Investor Due Diligence Field Trip…
Posted: 02/07/2019 | Event Date: 02/27/2019
We are happy with the progress on our coal operation in South Texas.
Since the spring of 2018 we have built 6 distillation units and we are sending the first distributions out to our investors this week from the sale of the liquids we produced.
We are getting ready to build a few more units and we expect to have another opportunity open for investment in the next few weeks, but before we do we are going to invite you to visit the site and join myself and a group of investors on a due diligence trip to Fairfield TX on February 28th.
As in any investment opportunity we bring to you, we always encourage you to do your own due diligence and I don’t know a better way to do that than to join us on this trip to see the project, meet the team and ask lots of questions.
Respond to this email for more info and we will send you our Itinerary.
You can read our most recent Investor Club newsletter below.
Late 2018 (Fully Funded)
What if you could invest in an asset class that produces a highly sought after commodity without a lot of the downside risks that are considered normal in the commodities markets?
And what if you could get the same tax treatment that you get when you invest in the oil and gas sector where the depreciation/depletion offsets the tax liability on your ORDINARY income?
Well now you can, and we are excited to be sharing this investment opportunity with you.
I will give you my personal perspective and some of the things I really like about this investment opportunity.
We like the team, they know what they are doing and they have a great team of competent folks on staff. On a recent site visit we got to meet numerous members of the team and we were impressed. Our Operating partner is very well connected politically. He was appointed to the National Coal Counsel by President Trump and he is good friends with the head of the Department of Energy and former governor of TX, Rick Perry.
- Cash Flow
When considering the strong double digit cash flow and tax benefits, we are projecting you would get all of your principle back in less than 2 years.
- Tax Benefits
CPA Tim Gertz is working with me on this and we will be able to claim 100% bonus depreciation as well as some depletion, making this one of the most tax friendly investments I know of. AND it will offset your tax liability on ORDINARY income (very much like oil and gas without much of the downside risks).
- The Asset
We like it, this asset class has been in a bear market for a long time under the previous presidential administrations and although we are talking about coal, this is not a conventional coal play. We will be turning dirty coal into cleaner energy by deriving valuable, highly sought after liquids from it (using a patented process) and then ending up with a product called Coallite which is EPA approved and considered cleaner energy. All while releasing all but zero emissions into the air.
- The Market
Texas is a very friendly state to do business in, especially when you are talking about the energy business.
There is a ton of demand for the liquid product (a lot of it being imported) with not nearly enough domestic supply, and we have contracts with some internationally recognized companies.
In many cases, our costs for the physical commodity are locked in for 10 or 15 years which reduces another level of risk for us.
The distillation units and the processes are patented and or patent pending, because of our processes we can operate at much lower costs and higher profit margins than the few competitors in the market.
- Preferred Return
You get paid your projected returns ahead of anyone else.
- Return of Capital
When considering cash flow + tax benefits, we are projecting a return of capital in less than 2 years with strong cash flow continuing after that.
- Environmentally Friendly
This is important for a number of reasons. The most obvious is you are taking a historically dirty toxic energy source and cleaning it up, which makes it much easier to garner political support no matter which political party is in office.
I plan to fly to Dallas DFW midday on February 27th and then will drive to Fairfield TX in the afternoon and be ready to meet with the team at 8:00 am on February 28th.
We will most likely be with the team until mid afternoon before heading back to the airport to catch a 7:00 pm flight home on February 28th.
Are you interested in joining us?
Reach out to us by responding to this email and we will get you our itinerary.Back To News / Events