Public Stock Collateral Loans with Industry Leading Terms.

Value Proposition

We are a relationship-based firm. With that in mind, we strive to deliver our clients the utmost attention, ensuring quality of service.

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Versatility

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More Value

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Competitive Pricing

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Efficiency

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Security

Introduction

What is a public stock collateral Loan?

A public stock collateral loan, also known as a securities-based loan or equities-backed loan, is a way to borrow money using publicly traded stocks as collateral.

What are the benefits of a public stock collateral Loan?

Consider the deterrent of the capital gains tax if you sell your stock. This product gives you access to tax-free funds from an asset that otherwise would be sitting underutilized, while most importantly, not selling and keeping your investment secure for future upside.

Unlock Funds Hassle – Free

Your Path to Financial Freedom

We believe in empowering you financially, allowing you to decide how best to utilize the funds.

Industry leading Terms

Please contact us to see if your stock qualifies and inquire for exact terms that can be offered.

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Terms

3% to 4% locked-in interest only rates.
Loans start at $250,000 and go up to $100,000,000 USD.
Length of loans start at 24 months.
LTV 60% to 70%.
3% One-time upfront Loan Origination fee deducted from loan proceeds.

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Simple Qualifications

Public Stock Collateral Loans are on a non-recourse structure. No personal guarantees or security for other assets are required. The only collateral provided are the pledged shares. The stock typically needs to have a minimum daily liquidity of $50,000.

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Fast Approvals

Get the funds you need within days, providing you with financial agility.

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Retain Value Upside

You retain 100% of the appreciation in equity value, securing your financial interests and potential for future gains.

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Complete Asset Return

When your loan is fulfilled, rest assured knowing that the full number of shares will be returned to you.

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Empowering You Financially

Funds can be issued in most major currencies. Loan proceeds can be used for any purpose and at your discretion.

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References

We are happy to offer references and introductions to top executive shareholders for your due diligence & peace of mind.

Overview

Lender Process

At Capital Bloom, we assist you through the whole process with lender communications and negotiations. Ensuring you have the best possible outcome and service at every step.

01 – Schedule an Introduction Meeting

We believe in formalities. We will meet with you to fully communicate the product and answer any questions to ensure your full understanding

02 – Terms

The lender issues terms on the asset for you to review.

03 – Origination

The lender’s portfolio management and origination team identifies a liquidity opportunity and establishes a partnership with the issuer or asset owner.

04 – Agreement & Funding

A loan gets issued to the asset owner while the financial assets are pledged as collateral in order to establish a long position in the lender’s portfolio.

05 – Financing & Collateral Return

At the outset of the loan, title is obtained, and custody of the collateral.

When the loan is repaid, all collateralized assets are returned to the borrower. The asset owner retains 100% of the investment upside.

Case Studies

Our Projects

Case Study 1

C$6,22M Equity-based collateralized loan at 3.75% fixed rate for 2 years term Borrower, H. P., was a major shareholder of a Canadian Securities Exchange (“CSE”) listed publicly trading company and was in need of a quick capital refinancing for personal investment purposes. Although H.P. held more than C$8.00M (7.00M shares) in freely trading shares of the public company, he did not wish to sell the shares and has the intention to hold them for long term. Through the arrangement by Capital Bloom, H.P. pledged his 7.00M shares of the public company and obtained a $6.22M fixed term loan for 2 years at a rate of 3.75% based on a loan to value of 63%. At the time of loan initiation, ownership of the pledged shares was transferred to the lender for the 2 years period in exchange for funding. At maturity, H.P. repaid the full principal of $6.22M to the lender and receives back the full 7.00M shares, locking in the additional profits generated by the share appreciation.

Case Study 2

C$400,000 Equity-based collateralized loan at 3.50% fixed rate for 3 years term Borrower, D.T. was a shareholder of a TSX Venture Exchange (“TSX-V”) listed publicly trading company and was in need for liquidity for personal reasons. At the time of the loan, share price of the public company was trading at approximately $7.00 a share and D.T. had held close to 4.00M shares under his name. With a strong believe on the upside of the company, D.T. has elected that obtaining liquidity through the sell of his position would not be ideal. As a result, D.T. engaged Capital Bloom to pledged a small portion of his shares to obtain a $400,000 fixed loan for 3 years at a rate of 3.50%. By maturity, D.T. returned the principal of the loan to the lenders and received back 100% of his pledged shares.

About Us

Meet Our Team

Sam Perera (MBA, CAIA, CF, MBI)

Principal

Sam is the founder of Capital Bloom and has extensive knowledge in a variety of industries including real–estate, manufacturing, mining, lumber, agriculture, technology, services industries, and consumer products. Before founding Capital Bloom, Sam held senior finance roles at HSBC Bank Canada, BMO Bank of Montreal, and Noverra Capital Partners. Deal experience includes mergers & acquisitions financing, and cash-flow lending.

Michael Seisdedos

Director

Michael has over 20 years of experience in corporate finance and real estate. As Director, overseeing a portfolio of clients across various sectors and regions internationally. With a mission to deliver exceptional service and value to clients, partners, and stakeholders. Passionate about finding creative and strategic ways to solve complex problems while creating positive impact by fostering a culture of excellence and innovation.

Kai Chan ( CBCA, CREF )

Director of Research

Kai has over 10 years of experience in the fields of investment banking, corporate finance, and asset management (North American equities), he has developed extensive knowledge in industries including mining, real estate, technology, CPG, and agriculture. Prior to joining Capital Bloom, he held the position of Senior Portfolio Analyst at Amur Financial and worked as an Associate at Adaptable Investments. He is currently a Level III candidate in the CFA program and a Level II candidate in the CAIA program.