NEW YORK, March 20, 2018 (GLOBE NEWSWIRE) — Milost Global, Inc. (“Milost”) a New York based private equity firm in partnership with Japaul Oil & Maritime Services PLC, Resort Savings and Loans Plc, Femab Properties Ltd, Primewaterview Holdings Ltd is pleased to present the Milost Equity Subscription Agreement (“MESA”) to the Nigerian market. The global public markets are crowded by toxic investment instruments that have and continue to impede growth for public companies. This has led to excessive bleeding for shareholders as these companies’ market valuations continue to be depressed and thereby very inconsistent with their intrinsic valuations. This led to the design and creation of the MESA.
MESA
The MESA is a global investment instrument that was designed by Mandla J. Gwadiso from 2009 until 2014. It is a combo of debt and equity facility that is aimed at funding undervalued publicly quoted companies all around the world. The instrument strategically targets companies that trade at a minimum of 50% discount to their intrinsic value. The instrument invests at a premium of 50% to market and pegs the performance of the stock over a period of 90 business days. If the stock doesn’t hit the high agreed at the set time frame, the difference is defrayed in extra stock. Take for instance, if the stock is trading at $1 per share in a 5 VWAP, the MESA would buy the stock at $1.50 per share and peg the performance thereof over 90 days. In 90 days, the MESA would look at the performance thereof over such period, if the stock trades at or above the $1.50 premium price at which the investor had purchased the stock, there would be no extra shares issued to the investor and if the stock price performed poorly and had not reached the purchase price then the difference between the 5 day VWAP of $1 and the premium purchase price of $1.50 would be paid by the Company to the investor in extra stock.
If the stock failed to reach the premium purchase price, the Company would also pay a penalty of 10 to 20% discount to the 5 day VWAP for failing to reach the high agreed price at which the investor had purchased the stock. The MESA is a growth instrument that creates and builds confidence in the stock of the companies in which it invests, as it invests at 50% premium to the market. Since the MESA is a funding facility, the companies can’t draw down the entire committed capital in one tranche. The MESA is a 3 to 5-year facility that a Company can draw down against from time to time over such period. The Company decides how much and when to draw down, thereby allowing the company the flexibility to draw down equity when the stock price is favourable to the Company so as to ensure a well-managed structure of dilution of current shareholders for each equity draw down. Equity draw down proceeds are used strictly for working capital, whereas note draw down proceeds are strictly used to fund growth through acquisitions of cash-flow positive assets or organic growth. At no time during the term of the MESA can a Company draw down more than 51% of its market capitalization and the draw downs are not tied to stock liquidity as Milost is a growth investor that only exits after 7 to 9 years after the time of investment.
The MESA is one of the most effective investment instruments because it causes the market to correct the valuation of the stock in sync with the Company’s intrinsic value. Unlike other instruments that are mostly used by hedge funds, the MESA is value instrument that is designed to only exit investments after 7 to 9 years from the time of investment. In a nutshell, the MESA never trades its equity positions in the market.
“The MESA is the Messiah of growth and the impartial arbiter of stock and value disparities.”
By Mandla J. Gawdiso.
Japaul Oil Chairman, Jegede Paul, stated, “We informed the Regulatory Authorities that we have signed Milost Equity Subscription Agreement (MESA 1) and Milost has not asked for any upfront fees from us until disbursement takes place, even the facilitation fees to Palewater who are advisers to the transaction is technically agreed to be paid when we start to drawdown on the facility despite agreement signed. An escrow account agreement is being worked upon to trigger the drawdown on the facility. We don’t really know where the dailies got their variables that do not add up mathematically about Milost math. They should have watched and see what happens about the issue of performance. This Newspaper Article against Milost has been wrongly perceived by the investing public and this is terribly affecting our share price on the Stock Market. This is simply sad. Milost currently holds no shares in Japaul as yet as we are awaiting regulatory approval, I just wonder how would it then be said that it is involved in a pumping and dump scheme in Japaul shares and the financing is provided in single tranches of between $1 to $5 million until our share price recovers. How will it reach high prices when we are receiving unfair reporting by one Nigerian media outlet that purports lies and in real fact is that we have opened our doors for the media to call us and verify facts before going to print. The media needs us and we also need it and we can’t been seen fighting each other, after all we are all Nigerians. It’s said because since the BusinessDay publication, our share price has plummeted over 100% and the news were misconstrued opinions that remain false and unfounded.”
Femab Properties CEO, Abiodun Aguda, stated, “This is the first time we have the opportunity to access funds that can truly support our business both from collateral perspective, financing structure and tenor. The MILOST funding structure truly allows growth and development which Nigerian businesses and Africa needs.
The Press is therefore advised to seek for knowledge to properly understand the financing model of MILOST, speak with the beneficiaries directly and avoid misleading the teeming public through uninformed reporting.”
Solly S. Asibey, Senior Partner & CIO of Milost, stated, “The ingenuity and financial engineering behind our Milost Equity Subscription Fund (MESA), as well as the Milost structure of engagement makes it easy for us to invest heavily in companies with high growth potential, whilst reducing our risk of investments through the checks and balances that are part and parcel of our framework of engagement.
Our aim is to make investments in companies that will have a high impact within the vertical industry in which they operate, thus increasing the potential for the companies to be counted amongst the best in their industries globally. Our modus operandi has always been to invest in companies that will add value to the country and its citizens in terms of wealth and job creation, as well as the ability to contribute positively towards stepping up the economic transformation of the country. Our success is intertwined with the success of our investee companies; and from a corporate governance perspective, we subscribe to the rules and regulations of the Stock Exchange, Federal Reserve bank, and the SEC in terms of all our engagements.”
Senator Sunday Fajinmi, Chairman of Resort Savings and Loans, stated, “It is sad to realise that a few grumbling, half educated individuals are against the recovery of Nigerian economy through resuscitation of dying businesses. The publication is just a promotion of corruption in some aspects of yellow journalism in our country that has propagated the popular PHD syndrome. Milost Global Inc. of USA has been verified to be a very credible investor in developing economies like Nigeria. Their track record which speaks for itself, attest only to their credibility. Their understanding of peculiarity of developing economies in Private Equity financing is amazing when compared to others who are the paymasters of the journalist, the author of the fake news. These enemies of progress should look for better work to do as the Nigeria economy needs more friendly and understanding finance engineering organisations like Milost Global Inc. Be warned! as Nigeria belongs to all of us!”
Primewaterview CEO, Harold Nzekwe, stated, “Primewaterview is stronger today because of the timely investment from Milost. Once you understand the structure of their financing you will realize that it is a win-win for all the parties. The Nigerian economy needs foreign direct investment from serious investors such as Milost in order for the economy to grow.”
Kim Freeman, Managing Partner & CEO of Milost, stated, “Nigeria has the largest economy in Africa that is growing rapidly and Milost wants to be instrumental in sustaining this growth. Our MESA fund is an innovative facility that allows a company to not only reach its true market value but also to achieve its vision of a larger more vertically diversified company through acquisitions and organic growth.”
About Milost Global Inc.
Milost Global Inc. is an American Private Equity firm that is headquartered in New York City, with more than $25 billion in committed capital. Milost is at the intersection of creative investing and value creation. Milost is also a provider of alternative capital, mezzanine finance, and alternative lending to a broad range of industries across the globe including Technology, Transport, Cannabis, Education, Distribution, Mining, Oil & Gas, Financial Services, Healthcare, Pharmaceuticals, Real Estate, Alternative Energy and Infrastructure Development. www.milostglobal.com
Milost Global Inc.
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