VARDAMAN VIRTUAL FORESTRY COMPANY

INVESTIGATION WEEK FOR GAMBLER’S SALE

At 1000 Central Time on 15 December 2000, we will begin our first “Gambler’s Sale” of PPIC’sâ with the sale of GA95222SN.  The PPIC contains 222 net acres of planted loblolly pines that have just finished the sixth growing season on the site northeast of Louisville in Burke County, Georgia.  Through a predecessor, Pine Plantation Management Company (PPMC) bought 100% of the timber-growing fraction of the tract from Steve Newberry, prepared a management plan for using it, and established the plantation in January 1995.  PPMC now offers its equity for sale.  Its owner is required to make annual inspections and reports on the PPIC and to keep financial records of its operations.  PPMC now pays JMV&CO $11 per acre per year for these services, but the new owner may use other agents.

The price on December 15 will be $278,000.  If it is not bought during that day, the price will be reduced by $1,000 exactly 24 hours later.  If it is not bought in 24 hours, the price will be reduced by $1,000 every 24 hours until it is bought.  The term “Gambler’s Sale” comes from the retail sector and derives from the purchaser’s gamble that no one else will buy it before he decides to do so.

All publicity and facts about the sale will appear on either www.vardaman.com or www.se-timbersales.com.  This first notice was e-mailed early this morning to 3,175 regular subscribers of our Friday Reports.  The following features of the PPIC appear on www.se-timbersales.com, on which registration is required:

1. Contract with Newberry
2. Road Map
3. Tract Map
4. Annual Inspection Reports (including photos for 1997, 1998, 1999, and 2000)
5. Amount of Buy-back Price
6. Forest Management Plan
7. Schedule of Estimated Annual Cash Flows plus Calculation of IRR based on Purchase Price

To purchase the PPIC, the buyer must wire 5% of the purchase price to Pine Plantation Management Co., LLC, in care of Trustmark National Bank, Jackson, MS, attention Sam Agnew, Senior Vice President, for credit to purchase PPIC GA95222SN.  Trustmark’s ABA routing number for the wire is 0653-00279.  The first person to wire the money according to the bank’s record of wire receipts will become the buyer.  The buyer must close the sale within seven days of the time Trustmark received his initial wire or forfeit his 5%.

 

Because of the unusual nature of this sale and the complexity of these instruments, we have posted these details one week prior to accepting offers.  If you have questions about any feature, call us at 800+455-4568, fax us at 601+354-3138, or e-mail us at jacksonms@vardaman.com.