Forum Markets Incorporated (FRMM) Investor presentation summary

Business model and strategy

• Focuses on tokenizing institutional-grade real-world assets (RWAs) on Ethereum L2 to modernize capital markets and generate differentiated cash flow.

• Acquires yield-generating assets, tokenizes them, and reinvests gains into new tokenized assets, distributing returns to token holders.

• Targets four major markets: auto loans, mortgages, heavy equipment, and real estate, leveraging regulatory clarity to drive sustainable revenue.

• Operates an exclusive partnership with Liquidity.io, a regulated exchange, to list Ethereum L2 tokens and provide compliant market liquidity.

• Revenue streams include yield from assets, origination fees, asset management fees, and transaction fees from secondary trading.

Recent developments and milestones

• Acquired a 15% stake in Satschel (parent of Liquidity.io), securing exclusive listing rights for Ethereum L2 tokens.

• Invested in Zippy (manufactured home loans) and Karus (auto loans), establishing origination facilities and generating double-digit yields.

• Launched Eurus Aero Token I, backed by aircraft engine cash flows, as the first tokenized RWA product.

• Rebranded and repositioned balance sheet, exiting direct ETH exposure and redeploying capital into cash and income-producing RWAs.

• Raised $425M through PIPE, supporting the transition to an RWA tokenization platform.

Financial outlook and capital allocation

• Expects to exit 2026 with $100M–$175M in AUM and $18M–$22M in total revenue.

• Targets $300M–$400M AUM by year-end 2027, aiming for 50%–100% year-over-year revenue growth.

• Maintains a strong liquidity position with $103M in cash, focusing on disciplined capital allocation into yield-generating RWAs.

• Progressive capital deployment aims for a ~10% average yield on AUM, with asset growth driving recurring fee revenue.