EVelution Energy Interview Chapter 25: EB-5 Investor Exit Strategy: Multiple Paths to Repayment at EVelution Energy
Dennis Cunningham explains how operating strength and financial structure support investor repayment options in the EVelution Energy project.
In Chapter 25 of the EVelution Energy Interview Series, Michael Gibson, Managing Director of USAdvisors.org, speaks with Dennis Cunningham, President of EB5 Horizon and Operating Partner at Intermestic Capital, about a key question for every EB-5 investor: What is the exit strategy?
Dennis shares that the EVelution Energy cobalt processing project in Yuma County, Arizona has a diversified repayment plan built on the project’s operational success and capital structure.
“There are several options open,” Dennis explains. “We’re working closely with our partners at EVelution Energy on operating cash flow, refinancing part of the debt, and potential sales strategies. The key point is that we’re sponsoring a strong, profitable business — that’s what makes repayment possible.”
With operating margins in the 20–25% range and EB-5 debt representing about 28–30% of the total capital stack, the project’s financial foundation provides flexibility and confidence for investors expecting a return after their five-year commitment.
Evelution Energy Interview Chapter 25
Michael Gibson, USAdvisors, interviews Dennis Cunninbgham, Operating Partner Intermestic Capital, President EB5 Horizon
Transcript
EVelution Energy Interview Chapter 25 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
Michael Gibson, speaking
So Dennis, we talked about job creation. You're 4X, using everybody, using the, the operational, using the construction, the direct, indirect, and induced. 4X. If you take even, I guess as, as I understand, it you just take the operational out.
Dennis Cunningham, speaking
Yep.
Michael Gibson, speaking
And you only rely on construction. Which will be done in two years. Which again in, in a, in a commercial real estate sense, is very fast. And stabilized on day one. As we said, we've, we've heard all the sales are accounted for. That's two years. So we, we talked about the job creation. We talked about the timeline for the, for the project to be operational. We talked about the ROI, the projected ROI. One thing we haven't talked, the exit strategy. So client is in, the Investor is in for five years. How do they expect to get their money back? What is, what is the signature event? Or is there an event? How does it work? So that there will be some sort of a payout at the end of the five years.
Dennis Cunningham, speaking
So there's several options open. And we're working closely with our partners at EV, Navaid and Gil. There's operating cash flow. There is a refi of part of the debt. There is a sales strategy. There's a numerous strategies. But the key point is, you've got first in class, you've got baked in operating margins. That when they listen to the video, they will hear they're in the, very healthy 15% 20%, excuse me, 20% 25% range. That provides the vehicle to take out the EB5 debt. Which is about 28% to 30% of the capital stack. So, exactly what form that's gonna take, bnwe don't know. But it's gonna be one of those three forms, that will allow us to provide the exit strategy for the EB5 Investor. The key point is, do we have a good operating business? That's making money? By signing the on take and the off take, and negotiating those contracts, negotiating those LOIs, being in negotiations with those types of firms, yes. We're, we are sponsoring a great operating business. That's the key point.