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Patented Model
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The innovation includes a business method patent and a product patent. The method includes the process of creating the transaction, transferring risks and financing brownfields development projects. The financial asset resulting from this process is a Brownfields Value Contract (BVC). Similar to valuation of financial assets, the price or value of the BVC is equal to the present value of its expected cash flow, even if its cash flow isn’t known with certainty. Just as ownership of tangible assets is financed by the issuance of some type of financial asset (i.e. debt instruments, equity instruments, or hybrids), the cash flow for the BVC (an intangible financial asset) is generated by a tangible asset (property). Additionally, financial assets have certain properties that make them more or less attractive to different classes of investors and issuers (i.e. moneyness, term, reversibility, liquidity, risk, divisibility and yield). Brownfields Capital’s patented Brownfields Value Contract (BVC) is an asset with varied degrees of each of these properties, (a variation that is different from other debt and equity instruments that are currently used to finance brownfields projects), with the distinctive feature of enabling financing from remediation through vertical construction. As a result, it reduces investment risk and transaction costs. Capital can, therefore, be provided to the brownfields market more efficiently and at a lower cost, creating a market that is attractive to investors.
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