Earn Income Now, Secure Discounted Equity Later
Investors receive consistent interest income from this initial debt structure, which later permits conversion into Fairclough Palmer AG shares with favourable, discounted terms.
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Structured Terms for
Clarity & Value

At Fairclough Palmer AG, our convertible debt isn't just a loan – it secures reliable income, offers participation in growth and provides advantaged access to future equity.
Annually
Interest Payment Frequancy
7 Years
Avg Investment Term
37.5%
Maximum Conversion Discount
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Core Benefits of Convertible Debt Investing

As a hybrid instrument, convertible debt plays a strategic portfolio role by balancing income security with equity upside, potentially improving diversification and risk adjusted outcomes across economic cycles.

Regular Income
Downside Protection
Participation in Equity Upside
Advantaged Conversion Terms
Investor Flexability
Reduced Initial Risk Profile
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Optional Conversion Scenarios for Investors

Governed by outlined terms, convertible debt ultimately resolves through one of two routes for an investor. These routes are either conversion into company shares or full repayment of the principal amount, both ensuring the debt obligation is completely discharged.

Initial Public Offering (IPO)
Investor Discretionary Period
Conversion at Maturity
Repayment of Principal
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Conversion Rights Within the Discretionary Period

Once convertible debt is held for half (50%) its term, investors possess the elective right for early conversion into Fairclough Palmer AG equity. This option is exercised at the investor's discretion, per the valuation parameters and conditions in the investment agreement.

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Understanding the Mechanics of Conversion or Repayment

Investors are notified to log into their Investor Portal online to choose between equity conversion or principal repayment by the deadline. Funds lacking instruction post deadline are held interest free in a segregated trust due to regulations, pending resolution.

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Provisions Ensuring Investor Security

Protecting investor capital and ensuring stability demands diligent risk management through regulatory adherence, liquidity supervision and stress tests confirming operational soundness. This secures continuity and preserves asset value during adverse market conditions.

  • Investor security is reinforced by the convertible debt's direct collateralisation against the equity portfolio.
  • Risk is lowered through a value investing discipline which prioritises fundamental analysis and requires a margin of safety.
  • Swiss due process requirements enhance asset defence against arbitrary foreign government or regulatory orders.
  • Convertible debt proceeds solely fund portfolio equity acquisitions (private or public), not operational overhead.
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Risks Associated with Convertible Debt

Disclosure of risks is required for transparency, but investors should understand this list does not imply certainty of occurrence. Fairclough Palmer AG employs established safety protocols and risk management models designed to minimise adverse impacts on invested capital.

  • Upon conversion to equity, the investment becomes subject to share price volatility based on market and company conditions.
  • Convertible debt holdings can be illiquid, potentially making them difficult for investors to sell quickly before maturity or conversion.
  • Inherent uncertainty regarding future valuations directly impacts the final return achieved through conversion.
  • Equity dilution resulting from new shares issued at conversion can potentially dampen future share price appreciation.