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Exceptional Opportunity
As you are probably aware by now the State of Missouri Community Development Block Grant agency has approved our $450,000.00 1% interest 2 year loan. In the words of CDBG management Back 40's application was the most thorough and best prepared that they had ever received.
In spite of that fact, due to the current economic conditions of our country, the terms on the letter of credit we must obtain prior to the release of funds have been changed. Banks are operating under much tighter regulation than ever before. As a result, even though our collateral and credit history support the issuance of the letter of credit no bank can issue one at this time. I should mention that the State’s offer still stands approved.
After careful consideration we have decided it would be best to pursue an alternate source of funds to ensure our continued growth. For investors in a Development Stage company such as Back 40 Group this a golden opportunity . We have spent 3 years developing our concepts, our intellectual property, our equipment and our methods of operation. We have now laid a solid foundation and are rolling out and scaling up our products and services. Here are just a few of the developments that have occurred over the past few months:
So, here is our plan to fund our further growth: Back 40 Group will issue stock warrants in the amount of 20,000 shares per $10,000.00 on each investment. These warrants will allow the holder to purchase shares at our current offering price of 12¢ per share until August 31, 2011. No payment for the options is made until the warrants are exercised. In practical terms, taken from our projected Capitalization Table this is what this can mean to you:
| Investment Amount | Shares Issued @ .12 | Warrants Issued @ .12 | Exercise Cost | Value @ .50/Share | Value @ $2.50/Share | Net Appreciation |
| $10,000 | 83,333 | 20,000 | $ 2400 | $ 51,666 | $ 258,332 | $ 255,932 |
| $20,000 | 166,666 | 40,000 | $ 4800 | $ 103,333 | $ 516,665 | $ 491,865 |
| $30,000 | 249,999 | 60,000 | $ 7200 | $ 154,999 | $ 774,997 | $ 737,797 |
| $40,000 | 333,332 | 80,000 | $ 9600 | $ 206,166 | $ 1,030,830 | $ 1,025,870 |
| $50,000 | 416,665 | 100,000 | $ 12000 | $ 258,332 | $ 1,291,662 | $ 1,229,662 |
| $100,000 | 833,333 | 200,000 | $ 24000 | $ 516,666 | $ 2,583,332 | $ 2,459,332 |
| $150,000 | 1,249,998 | 300,000 | $ 36000 | $ 774,999 | $ 3,874,970 | $ 3,688,970 |
| $200,000 | 1,666,666 | 400,000 | $ 48000 | $ 1,033,337 | $ 5,166,665 | $ 4,918,665 |
| $250,000 | 2,083,331 | 500,000 | $ 63000 | $ 1,291,666 | $ 6,458,327 | $ 6,145,327 |
As you can see, by our projections, by the end of eighteen months or so your options alone should equal the amount of your original investment. The total worth of your investment and options could equal 4.5 times your original investment. Of course, unless you have an emergency it will be difficult for you to dispose of your holdings at this time. If you do have a serious need, management will do our best to find a buyer for you.