GreenAngel Energy Corp. Offering of 9% Notes to Accredited Investors

$1,000 Increments
$25,000 Minimum Investment

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GreenAngel Energy Corp. offers Notes to accredited investors that will pay up to 9% Internal Rate of Return. GreenAngel Energy offers these Notes in $1,000 increments with a minimum investment of $25,000, and will pay out up to 2.2% interest on a quarterly basis to holders.

Use of Proceeds

The capital raised by offering these Notes will be used to participate in Limited Partnership Units offered by Espresso Capital Partners.

Espresso Capital Partners was formed to promote, organize, raise and manage a pool of capital, which will be used to provide venture debt financing to Canadian and U.S. companies, principally in the form of tax credit financing, recurring revenue financing and cash flow financing.

Espresso Capital Partners’ five-year track record has been to return 14.36% Internal Rate of Return to its limited partners. Since inception, Espresso Capital Partners has deployed over $64 million with clients in information technology, life sciences and cleantech.

Agreement between GreenAngel Energy and Espresso Capital Partners

GreenAngel Energy and Espresso Capital Partners have entered into an agreement whereby GreenAngel Energy will offer Notes to accredited investors and use the proceeds to purchase Limited Partnership Units offered by Espresso Capital Partners. This allows individuals to invest smaller amounts of capital (below Espresso Capital Partners’ minimum requirements), as well as permits investors to use RRSP and TFSA accounts. Espresso Capital Partners will provide interest distributions to GreenAngel Energy as a Limited Partner, and GreenAngel Energy will remit interest received to investors up to 9% Internal Rate of Return before deducting any fees or expenses. Any surplus distributions received by GreenAngel Energy will be shared between GreenAngel Energy and Espresso Capital Partners on a 40/60 basis.

Espresso Capital Partners will use the proceeds received from its Limited Partners to provide capital to growing technology companies that fills the gap between bank debt and equity capital. This capital is short term in nature and is secured by liquid assets, such as government-backed accounts receivable.

Offering

These 9% Notes are available to accredited investors in multiples of $1,000 with a minimum of $25,000. These notes will be used to purchase Limited Partnership Units in one of the Espresso Capital Partners’ funds, pursuant to an investment agreement between GreenAngel Energy and Espresso Capital Partners. The Notes are eligible for investment from RRSP and TFSA accounts.

Term

The Notes have an initial two-year term (i.e. hold period before capital is returned). Investors may call for a return of capital any time after the initial two-year hold period.

Interest Rate

After all interest payments and capital has been returned to investors, the Internal Rate of Return can be up to 9%.

Security

The Notes will purchased by GreenAngel Energy and backed by the Espresso Capital Partners’ Limited Partnership Units. All interest distributions received from Espresso Capital Partners’ Limited Partnership will first be paid to the Note holders, up to 9% Internal Rate of Return, before any expenses or fees are paid to GreenAngel Energy.

Principal and Interest Payments

Interest of 2.2% will first be paid quarterly to the Note holders before any payments or distributions to GreenAngel Energy. If an investor recalls their Notes (any time after the initial hold period), payments made to the Note holders will consist of either principal and/or interest payments so that an Internal Rate of Return of 9% will have been achieved after the last payment has been made.

Redemption

Investors may redeem their Notes at any time after 24 months from the date they were purchased. GreenAngel Energy will then repay the principal amount over a period of time estimated to be from 3 – 12 months. Interest will continue to be paid on any outstanding balance.

Cancellation by GreenAngel Energy

GreenAngel Energy may at any time, at its sole discretion, repay the Notes (all or part), along with interest, and cancel the Notes.

Risk Factors

Espresso Capital Partners has managed a number of Funds since 2009, and has a track record of returning more than 14% to its investors by making secured loans to technology companies. There is no guarantee that Espresso Capital Partners’ future performance will allow GreenAngel Energy to pay 9% to investors. Investors are also at risk of losing their capital in the event that Espresso Capital Partners’ clients default on repaying principal loans. For more information on Espresso Capital Partners, please visit their website by clicking here

Subscriptions

Investors may purchase the Notes from GreenAngel Energy by completing a Subscription Agreement. For RRSP or TFSA subscriptions, investors (or their retirement fund trustee) can complete the Subscription Agreement and indicate that the funds are from their RRSP/TFSA accounts.

How to Subscribe

To purchase the Notes, please send an email to notes@greenangelenergy.ca and GreenAngel Energy will provide you with a Subscription Agreement.