The Finka Token (a security token) explained
In a nutshell, the FINKA SECURITY TOKEN grants a blockchain based profit entitlement derived from cattle ranching. As an innovative security, it combines technology and the forward sale of future revenues in the traditional cattle industry operated by the Swiss company Finka GmbH, through its own subsidiaries.
The FINKA TOKEN consists of 9.5 million tokens to be issued by Finka GmbH, based on the underlying asset of the cattle herd at La Pradera. Each token is valued at CHF 1.00 and the token holders are entitled to the pro-rata annual net operating revenue of the cattle ranching operation of La Pradera.
Based on historical data, the annual return of the FINKA TOKEN is expected to be in excess of 5% which is to be distributed to each token holder as a true financial return.
In addition, the token holders will have the right to visit La Pradera and experience cattle ranching - first hand. A process is being designed for the token holders to be able to sign up to visit for up to two weeks, at no direct cost on site. The only cost would be the transport required to arrive in Santa Cruz, Bolivia
As an innovative tradable financial asset, the FINKA TOKEN converges cattle ranching (a traditional productive activity) with crypto-finance, based on blockchain. The FINKA TOKEN, as a security token, has value. Why? It represents rights and may be traded in new ways - leveraging blockchain’s DLT. Most importantly, it provides access to the common investor into an asset class previously inaccessible. The FINKA TOKEN democratizes cattle ranching as an asset class for the very first time.
The financial engineering behind the FINKA TOKEN required a holistic design approach. This included the legal structure, the financial structure, the accounting process, the tax implications and the operational requirements. This effort was compounded by the multi jurisdictional considerations to accommodate the underlying asset residing in one country while the financial security being domiciled in another.
This creative dynamic was most stimulating as the design process followed rigorous conventional financial considerations, which are enhanced by the up-coming technology and communication capabilities. We are confident we are pioneering in this space and that the FINKA TOKEN will be referenced for future financial instruments that will converge the traditional economy with crypto finance.