Bring new investors into your natural resources business

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.

What can you achieve with the tokenization of natural resources?

Reach out to more diverse investors
Banks and institutional investors aren’t the only available option — raise funds globally from individual investors, who find natural resources appealing, and crypto investors, who are interested in diversifying their portfolios. Such an approach will help you get better fundraising terms and attract more capital.
Monetize illiquid assets
Some natural resources like rare diamonds are extremely hard to get direct cash flow from. Instead of just keeping the assets with no profit or trying to sell them to one buyer, you can tokenize them. This will allow multiple people to easily invest in these assets by purchasing tokens that provide indirect ownership rights.
Become more attractive to investors by creating liquidity
Trade the tokens easily, getting one step ahead of traditional securities and physical assets: decentralized finance protocols provide advanced instruments for this process, thus winning better liquidity. Liquid assets always attract more investors.
Improve your brand image
Adopting the newest technologies makes your business be seen as both modern and disruptive, just as it raises the trust for your company — either from investors' or clients' perspective.

Reach out to more diverse investors

Banks and institutional investors aren’t the only available option — raise funds globally from individual investors, who find natural resources appealing, and crypto investors, who are interested in diversifying their portfolios. Such an approach will help you get better fundraising terms and attract more capital.

Monetize illiquid assets

Some natural resources like rare diamonds are extremely hard to get direct cash flow from. Instead of just keeping the assets with no profit or trying to sell them to one buyer, you can tokenize them. This will allow multiple people to easily invest in these assets by purchasing tokens that provide indirect ownership rights.

Become more attractive to investors by creating liquidity

Trade the tokens easily, getting one step ahead of traditional securities and physical assets: decentralized finance protocols provide advanced instruments for this process, thus winning better liquidity. Liquid assets always attract more investors.

Improve your brand image

Adopting the newest technologies makes your business be seen as both modern and disruptive, just as it raises the trust for your company — either from investors' or clients' perspective.

How to move natural resources to the Blockchain?

Securitization
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.
Tokenization
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.
Offering
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.
Management
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.

What can be tokenized?

Natural resources

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.

Extraction and sale business

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.

Why is Stobox expertise so important for the energy and natural resources sector?

Acquire profit from the investment and reduce multiple risks
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.
Automate processes related to investments and various transactions
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.
Improve access to capital via tokenization
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.

Stobox expert guide

Everything you need to know about asset tokenization in the natural resources industry in one ebook 🎓

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Stobox Clients

Find out what our clients say about us

One of the things I liked about Stobox was the flexibility and capability of adapting to our specific needs, to take into account our timing and structure to personalize a solution for us.

Rodrigo López

Co-Founder at Candela

Agricultural land for food production is truly one of the most important assets in the world, with growing demand and shrinking acres for supply. We are excited to be working with the Stobox Team and expect to open new opportunities for investors around the world.

Robert Smith

Farmland Assets CEO

We have recognized that Security Token Offering is a superior method of capital raising, and we are grateful to the Stobox team for a delightful collaboration throughout the project set-up, as well as the unquestionable 24/7 support provided during the offering.

Michael Hinman

Chairman & founder at Stoneguard Group

Stobox provides an all-in-one solution that simplifies the tokenization process, from legal compliance all the way to token deployment.

Jordan Friske

CEO and Lead Blockchain Developer

We’re excited to work with Stobox to make available a new security token that reduces many of the risks, hurdles, and limitations investors face when adding blockchain-based assets backed by real property to their portfolios.

Thomas Thomison

Founding Member, PowerShift Properties, DAO LLC

The challenges in reaching investors that can be avoided with the help of tokenization

Attracting investors to the natural resources industry business is hard for two main reasons.

The field is capital-intensive
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.
Risks at early stages
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.

Solutions offered by tokenization

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.

How can Stobox help you with tokenization?

We provide a turnkey natural resources tokenization solution based on your company goals and provide full support helping you save time and money.

Consulting & Advisory

A comprehensive analysis of your project (adopting the proper structure, picking the best jurisdictions for setting up the holding company, determining the correct type of security, etc.)

Legal Management

Drafting papers, regulatory filings, and setting up the corporate structure. We have studied private placement laws of more than 20 jurisdictions and acquired legal partners in more than 10, which makes us your perfect match in the mission of pursuing your global ambitions.

Marketing

By using our investor communities and a vast network of marketing investor relations partners, we provide a skyrocketing perspective in reaching investors for your project.

Lifetime support

Even after your STO is over, we are still ready to support your token and the platform, solve technical issues, conduct corporate actions such as dividend payments, assist in operating the corporate structure, facilitate secondary trading of securities, and support investor communities.

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