US$10 Million Foreign Investor Feasibility

Below is a complete investor-grade feasibility and investment memorandum built around a US$10 million foreign-investment project in the Philippines: a Philippine-based advanced botanical extraction and downstream-products company using supercritical fluid extraction (SFE) as a core technology, with agarwood/oud and other high-value botanicals as flagship feedstocks.

Philippine Advanced Botanical Extraction & Downstream Products Company

Supercritical Fluid Extraction • Agarwood/Oud • Botanical Actives • Natural Fragrance • Wellness • High-Value Export Products

Investment Size: US$10,000,000
Proposed Location: Philippines
Investment Structure: Foreign Direct Investment / Philippine Operating Corporation
Project Type: Advanced botanical extraction, processing, formulation, manufacturing and export platform
Primary Technology: Supercritical Fluid Extraction (SFE), supported by complementary extraction and purification technologies
Target Markets: Philippines, GCC, Japan, South Korea, EU, North America and other premium export markets
Investment Horizon: 7–10 years
Indicative Base-Case Project IRR: ~18% unlevered, before terminal/exit value
Indicative Base-Case Exit IRR: ~28–31%, depending on terminal valuation
Memorandum Date: 20 August 2026

1. EXECUTIVE INVESTMENT SUMMARY

1.1 Investment proposition

The proposed project establishes a Philippine-based Advanced Botanical Extraction & Downstream Products Company specializing in the conversion of Philippine and Southeast Asian botanical resources into high-value extracts, essential oils, absolutes, oleoresins, hydrosols, purified fractions, active ingredients and finished consumer products.

The company will combine:

Supercritical CO₂ extraction
Advanced botanical extraction and fractionation
Essential-oil and aromatic-material processing
Agarwood/oud processing
Botanical active-ingredient development
Fragrance and perfumery ingredients
Cosmetic and personal-care ingredients
Wellness and nutraceutical ingredients, subject to applicable regulatory approvals
Finished luxury products
Contract extraction and private-label manufacturing
Research, formulation and technology development
Export-oriented manufacturing

The central investment thesis is to move Philippine botanical resources up the value chain.

Instead of exporting low-value raw agricultural materials, the company converts them into standardized, traceable and internationally marketable ingredients and finished products.

2. INVESTMENT THESIS

Why invest US$10 million?

The proposed investment creates a vertically integrated platform positioned between:

Philippine biological resources
↓
Sustainable cultivation and sourcing
↓
Advanced extraction
↓
Purification / fractionation
↓
Standardization
↓
Formulation
↓
Premium ingredients
↓
Finished consumer products
↓
International distribution

This structure allows the investor to participate in several margin pools rather than relying solely on commodity raw-material sales.

Core investment advantages

Factor	Investment rationale
Philippine location	Access to tropical botanical resources and agricultural labor
Foreign investment	Manufacturing/export activities can generally accommodate substantial or 100% foreign ownership when not restricted by the Foreign Investment Negative List
SFE technology	Enables premium, solvent-reduced extraction and differentiated products
Agarwood/oud	High-value specialty fragrance opportunity
Botanical ingredients	Multiple potential revenue streams
Export orientation	Access to higher-value international markets
Vertical integration	Greater control over quality, supply and margins
Contract extraction	Recurring B2B revenue
Private label	Scalable manufacturing revenue
Proprietary formulations	Potentially higher gross margins
R&D	Creation of differentiated IP and standardized extracts
Sustainability	Supports traceable and cultivated botanical supply

Under the Foreign Investments Act, foreign investors may generally own up to 100% of domestic enterprises unless the activity is restricted by the applicable Foreign Investment Negative List or another law. (Bangko Sentral ng Pilipinas)

3. PROPOSED CORPORATE STRUCTURE

3.1 Recommended structure

Foreign Investment Holding Company

Foreign Investor / Investment Fund
↓
Philippine Holding / Operating Corporation
↓

Business Units

A. Extraction Division

Supercritical CO₂ extraction
Botanical extraction
Essential oils
Oleoresins
Absolutes
Hydrosols
Specialty fractions

B. Agarwood & Oud Division

Cultivated Aquilaria supply
Resin induction partnerships
Agarwood chips
Agarwood powder
Hydrodistilled oud oil
SFE agarwood fractions
Agarwood absolute
Hydrosol
Fragrance ingredients

C. Botanical Actives Division

Standardized botanical extracts
Cosmetic actives
Functional ingredients
Research-grade extracts

D. Consumer Products Division

Eau de parfum
Oud products
Candles
Incense
Solid perfume
Skincare
Wellness products

E. Contract Manufacturing Division

Extraction-as-a-service
Private-label manufacturing
Formulation
Filling and packaging

4. FOREIGN INVESTMENT FEASIBILITY

4.1 Foreign ownership

The Philippines generally permits 100% foreign equity in activities outside the Foreign Investment Negative List.

The Board of Investments confirms that full foreign entry is generally possible where the proposed activity is not included in the applicable FINL. (Bangko Sentral ng Pilipinas)

For the proposed project, the preferred structure is therefore:

Target ownership

Foreign investor: 100%

subject to confirmation during Philippine legal due diligence that the final combination of activities does not enter a restricted activity.

5. LAND AND PROPERTY STRATEGY

A foreign-owned Philippine corporation should not be structured around direct foreign ownership of Philippine private land.

The preferred alternatives are:

Option A — PEZA / economic zone lease
Lease industrial property within an appropriate economic zone.

Option B — Long-term industrial lease
Lease an industrial site from a qualified Philippine landowner.

Option C — Philippine-owned property company
Use a properly structured Philippine-national property entity where legally appropriate, with the operating company leasing the facility.

Recommendation

For a US$10 million project, leasing rather than purchasing land during Phase I is recommended.

This preserves capital for:

extraction equipment;
laboratories;
inventory;
R&D;
working capital;
market development.

6. PROJECT LOCATION STRATEGY

The preferred location should provide:

access to Manila international logistics;
reliable electricity;
industrial water supply;
wastewater treatment;
export logistics;
skilled technical labor;
proximity to agricultural sourcing areas;
proximity to universities and research institutions;
access to an economic zone where appropriate.

Preferred geographic strategy

Primary processing/manufacturing hub
- Central Luzon / CALABARZON / other suitable industrial zone
Botanical sourcing network
- Luzon + Visayas + Mindanao
Specialized agarwood supply network
- Philippine Aquilaria-growing areas
International export gateway
- Manila / Batangas / Subic / Clark logistics network.

7. TECHNOLOGY PLATFORM

7.1 Supercritical Fluid Extraction

The technological centerpiece is a commercial-scale supercritical CO₂ extraction platform.

The system uses CO₂ under controlled temperature and pressure to extract target compounds from botanical materials.

Key advantages

low solvent residue;
tunable extraction conditions;
selective fractionation;
high-value extracts;
premium positioning;
closed-loop CO₂ recovery;
potential preservation of thermally sensitive compounds;
potential for food, cosmetic, fragrance and specialty applications depending on product and regulatory pathway.

8. PROPOSED EXTRACTION FACILITY

Indicative processing platform

Phase I capacity

A modular extraction facility capable of processing multiple botanical feedstocks.

Potential processing categories:

aromatic woods;
seeds;
spices;
leaves;
flowers;
roots;
fruits;
resins;
oleoresins;
medicinal/aromatic plants.

Major equipment

Equipment	Indicative purpose
SFE systems	Primary extraction
CO₂ recovery system	Closed-loop operation
Distillation systems	Essential oils/fractions
Hydrodistillation equipment	Oud and aromatic oils
Vacuum concentration	Concentration
Fractionation equipment	Separation
Filtration	Clarification
Drying equipment	Powder extracts
Spray dryer / suitable drying technology	Powdered ingredients
Blending systems	Formulation
Filling lines	Consumer products
Packaging lines	Finished goods
QC laboratory	Quality control
R&D laboratory	Product development
Pilot plant	Process optimization

9. PRODUCT PORTFOLIO

9.1 B2B ingredients

Premium extraction products

Botanical CO₂ extracts
Essential oils
Oleoresins
Absolutes
Hydrosols
Aromatic fractions
Botanical concentrates
Standardized extracts

Fragrance ingredients

Oud fractions
Agarwood extracts
Natural aromatic fractions
Resin extracts
Floral extracts
Spice extracts
Tropical botanical extracts

Cosmetic ingredients

Potential categories include:

antioxidant extracts;
botanical oils;
aromatic extracts;
skin-conditioning ingredients;
natural fragrance ingredients;
botanical active fractions.

All product claims and regulatory positioning would need to be established product-by-product.

10. AGARWOOD / OUD STRATEGIC PLATFORM

Agarwood is proposed as one of the company’s flagship specialty verticals.

Potential product ladder

Aquilaria cultivation
↓
Legal propagation
↓
Resin induction
↓
Harvest
↓
Grading
↓
Agarwood chips
↓
Agarwood powder
↓
Hydrodistillation
↓
Oud oil
↓
SFE / advanced extraction
↓
Absolute / specialty fractions
↓
Perfume ingredients
↓
Finished luxury products

This creates a powerful value-addition ladder.

11. AGARWOOD REGULATORY RISK

Agarwood is not an ordinary agricultural commodity.

The Philippine DENR has emphasized that commercial propagation, collection and trade involving Aquilaria require compliance with applicable wildlife and forestry rules and appropriate permits. DENR has specifically stated that collection of wild Aquilaria material is regulated and that legally sourced planting material and appropriate Wildlife Culture Permits are required for propagation activities. (DENR)

Accordingly:

The project shall NOT depend upon:

undocumented wild harvesting;
illegally sourced Aquilaria;
unverified planting material;
undocumented export;
unsupported species identification.

Instead, the company shall implement:

legal source verification;
plantation records;
chain-of-custody documentation;
species identification;
farm registration/permit compliance;
harvest documentation;
CITES/export compliance where applicable;
batch traceability.

12. SUSTAINABLE SUPPLY MODEL

The company should establish a Botanical Supply Partnership Program.

Supply model

Company
↓
Provides:

planting material where legally permissible;
technical assistance;
agronomic protocols;
quality specifications;
guaranteed/offtake arrangements.

↓
Partner farmers / plantations
↓
Produce certified botanical biomass
↓
Company purchases according to specifications

This reduces the need for the company to own all agricultural land and creates an expandable supply network.

13. US$10 MILLION CAPITAL REQUIREMENT

Proposed allocation

Use of funds	US$ million	%
SFE extraction equipment	2.20	22%
Complementary extraction/distillation equipment	0.70	7%
Processing and packaging equipment	0.65	6.5%
Laboratory/R&D/pilot plant	0.75	7.5%
Facility fit-out/utilities	0.90	9%
Sustainability & raw-material supply program	0.80	8%
Initial inventory/raw materials	0.70	7%
Regulatory, certification & validation	0.30	3%
Product development/brand development	0.35	3.5%
International market development	0.35	3.5%
Working capital reserve	1.40	14%
Contingency	0.90	9%
TOTAL	10.00	100%

14. FUNDING STRUCTURE

Recommended structure

US$10 million initial capitalization

Preferred

70% equity
30% shareholder/strategic debt

Conservative structure

100% equity during construction and commissioning.

The second structure is preferable if the investor’s primary objective is minimizing early-stage financial risk.

Debt can subsequently be introduced after:

commercial production;
validated customers;
stable purchase orders;
positive EBITDA;
predictable cash flow.

15. IMPLEMENTATION PHASES

Phase I — Formation and validation

Months 0–6

Activities:

incorporate Philippine entity;
finalize investment agreement;
site selection;
regulatory mapping;
engineering;
technology procurement;
feedstock contracts;
laboratory setup;
pilot extraction;
product development.

Phase II — Construction and commissioning

Months 6–18

Activities:

facility fit-out;
equipment installation;
laboratory commissioning;
quality system implementation;
pilot production;
customer sampling;
certification;
initial export validation.

Phase III — Commercial launch

Months 18–30

Target:

first commercial production;
first international customers;
contract extraction;
private-label production;
initial agarwood/oud product sales.

Phase IV — Scale-up

Years 3–5

Focus:

increase extraction utilization;
expand product portfolio;
develop international distributors;
expand farmer supply network;
establish premium fragrance division;
develop proprietary extracts.

Phase V — Regional expansion

Years 5–10

Potential:

additional extraction trains;
regional sourcing;
international sales offices;
joint ventures;
technology licensing;
acquisition of specialty botanical brands.

16. REVENUE MODEL

The company should not depend on one product.

Revenue streams

1. Contract extraction
Customers supply raw material; company charges extraction and processing fees.

2. B2B ingredient sales
Company owns the raw material and sells standardized extracts.

3. Fragrance ingredients
High-value aromatic fractions and oud materials.

4. Private-label manufacturing
Manufacturing for international brands.

5. Own-brand products
Higher-margin finished goods.

6. Technology / process development
Potential future licensing and technical services.

17. REVENUE PROJECTION

Base-case projection

Fiscal year	Revenue US$M
Year 1	2.5
Year 2	5.5
Year 3	9.0
Year 4	13.0
Year 5	17.0
Year 6	21.0
Year 7	25.0
Year 8	29.0
Year 9	33.0
Year 10	37.0

The model assumes a gradual ramp rather than immediate full utilization.

18. EBITDA PROJECTION

Fiscal year	EBITDA US$M	Indicative margin
Year 1	0.2	8%
Year 2	1.1	20%
Year 3	2.2	24%
Year 4	3.6	28%
Year 5	5.1	30%
Year 6	6.3	30%
Year 7	7.5	30%
Year 8	8.7	30%
Year 9	9.9	30%
Year 10	11.1	30%

These are investment-model assumptions, not guaranteed forecasts.

19. BASE-CASE CASH FLOW

Indicative unlevered free cash flow:

Year	FCF US$M
Initial investment	(10.00)
1	(0.85)
2	(0.08)
3	0.95
4	2.02
5	3.22
6	4.12
7	5.08
8	6.04
9	7.00
10	7.96

On these assumptions, the indicative project IRR is approximately 18% before assigning a terminal/exit value.

20. EXIT VALUATION

A strategic investor may value the company using:

EBITDA multiple;
revenue multiple;
discounted cash flow;
strategic acquisition value;
replacement cost;
intellectual-property value;
contracted future cash flow.

Illustratively, a Year-10 EBITDA of approximately US$11.1 million could support substantial enterprise value at an appropriate strategic-market multiple.

Illustrative exit scenarios

Exit EBITDA multiple	Approx. terminal EV	Indicative project IRR
5×	US$55.5M	~28%
6×	US$66.6M	~30%
7×	US$77.7M	~31%
8×	US$88.8M	~32%

These are scenario calculations only and should not be interpreted as a guaranteed valuation.

21. BREAK-EVEN ANALYSIS

The principal fixed-cost drivers are:

management;
technical personnel;
laboratory;
facility;
utilities;
equipment depreciation;
quality systems;
regulatory compliance;
sales and marketing.

The business should target:

Operational break-even

Approximately Year 2–3

Strong cash generation

Approximately Year 3 onward

Mature utilization

Approximately Year 4–5

The exact break-even point should be recalculated after:

equipment quotations;
utility costs;
labor plan;
lease quotation;
feedstock pricing;
customer contracts.

22. MARKET STRATEGY

Priority 1 — GCC

Target markets:

UAE
Saudi Arabia
Qatar
Kuwait
Bahrain
Oman

Potential products:

oud;
perfume ingredients;
luxury fragrances;
incense;
agarwood products.

Priority 2 — Japan

Position around:

quality;
traceability;
natural origin;
craftsmanship;
sustainability;
premium botanical ingredients.

Priority 3 — EU

Potential sectors:

natural fragrance;
cosmetics;
botanical ingredients;
specialty extracts.

Priority 4 — North America

Potential customers:

natural beauty brands;
clean-label brands;
specialty ingredient companies;
fragrance companies;
wellness companies.

23. COMPETITIVE POSITIONING

The company should avoid competing primarily on commodity price.

Instead, positioning should be:

Philippine-origin, scientifically extracted, traceable, sustainable, high-value botanical ingredients.

Competitive moat

SFE equipment
Proprietary extraction protocols
Feedstock relationships
Botanical supply network
Analytical database
Standardized extracts
Brand portfolio
Agarwood expertise
Customer qualification
Regulatory documentation
Traceability system
R&D/IP

24. QUALITY ASSURANCE

The facility should be designed toward internationally recognized quality systems appropriate to its product categories.

Potential systems include:

GMP;
HACCP where applicable;
ISO 9001;
ISO 22000 where applicable;
organic certification where economically justified;
Halal;
Kosher;
cosmetic GMP where applicable;
laboratory analytical standards.

The exact certification package should depend on the intended end markets and product classifications.

25. REGULATORY FRAMEWORK

The company should establish a regulatory matrix covering:

Corporate

SEC
BIR
local government permits

Investment

BOI
PEZA or other investment promotion agency where appropriate

Environment

DENR
Environmental Compliance Certificate requirements
wastewater/emissions requirements

Agriculture / forestry / wildlife

DA
DENR
BMB
applicable plant quarantine requirements
CITES requirements for regulated species/trade

Products

FDA for products falling under FDA jurisdiction
cosmetic regulations
food regulations
pharmaceutical/nutraceutical requirements where applicable

Export

Bureau of Customs
export documentation
destination-country regulations

26. INVESTMENT INCENTIVES

The CREATE MORE Act substantially enhanced the Philippines’ investment incentive framework.

The current framework can provide qualified registered projects with combinations of:

Income Tax Holiday;
Special Corporate Income Tax;
Enhanced Deductions;
VAT-related incentives;
import-related incentives, depending on the registration and activity.

The 2026 BOI investment guide states that qualified registered enterprises may receive an ITH of approximately 4–7 years, with export enterprises potentially receiving either a 5% SCIT or Enhanced Deductions for 10 years, depending on the applicable framework, location and industry tier. (Bangko Sentral ng Pilipinas)

PEZA likewise describes ITH of 4–7 years for qualifying export-oriented enterprises, followed by either 5% SCIT or Enhanced Deductions, depending on the applicable registration and regime. (Philippine Economic Zone Authority)

The CREATE MORE framework is therefore a major component of the project’s investment case.

27. BOI VS PEZA STRATEGY

BOI

Advantages:

broader geographic flexibility;
suitable for strategic manufacturing;
potentially suitable for domestic + export model;
SIPP alignment can support incentive qualification.

PEZA

Advantages:

strong export orientation;
established economic-zone ecosystem;
tax/customs administration advantages;
access to qualified industrial locations.

Recommended strategy

Conduct a formal BOI-vs-PEZA incentive optimization study before site acquisition.

The project should select the agency based on:

export ratio;
location;
SIPP eligibility;
capital expenditure;
import requirements;
domestic sales;
incentive duration;
VAT treatment;
logistics;
regulatory burden.

28. ENVIRONMENTAL AND ESG STRATEGY

The company should make sustainability part of its investment proposition rather than treating it only as regulatory compliance.

ESG pillars

E — Environmental

closed-loop CO₂ extraction;
renewable-energy integration;
water conservation;
wastewater management;
biomass utilization;
sustainable sourcing.

S — Social

farmer partnerships;
rural employment;
technical training;
local value addition;
community development.

G — Governance

traceable procurement;
audited accounts;
anti-bribery controls;
supplier due diligence;
environmental compliance;
investor reporting.

29. FARMER AND SUPPLIER DEVELOPMENT PROGRAM

A portion of the US$10 million investment should support upstream supply.

Proposed program

US$800,000 initial allocation

Potential uses:

propagation support;
demonstration farms;
farmer training;
nursery partnerships;
quality testing;
traceability systems;
collection centers;
long-term offtake contracts.

This creates a strategic supply moat.

30. HUMAN RESOURCES

Initial organization

Function	Indicative personnel
General management	3
Extraction/process engineering	8
Laboratory/QC	8
R&D	6
Production	20
Maintenance/utilities	6
Supply chain	5
Agriculture/sourcing	8
Regulatory/QA	5
Sales/export	8
Finance/admin	6
Initial total	~83

Employment can expand as production scales.

31. MANAGEMENT REQUIREMENTS

The investor should recruit a management team combining:

Technical

chemical engineer;
process engineer;
extraction specialist;
analytical chemist;
botanist/phytochemist.

Commercial

international sales director;
fragrance-industry specialist;
B2B ingredient sales manager;
export logistics manager.

Corporate

CFO/controller;
legal/regulatory manager;
compliance officer;
ESG/sustainability manager.

32. R&D PROGRAM

First 36 months

Priority research

Agarwood extraction optimization
Botanical CO₂ extraction
Fractionation
Standardization
Shelf-life studies
Analytical fingerprinting
Fragrance applications
Cosmetic applications
Natural preservative candidates
Bioactive screening

IP opportunities

extraction protocols;
proprietary fractions;
standardized botanical compositions;
formulations;
process optimization;
analytical fingerprints;
packaging;
brand/trademark portfolio.

33. AGARWOOD PRODUCT DEVELOPMENT LADDER

Entry products

agarwood powder;
incense;
chips.

Intermediate products

hydrosol;
essential/oud oil;
absolute;
specialty extracts.

Premium products

concentrated oud;
aged oud formulations;
niche perfume;
luxury EDP;
solid perfume;
candles;
incense collections.

Investment objective

Convert approximately:

1 unit of raw biomass

into

multiple revenue-generating products.

34. BRAND ARCHITECTURE

A multi-brand structure can separate ingredient and consumer businesses.

Corporate

Aetherial Natural Oils Corp.

Professional ingredients

Aetherial Botanica™

Wellness

Aetherial Wellness™

Fragrance

Ethereal Scent™

Luxury oud

Oud Royale™

Specialty extracts

Resina Noire™

These names should undergo formal Philippine and international trademark clearance before commercial use.

35. RISK MATRIX

Risk	Level	Mitigation
Feedstock shortage	High	Multi-source procurement
Agarwood regulatory restrictions	High	DENR/BMB/CITES compliance
Technology underutilization	Medium	Contract extraction
Slow customer adoption	Medium	Pilot/sample program
Product regulatory delays	Medium	Regulatory strategy before formulation
Foreign-exchange risk	Medium	Multi-currency pricing
Utility costs	Medium	Energy efficiency
Equipment downtime	Medium	Maintenance contracts
Quality failure	High	QA/QC + batch testing
Export-market restrictions	Medium	Destination-country compliance
Commodity price pressure	Medium	Premium specialization
Working-capital pressure	Medium	Customer deposits / purchase orders
Management risk	Medium	Experienced technical team

36. KEY INVESTMENT RISKS

Risk 1 — Technology risk

SFE technology is commercially established, but the economics depend on appropriate:

feedstock;
extraction yield;
cycle time;
pressure/temperature;
solvent characteristics;
downstream recovery;
product selling price.

Mitigation

Operate a pilot program before full-scale equipment procurement.

Risk 2 — Feedstock risk

A sophisticated extraction plant without reliable raw materials becomes an underutilized asset.

Mitigation

Establish supply contracts before commissioning.

Risk 3 — Agarwood regulatory risk

Agarwood is particularly sensitive because of wildlife, forestry and international-trade requirements.

Mitigation

Build the project around legally cultivated and documented material.

Risk 4 — Market risk

Premium ingredients require customer qualification.

Mitigation

Obtain letters of intent, sample approvals and purchase agreements before full-scale expansion.

37. DUE-DILIGENCE CONDITIONS PRECEDENT

The investor should not release the full US$10 million at closing.

Recommended staged investment:

Tranche 1 — US$1.0M

incorporation;
site;
feasibility;
pilot;
regulatory work;
engineering.

Tranche 2 — US$3.0M

Released after:

site secured;
technology validated;
initial customers identified;
incentive strategy confirmed.

Tranche 3 — US$3.0M

Released after:

construction milestone;
equipment delivery;
supply agreements.

Tranche 4 — US$3.0M

Released after:

commissioning;
customer qualification;
commercial production readiness.

38. INVESTMENT COMMITTEE APPROVAL CONDITIONS

The investment committee should require:

Corporate

SEC legal opinion;
ownership confirmation;
shareholder agreement.

Regulatory

FINL analysis;
BOI/PEZA determination;
DENR compliance;
FDA classification where applicable;
CITES assessment.

Technical

equipment quotations;
pilot results;
process design;
yield assumptions.

Commercial

customer LOIs;
distributor agreements;
market validation.

Financial

detailed 10-year model;
tax model;
sensitivity analysis;
working-capital analysis.

39. SENSITIVITY ANALYSIS

The investment is particularly sensitive to:

extraction yield;
raw-material cost;
selling price;
equipment utilization;
export volume;
EBITDA margin;
working capital;
capex overruns.

Downside scenario

Assume:

20% lower revenue;
20% higher feedstock cost;
5 percentage-point lower EBITDA margin;
15% capex overrun.

Expected outcome:

substantially lower IRR;
delayed break-even;
increased financing requirement.

Base case

The financial model targets:

Year-5 revenue: ~US$17M;
Year-5 EBITDA: ~US$5.1M;
Year-10 revenue: ~US$37M;
Year-10 EBITDA: ~US$11.1M.

Upside case

Potential upside comes from:

premium oud;
proprietary extracts;
high-margin cosmetics;
fragrance ingredients;
international private label;
contract extraction;
strategic acquisition.

40. INVESTMENT RETURN FRAMEWORK

The proposed investment should be evaluated using three return layers:

Layer 1 — Operating cash flow

Revenue generated from:

extraction;
ingredients;
manufacturing;
finished goods.

Layer 2 — Intellectual property

Potential value of:

extraction processes;
standardized extracts;
formulations;
brands;
customer relationships.

Layer 3 — Strategic exit

Potential buyers could include:

fragrance companies;
cosmetic companies;
botanical ingredient companies;
natural-products companies;
private-equity funds;
family offices;
strategic Asian investors.

41. STRATEGIC EXIT OPTIONS

Exit A — Trade sale

Sell the company to a strategic buyer.

Exit B — Majority recapitalization

Investor sells a controlling/strategic stake while management retains equity.

Exit C — Private-equity recapitalization

Bring in growth capital for regional expansion.

Exit D — IPO

Potential long-term option after significant scale and governance development.

Exit E — Dividend model

Retain the company as a cash-generating specialty manufacturing business.

42. PROPOSED INVESTOR EQUITY FRAMEWORK

A US$10 million investment can be structured in several ways.

Option 1 — 100% acquisition

Investor funds US$10M and owns 100%.

Option 2 — Joint venture

Foreign investor contributes capital and technology while Philippine partners contribute:

local network;
land access;
supply relationships;
regulatory expertise;
operating capability.

Option 3 — Preferred equity

Investor receives:

preferred return;
liquidation preference;
conversion rights;
board representation;
anti-dilution protection.

Option 4 — Convertible investment

US$10M initially structured as convertible preferred/debt and converted after commercial milestones.

43. INVESTOR PROTECTIONS

The investment agreement should include:

board representation;
reserved matters;
information rights;
audited financial statements;
budget approval;
related-party transaction controls;
anti-dilution provisions;
pre-emption rights;
drag-along rights;
tag-along rights;
change-of-control provisions;
intellectual-property ownership;
founder vesting;
non-compete provisions where enforceable;
deadlock procedures;
exit rights.

44. USE OF PHILIPPINE INCENTIVE PROGRAMS

The investment team should immediately conduct an incentive-registration assessment.

The Philippine government states that CREATE MORE provides an enhanced investment incentive framework and that the full implementing rules became effective in February 2025. (Bangko Sentral ng Pilipinas)

The 2026 BOI investment guide specifically recognizes advanced manufacturing, R&D and innovative technologies among priority investment areas. (Bangko Sentral ng Pilipinas)

This strengthens the case for presenting the project not simply as a fragrance company but as:

an advanced manufacturing, biotechnology/botanical extraction, R&D and export platform.

45. INVESTMENT POSITIONING TO GOVERNMENT

The project should be presented as generating:

Economic value

US$10M foreign capital;
Philippine manufacturing;
export revenue;
technology transfer;
employment;
farmer income;
rural development;
R&D;
import substitution;
higher-value agricultural products.

Strategic positioning

From Philippine raw botanical resources to globally competitive high-value natural ingredients and finished products.

46. PROPOSED 10-YEAR STRATEGIC ROADMAP

Year	Strategic milestone
1	Corporate formation + pilot plant
2	Commercial commissioning
3	Export scale-up
4	Product portfolio expansion
5	EBITDA optimization
6	Regional distribution
7	Second extraction capacity
8	Strategic partnerships
9	International expansion
10	Exit/refinancing/dividend strategy

47. INVESTMENT SCORECARD

Category	Assessment
Foreign ownership feasibility	High
Philippine manufacturing suitability	High
SFE technology opportunity	High
Botanical supply potential	High
Agarwood opportunity	High but highly regulated
Export potential	High
Regulatory complexity	Medium–High
Technology risk	Medium
Market risk	Medium
Supply risk	Medium–High
ESG opportunity	High
Scalability	High
Capital intensity	Medium–High
Base-case return potential	Attractive
Overall investment attractiveness	Potentially Attractive, subject to due diligence

48. INVESTMENT RECOMMENDATION

RECOMMENDATION: PROCEED TO FULL DUE DILIGENCE

The proposed US$10 million investment is considered potentially feasible and strategically attractive, provided the project is structured as a technology-driven, export-oriented botanical extraction and downstream manufacturing platform rather than as a conventional raw-material trading business.

The strongest investment case is created by combining:

SFE technology
Philippine botanical resources
sustainable supply
agarwood/oud specialty products
B2B ingredients
contract extraction
private-label manufacturing
premium consumer products
international exports
R&D/IP

This diversification materially reduces dependence on a single product category.

49. INVESTMENT GATE

The US$10 million should be approved subject to the following conditions:

Gate 1 — Legal

Confirm:

foreign ownership;
FINL position;
corporate structure;
land/lease structure.

Gate 2 — Regulatory

Confirm:

BOI/PEZA eligibility;
environmental requirements;
FDA requirements;
DENR/Aquilaria requirements;
export/CITES requirements.

Gate 3 — Technical

Validate:

extraction yields;
cycle time;
equipment sizing;
utility consumption;
product quality.

Gate 4 — Commercial

Secure:

anchor customers;
distributors;
private-label clients;
offtake arrangements.

Gate 5 — Financial

Approve:

final capex;
working capital;
pricing;
10-year financial model;
downside scenario.

50. FINAL INVESTMENT CONCLUSION

The Philippines can serve as a strategic production and export base for an advanced botanical extraction business because the investment combines three important advantages:

1. Resource advantage

The country possesses substantial tropical botanical diversity and agricultural production potential.

2. Technology advantage

Supercritical CO₂ extraction and complementary processing technologies allow the company to transform botanical biomass into higher-value ingredients.

3. Value-chain advantage

The company can capture value from:

cultivation → extraction → purification → formulation → manufacturing → branding → export.

The proposed US$10 million investment therefore should be viewed not as the establishment of a single extraction plant, but as the creation of a Philippine Botanical Technology Platform.

The base-case financial model indicates approximately:

US$10M initial investment
US$2.5M Year-1 revenue
US$17M Year-5 revenue
US$37M Year-10 revenue
US$5.1M Year-5 EBITDA
US$11.1M Year-10 EBITDA
~18% unlevered project IRR before terminal value
~28–31% illustrative IRR with a strategic terminal valuation

These figures are feasibility-model assumptions and must be replaced by vendor quotations, pilot-plant data, customer commitments, actual Philippine tax treatment and final regulatory determinations before being presented as an investment forecast.

INVESTMENT DECISION

PROVISIONAL STATUS: INVESTMENT-READY FOR DUE-DILIGENCE PHASE

Recommended next action: establish a formal US$10M Foreign Investor Due-Diligence & Financial Model Packageconsisting of:

10-year Excel financial model;
detailed CAPEX/OPEX schedule;
monthly 5-year cash-flow model;
BOI/PEZA incentive model;
foreign-investor corporate structure;
regulatory compliance matrix;
SFE equipment specification;
agarwood supply and compliance plan;
investor term sheet;
shareholder agreement framework;
risk-adjusted valuation;
investor pitch deck;
data-room checklist;
100-day implementation plan.

Important: This memorandum is a feasibility and investment-planning document, not legal, tax, securities, environmental or investment advice. Final transaction terms should be validated by Philippine counsel, tax advisers, engineers, regulatory specialists and the relevant investment-promotion/regulatory agencies.