Above is how we lived in Canada last year in 2019. It was absolutely fun! And the world we are living in 2020 is a completely different one.
On March 17, 2020, we have posted a Tradebots special – Coronavirus (COVID-19) survival guide and since then cities around the world have gone into a state of emergency in order to flatten the (COVID-19) curve to fight the coronavirus (COVID-19) outbreak.
Now the curve is starting to flatten and everyone want to rush back to their normal life. However, before we do that we have to be well prepare and take necessary precautions to reopen the economy safely. Ontario government in Canada has released a framework for reopening the province on April 27, 2020. There are six main principles from the framework.
Tradebots, Inc, an Ontario based company, is currently working on the “Resourced” portion of the framework and is partnering with Moneta Capital Partners Pte Ltd, Singapore, whose founder is an University of Toronto Alumni, to procure PPEs (Personal Protective Equipment) for worldwide customers. We have also secured another Ontario company with Medical Device Establishment Licence (MDEL) to import to Canada. Our first joint project is to procure $5 millions worth of PPEs for a potential buyer to distribute across Ontario hospitals. The potential buyer has a 25% deposit payment terms as 25% is their maximum risk threshold.
As you all know, PPEs are on a very high demand and tight supply situation worldwide. This is absolutely a PPEs seller market right now. Most of the overseas FDA/CE qualified PPE manufacturers would ship their medical grade PPEs from their factories only if they have received 100% full payment . Since the potential buyer has a 25% deposit payment terms, there is a 75% funding gap to close this potential deal.
A 75% funding gap is a financial risk we cannot afford to take. The following are the potential risk we are facing: risk of getting outbid, political risk and quality control risk. Although, we have already carefully selected the PPE suppliers, the quality control risk is somewhat reduced but this risk cannot be completely eliminated. We would like to help secure PPEs for Ontario hospitals without bankrupting ourselves. There are a lot of kind people donating PPE to people in needed right now. However, these effort are not sustainable in the long run. We have to find a business model that work for the long haul.
Therefore we are looking for crowdfunding to bridge this 75% funding gap. We have already identified quality manufacturers at the hospitals’ disposal that could supply the most urgently needed items. Once we raised the required capital to bridge the 75% funding gap, we will be able to bring in the supplies to Ontario. Once this transaction is completed, this fund will be used as working capital to finance the next transaction and continue to import more PPEs to the province or to the other country.
If Moneta cannot close this potential deal after funding is secured, Tradebots and Moneta will still use the raised funding to procure PPEs and to distribute to those in needed, such as frontline medical workers and senior in long term care house.
Please donate to our GoFundMe campaign “Help us secure PPEs for Ontario hospitals“. Your support will mean a lot to us. There is always a risk for a second wave of COVID-19 coming after the economy is reopened. Therefore, we have to prepare for the potential PPE shortage in hospitals. If Ontario is able to reopen the economy without issue, it’ll also mean a lot for the people worldwide and we can show the world how we do it.