F.I.T. Timber Ltd. — Brazil

The F.I.T. Group manages native forest and FSC certified Acacia mangium plantations in Roraima, Brazil. Following 12 years of investments, including plantation development and construction of infrastructure to support the plantation, the group is currently undergoing a restructuring process.

On 28 November 2013, per initiative of the directors of F.I.T. Timber Growth Fund ("FIT TGF"), two contracts were signed:

a) Mutual Termination of the Fund Management Agreement between F.I.T. Management Ltd (a subsidiary of World Markets) and FIT TGF, as of 31 October 2013, in order to reduce the operational expenses of FIT TGF. Under this contract unpaid management fees were partially converted into loans due in 2018 and partially paid in FIT TGF shares. The severance payment was reduced by 20% and settled in FIT TGF shares as well, according to the original agreement and FIT TGF's Prospectus.

b) Amendment of the Loan Facility between World Markets and F.I.T. Timber Ltd, in order to reduce the financial expenses of the F.I.T. Group, setting the interest rate at 7% and the repayment for 2018. Between March and October 2013, World Markets had extended over CHF 19 million in loans to F.I.T. Timber Ltd.

World Markets remains a relevant investor and the largest creditor to the group. 

The video below was made before the investment by World Markets was announced:

Video about the F.I.T. Timber Growth Fund Ltd.

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