As part of this agreement, BPA’s Brazilian affiliate will provide the JV with upwards of $1,000,000 in factoring credit financing to facilitate the JV’s wood trading operations. The JV’s factoring credit facility will be on a 30-90 day revolving basis and the JV will used the credit facility to finance JV’s purchase orders relating to its timber agent activities. This is short-term debt with no long-term commitments and is non-dilutive.
“This is an important milestone for the Company,” says Amazonas CEO Michael Ibar; “this agreement helps satisfy the capital requirements needed to increase our trading/timber agent operations. That increase in operations, in turn, enables us to fulfill large orders, thus satisfying one of our broader business goals.”
BPA and Providence boast a broad global reach, providing sophisticated financial mechanisms for unlocking world markets. “BPA is an ideal strategic partner for our company,” continues Ibar; “with headquarters in Brazil and experience in the timber market, they understand our business model and know how to work together to take advantage of growth-market opportunities and strategic capital resources. I look forward to building on this platform and extending the reach of Amazonas Florestal.”
Amazonas Florestal is a diversified timber company generating profit through innovative, sustainable management of its large tracts of land in the rainforests of Amazonas, Brazil. Amazonas Florestal’s sustainable forest management strategy, with its green philosophy and method of cyclical harvesting, preserves ecosystems through habitat and water resource preservation, positioning it as an industry leader in responsible, eco-friendly timber practices.
Headquartered in Miami, FL, Amazonas’ goal is to become the leader in sustainable forest management, creating revenue while protecting the biodiversity of the rainforest ecosystem and enhancing the lives of the people who live in it. Through a strategy of selective harvesting, biomass production, and conservation incentives, Amazonas Florestal not only protects one of the world’s greatest natural resources, it also makes preservation profitable.
BPA Trading & Investments Corp. is an affiliated company of The Providence Companies, a fully integrated business group with operational experience spanning a wide range of industries from consumer products and services to business-to-business technology in large operations, middle market business and startups as well as ventures in financial services and international trade.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.