🔎 Detailed Analysis - "Strawberry Cultivation" Project (8LENDS)

📄 Quick sheet

• Platform : 8LENDS (Maclear group)
• Project Name : Strawberry Cultivation
• Borrower : OSS HOLDING
• Country / sector : Georgia / Strawberry cultivation (Agro-industry)
• Objective : Funding for the expansion of production and the rental of additional greenhouses
• Amount of the envelope : 500,000 €
• Yield rate : 22.90% APR
• Duration : 12 months
• Repayment : Principal repaid at maturity, interest paid monthly
• Collateral : Tangible assets (real estate, freezing unit, production equipment)
• Announced collateral value : 850,446 EUR
• Buyback / buyback guarantee : No (8Lends operates in asset-backed lending; the guarantee = collateral)
• Minimum ticket : 100 USDC

📊 Financial performances

• She started her activities on October 22, 2021
• The financial model of the project is based on forecasts of gross yields and revenues. The document mentions a total revenue of 2,024,676 EUR and an operating profit of 795,876 EUR in the base scenario for 2026
• The financial projections estimate a total harvest of 324,000 kg for 3 hectares in 2026
• Georgia offers a corporate income tax rate of 0% on undistributed profits, which enhances profitability and allows for full reinvestment
• The country also benefits from a VAT exemption on strawberry production, which improves the margin structure

🔒 Guarantees & security: insufficient collateral

• The project is secured by a set of existing and to-be-acquired tangible assets
• The total collateral includes real estate, a freezing unit, production equipment, and a share of future crops
• The total value of the net collateral is 850,446 EUR
• The LTV (Loan-to-Value) ratio is 124%, which means that the value of the collateral is less than the amount of the loan. This represents a significant risk for investors, as the collateral would not cover the full amount of the loan in the event of default.

🎯 Opportunities (investment thesis)

• Sustainability and technology : The company uses geothermal greenhouse technology for sustainable and profitable production year-round
  
• Request approved : Letters of intent have been signed with key buyers, ensuring the sale of future production and a framework for strategic growth
  
• Tax advantages : Georgia offers a 0% tax rate on undistributed profits and a VAT exemption on strawberry production

⚠️ Risk Analysis (home score)

This project has specific features that are crucial to note :

Liquidity risk — Moderate

• The loan has a duration of 9 months with no secondary market, which locks up the capital until maturity

Collateral valuation risk — Moderate

• The value of the collateral depends on the valuation of assets and a future harvest that may be subject to fluctuations

Execution Risk — Moderate

• The success of the project depends on the implementation of expansion and the effective management of production

Market risk — Low

• The company distributes 100% of its current production and has signed long-term letters of intent with its main buyers, which significantly reduces the risk of not finding outlets

Exchange risk — Low to Moderate

• By investing in USDC, your P&L in € will depend on the EUR/USDC exchange rate at the exit

🧪 Sensitivities & scenarios

• Base scenario : The project proceeds as planned, the crops are sold at base prices, generating revenue and profit in line with projections
  
• Default scenario : In the event of a prolonged default, investors would benefit from the sale of the assets pledged as collateral. However, the value of the initial investment is greater than that of the net collateral, which could result in a capital loss

✅ Investor Check-list (Due Diligence)

• Check the client contracts : Although letters of intent have been signed, it is important to verify their validity and scope
• Understanding logistics : The export logistics of strawberries, a perishable product, is a key risk factor
• Ensure the monitoring of execution : The project relies on the expansion of production, which must be closely monitored

🧾 Verdict IndexP2P

This project presents an investment opportunity in an agro-industrial company using sustainable technology. The demand is clearly validated by letters of intent, which reduces commercial risk. The rate of return is very attractive.

However, the LTV ratio of 124% is a major point of concern, as it means that the loan amount is greater than the value of the collateral. This represents a higher risk for investors in the event of default.

Verdict : A project with a good investment thesis, but a less favorable risk/reward ratio than previous ones due to the high LTV.