Fiber Source Processing Inc

Manufacturing
Halifax, Nova Scotia, Canada
aaron@fibersource.ca
Fiber Source Processing Inc.
Fiber Source Processing Inc.

$220,000.00

Funded Of $2,000,000.00 Goal
11% Raised
Accredited Investor Offer. Structure
71 Days Days Left
$10,000.00 Min. investment
$2,000,000.00 Max. investment
N/A Minimum Raise
$2,000,000.00 Maximum Raise

Offering Description

Class A Preferred Share Rights

Right to Dividends;

  • Mandatory Dividends will be paid to Preferred Shareholders based on the following milestones:
  • Net Income After Tax (NIAT) of CAD $500,000 – 20% of Net income paid out as Dividend split amongst all shareholders
  • NIAT of $1,000,000 – 25% of NIAT paid out
  • NIAT of $1,500,000 – 30% of NIAT paid out
  • NIAT of $2,000,000 – 35% of NIAT paid out
  • NIAT of $3,000,000 – 40% of NIAT paid out

Share Buyback Clause;

  • After the 5th fiscal year of operations post raise share buyback becomes available
  • Buyback can be triggered by shareholder or corporation
  • Redemption price based on ownership percentage of company & company valuation
  • Valuation to be calculated at a 3x EBITDA multiple based on previous fiscal year’s financial report
  • Buybacks subject to available cash and can be deferred if adequate funds not available
  • Buyback repayment can be made on a rolling basis over 6 months

Preferred Shares are non voting;

Preferred Shareholders have priority over common shareholders.

Offering Terms

NOTE: You will need your Bank Account Number, Transit Number, and Institution Number to Invest.

This investment is only open to Accredited Investors, and immediate Friends, Family, and Close Business Associates of the issuer.   

Pre-money valuation (Before investment received): CAD $6,000,000

Minimum Raise: N/A - There is no minimum raise requirement

Max Raise: ~$2,000,000.00 for 200,000 Class A Preferred Shares at $10 per Share.

Multiple Closings: This offering will have multiple closings, with each closing being at the end of the month, or at a date decided by the Issuer.

Minimum investment amount: $10,000.00

Securities offered: Class A Preferred Shares (Non-Voting)

Please see Shareholder's Agreement, Term Sheet, and Articles of Incorporation for full details of rights associated with the Preffered Shares.  You must create an account on Equivesto to view attached documents.  Data Room available upon request.

07/05/2023
Project launched

11/02/2023

New Corporate Bylaw Governing Uses of Capital

Good News – after receiving feedback from potential investors regarding the dividend payment schedule and the potential for extraneous expenses to lower profits and adversely affect dividend payouts, Fiber Source Management has acted on this feedback by implementing Bylaw 1 to provide transparency of reporting on major expenses and notification to shareholders if planning major expenditures outside of the communicated business plan. Management trusts that this will provide better incentive for investment in Fiber Sources exciting opportunity.

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