Latvia
Investments: 268

SUMMARY

CROWDESTOR is announcing a new investment opportunity - CROWDESTOR Energy Holding.

The plan is to become the largest privately held thermal producer in Latvia, by buying out energy production plants that sell thermal power to district heating operators and selling them to an international strategic investor.

The holding period is 36 months. The targeted annual return for the Holding is in a range of 40-50%, which will be shared between investors and the management of Holding. The net annual return in the first phase project for investors is expected to be 36.3% p.a. The financing target for this round is 300 000 EUR. 

The current opportunity offers CROWDESTOR investors to fund the acquisition of an operational natural gas cogeneration plant. This will be the first of four energy projects in the Holding. The funds raised in this round will be used to acquire Olaines Enerģija natural gas cogeneration plant located in Olaine, Latvia.

  • The minimum investment amount - 500 EUR
  • 2 % cashback applies to all investors who invests in CROWDESTOR Energy Holding
  • 99% of CROWDESTOR Energy Holding shares will be proportionally distributed among the investors

See the full CROWDESTOR Energy Holding presentation and other relevant information in the Annex.

INVESTMENT

Maximum target for 1st round: 300 000 EUR
Minimum investment amount: 500 EUR
Holding period of assets: 3 years
Investors return: 1) 20% annual base return

2) 50 % of the amount that is above the annual return of 20%

Target Investors Return: 36.3% p.a. calculated from the 4th month
Repayment: once the project is sold to a strategic investor
Management return: 1) 20% management fee from EBITDA paid quarterly
2) 50% of the amount that is above the annual return of 20%
Target Management Return: 16.3% p.a. 
Collateral: Corporate Guarantee 

*After the fundraising period or when the full amount has been raised, the investment will be converted into equity shares.

BUSINESS GOAL

To become the largest privately held thermal producer in Latvia by buying out energy production plants that sell thermal power to district heating operators. Pooling energy assets increase their value. After assets are gathered under CROWDESTOR Energy Holding they are to be sold to an international strategic investor. 

The funds raised in this round will be used to acquire three Olaines Enerģija natural gas cogeneration plants located in Olaine, Latvia.

OLAINES ENERGIJA POWER PLANTS

Three natural gas cogeneration stations have been running since 2014. Each of the plants has an energy output of:

  • Heat power - 1.076 MW 
  • Electrical power - 0.99 MW.

The total output of heat is 3.228 MW and the total production of electricity is 2.970 MW. Every station operates about 4 830 hours per year since 2014 until end of 2021. Starting from 2022 energy production plant operates 7500 hours per year.

Up to August 2024, the electricity may be sold under the framework of the Ministry of Economics of the Republic of Latvia on the mandatory purchase of electricity produced in the cogeneration process to Latvenergo subsidiary Enerģijas Publiskais tirgotājs. The heat is sold to the district heating operator of Olaine city.

FINANCIAL DETAILS

STRUCTURE AND PROFILE

  1. Investors invest in CROWDESTOR Energy Holding.
  2. CROWDESTOR Energy Holding will establish a fully-owned SPV subsidiary that will buy or build assets.
  3. CROWDESTOR Energy Holding buys or builds the assets.
  4. Management of assets, distribution of dividends (if paid), reporting to investors, searching a buyer is done during the holding period.
  5. The buyer buys the SPV and pays to CROWDESTOR Energy Holding.  
  6. Received funds are distributed to investors and management.

Note: Olaines Energija power plants are Target 1. Target 2, 3, 4 to be acquired in 3-4 years. 

CORPORATE GOVERNANCE OF HOLDING

CROWDESTOR Energy Holding will have a supervisory board consisting of 9 seats:

  • Five largest investors - one seat each
  • Two investor representatives, serving the interests of smaller investors
  • Two members of the Supervisory Board shall be appointed by the Management Board (Janis Timma) - one from the financial/banking sector and the second from the energy sector. 
  • CROWDESTOR Energy Holding management may attract institutional or other large investors in the Target Company to ensure the successful development of the project.

Supervisory board competence

  • Proposing the distribution of dividends
  • Approving the purchase of new assets which are not included in this memo
  • Approving launch of new fundraising rounds
  • Approving sale of assets, if the purchase price is below 7.5x yearly EBITDA

Management board (Janis Timma) competence:

  • Daily management of business operations
  • Responsible for maintaining correct accounting records of the company
  • Reporting operational results to the Supervisory Board at least quarterly

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