Presentation on theme: "INVESTMENT OPPORTUNITY"— Presentation transcript:
1 INVESTMENT OPPORTUNITY THE GATEWAY TO NATURAL AFRICAN DIAMONDSINVESTMENT OPPORTUNITY$25,000,00025,000,000 Series A Convertible Preferred Stock (“Shares”)$1.00 per shareMinimum Offering Amount: 2,000,000 Shares10,000 shares ($10,000) Minimum SubscriptionCONFIDENTIAL LIMITED OFFERING MEMORANDUM
2 TEAMThe LOKORO Team has more than 100 years of experience in the global diamond industry• Pravin B. Mehta - Chairman/PresidentMr. Mehta has more than 40 years of experience in the diamond industry including rough diamond trading, polishing, marketing and retail. He is the Founder and former President of Diamond Days of New York; an accredited member of the prestigious American Gem Society.• Ronald Naude - Executive Vice President of ProcurementMr. Naude, a well known Geologist and Master Cutter, contributes over 48 years experience in the diamond industry. He is in charge of training staff and provides knowledge on the art of purchasing rough diamonds, the sorting of goods and the marketing of the investment grade diamonds to exclusive buyers.• Nathan Dexter Wicker, Vice President/TreasurerMr. Wicker offers his expertise as a logistics and Paralegal officer for the US Army for more than nine years. He was the Cash Management Officer for MoneyLink, an Automated Teller Machines (ATM) company. He oversaw daily cash transfers and mobile logistics for more than $7 Million US Dollars a year.• “Nicky” Sujan Mehta – Vice President Sales/MarketingMr. Mehta began his training at Occidental Gems Inc., - a De Beers diamond sight holding company – becoming a National Sales Manager. He later became President of Diamond Days Promotions Inc., a rough and polish diamond distributing company. He expanded Diamond Days’ diamond inventory and developed clientele with buyers in India, Antwerp, and around the world.Donna M. Brown - Corporate SecretaryMs. Brown a native of Virginia, has more than 30 years experience in the field of office management and operations with the Livas Group Architects, P.C.
3 BOARD OF DIRECTORS ADVISORY BOARD Pravin B. Mehta – New York, NY Chairman/PresidentExecutive DirectorRonald Naude – Johannesburg, SAExecutive V.P. of ProcurementExecutive DirectorElbert V. Walker, Jr. AIA – Hampton, VAPresident of Livas Group Architects, PCNon – Executive DirectorPresident of Livas Group for 25 year and member of the AIA since 1965ADVISORY BOARD• Allen Brown, Jr. - Monrovia, LiberiaSpecial Advisor for Liberia, and Ivory CoastInternational Entrepreneur and Hotelier• Captain Whitner J. Edmonds - Columbus, GeorgiaSpecial Advisor for Logistics, Security, and Veterans RelationsCaptain in 45th Special Troops Battalion at School Barracks in Hawaii• Claude Juimo Siewe Monthe - Yaoundé, CameroonSpecial Advisory for CameroonChairman of the Chamber of Commerce, Industry and Mines of Cameroon• Edith Nawakwi - Lusaka, ZambiaSpecial Advisor for ZambiaPresident of Forum for Democracy and Development PartyFormer Minister of Finance; Labor & Social Security; and Agriculture, Food & Fisheries• Charles Makongoro Nyerere -Dar es Salaam, TanzaniaSpecial Advisor for Tanzania and East African RegionEast Africa Legislative Assembly and Member of Parliament for Tanzania• Jonas Mukamba Kadiata Nzemba - Kinshasa, DRCSpecial Advisor for Diamond Mining and Trading for Democratic Republic of CongoFormer Chief Executive of the Societé minière de Bakwanga (MIBA)• Famita Lukoki Quarta - Luanda, AngolaSpecial Advisor for AngolaInternational Entrepreneur• Emmanuel Monthe Siewe - Yaoundé, CameroonSpecial Advisor for CameroonDirector of Groupe Monthe Cameroon• Princess Marilyn Yowa Yav - Paris, FranceSpecial Advisor At LargeChairwoman of L'Etoile d' Afrique
4 We sell diamonds to traders, cutters, polishers, and manufacturers in: WHO WE ARE AND WHAT WE DOLOKORO is a global natural rough diamond trading and distribution company acquiring diamonds from 10 of Africa’s 15 diamond producing nations, headquartered in the World Diamond Tower in New York City.We sell diamonds to traders, cutters, polishers,and manufacturers in:Antwerp, Belgium Dubai, UAE Hong KongMumbai, India Tel Aviv, Israel London, UKMoscow, Russia New York, USA Shanghai, China4
5 MARKETING CONCEPTOur highly developed, high impact, and integrated marketing and sales system will reinforce our position by providing a higher level of service and support to our clients.
6 MILESTONESOn January 30th, 2013, LOKORO was officially granted a two year supply agreement to purchase up to 10,000 carats of rough diamonds per month from a diamond mining company in South Africa.In February 2013, LOKORO signed a letter of intent with Aristogem of Mumbai, India and Manav Gems Diamond Manufacturers, Importers & Exporters of Mumbai, India in which LOKORO agrees to supply both companies 5,000 to 10,000 carats per month for a term of 24 to 36 months.
7 THE CONSUMPTION MARKET Based on a study by Bain and Company for the Antwerp World Diamond Center, the rough diamond demand over the next decade is forecast to grow at an annual rate of 3.8 percent higher than that of supply, which is more than $23 billion dollars by the year 2020.
8 OUR TARGETED SHARE OF THE ROUGH DIAMOND SUPPLY MARKET All estimates are based upon assume of a 12 month period.Year is based upon Lokoro Diamonds being fully operational beginning in December 2013.
9 LOKORO DIAMONDS ANNUAL PROJECT ROUGH DIAMOND PROCUREMENT ACQUISITION MARKETSThe LOKORO acquisition target market is set at a very conservative supply of slightly less than 0.30 percent in the first year for total African production and maximizing to less than 1.05 percent in the 5th year.Our acquisition market share target for the entire global market production is penned at percent in year 1 and percent in year 5.LOKORO DIAMONDS ANNUAL PROJECT ROUGH DIAMOND PROCUREMENTYear 1337,828.15caratsYear 2355,112.08Year 3373,280.29Year 4392,378.02Year 5412,452.82All estimates are based upon assume of a 12 month period. Year is based upon Lokoro Diamonds being fully operational beginning in December 2013.
10 TARGETED SHARE OF THE TOTAL ROUGH DIAMOND DEMAND MARKET All estimates are based upon assume of a 12 month period.Year is based upon Lokoro Diamonds being fully operational beginning in December 2013.10
11 LOKORO ROUGH DIAMOND SALES, COST AND PROFIT PRO FORMA All estimates are based upon assume of a 12 month period. Year is based upon Lokoro Diamonds being fully operational beginning in December 2013.11
12 LOKORO KEY ADVANTAGES… 1234567LOKORO’s key personnel offers more than 100 years of experience and involvement in Africa, India and other diamond centers around the World.LOKORO operates with multiple suppliers which enables us to have a continuing supply of the highest quality rough diamonds.LOKORO has the ability to offer and deliver Natural Rough Diamonds of various sizes, colors, clarity & shapes to all buyers.LOKORO has the capability to offer a slightly higher price per carat to our suppliers, thereby ensuring our suppliers the ability to expand and modernize their operations.LOKORO enhances clients profitability by offering quick On-Demand ordering with no minimum order size requirements.LOKORO’s loyalty to maintaining creative and innovative business strategies that support our clients gives them an advantage in the ever changing market.LOKORO’s social and economic involvement in the various communities and governments throughout Africa enhances our reputation, reliability and trust.
13 PROJECTED 5 YEAR INVESTORS RETURN ON INVESTMENT Annual company valuation method over a 5 period based on company valuation of 1x revenueMultipleTechniqueYear 1Year 2Year 3Year 51Revenue$83,057,471$172,778,600$220,758,243$282,061,564$360,388,471Investors EquityInvestment PerformanceInvestmentShares% Own.$25,000,00025,000,00025.00%Investment$25,000,000Return$90,097,118NPV$24,316,220ROI300.4%IRR34.6%Investor’s return on investment including dividendsFrom Sale of CompanyDividendsProfit ShareTotal Return$90,097,118$10,000,000$0$100,097,118ROIIRRNPVClass300.4%34.6%$24,316,220Preferred13
14 LOKORO DIAMONDS, INC. PRO FORMA FINANCIAL STATEMENTS All estimates are based upon assume of a 12 month period. Year is based upon Lokoro Diamonds being fully operational beginning in December 2013.14
15 LOKORO DIAMONDS, INC. PRO FORMA FINANCIAL STATEMENTS All estimates are based upon assume of a 12 month period. Year is based upon Lokoro Diamonds being fully operational beginning in December 2013.15
16 INVESTMENT & RETURN OUTLOOK LOKORO offers high quality Natural Rough Diamonds which ensures the highest possible return on investment for stakeholders.16
17 EXIT STRATEGY COMPANY BUYOUT INVESTMENT & RETURN ON INVESTMENT25,000,00 Series A Convertible Preferred Stock (“Shares”) Offered(Price at $1.00 per share)Breakeven Projected: Mid 2014Minimum Investment - $10,000 – 10,000 SharesAnnual Dividend – 10% (Paid Semi-Annually)COMPANY BUYOUTCONVERTIBLE into COMMON SHARES on a 1:1 ratio in 3 to 5 yearsCOMPANY PREFERRED SHARE BUY BACK in 4 to 5 yearsINITIAL PUBLIC OFFERING in 6 to 7 yearsEXIT STRATEGY
18 THE GATEWAY TO NATURAL AFRICAN DIAMONDS 580 Fifth AvenueSuite 2405New York, New York 10036(P) (212) (F) 212)All of the information provided herein has been provided by the Management of the Company. The Company makes no express or implied representation or warranty as to the completeness of this information or, in the case of projections, estimates, future plans, or forward looking assumptions or statements, as to their attainability or the accuracy and completeness of the assumptions from which they are derived, and it is expected that each prospective investor will pursue his, her, or its own independent investigation. It must be recognized that estimates of the Company’s performance are necessarily subject to a high degree of uncertainty and may vary materially from actual results.18