INVESTMENT PROCESS

 

Sarsia Seed’s processing procedure is as follows:

 

Initial contact
Over a period of a short number of days, an evaluation is made to establish whether or not the prospect falls within our area of investment, and to determine if it has sufficient commercial potential.

 

First meeting
This is basically an information exchange session to determine the degree to which the investment opportunity fulfills our investment criteria.

 

Evaluation phase (normally 4-6 weeks duration)
Comprehensive assessment by Sarsia Seed of prospect business plan, vision, stages of development (milestones), and capital requirement.  An appraisal of the management, technology, ownership rights, market potential and business model will also be made.

 

Terms negotiations (normally 3-6 weeks duration)
The parties work together towards the establishment of a Term Sheet which will define the main elements to be later incorporated in an Investment Agreement and Share Holders Agreement. It is at this stage that the investment case is usually put forward to the board of Sarsia Seed for review and decision. Concurrently, negotiations will also take place regarding the establishment of the Investors’ and Share Holders Agreement.

Due diligence (normally 4-6 weeks duration)
During this process, careful scrutiny is made of all material and information pertinent to the investment case to ensure all such matters have been disclosed, and that they are certifiable and valid. Typically, the due diligence process entails an assessment of all financial, legal, and technical (including IPR) aspects of the case. The inquiry process may uncover the need for further verification and/or entry into further contractual agreements.

Contractual agreements are formalised and entered into, and the investment is implemented  

 

Post-investment activities
Sarsia Seed will, as an active shareholder, work to develop the company through representation on the company’s board and the supply of capital and/or expertise, through a strategy which the parties are commonly agreed upon. Since significant risk is associated with the progress of such early-stage prospects, development milestones are actively used to demonstrate prospect value growth and as a means of mitigating the risks involved.   

 

The period of time it takes for a prospect to go from initial screening to investment implementation will vary from company to company. The shortest process time to date has been four weeks, whilst more complex cases can take anywhere between four to six months.