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Forests for Friends Ltd
Bahnhof
8750 Glarus

www.forestsforfriends.com
info@forestsforfriends.com

Frequently asked questions

The price paid for teak increases the more processed it is ...
What will happen to the land after the final harvest?
Are the plantations still certified by FSC?
When can we expect to receive some money?
What about the profit I was promised?
Is there any additional income for Forests for Friends?
What about specific risks of the financial market?


The price paid for teak increases the more processed the wood is. What further business fields do you plan to enter?
It could indeed by attractive to widen the business along the value chain.

What will happen to the land after the final harvest?
We have not yet taken a decision. According to today’s knowledge, it is possible to cultivate a second rotation of teak trees based on the harvested trees. Due to the fact that the roots are already well-established, the growth of the trees will probably be faster.
What we can promise, however, is that we will look for an ecologically healthy solution.

Are the plantations still certified by the Forest Stewardship Council (FSC)?
Since the end of  2007, all our plantations are certified.
(FSC-certificate (PDF, 2
36 KB))

When can we expect to receive some money?
85 % of the revenues are due at the final harvest. It is not our intention to sit on a pot of gold. Any dividends, capital repayments, or re-purchase of shares will be decided by the Annual General Meeting of Forests for Friends Ltd.
After 2026, when all the plantations have been harvested and the land sold for a second rotation, the value of the shares at the time will be paid back to the shareholders.

What about the profit I was promised?
We expect you will get your investment back plus a good profit. We cannot say exactly, how high this will be, as it depends on many factors, such as the market development of the price for plantation teak wood.
Our very conservative budget expects an annual value increase of
up to 3 %. Respectable competitors promise a return of 7 - 8 %.

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Is there any additional income for Forests for Friends?
We are investigating various possibilities at the moment. For instance, we could sell land that is not suitable for growing teak. But we cannot come up with a number yet.

What about specific risks of the financial market?
We do not distribute a financial product. Our shareholders are the owners of the company and can decide on the management and the distribution of the revenues.
The money for maintenance and management is put aside and will not be used for anything else.
There will be no dilution caused by new plantations. 

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