Carofin enables parachute manufacturer to fulfill backlog of contracts with U.S. Department of Defense, foreign governments, and private defense firms.
BREVARD, N.C., May 16, 2024 — Carofin and Carolina Financial Securities (collectively “Carofin”) are pleased to announce they have arranged $1.75 Million in senior secured notes (the “Notes”) to support the rapid expansion of Paradigm Parachute and Defense, Inc.’s (“Paradigm” or the “Company”) business. The funds were sourced through Carofin’s network of accredited investors and family offices looking to allocate capital into direct private investments.
Carofin established Drop Zone Canopy Company, LLC (“Drop Zone”) to facilitate parachute manufacturing in collaboration with the Company and represents the second such financing arranged for the Company in the space of two years to support its growing contracts. The Notes are payable in two years and have a 12% coupon. Drop Zone acquires raw materials for, and advances labor costs to, Paradigm to manufacture and sell high quality, precision, military style parachute systems and associated defense products to commercial, government, and humanitarian customers worldwide.
The Pensacola, Florida operation is a veteran-owned business that specializes in meeting all manner of contract requirements with a customer base that spans four continents. “We have a multi-million-dollar backlog of contracts with the Department of Defense, foreign governments and private defense firms,” said the Company’s co-C.E.O Aaron Nazaruk. “Carofin is enabling us to meet our capital requirements for expanding our production to address this dramatic increase in our sales.”
“Our innovative Drop Zone structure offers the Company funding to purchase raw materials and cover labor costs, while investors receive a security interest in the materials, finished parachutes, and related accounts,” commented Joshua Greene, Carofin’s Vice President. “We are pleased to be able to support Paradigm’s global mission to make its parachutes available both for humanitarian and military uses as unsettled world events are driving up demand for its products.”
