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WORLD TREE

The Empress Splendor Tree

Eco-timber for the conscious investor

World Tree Eco-Tree Program

Invest in Eco-Timber in North and Latin America
Demand for timber predicted to double by 2050
A truly green, climate-focused investment
Offset your carbon footprint 

Climate change, soil degradation and deforestation are issues that will affect us all. Our investors are putting their money into action to create impactful climate change solutions!

World Tree’s programs are based on the fastest growing tree in the world: The Empress Splendor.  When you invest in the Empress, you are investing in eco-timber farms across North and Latin America. You are supporting farmers and protecting our forests, and get to share in any profits from the sale of the lumber.

We project long term potential to be high, as the United Nations predicts that demand for timber will double by 2050. Most trees take 20 to 50 years to reach maturity. Empress trees reach hardwood maturity in approximately 10 years and regenerate a new tree after they have been harvested.  This means we can keep up with the demand for timber without sacrificing our forests.

Offering Summary

Issuer: World Tree USA LLC
Price per Unit: $1.50 $1.25 USD*
Min. Subscription: $3,000  $2,500 USD*
Units issued: Series A 2019 Eco-Tree
Time to harvest: 8-12 years
IRA eligible: Yes

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*The first 1000 acres funded will be issued at the lower price of $1.25 per Unit and a minimum subscription of $2,500 USD.

Investing in Empress Trees

HOW IT WORKS

Invest in eco-timber production in North and Latin America
1 acre of trees planted for every $3,000 USD invested
Risks from weather and disease are reduced by planting in multiple locations
Investors receive 50% of company profits

World Tree USA LLC has two primary objectives: to generate income from the harvest of Empress Splendor trees and to offset the carbon footprint of our investors. How we do that is by planting Empress trees for the purposes of timber production with our network of farmers in North and Latin America.

Every year, World Tree brings together a group of investors who become part of a planting and harvest season. We grow trees with our farmers and when the trees mature, we all share in any profits.

This year, investors will receive “Series A 2019 Eco-Tree Units” and will receive distributions on the trees we harvest from this planting. The farmers who grow the trees on our behalf will receive 50% of the profit from the sale of the lumber. The other 50% is shared between Word Tree and the investors pro-rata.

We qualify farmers based on an interview and the suitability of the land (rainfall, soil, elevation, and temperature). Our farmers are based in select regions in the USA, Canada, Costa Rica and Guatemala. Planting in diverse locations allows us to spread the investment risk so that returns are not dependent on any single location or farmer.

Download our brochure for more details.

 

World Tree

Provides the tree stock, know-how and a buyer for the lumber.

25%

of profits received upon harvest.

 

Farmers

Provide the land, labor, care, and maintenance of the trees.

50%

of profits received upon harvest.

 

Investors

Provide the funding that makes the program possible.

25%

of profits received upon harvest.

Did you know timber has outperformed the stock market for the last 100 years?

~ as reported by InvestmentU and Nasdaq Blog

Why invest in trees?

Timber has been a historically strong investment option
Timber has increased in value at a rate 3% higher than inflation for the last 90 years
Timber investments have outperformed the stock market (S&P 500) for the last 100 years
The timber industry predicts a surge in prices

Demand for wood is rising. The average North American consumes the equivalent of a 100-foot tree every year and the United Nations forecasts that world demand for wood will double by 2050. At the same time, the supply of wood is decreasing. Trees take a long time to grow and we are not keeping up with demand. The environmental impact is degradation of our soils, destruction of our forests and reduced resiliency to climate change. 

Timber is a beautiful resource that we all love to use. However, we need to find a way to keep up with demand in a way that is regenerative and actually restores the land rather than depletes it. The fast growth rate of the Empress Tree makes it an ideal timber source and its ability to capture carbon and restore the soil provide long-reaching environmental benefits.

For many of us investing in trees is a new concept. What you may not know is that timber is a valuable, finite resource that has consistently increased in value. Timber has increased in value at a rate 3% higher than inflation for the past 90 years. Since most timber investments are private holdings, they are not as susceptible to the whims of the stock market. In fact, timber has out-performed the stock market for the last 100 years (referenced from Investopedia’s archive on timber investing ). 

 

Return on Investment 

Pricing depends on the quality and finish of the wood and currently ranges from $3 per board foot for rough lumber and up to $14 per board foot or more for finished lumber. World Tree uses a proprietary 3 grade system, with different prices depending on whether the wood is sold rough or finished.

Returns will depend on the volume and quality of lumber produced. In practice, we can expect to see variation in our farms, producing a mix of low, medium and high grade lumber. 

Profits, if any, are shared with farmers, investors and World Tree. Farmers receive 50% of gross profits, our investors 25% and World Tree retains 25%. This graph shows the potential return to an investor on a $3,000 investment based on tree survival assuming that half the lumber harvested is medium grade, and the rest is a mix of low and high grade.

In 10 years time, even if only 10% of the trees survived, investor returns would be approximately $4,744 at current market prices. We are targeting at least 75% survival, which could produce investor returns of $35,000 or more. 

These numbers include all the costs of managing the plantations and harvesting the lumber. However they are only projections and cannot be guaranteed.

“As long as the sun shines and the rain rains, trees just keep on growing.”

~ Billionaire investor Jeremy Grantham on why he invests in trees.

How to invest

TAKE THE FUTURE INTO YOUR OWN HANDS

You can invest directly online via WeFunder. The WeFunder process is efficient and simple and allows you to engage with a community of other investors. 

We would love to hear from you and we offer private webinars to potential investors to get your questions answered. If you prefer to work directly with us, fill in the form below and we will send you an information package and next steps.

Invest Online

The simplest and fastest way to invest is online, via our partner WeFunder.

Currently, the investment is open for a limited time at $2,500 USD for each acre funded.

Invest now on WeFunder

Risk Management

ANTICIPATING THE UNEXPECTED

We are dealing with Mother Nature and crop failure is a big risk factor, either due to severe weather or because a farmer is unable to care for the trees.  For this reason, World Tree plants the trees across dozens of farms many thousands of miles apart. If anything should happen to one stand of trees, this should not have a significant impact on the overall return.

The trees are most vulnerable in the first two years, and World Tree replaces trees that get damaged during that time.

Participating locations are vetted for soil, temperature, elevation and farmers are interviewed to ensure their long-term commitment to the program.

World Tree visits every farmer. We work hand in hand with them every step of the way to help ensure an impactful experience for everyone involved.

If you are considering an investment it is important to understand the risks involved. Please ask for a copy of our Offering Circular on Form 1-A, and ensure you read the section titled ‘Risk Factors‘ for more information.  

Frequently Asked Questions

Who plants the trees and where do they grow?

The trees are planted by World Tree vetted farmers in Canada, United States and select regions of Latin America. In the United States Empress trees grow best in places with summer temperatures of 70°F (21°C) and above for at least 5-6 months a year and an altitude lower than 2,200 feet. 

How do you protect the trees from weather events?

The trees are most vulnerable when they are young. If anything happens to the trees within the first two years of planting World Tree replaces them. The trees are not planted in a single location. We diversify by planting in many difference locations and with many different farmers. This means that if one farm does experience a problem it should not have a significant impact on the overall return for each investor.

How do I know I will get a return on my investment?

Investor returns are dependent upon the amount of lumber produced and the price at which it sells. A well managed 1-acre plot can yield approximately 33,000 board feet of lumber. While we can’t predict the future or what will happen to the price of lumber in years to come, Empress Splendor lumber currently sells for between $3 and $14 per board foot (or higher) depending on the quality and finish of the wood. 

When do I get my return?

Distributions on any profits are anticipated to be paid to Investors within 8-12 years following your investment.  Twice a year you will receive a report with pictures of the trees and updates on the growth of the trees.

 

Are the trees genetically modified?

No, our trees are not genetically modified (GMO). GMO refers to an organism whose genetic material has been altered using genetic engineering techniques. These sometimes contain genes from totally unrelated species, such as salmon genes in tomatoes. Salmon genes are used in tomatoes to develop frost resistance. This raises concerns that as such an organism could not possibly develop naturally. Our Paulownia trees are bred using conventional methods as used by farmers for thousands of years, i.e. we cross pollinate different lines of the same genus (Paulownia) and then grow the seedlings out, selecting the best and then propagate only from those best trees to develop new varieties. We do not splice in genes from outside the Paulownia genus. There is no unrelated genetic material whether plant or animal included in the genome of our trees.

Disclaimer

NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE CAN BE RECEIVED UNTIL THE OFFERING STATEMENT FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION (“SEC”) HAS BEEN QUALIFIED BY THE SEC. ANY SUCH OFFER MAY BE WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF QUALIFICATION.
AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND.

AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC.  YOU MAY OBTAIN A COPY OF THE PRELIMINARY OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT FROM:https://www.sec.gov/Archives/edgar/data/1687316/000147793219005360/wtcu_1a.htm

Forward Looking Statements

The information provided herein includes forward-looking statements and projections. These statements relate to future events or future performance. All statements other than statements of historical fact are forward-looking statements or projections. Forward-looking statements are often, but not always, identified by the use of words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “continue” “projected” or the negative of these terms or other comparable terminology. These statements are only predictions. Undue reliance should not be placed on these forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By its nature, forward-looking information involves numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur and may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These forward-looking statements and projections made as the date hereof and are expressly qualified by this cautionary statement. No obligation is assumed to update or revise any of the forward-looking statements associated with this Communication to conform such statements to actual results or to changes in expectations except as otherwise required by applicable legislation. See the Section titled “Risk Factors” in our Offering Circular on Form 1-A.

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