Invest in sustainable timber and fight climate change at the same time. World Tree is offering an RRSP and TFSA eligible investment based on the fastest growing tree in the world - the Empress Splendor.
World Tree is a group of committed people who are using their money to make a difference in the world. Climate change, soil degradation and deforestation are issues that will affect us all. Their investors are putting their money into action to create change while generating a return. Every year World Tree takes in a new season of investors. Their new offering just opened, and to celebrate it is available in June for their lowest share price of 0.90c.
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, protecting our forests and get to share in the dividends from the sale of lumber.
Long-term profit potential is projected to be high, as the United Nations predicts that demand for timber will double by 2050. With the majority of trees taking 20 to 50 years to reach maturity, eco-timber is a way to keep up the demand for timber without sacrificing our forests.
World Tree has two primary objectives:
For every $3000 invested in the company, World Tree will plant 1 acre of Empress Splendor trees. Investors receive “COP 2018” shares in the company, which entitles them to 50% share of the profits upon harvest of those trees in ten years.
1 acre of Empress Splendor trees is enough to offset your carbon footprint for life.
The Empress Splendor tree
We need trees. We need them to clean our air, absorb carbon, produce oxygen and to provide lumber to build with. The only problem is that trees take a long time to grow. World Tree provides a way to plant trees, rapidly grow lumber, reduce our carbon footprint and generate revenue in the process.
The Empress Splendor tree is recorded in the Guinness Book of World Records as “officially amazing”. It is the fastest growing hardwood tree in the world, reaching maturity in just 10 years when it can be harvested for lumber. It also sequesters 11 times more carbon than any other tree.
Where the trees are grown
World Tree is planting and growing Empress Splendor trees using a network of experienced farmers in Canada, United States, and Costa Rica. We have already planted nearly 1000 acres of trees and have our own proprietary growing guides and methods.
We grow in multiple locations in order to reduce the risks of plantation failure due to issues such as disease or weather.
Timber has historically been a strong investment option.
Demand for wood is predicted to increase. The United Nations forecasts that worldwide demand will double by 2050. At the same time, supply is decreasing.
World Tree provides a way to keep up with the demand for hardwood in a way that is scalable and sustainable.
Empress Splendor lumber (genus name Paulownia) is a lightweight hardwood with a high strength to weight ratio. Highly water-resistant, the wood is used for furniture, finishings, veneers, crown moldings, doors, sailboats, surfboards and musical instruments. The wood is highly valued in Asia, which is important as 50% of all timber exports are to China.
Investors in the 2018 COP program receive 50% of the company profits from the harvest of the 2018 season trees. Revenue is based on the growth and sale of Empress Splendor Lumber.
The table below shows the potential total income to the company from 1 acre of trees, according to the volume of lumber produced and the selling price. On average an acre of trees will produce 30,000 board feet of lumber and the current market low is $3/board foot.
There may be expenses from the harvest, milling, and preparation of the lumber (although these costs are normally paid by the buyer).
Profits after harvest expenses will be shared: 50% to World Tree and 50% to the investors.
NOTE: We can’t predict the future or what will happen to the price of lumber in years to come. These figures have not been independently audited and show a range of estimated results. Please refer to our Offering Memorandum for more details.
Use of Proceeds
Funds are used to manage the plantations for the entire ten-year cycle, from propagation to harvest. This includes:
This investment is for 10 years. At the close of this term, World Tree disperses 50% of the profits from the harvest to the investor.
Protecting your investment
We all know that investments carry risks and we advise you to read our Offering Memorandum so that you can understand both the risks and rewards involved with the program.
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 will 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 are on site when they plant and we work hand-in-hand with them every step of the way to ensure a profitable experience for everyone involved.
About World Tree
Wendy Burton, CEO of World Tree COP, is also the founder and president of World Tree Technologies - a US company that has spent the last 16 years promoting the properties of the Empress Splendor tree.
The idea for the Carbon Offset Program came together in 2015. Investors this year will be participating in our fourth year of planting and will benefit from our know-how, network of farmers and on-the-ground experience with the Empress Splendor tree.
How do you deal with risks like weather and disease?
World Tree plants the trees across dozens of farms many thousands of miles apart. If anything should happen to one plantation, this will not have a significant impact on the overall return to the Partnership.
We have also created a contingency fund to deal with unexpected issues that arise and will replace trees that get damaged.
The Empress Splendor trees are naturally insect repellent and fire retardant.
Are the trees genetically modified or invasive?
No. The trees are bred naturally and the species we use is not invasive.
What experience do you have with this tree?
Our Agronomist, Alex Jay, has over 30 years experience growing Empress Splendor trees all the way from tissue through to timber. Alex personally visits all the farmers to educate and support them in growing the trees.
Every investor receives a certificate that confirms the amount of carbon offset. A single unit in the Partnership will offset 1,030 tons of carbon over 10 years.
Note that one of the properties of the tree is that it regrows from the stump after harvest, continuing the cycle of carbon sequestration.
Minimum investment $2500*
Your actual return on investment is dependent on the sale of lumber. While we will endeavor to get the highest possible price, it is not possible to predict returns in the future.
Please note, investments must be in multiples of $2500