SHAREHOLDER QUESTION CORNER – TPAC and EIA Servi

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Q: I am extremely interested in the new Export/Import opportunities which TPAC is discovering. What is the likelihood that the LOI agreement will turn to fruition and how long should that take? How are these opportunities developing? Are we taking business from another provider?

A: The export opportunities for TPAC are truly phenomenal. China’s import customs are difficult to maneuver for many importers.

TPACs extensive knowledge of the environment and people make for a great candidate to support import projects to China.

This is just another version of what Boeing was looking for in an Asian prime service provider for their bearing supply needs.

The difference here is that Export Import Assurance (EIA) services can easily be sourced from an array of customers and can be more profitable; TPAC does not have to procure the actual product as it would in the BTL SLA contract.

It is important to note that TPAC does not broker deals in the way of mandates/brokers of today.

It is providing assurances that there will be support at the port of destination. The buyer/seller does not have to travel or pay high fees just to ensure the product is properly and timely removed from the shipping vessel into the appropriate hands.

There is a lot that can go wrong at the port if you don’t have a clear understanding of how processes actually work.

TPAC makes that process a whole lot simpler and faster.

Also, the service is not hindered by product type: organic food to furnishings. TPAC has chosen to stay within the top four commodity arenas: Gold, Oil, Organic Food and Core Metals/Ores.

Liken it as a staple for the every growing Chinese market. In time, TPACs EIA service may spread to other countries; especially dealing with organic food products from soybeans to sugar.

Exports will surpass the bearing business in 2017. More than 50 percent of TPACs revenue will be based on its EIA services, up to 10 percent on Licensing Agreements and up to 40 percent on direct sales of bearings as a prime distributor.

In 2018, EIA services may account for up to 75 percent of the business, looking at contract forming with life spans of 36 months in organic food and ores.

Export deals are large in nature most are more than $100M in the vertical market/sectors that EIA will partake.

Oil projects for EIA is a billion dollar business…of course that is not the actual revenue for TPAC but 6 million barrels a month with a 10 cent per barrel assurance fee isn’t bad.

Now this deal is a reality. As a matter of fact, the Export Division recently reported that the Asian buyer has agreed to the terms of the seller and is working on the financial instrument. IR will keep you posted.
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Q: Can you elaborate as to how our Import/Export service will save companies 30% of cost to do business and why this service was not previous available to them?

A: TPAC is requesting entry into an organization of growers that produce constructs for 1M MT of growing fields for organic food products. Many products up to 30 percent cheaper. This new wave of industrialized farming also includes hydroponics.

IR does not have a lot of information on the subject at this time however as it develops more detail will be posted.

Remember, this is organic food products.

China buyers/distributors do not have access to the TPAC growers/processors platform for organic foods. Because the ORG does not presently ship to China due to China’s import difficulties, TPAC is taking an active role to introduce the ORG and the much needed food products to the Asian communities.

This gives TPAC a leg up in the China market having a U.S. Organic Grade org producing non-GMO organic products…sends TPAC to the top of the chain in China.

EIA, using the premier model, can have Chinese buyers and distributors get a discount if using TPAC's EIA to import the product.

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