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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 Central 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 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 plantations of eco-timber across North and Central 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 within 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: $1.25 (Limited availability)
Min. Subscription: $25,000 USD
Units issued: Series A 2019 Eco-Tree
Time to harvest: 8-12 years
IRA eligible: Yes

Download Brochure

Investment is available to accredited investors, under Regulation D Rule 506(c).

Investing in Empress trees

HOW IT WORKS

Invest in eco-timber production in North and Central America
1 acre of trees planted for every $2500 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 Central 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 we are not depending on any single plantation or farmer.

 

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.

Sharing the Profits

Profits, if any, are shared with farmers, investors and World Tree. Farmers receive 50% of gross profits and World Tree USA, LLC the other 50%. World Tree then shares these profits 50/50 with its investors. The following example illustrates the potential return on a $25,000 investment:

Yield and Potential Returns on $25,000 investment* 

Investment: $25,000

Trees planted: 1,100 (10 acres)

Yield per acre: 33,000 board feet

Survival: 75% 

 

Average yield: 247,500 bf

Revenue and expenses summary*

25% low grade @ $3/bf: $185,625

50% medium @ $7/bf: $866,250

25% high@ $14/bf: $866,250

Total Revenue: $1,918,125 

Cost of harvest: $495,000 

Profit on harvest: $1,423,125

Profit sharing on $1,423,125*

Farmer (50%): $711,562

Investor (25%): $355,781

World Tree (25%): $355,781

*Note

Numbers are shown for illustration purposes and are not a prediction of actual returns.

Pricing, yield and survival are estimates based on World Tree’s current experience in the market.

See the World Tree USA, LLC PPM for more information on yield, survival and pricing, as well as the sections on Risk Factors and “Forward Looking Statements”. 

“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

Thank you for considering this investment for your portfolio. The next step is to read our Private Placement Memorandum. Fill in the form below to receive your copy.

We would love to hear from you and we offer private webinars to potential investors to get your questions answered. After filling in the contact form, we will send you an email with a link to schedule a call if you wish.

Risk Management

ANTICIPATING THE UNEXPECTED

We are dealing with Mother Nature and one of the biggest risk factors is crop failure, 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.

World Tree has also created a contingency fund to deal with any unexpected issues that arise and will replace trees that get damaged.

Participating farmers are carefully chosen for their experience in growing Empress Splendor trees and their commitment to the long-term success of 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 Private Placement Memorandum (PPM) and read the Section titled ‘Risk Factors‘ for more information.  All investors must certify that they have read the PPM in its entirety. 

Frequently Asked Questions

Who plants the trees and where do they grow?

The trees are planted by World Tree certified farmers. These are farmers who already have experience successfully growing Empress trees. 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. Our farmers are located in Canada, the United States and select regions of Central America.

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 only has a small impact on each investor. 

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

There are no guarantees when you make any kind of 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. Empress Splendor lumber currently sells for between $3 and $14 per board foot (or higher) depending on the quality and finish of the wood. We can’t predict the future or what will happen to the price of lumber in years to come.

When do I get my return?

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

This presentation is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed the information contained herein. This presentation is not intended to assist you in making any investment decision regarding the purchase of securities. Rather, the Company has prepared a Private Placement Memorandum for delivery to prospective investors that describes certain terms, conditions and risks of the investment and certain rights that you may have. You should review the Private Placement Memorandum with your professional adviser(s) before making any investment decision. This presentation and the accompanying Private Placement Memorandum are intended for delivery only to, and participation in the investment is restricted to, investors to whom certain prospectus exemptions apply, as described in the Private Placement Memorandum .

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 after the date of the Private Placement Memorandum 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 Sections titled “Note Regarding Forward-Looking Statements” and “Risk Factors” in our Private Placement Memorandum.

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