SECTION 12 J REGISTERED PUBLIC COMPANY INVESTS IN QUALIFYING - - PowerPoint PPT Presentation

SECTION 12 J REGISTERED PUBLIC COMPANY INVESTS IN QUALIFYING COMPANIES IN TERMS OF 12J

ANTON VAN DEN HEEVER & JONATHAN KILLIK

OUR TEAM

IN THE BEGINNING

• Long Term Contracts (5 yrs)
• 3 Year / 2 year extensions
• Team - Combined 50yrs Management Experience & 100yrs Combined Pilot

Experience

• Standard SOP for all areas
• Scalability

Established in 2016 Operational since March 2017 Process of registration in March 2017 to meet the exponential demand

VCA1 =ER1 VCA2 =ER2 VCA4= RS1/2/3 VCA5 =RR1/2/3 VCA3 = ER3 VCA6 =ER4

VCA1 VCA2 VCA3 VCA4 VCA5 VCA6

5 Year Sale - buy Option on Aircraft US$ Based 3 Year Fixed Cost Lease / 2 Year ext Insured Dry OPEX

• 5 Year Fixed

Cost Lease

• Minimum Yields
• Insured
• Dry OPEX

3 Year Fixed Cost Lease / 2 Year ext Insured Dry OPEX

• 5 Year Fixed Cost

Lease

• Minimum Yields
• Insured
• Dry OPEX
• 5 Year Fixed Cost

Lease

• Minimum Yields
• Insured
• Dry OPEX
• 5 Year Fixed Cost

Lease

• Minimum Yields
• Insured
• Dry OPEX

VCA1 =ER1 VCA2 =ER2 VCA4= RS1/2/3 VCA5 =RR1/2/3 VCA3 = ER3 VCA6 =ER4

THE 12J OPPORTUNITY

POTENTIAL RETURNS

Example of Tax Benefit as illustrated below based on an investment of R 1 000: Cost per Share Description Individuals Companies Initial Investment 1 000 1 000 Effective Tax Rate 45% 28% Tax Relief (In the financial year of investment) 450 280 Net Cost of Investment 550 720 Cost per share: 1 000 1 000 Risk Capital: R550,00 R720,00 Anticipated Cashflows incl Dividends over the Investment Period: R1 032,85 R1 229,13 Period of Investment: 5 Years 5 Years Anticipated Return (Internal Rate of Return "IRR"): 20% 16% Anticipated Dividend Yields: 11- 16% 13-18% Frequency of Dividends: Bi-Annually Bi-Annually Fees & Taxes: Returns are Net of Fees and Taxes Returns are Net of Fees and Taxes Exit Mechanism: Year 5 Minimum sale of 75% of the Asset at a Dollar Based Rate Year 5 Minimum sale of 75% of the Asset at a Dollar Based Rate Effective Return projected over 5 years 100%

BLACK OPS AVIATION

Precious Metal Services

Contracted Medical Aids

OUR CLIENT & JV OPERATING PARTNER

• Runs the Cell c EMS call center
• Runs Vodacom 112 EMS number
• In process of acquiring the next largest

cellular provider EMS call center

• Partnership with ER24 established in 2017
• Extended service to Air & previously difficult

to reach locations

• Air & ground support to Airangels
• Largest ambulance operator in RSA
• ER24 paramedics crew missions

Seeks to ‘share’ All licenses that are required Partnered with ER24 Crew and 138

• Non-profit client of Flightshare
• Operating since March 2017
• A division of IACTW NGO
• Provides Life Saving mercy-flight services
• Trustees and CSR opportunity

✓Invest pre-tax earnings ✓Projected return 100% risk capital nett of tax ✓Medium term investment – 5 years ✓Bi-Anual Dividends

SECTION 12J’S

✓Introduced 1 July 2009 ✓Stimulate equity investment in small/medium enterprises ✓Extensive amendments with effect Feb 2015 ✓12 Year sunset clause 30 June 2021 ✓VCC a misnomer… pvt equity for small expanding companies ✓Based on VCT legislation (introduced UK 1995) ✓SA Legislation more favourable then UK - amount per investor uncapped

SECTION 12J’S

✓Industry Sectors ✓VCMS ✓General ✓Tech ✓Hospitality ✓Alternative Energy ✓VCMS – succesfully launched over 30 12 J Funds

SECTION 12J’S

Invest your tax money in a transparent essential service… Invest because dbl Risk Capital After Tax Invest you Rands into Saving A Life

12J VIDEO

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