Page 10 - Presentation - TERM SHEET - Spark Venture Partners LLC
P. 10
USE OF ASSETS FOR BUSINESS EXECUTION
Important note regarding the intended combination of both named assets (Asset #1 & Asset #2) and their intended business strategies.
o As described above, the loan/financing of “Asset # 2” serves to generate the capital amounts generated from the implementation of the
business, primarily for the costs of the insurance policy, in favor of the further business implementation for “Asset # 1”.
o Since the “Asset # 2” does not have any insurance coverage (insurance policy), the loan/financing of the “Asset # 2” can only be
carried out with a lower loan-to-value ratio (percentage value deduction) in order to reduce the risk for the lender.
o In order to compensate for the percentage deduction in value of "Asset #2" compared to the actual asset valuation and to minimize
the associated risk for the lender, while still achieving an optimized loan-to-value ratio, our group of companies combined both
assets ("Asset #1" & "Asset #2") and conducted consultations with the selected network and business partners on this basis.
This is also justified by the fact that PARTY #1 pursues the same objective of intended loan/financing for both assets (Asset #1 & Asset
#2).