Deal under LOI. Seeking equity investors. We are seeking $1.5M equity investment for this deal structured at 10% preferred return converting to 20% of common equity with the base case returning 33% IRR and 5.0 MOIC. Project Tarp Overview & Highlights: • Commodities tarping (e.g., multi-ton salt, grain, and fertilizer piles) co. headquartered in Ontario, that provides large surface area tarping materials, installation services, and ongoing maintenance • 40% EBITDA margin and 12%+ historic CAGR • Dominant market leader with strong relationships with port managers and commodity owners • Tremendous growth potential with more demand than can currently be supported plus geographic expansion to unserved regions and competitor rollup opportunities • Blue-chip clientele (Cargill, Morton Salt, Compass Minerals, Viterra) • No risk of obsolescence and is a highly affordable, flexible, and quick-to-deploy solution • Recurring revenue to fully replace tarps every 1-2 years with ongoing maintenance to add, replace, or repair sections of tarp as needed throughout the year • Seller has grown the business as far as he feels he can and wants to partner with a US-based team for growth and a second bite at the apple with an equity rollover and employment agreement Due diligence is currently underway and we have senior debt term sheets in hand. Please don't hesitate to reach out with any questions. Thanks, Greg DeLeo
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