Add liquidity and attract investors to your natural resource business

Even though the natural resources industry generates high profits, fundraising for this area might be challenging. Inability to take a bank loan without collateral, challenges with capital raising in a particular country of business registration, investing reluctance of traditional investors may disrupt the production or sale of potential resources. As a result, their real value and financial benefits remain unrealized.

Tokenization is a revolutionary new way that allows every natural resources business to reach new investors and yield liquidity for assets and securities.

How will your business benefit from using natural resources tokenization?

Monetization of illiquid assets

It is usually tough to get direct cash flow from rare diamonds and other natural resources. Tokenization allows you to unlock the potential of such assets, so people can easily invest in them by purchasing tokens and getting indirect fractional ownership.

Access to a wide range of investors

Institutional investors and banks aren't the only available way to raise money. Crypto and individual investors, who find natural resources attention-catching, are interested in diversifying their portfolios. Tokenization offers enchanting perspectives for attracting capital with better fundraising terms.

Increased investment attractiveness by enabling liquidity

Get one step ahead of traditional physical assets and securities! You can trade tokens easily with advanced instruments and win better liquidity, becoming attractive to more investors by offering liquid assets.

Get a better public image of your company

Become considered a highly innovative and modern company by using advanced blockchain technologies. An improved brand image helps raise trust from both clients and investors.

Simple steps to implement natural resources tokenization

Securitization
The first step is transferring the ownership of assets that need to be tokenized — the resource itself (oil, gas, gold, etc.), a mine, or a plantation — to the Special Purpose Vehicle and then issuing securities of this SPV owning the assets.
Offering
You can launch a marketing campaign for the offering from this moment on and start selling tokens to investors globally. Stobox’s marketing partners will help promote the offering and reach the targeted investors.
Tokenization
At this stage, the issued stocks are transformed into tokens. On the blockchain, securities become much more approachable, malleable, and liquid. Still, investors receive full legal protection since all tokens are regulated as regular securities.
Post-STO maintenance
After selling the natural asset tokens to investors and raising funds, the maintenance of assets such as withholding fees and dividing the investors' cash flow can be managed through the dashboard by the business or delegated to an outsourcing company.

Two ways of natural resources tokenization

Tokenization of sale and extraction business

The first possible model is tokenizing a business that does the sale and extraction of natural resources. In this case, token holders basically become shareholders acquiring the issued securities and receive a part of their generated cash flow from extracting, processing, and selling natural resources.

Tokenization of natural resources

The second model is tokenizing a piece of gold, minerals, metals, etc. In this case, investors own a fraction of the resources that are issued in tokens. A particular amount of the given resource backs the price of such tokens. When the assets rise in price, investors get a proportional share in the total pool. It is much easier to trade tokenized gold, a barrel of oil, gas, copper, or uranium via listing or a liquidity pool on special licensed token exchanges.

Why is Stobox expertise so important for the energy and natural resources sector?

Automate multiple business processes
Stobox will help you to automate many processes related to investments and various transactions. It eliminates the red tape and, therefore, reduces the operational overhead and associated expenses.
Access a diverse investor base, yield liquidity, and get full transparency
Apply tokenization to the natural resources industry with Stobox best experts and enjoy unique opportunities to open access to a wider circle of investors and attract smaller individual investors.
Improve access to capital via tokenization
Vast amounts of capital are needed to start multiple operations which increases the entry barrier into the business in 2022. Our team knows how to improve access to capital with the help of tokenization.

Stobox expert guide

Everything you need to know about natural resources tokenization in one ebook 🎓

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Stobox Clients

Below are just a few testimonials from our clients.

One of the things I liked about Stobox was the flexibility and capability of adapting to our specific needs, to take into account our timing and structure to personalize a solution for us.

Rodrigo López

Co-Founder at Candela

Agricultural land for food production is truly one of the most important assets in the world, with growing demand and shrinking acres for supply. We are excited to be working with the Stobox Team and expect to open new opportunities for investors around the world.

Robert Smith

Farmland Assets CEO

We have recognized that Security Token Offering is a superior method of capital raising, and we are grateful to the Stobox team for a delightful collaboration throughout the project setup, as well as the unquestionable 24/7 support provided during the offering.

Michael Hinman

Chairman & founder at Stoneguard Group

Stobox provides an all-in-one solution that simplifies the tokenization process, from legal compliance all the way to token deployment.

Jordan Friske

CEO and Lead Blockchain Developer

We’re excited to work with Stobox to make available a new security token that reduces many of the risks, hurdles, and limitations investors face when adding blockchain-based assets backed by real property to their portfolios.

Thomas Thomison

Founding Member, PowerShift Properties, DAO LLC

The two main problems of reaching investors eliminated with tokenization

There are two main reasons why finding investors for the natural resources business is a challenge.

The industry is capital intensive
Before generating actual profits, the business requires a lot of capital for geological research and mining equipment. Finding investors who would agree to invest a significant amount upfront with no guarantees of success is extremely complicated.
Risks at early stages
The actual presence of natural resources deposits is unknown before the research is started. The fact that the number of minerals in the given area may also be insufficient for the business to become cost-effective creates a significant risk for the investors as well.

How does tokenization solve these problems?

Thanks to granting access to a broader circle of people who wish to participate, tokenization can attract crypto investors to your business. This type of investor is particularly risk-hungry and is willing to allocate significant amounts of money in exchange for future returns. Additionally, thanks to the possibility of trading tokens, it becomes easier for investors to make an early exit, which also plays out for the business as a chance to attract investors both in the early and later stages.

Tokenize with Stobox: how can we help you?

We offer complete assistance to save your time and money. Stobox provides a turnkey solution for the tokenization of assets such as gas, oil, copper, uranium, precious metals, etc.

Comprehensive project analysis

An across-the-board analysis, consulting, and advisory of your project (helping with setting up the holding company and adopting the proper structure, security determination and picking the best jurisdictions, etc.)

Legal guidance

Drafting regulatory filings, setting up the corporate structure, and other legal documentation. We have studied private placement laws of over 20 jurisdictions. In 10 of them, we have legal partners, which makes us a perfect fit for developing your natural resources business.

Assistance with marketing

We give a soaring viewpoint in approaching investors for your project by using our investor communities and a broad network of marketing investor relations partners.

Lifelong support

Your token and the platform will continue to get 24/7 support even after your STO is over. We will conduct corporate actions such as supporting investor communities, helping operate the corporate structure, conducting dividend payments, facilitating secondary securities trading, and solving technical issues.

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