GreenLine BDC operates a hybrid business model, generating meaningful current revenues through its service offerings, and much larger “liquidity event” revenues as its positions in previously private companies are sold at public market valuations.
GreenLine’s mission is to fully fund at least six to eight marijuana and industrial hemp companies each year. Initial funding will be via convertible bridge financing. Once the client successfully executes an IPO, they can file a registered offering which is designed to access institutional capital sources. This constitutes a classic win-win scenario for both GreenLine BDC and its clients.
Client companies have access to immediate funding and ultimately can receive a large capital infusion at a reasonable price from the public markets. This offers Greenline BDC and its investors the opportunity to earn extremely high rates of return as its initial investments are made at much lower private company valuations.
Positions can then be liquidated at public market valuations or spun off to its investors in the form of a special dividend. Historically, this “arbitrage” of private vs. public valuations has yielded well over 100% total return to private-company investors; and in some cases, this return has been several times higher.