Investment Highlights

Peru’s geographic and socioeconomic advantages
Peru’s underdeveloped coastal region is ideal for modern farming techniques and high-yield, year-round harvest, with low export transportation costs. Land prices in Peru are a fraction of the prices in developed countries currently producing other feedstock. Peru also enjoys tax-free trade to the U.S. compared with Brazil’s $0.54 per gallon tariff.

Sugarcane ethanol; a superior environmental and economic solution vs. corn-based and other feedstock ethanols
Sugarcane-based ethanol is currently the only biofuel that does not produce net carbon emissions. Utilizing Peru’s easily accessible coastal landscape, minimal land conversion is required and Stratos will not be planting and harvesting on land otherwise used for food production. Stratos’ solution utilizes advanced processing and production to reduce costs in converting sugarcane to ethanol.

Strong barriers to entry with first-mover advantage
Stratos is creating long-term sustainable growth with a business model designed to stimulate the local economy and believes its operations could create more than 2,000 jobs. There is currently no mass production of ethanol in Peru, based largely on difficulty in securing the appropriate local land. However, Stratos has leveraged its relationships and sound business model to secure extensive tracts of unutilized land and plans to install a drip irrigation system with the assistance of a multidisciplinary and experienced land sourcing, land assessment and hydrological studies team comprised of industry leading specialists.

Large, growing, underserved addressable market
Biofuels represents an increasingly large global market opportunity with current biofuel blending mandates in 15 countries. Peru has mandated that gasoline include 7.8% ethanol by 2010. The U.S. Renewable Fuel Standard (RFS) mandates the use of 36 billion gallons of renewable fuels per year by 2022, and production is currently behind these mandated levels. The United States is Stratos’ primary target market with a desirable proximity to Peru and ample market consumption to sustain margins.

Vertically integrated production and expansion strategy
Stratos is executing a two-stage production and expansion plan designed to eliminate price volatility and produce competitively high yields. Stratos has already acquired and initiated modification of its first sugar mill and has plans to establish a sugarcane seedling nursery. The company is planning to conduct feasibility studies to guide further expansion plans.

Experienced leadership
Stratos’ management and advisors have complementary industry, financial and management expertise, as well as deep agricultural and community relationships across public policy, finance and industrial sectors. The Company’s leadership boasts a highly skilled sugarcane ethanol team with renowned expertise in biofuels, feasibility studies, topography, land sourcing, agriculture, field chemical, engineering and oil and gas industries.