Cranberry USA Direct Program

This Program was discontinued August 13th 2021 and is no longer receiving orders

Features of the Program:

1. Price & Commission Structure

Buyer offers purchase prices at market rate minus 5%, for example:

• 50B $15.75 all in with 5%, commission included
• 25B $17.00 all in with 5%, commission included
• 10B $17.50 all in with 5%, commission included
(The 25B price went from $16.40 to $17.10 July 30th, 2021)

Prices subject to change

Commissions go fully to the buy side

66.667% buyer’s mandate
25% closed for Cranberry USA representative
8.333% open for everyone in the broker chain

2. Application & Process

• NCNDA between all brokers
• Zoom meeting is mandatory at the start of process
• Complete, sign and submit the SOP Acknowledgement Form. If accepted then Cranberry USA will provide templates for DD, AML, KYC, ICPO; LOA & ATV
• All docs must be fully completed and then there is a period of due diligence. The deal should close within 3 days after the DD is completed
• The buyer must present a strong LOA and a conditional ATV. With a conditional ATV the buyer reserves the right when and if the seller’s attorney can verify funds with the ATV. The buyer will give permission for the seller’s attorney to verify the ATV during the A2A
• If the documents are accepted then the process starts immediately. In our experience, seller and buyer have spoken the same day
• Cranberry USA employees will contact the buyer’s attorney listed on the ICPO after the due diligence
• 100% of funds must be verifiable when docs are submitted. They will ping the account prior to proofing up
• End buyer or proxy, but if proxy, end buyer must be brought forward. Mandatory that name on funds account match entity name taking title. Proof up with an ATV/BCL/LoC with Cranberry USA

Benefits of the Program:

1. OTG versus a Paper Only Transaction: While a paper transaction appeals to most investors, there are buyers who need gloves and Cranberry can include 1B to 10B on the ground for those who need product for end users
2. Market Price: Cranberry sells at market price minus 5% which positions the buyer to flip the product in smaller lots for much higher prices
3. Brokers & the IMFPA: When escrow is broken all those on the IMFPA get paid immediately. Subsequent purchases use the same IMFPA and keep paying a commission for all those involved
4. Payment Method: The money must be in the name of the end buyer, but may be in more than one financial institution. Currently, the proofing of money may come from top-tier banks inside and outside the USA

Standard Operating Procedure

August 2021

(A) Buyer to utilize its own funding or
(B) Third Party Funding (additional documentation reqd.)
NCNDA is first
Zoom to explain the Program and the SOP
Complete and submit the SOP Acknowledgement Form

1. Buyer to complete and return all paperwork to source party
1.1 KYC & DD – Both Buyer + Third Party
1.2 AML – Both Buyer + Third Party
1.3 ICPO – indicative pricing including commission
1.4 LOA
1.5 Bank Statement (Funds: USA ‘Top 5’ or international ’top 20-tier)
1.6 ATV
1.7 Board Resolution from third party entity authorizing the buyer to utilize the funds for the specified transaction

2. Seller confirms price & availability
3. Seller sends LOA; SPA is issued and signed
4. Original SGS issued within 24-48 hours of signature of SPA
5. Joint Escrow opened and funds moved to Joint Escrow
6. Upon #5 the Buyer is authorized to undertake Site Inspection
7.1 Funds (Product)
7.2 Funds (Fees)

released per SPA & IMFPA