Communiqué

Deals Done

April 21^st 2008:

It is and has always been a legitimate question from clients to people like Capital Corp Merchant Banking to tell them more about “Track Record” and “Deals Done”.

Capital Corp Merchant Banking will be glad to provide clients with a detailed list of “Deals Done” over the past years so long as those clients are contacted from Capital Corp’s office by clients with whom Capital Corp has a “Signed” Investment Proposal, or Mandate Agreement.

Furthermore, any and all clients asking Capital Corp for a validation of its “Track Record” will be asked by Capital Corp to provide a list of their own of Corporate Investors from whom they (The Client) has received and paid back significant amount of Funding in the past, in amount and size at least equal to the funding required from Capital Corp Merchant Banking.

Finally no list of “Clients” _ Deals Done_ will be given over the phone to clients unknown to Capital Corp Merchant Banking

Regards.

Gilles Herard Jr

www.gillesherard.com

President

Capital Corp Merchant Banking

Communiqué

Credentials and References

April 21^st 2008:

Several clients have had in the past and still have today very legitimate questions concerning Capital Corp’s credibility and capability to close deals hence for the records we say the following:

Capital Corp Merchant Banking has been in Business for more than 25 years and during that period has never been sued by any client for whatever reason.

Furthermore, no one at Capital Corp has ever been arrested nor have a criminal record.

Finally concerning Capital Corp.’s track record concerning the “Deals Done”, Capital Corp has successfully closed over the years several transaction of size varying from $300,000.00 to $200.0M and we will be glad to provide clients with a detailed list of names of clients with whom said “Deals” have been closed. (See Communiqué “Deals Done”)

Regards

Gilles Herard Jr

www.gillesherard.com

President

Capital Corp Merchant Banking

Communiqué  

Capital Corp Merchant Banking

Web Site Summary

Merchant Banking

Merchant Banking is the process of acting as principal and /or agent for Clients / promoters in Project Financing transactions, Equity Funding , or in Engineering the structure of any given Business Deal

Project Financing

You can find in this section How to submit a Project,  Types of Projects that can be funded, Capital Corp. Merchant Banking’s Fee Structure  together with a list of Projects recently Funded

Consulting Services

This section will answer any and all one can have concerning Our Process discuss Presentation Reports , Due Diligences , Evaluation of a Business , Negotiating Services , Acquisitions , Investment Approach  and or our Fee Structure

Frequently asked questions

This section of our website covers a very broad range of the most Frequently asked questions by Clients / Applicants / Promoters to Capital Corp Merchant Banking

Code of Ethics

Unlike many if not most of the Merchant Banking Firms, Capital Corp Merchant Banking has a strict Code of Ethics, which is strictly enforced, at all time.

Select a Language

In consideration for our Clients which are spread all over the world, Capital Corp Merchant Banking is offering this website in English of course, but also in Spanish, Portuguese, Russian, French and Chinese

Welcome at Capital Corp Merchant Banking

Our Pride our Expertise, Our Strength our Contacts

Communiqué

Reports Needed

March 31^st 2008:

Like most if not all Corporate Investors / Lenders or Conventional Funders, and depending on the type of Project to be funded, Capital Corp Merchant Banking will generally require different Reports to be presented to the Funder “Before” any funding is granted.

In fact, some clients still think that they will obtain Funding “Without” having to spend any money on Reports such as Due Diligence Reports, Appraisal Reports, Business Plan or Economical Viability Reports, a position totally unrealistic.

Those Reports are generally prepared for the Funder / Lender / Corporate Investor by International Accounting Firms or well established Appraisal Firm such as American Appraisal Associates, one of the best out there.

The cost for preparing those Reports will vary greatly from one Firm to another, thus the client / promoter need to “Shop for Conditions”

Regards

Gilles Herard Jr

www.gillesherard.com

President

Capital Corp Merchant Banking

Communiqué

Due Diligence

March 28^th 2008:

Capital Corp Merchant Banking has more than 25 years of existence and its President (The undersigned) Gilles Herard Jr ( www.gillesherard.com ) is going on 37 years experience in Project Financing .

Yet despite that long established experience, some clients are still disputing with Capital Corp the need to pay for an exhaustive Due Diligence, to be done “Before” any Funding is granted.

In Equity Funding or Commercial/ Industrial Funding the Due diligence is the equivalent of a Bank running a Credit Bureau verification and a complete Investigation on an Applicant, “Before” authorizing either a Car Loan or a Mortgage loan or any other type of Funding, and any Bank will charge the Applicant a Fee to cover the cost of the Credit Bureau Report, and most of the time will charge a Non Refundable Application Fee.

Having said that, please be realistic and don’t expect any Corporate Investor, Commercial Lender or other type of Funders to invest hundreds of hours in a Due diligence and NOT charge you for it! ! !

Regards

Gilles Herard Jr

www.gillesherard.com

President

Capital Corp Merchant Banking

Communiqué

Due Diligence Policy

March 31st 2008 :

Like all Corporate Investors out there, Capital Corp Merchant Banking will require for a Due Diligence to be done “Before” any Equity Funding, or Conventional Financing is granted on any given Project.

However, “Unlike” most if not “All” Corporate Investors out there Capital Corp will “Refund” the Due Diligence Fees charged to an Applicant IF the Funding applied for is not granted because of a fault of Capital Corp.

On the other hand: Should an Applicant disagree with the Pricing made by Capital Corp for executing a Due Diligence an Applicant will always be given the Opportunity / Choice of dealing with an International Accounting Firm of its choice and negotiate with them Pricing and Conditions of Payment, for executing the Due Diligence needed, so long as the Firm selected is one of the Big Four (Ernst&Young, Deloite Touche, KPMG or Price Waterhouse) understanding however, that should an outside Firm  be selected to execute the Due Diligence the “Refundability” clause from Capital Corp would obviously NOT apply?

Capital Corp Merchant Banking is NOT in the Business of making money in collecting Due Diligence Fees.

Regards

Gilles Herard Jr

www.gillesherard.com

President

Capital Corp Merchant Banking

Communiqué

Project Financing in Africa # 2

March 31st 2008:

Capital Corp Merchant Banking has been involved in Project Financing in Africa for several years now, but it seems that some “Things” never change.

In fact Capital Corp has received, about a month ago, an Application For Funding in the amount of $50.0M to refinance the existing debt on a Hotel in construction (Circa $30.0M) and inject about $20.0M to finish the construction.

The cost of the Project was, according to its Promoter $100.0M and, as of the date of the Application an amount of $50.0M “In Cash” had supposedly been invested by the Promoter into the Project, except that the Promoter had No Financial Statements to prove that so much cash was ever Invested, and when asked at what Bank was his money deposited (Before being invested into the Project) he simply replied that the Money had been stashed under his bed until such date he decided to start his Project! ! !

Furthermore, he confirmed that his Bank (One of the largest in the world and represented in Africa) knew all along about this situation and tolerated it as “Normal”

Just for the records, such “Practices” are “Not” normal and should not be tolerated by Banks in Africa like they would never be in the Western World.

Regards

Gilles Herard Jr

(http://www.gillesherard.com/ )

President

Capital Corp Merchant Banking

March 23^rd  2008

Capital Corp Merchant Banking regularly receives “Packages” describing projects requiring Funding. 

Unfortunately, most of the time , those packages even though well put together, does answer “Crucial Questions” concerning the “Risk” involved for an Investor to come on Board any given project, nor does it say much about the “Applicant”

Having said that, if you are interested to see your “Application For Funding” handled more rapidly at Capital Corp Merchant Banking, please feel free to call our office and ask that we forward you , by e-mail Capital Corp Merchant Banking’s Standard Application Form.

Thank You

Gilles Herard Jr

(http://www.gillesherard.com/ )

President

Capital Corp Merchant Banking

Communiqué

Bio Pharmaceutical

March 19^th 2008:

Capital Corp Merchant Banking has developed over the years a vast network of “Contacts” in the “Investment” world, which are experts in coming on Board as Equity Partners in Bio Pharmaceutical Projects, and which can provide Capital Corp the Financial Support needed to fund Projects in the Bio Pharmaceutical Industry, for any project requiring Funding in excess of Capital Corp Merchant Banking’s in house Financial capability.

Furthermore, Capital Corp can consider Projects in size as low as $2.0M while we generally would not like to exceed $25.0M for this type of Projects.

Finally our interventions are generally done by way of Equity Funding, but we do NOT take majority stake in any given company.

Regards

Gilles Herard Jr

www.gillesherard.com

President

Capital Corp Merchant Banking

Communiqué

Bridge Financing

March 19^th 2008:

Capital Corp Merchant Banking has developed over the years a strong experience in Bridge Financing (Construction Loan)

While Capital Corp Merchant Banking can be extremely creative when it comes to Funding a project, the fact remain that any Applicant (Client / Promoter) must imperatively meet certain “Core Elements” for the Funding process to be successful,

Those Elements are, but without being limited to: Nature of the Project, its Location, The Equity the Promoters are bringing to the table, the ” Commercial Value” of the company applying for Funding, If it is a “Condo Project or Time Share Project, any Pre Sales?

In addition, Security and Collateral are also, as always, an essential consideration.

Capital Corp Merchant Banking definitely has the expertise to help Clients with their Bridge Financing,

Regards

Gilles Herard Jr

www.gillesherard.com

President

Capital Corp Merchant Banking