Green Mountain Development Corp

Introduction

Governments, companies and individuals are becoming increasingly sensitive to the need to develop sustainable, organic and renewable solutions to the environmental problems currently facing the planet.  These range from reducing worldwide reliance on petroleum based products, to the ever increasing demand from consumers for organically grown produce.  This social, political and cultural movement is predicted to grow ever stronger as pressure increases to reduce reliance on non renewable and environmentally unfriendly methods and replace them with sustainable, eco-friendly products and processes. 

Green Mountain Development Corp. (GMND) is an environmental technology incubator company which acquires promising green technology companies, provides administrative, management and capital funding services to its technology subsidiaries and develops them for later sale or spin-off as public companies.  The success of GMND is based upon the success of the portfolio of acquired technology companies and their ability to increase in value with the skills, knowledge and experience of GMND and the subsidiary’s management and the use of GMND proprietary Microbial Technology that facilitates cleaner air, water and soil, agricultural growth enhancement, water conservation, and creating usable products from recycled waste streams.

Mission Statement

The GMND mission is to provide a corporate incubator infrastructure for environmental company acquisitions and create a complimentary, synergistic business environment that increases the value of each acquired company while simultaneously increasing the value of GMND.  The company will use its core proprietary Microbial Technology to add value to the products and services of acquired companies thus giving them a unique selling proposition in their marketplace and prepare them for future expansion, sale or spin-off as a public company.

 

Strategy – Build to Sell or Spin-off

The strategy is to “incubate” portfolio companies under the Green Mountain Development Corp (GMND) umbrella.  GMND acts as the “big brother” of the green technology company, acquires a controlling interest (thru a stock swap) for accounting rollup purposes, and then raises investment capital for the green company by issuing public company stock and loaning the proceeds to the green company.  The green company growth strategy is to build the company for sale or spin-off into its own public company in a 36 month time frame.  In the interim, the green company contributes to the top and bottom line of GMND and acts to support its stock price for investor returns.

 

Acquisition Strategy

GMND is in effect a public company venture capital firm using its own stock to raise money for the “portfolio” subsidiary companies.  Candidates for acquisition contact GMND for capital and growth acquisition assistance and our business model is to acquire a sixty percent or more interest in the company with the current management retaining a forty percent interest.  GMND enters into an acquisition Letter of Intent and an option agreement to acquire the 60% interest for a negotiated nominal cost (stock swap of acquisition candidate shares for GMND acquisition shares) subject to the ability of GMND to raise capital for the acquisition candidate. 

Upon the raising of the capital or the commitment of an investor for the acquisition candidate, GMND will exercise its option and provide a loan of the capital to the candidate who will become a subsidiary of GMND and roll its revenue and 60% or more of its earnings up to GMND financial statements.  Loans terms are typically 10% interest and five year term with payments matched to the cash flow of the business plan.  All acquisition candidate assets including the GMND acquisition stock are collateral for the loan.  GMND will also retain a majority of Board seats on the subsidiary’s Board of Directors and the subsidiary will also enter into an administrative services contract for compliance with public company accounting, reporting and legal services. 

The new subsidiary and GMND will develop a business plan with milestone performance achievement points based upon time and capital deployed.  Based upon the achievement of the performance milestones, subsidiary management may be granted options for GMND stock. 

GMND is aware that not all subsidiary candidates will be as successful as their management initially indicates due too many factors.  As such, GMND will acquire their 60% interest for a nominal cost via a stock swap of GMND stock for the stock of the subsidiary.  It is up to the subsidiary to perform and achieve their milestones as GMND provides capital, management assistance, and administrative services preparing the subsidiary to become a public company.  It is the intent of GMND to develop an exit strategy for its ownership position within 36 months by either spinning off the subsidiary as a public company, taking the subsidiary public or selling the GMND equity position to a third party (which could be the management of the subsidiary).

There are many advantages to all parties to this type of transaction.  GMND is searching for green technology candidates with can provide high returns and boost GMND stock prices for its shareholders as well as provide above market returns for the capital deployed to the subsidiaries.  During the ownership period of the subsidiary, GMND will have consolidated financial statements with the subsidiary and after sale of its position in the subsidiary it could have a substantial capital gain.  The subsidiary candidate gets the capital it needs and is able to deploy their business plan, and if they meet performance milestones, they will be granted options for GMND stock.