Chapter 20: nvestor Protections in Focus: Intermestic Capital Safeguards for EB-5 Participants
In Chapter 20 of our ongoing interview series, Michael Gibson sits down with Sergio Chavez-Moreno and Dennis Cunningham to discuss how Intermestic Capital and EB5 Horizon are addressing one of the biggest concerns in EB-5 investing: risk.
Sergio explains the construction guarantee and investor application denial guarantee, designed to protect investor capital. Dennis details how replacement investors can be solicited on behalf of any participant whose I-526E petition is denied.
These safeguards, combined with the strong fundamentals of the EVelution Energy cobalt project, set a new standard for transparency and investor-first structuring.
Evelution Energy Interview Chapter 20
Michael Gibson, USAdvisors, interviews Sergio Chavez-Moreno, Operating Partner Intermestic Capital, Dennis Cunningham, Operating Partner Intermestic Capital, President EB5 Horizon
Transcript
EVelution Energy Interview Chapter 20 Transcript
Michael Gibson, Managing Director of US Advisors (USAdvisors.org) an independent Registered Investment Advisory Firm. Michael also owns and runs EB-5 Investments (eb5projects.com) and is an EB5 industry expert.
Marco Lopez, Managing Partner, Intermestic Capital
Sergio Chavez-Moreno, Operating Partner Intermestic Capital
Dennis Cunningham, Operating Partner Intermestic Capital, President EB5 Horizon
Well, not, not only in Arizona, but across the country the EB5 landscape is, is scattered with failed projects. Talking about risk Sergio, so, when I interviewed with Gill and Navaid, we did talk a lot about market risk. And how they were able to mitigate that through the exercising of contracts in the future, forward contracts for their output. As well as for their inputs. Now in EB5 has a certain number of other risks that are in addition to the market risk. I know you guys, in your offering, have done some things to try to allay the concern. And, and you know, let's be honest, there is a concern in the market. Intermestic is a newer player. This is your first EB5. Dennis, not your first EB5 project. But this is the first as a group. And, so there may be some concern from EB5 investors, who may be unfamiliar with your investment philosophy, your background. But you have done some things to try to allay those fears. Some concerns regarding job creation and the completion of the project. Could you outline those for the investors?
Sergio Chavez-Moreno, speaking
Yes. So as we diligence with the project, with our partners at EVelution, I, we did obtain guarantees, to protect and safeguard our investors interests. Amongst them a construction guarantee, that we did obtain from the project. And an investor application denial guarantee. And, and again just to be sure. So if I'm an investor I file a 526E, and it gets rejected, for a reason that did not have to do with fraud, or anything like that. How, how would the the repayment of the principal work. So, well, so first we will talk to, well the investor and find out what exactly, like, happened . And we will work with them depending on their, well on their circumstance. But we do offer, like a pathway to recuperate some of that investment. And then, yes.
Dennis Cunningham, speaking
We will solicit a replacement investor on their behalf. Right. All that's fully explained in the offering documents, along with the with those other guarantees. But we'll, we'll solicit a replacement investor.