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2009 China CleanTech Forum I Investing in clean energy – From the viewpoint of the investor Presented By: Paragon Capital LP Kevin A. Pollack, Esq. April 25, 2009. About Paragon. Paragon is based in New York City Paragon invests in growing companies Paragon has invested in 40+ companies
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2009 China CleanTech Forum I Investing in clean energy – From the viewpoint of the investor Presented By: Paragon Capital LP Kevin A. Pollack, Esq. April 25, 2009 1
About Paragon • Paragon is based in New York City • Paragon invests in growing companies • Paragon has invested in 40+ companies • Paragon invests in Chinese companies • Paragon invests in cleantech companies • Paragon’s investment management team has more than 100 years of experience in structuring and financing companies 2
Types of Investments Made by Paragon • Private Investments in Public Entities • Registered Directs • Reverse Mergers • Pre-Public Loans 3
Key Paragon Investment Considerations • Country Risk / Reward • Legal, regulatory, economy, tax, politics, etc. • Growing Industry • Cleantech offers an exciting paradigm shift • Higher potential valuation • Better access to future capital • Government support and incentives • Strongly Positioned Company • Track record of excellence • Intelligent use of growth capital 4
Key Paragon Investment Considerations • Valuation • Investment Terms • Strong upside with downside protection • Performance milestones • Other Investors in Company and Deal • Impacts potential valuation and ability to exit • Impacts ability to address challenges and raise more capital • Exit Strategy 5
Case Study #1: Wind Turbine Manufacturer • Wind turbine manufacturer based in China • Parent company with strong track record • Wind turbine manufacturer subsidiary lacked strong track record • Licensed “semi-proven” technology from European firm • Had “orders” • Needed growth capital to fulfill “orders” • Parent company unwilling to invest • No PCAOB audited financials 6
Case Study #2: Organic Fish Hatchery • Organic fish hatchery based in China • Public company seeking growth capital • PCAOB audited financials • Organic fish hatchery had strong track record • Profitable • Strong growth • Wanted growth capital to expand distribution 7
Paragon Capital Advisors LLC 110 East 59th Street, 29th Floor New York, NY 10022 Telephone: 212.593.1600 Facsimile: 212.202.5022 www.ReverseMergerParagon.com Kevin A. Pollack, Esq. Kevin@ParagonLP.com 8