Quintis Sandalwood Album Project 2017 - WITHDRAWN
Summary
Investing with Quintis
In 2017 TFS Corporation Ltd changed its name to Quintis Ltd, recognising the evolution of the business into a new phase of production, marketing and sale of Sandalwood Album ingredients and products.Quintis Sandalwood Album®
As Quintis, the name Sandalwood Album is used when referring to our trees, ‘sandalwood’ representing the category, ‘album’ referring to the species (Santalum album). Sandalwood Album represents our category leading quality standards of purity and potency, and distances our product from negative perceptions of illegal and adulterated supplies associated with wild Indian Sandalwood.Experienced Managers
We are the world’s largest owner and manager of Sandalwood Album plantations and proudly an ASX 300 Company (ASX Code: QIN).An experienced team of professional foresters, agronomists, research officers and agricultural scientists manage the Sandalwood Album plantations with an ongoing program of monitoring and research to maintain good growth and survival rates. We employ approximately 420 permanent plantation staff across our plantation estates in Queensland, Northern Territory and Western Australia.
In 2008 we acquired Mount Romance Australia Pty Ltd, the leading global distiller of Western Australian sandalwood oil and a producer of sandalwood consumer products, and in 2015 announced the acquisition of our US-based pharmaceutical partners ViroXis Corporation and Santalis Pharmaceuticals to extend our strategy of vertical integration.
Dedicated to Sandalwood
As a specialist Sandalwood Album plantation manager, we are committed to the long-term development of an Australian grown Indian sandalwood industry.We first planted Sandalwood Album in Kununurra, Western Australia in 1999 and have since planted over 12,000 hectares of commercial Sandalwood Album plantations on behalf of retail, sophisticated and institutional investors. This equates to 5.4 million Sandalwood Album trees. By mid-2017 approximately 1,500 hectares of additional Sandalwood Album will have been planted on behalf of investors and companies associated with Quintis.
We own approximately a third of plantations under management, further aligning our interests with those of our investor partners. We completed the first commercial harvest of our Sandalwood Album plantations in 2014 with subsequent harvests in 2015 and 2016. The fourth harvest is scheduled to commence by mid-2017
| Cash Rebate | 4.00% |
| Closing Date | WITHDRAWN |
| Minimum Investment | $8,000 (ex GST) |
|
Application Cost per Lot (ex GST) |
$8,000 (up to 11) $7,800 (12 or more) |
| Term of Project | Approx. 15-17 years |
| Finance available | Yes |
| ATO Product Ruling | 2017/1 |
 |
Product Disclosure Statement | |
|
|
Arwon Finance (P&I Loan) | |
|
|
Adviser Edge Research |
|
 |
Investment Calculator | |
Sustainable Development
We are committed to sustainable development to preserve long- term benefits for the community, environment and Quintis. We support local and indigenous communities through the sponsorship of cultural and educational programs and the creation of local employment opportunities is a large part of our business.Environmentally Responsible
The Quintis Group has achieved accreditation for ISO 9001:2008 (Quality), ISO 14001:2004 (Environment) and AS/NZS 4801:2001 (Occupational Health and Safety) and continually works towards environmental and ethical best practice.Project Features
100% Tax Effective Product Ruling
Quintis Sandalwood Album Project 2017 - Retail Investment Offer (Quintis 2017) has been granted a Product Ruling (PR2017/1) from the Australian Taxation Office (ATO). The ruling confirms that all fees paid in relation to Quintis 2017 are fully tax deductible in the financial year they are paid1. If you elect to be an Electing Grower and collect the Collectable Produce from your Sandalwood Lot(s), you cannot rely on the ATO Product Ruling in respect of your Sandalwood Lot(s) in the Project.Growers who are registered for GST may also claim input tax credits for GST paid in relation to Quintis 2017. By becoming a Grower, you are deemed to be in business and therefore entitled to register for GST.
1 Growers should be aware that Product Ruling PR2017/1 is based on the precise arrangements identified in the Ruling. If the arrangement described in the Ruling is materially different from the arrangements actually carried out, the Ruling has no binding effect on the Commissioner and will be withdrawn or modified. The Product Ruling is only a ruling on the application of taxation law and is in no way expressly or impliedly a guarantee or endorsement of the commercial viability of the project, of the soundness or otherwise of the project as an investment, or the reasonableness or commerciality of any fees charged in connection with the project. It is recommended that Growers read the Ruling in its entirety and seek their own professional taxation advice concerning an investment in Quintis 2017.
A Product Ruling is not an endorsement of the commercial viability of the Project and does not mean that the ATO or ASIC sanction this investment or give any assurance that the production of Sandalwood is commercially viable.
Discount for additional lots
Quintis 2017 has a minimum investment of one twelfth of a hectare (1/12th Ha) with volume discounts for 12 or more lots.Flexible Finance options
Flexible product options with readily available finance through Arwon Finance Pty Ltd (‘Arwon Finance’), a wholly owned subsidiary of Quintis Ltd, via either a 12 Month Interest Free Loan or a Principal and Interest Loan.Ability to defer ongoing fees
Following the initial Establishment Fee, Upfront Annual Fee and Upfront Rent, a Grower may elect not to pay the Annual Fees and Rent via an annual election (see the costs and options section for more details). Restrictions may apply. Refer to PDS for further information.Grower Protection
To maximise Grower protection, Quintis has introduced additional safeguards to protect Growers’ interests. This includes Quintis depositing 50% of the Establishment Fee and the entire Upfront Annual Fee & Upfront Rent into trust accounts maintained by an Independent Custodian. These funds shall be released to the Responsible Entity as set out in the PDS.Fees payable on application
ESTABLISHMENT FEE (INCLUDING GST)| Number of Sandalwood Lots applied for by Applicant | Fee per Lot | Cost for 1 Hectare (12 Sandalwood Lots) |
| 1 - 11 lots | $8,800 | |
| 12 or more lots | $8,580 | $102,960 |
UPFRONT FEES (INCLUDING GST)
| Fee | Fee per Lot | Cost for 1 Hectare (12 Sandalwood Lots) |
| Upfront Annual Fee | $459 | $5,508 |
| Upfront Rent | $146 | $1,752 |
Upon the payment of the Establishment Fee, Growers will acquire an interest in 80% of the Gross Proceeds of Sale (less any applicable deductions as described in this PDS and set out in the Lease and Management Agreement).
*Held in Custodian Account
ANNUAL FEES
Annual Investment Option
Under the Annual Investment Option, Growers can elect to pay the ongoing Annual Fee and Rent on an annual basis.
| Fee | Fee per Lot |
| Annual Fee | $459 |
| Rent | $146 |
The Annual Fee & Rent will increase each year at a fixed rate of 3% per annum throughout the Term.
For each year in which the Annual Fee and Rent is paid and received by Sandalwood Properties Ltd the Grower will acquire an additional percentage interest in the Gross Proceeds of Sale in accordance with the following table:
| Year of Election | Additional interest in Gross Proceeds of Sale |
| Year 1-2 | 3% (plus GST) |
| Year 3-4 | 2% (plus GST) |
| Year 5-14 | 1% (plus GST) |
Annual Deferred Investment Option
After paying the Establishment Fee and acquiring an interest in 80% of the Gross Proceeds of Sale (less any applicable deductions), Growers can elect, on an annual basis, not to pay the ongoing Annual Fee and Rent.
For each year in which a Grower elects to defer the payment of the Annual Fee and Rent, the obligation to pay the Annual Fee and Rent will be deemed to have been satisfied and the Grower will not be entitled to acquire the additional interest in the Gross Proceeds of Sale corresponding to that year.