Deal Menu | Joint Venture | Asset-Backed | Off-take Linked | Minority Growth | Pilot Facility
Below is a Saudi Boardroom–Ready Joint Venture (JV) Structure tailored for agarwood + SFE, optimized for Saudi commodity trading arms / family offices. It’s written as a decision document, not marketing.
Joint Venture (JV) Structure — Agarwood & SFE Platform
Saudi Partner × Crown Extraction Solutions Inc. (CESI)
(Vision 2030 | Halal | Asset-Backed | Offtake-Driven)
1. JV Objective
Secure long-term, specification-grade agarwood extracts through a controlled plantation + Supercritical CO₂ Extraction (SFE) platform, delivering supply security, margin expansion, and trade optionality for the Saudi partner.
2. JV Entity & Ownership
- JV Vehicle: Special Purpose Company (SPC)
- Jurisdiction: Philippines (operations) + Offshore HoldCo (equipment/IP)
- Equity Split (Base Case):
- Saudi Partner: 49–60%
- CESI: 40–51%
- Governance: Board parity; Saudi Partner holds commercial control on offtake and pricing formulas
3. Capital Contribution
Saudi Partner
- Cash for SFE equipment, working capital
- Optional: advance offtake prepayments (trade-linked)
CESI
- Operating platform, permits, plantation access
- Technical know-how (SFE, QA/QC, halal protocols)
- Local management & compliance
4. Offtake & Commercial Rights (Core Value)
- Priority Offtake: 60–80% of JV output
- Contract: Long-term take-or-pay
- Pricing: Formula-based
- Floor price (cost + margin)
- Upside share linked to market indices / grades
- Currency: USD / SAR-pegged
- Use: Saudi domestic supply, re-export, blending, resale
5. Returns Profile (USD)
| Structure | Target IRR | Risk Profile |
|---|---|---|
| Offtake-Backed JV | 14–18% | Low–Moderate |
| Hybrid (Offtake + Equity Upside) | 18–22% | Moderate |
| Expansion Tranches (Capacity Add-ons) | 20%+ | Project-linked |
Returns supported by contracted volumes, not speculative retail.
6. Asset Security & Risk Controls
- First lien on SFE equipment
- Title retention on extracted products until paid
- Offshore ownership of critical assets
- Step-in rights on operational default
- Insurance + optional political risk cover
7. Halal, ESG & Vision 2030 Alignment
- Halal: Solvent-free CO₂ extraction
- ESG: Cultivated agarwood (no wild depletion)
- Vision 2030: Non-oil diversification, global trade leadership, heritage stewardship
8. Exit & Expansion Options
- Buyout at pre-agreed multiple (Year 5–7)
- Capacity expansion into additional botanicals
- Conversion into Saudi downstream fragrance JV
- Asset sale / redeployment (equipment-backed downside)
9. One-Line JV Thesis
This JV converts agarwood from a volatile spot commodity into a controlled, halal-compliant, asset-backed supply platform—delivering secured volumes and durable margins for Saudi capital.