Do you face difficulty raising capital in a particular country of registration, inability to take a bank loan without collateral, or the reluctance of traditional investors?
Tokenization is a disruptive technology that allows a natural resources business to access a broad circle of investors and provide liquidity for its assets or securities.
The first step is transferring the ownership of assets that need to be tokenized — the resource itself (oil, gas, gold, etc.), a mine, or a plantation — to the Special Purpose Vehicle and then issuing securities of this SPV owning the assets.
The issued stocks are transformed into tokens. Thanks to this, they become way more accessible, flexible, and liquid. As these tokens are actually tokenized securities, they are regulated as ones, which ensures the investors are granted complete legal protection.
From this moment on, you have full capability to offer your tokens to investors globally and launch a marketing campaign targeted at investors all around the world.
After you have sold the tokens to investors and raised funds, you can continue managing and maintaining the asset, divide the investors' cash flow and withhold your fee, or outsource to a company that will be conducting all these tasks.
Metals and minerals are great to be tokenized. In such a case, the issued tokens and their price are backed by a particular amount of the given resource; investors holding the tokens receive a proportional share in the total pool. Tokenized natural resources such as tokenized gold become much easier to trade via a liquidity pool or by listing on specialized security token exchanges.
Another possible scenario is tokenizing a business that does the extraction and sale of natural resources itself. This way, token holders basically become shareholders of the company and receive a part of its generated cash flow from the sales of mined metals and minerals.
Tokenization enables trading of company stock, which is crucial both for investors and company founders as it allows acquiring profit from the investment and reducing risks.
Stobox professional team will assist you in automating multiple business processes which will further reduce the operational overhead and associated expenses. Learn the most successful cases of tokenization in 2022.
Tokenization can finance all the operations of natural resources-based companies. It allows to develop business without barriers. Our team knows how to raise more capital and is ready to share this knowledge with you.
Find out what our clients say about us
Attracting investors to the natural resources industry business is hard for two main reasons.
Before generating real profits, a lot of capital for mining equipment and geological research is needed. Thus, it's hard to attract investors who are ready to invest without guarantees of profits.
A real presence of deposits of natural resources cannot be proven before a thorough study of the area. Some mineral deposits may be insufficient for the company to become cost-efficient which establishes a considerable risk for the investors.
By getting access to a wider range of investors and clients, tokenization helps to attract digital assets investors to your project. They are hungry for risk and want to allocate their funds in exchange for potential high returns. Besides, the opportunity to trade tokens allows investors to make an early exit if they want, which is also a decisive factor that impacts investors' behaviour and increases trust.
We provide a turnkey natural resources tokenization solution based on your company goals and provide full support helping you save time and money.
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