“Update on issuance programme & Financing RNS
RNS Number : 1488U
16 December 2011
16 December 2011
(“Insetco” or the “Company”)
Update on issuance programme & Issue of Convertible Loan Notes
Senior Life Settlement Issuance Programme
Further to the Company’s announcement on 5 May 2011, Insetco has
continued to look for opportunities to structure institutional-based
financial products for the Life Settlements market, with a view to
moving towards the distribution of its first securitised product, the
Senior Life Settlements issuance programme (the “SLS Issuance
Programme”), based on the experience and expertise the Company
acquired through the purchase of Saolpoll (Jersey) Limited
(“Saolpoll”) and related business assets in March 2011.
Whilst Insetco continues to progress the SLS Issuance Programme, the
Company is pleased to announce that it has now entered into an
agreement with Quantus Income Opportunities Corp (“Quantus”) for the
sale of a related Senior Life Settlement (“SLS”) financial product.
This product will take the form of an initial $5m subscription to a
Profit Participating Note (“PPN”) to be issued by a special purpose
vehicle. The proceeds of the PPN will be invested by Quantus in a
portfolio of senior life settlement policies, which will be structured
into a product for secondary marketing by Quantus.
Insetco has received an initial fee of £250,000 in respect of the PPN
issue. In addition, the Company will receive an additional fee of 0.25
per cent. of the face value of the policies injected into the
portfolio per annum, on a non-recurring basis. This fee is capped at a
maximum of $10m over the eight year life of the product.
Issue of Convertible Loan Notes
The Company also announces that it has issued, in aggregate, £125,000
of 8 per cent. Convertible Unsecured Loan Notes 2012 (the “CLNs”) to
ADM Investor Services International Limited (“ADM”) and Fairburn
The CLNs are due for repayment on 21 November 2012 or, on the election
of the noteholders, may be converted in whole or in part into new
Insetco ordinary shares (“Ordinary Shares”), at a conversion price of
5.25 pence per Ordinary Share.
Full conversion of the CLNs would result in the issue of 2,380,952 new
Ordinary Shares, representing 1.42 per cent. of the issued share
capital (as enlarged thereby) of the Company.
ADM is considered a related party for the purposes of the AIM Rules
for Companies, as a result, and in accordance with AIM Rule 13, the
directors, having consulted with Charles Stanley Securities as
nominated adviser, consider that the terms of the CLN issue are fair
and reasonable insofar as the Company’s shareholders are concerned.
The receipt of an initial fee for structuring the above SLS financial
product, in conjunction with the proceeds of the CLNs, is sufficient
to satisfy the Company’s current working capital requirements.
Clive Cooke/Sanjeev Joshi
Charles Stanley Securities
Russell Cook / Darren Vickers
This information is provided by RNS
The company news service from the London Stock Exchange
Written by Bob Sharpe: 13/12/2011
Many of you will be as surprised as I was to learn today that Margaret Cole the Managing Director of the FSA, having dropped her ‘toxic’ bombshell on the whole SLS asset class has already left for her Xmas break. I’m sure you would all like to join me in wishing her the compliments of the season as many of us are forced to choose between food and heating during the coldest part of the year. (Read full Opinion)
We publish this letter with the kind permission of Mr Neil Shillito
Rt Hon Peter Lilley MP
Draft Financial Services Bill Committee
House of Commons
6 December 2011
Dear Mr Lilley
Re: Proposed amendments to the Draft Financial Services Bill
I refer specifically to the letter sent to you by Andrew Tyrie, Chairman of the Treasury Committee dated 25th October 2011, particularly point (8) and the inflammatory statement issued on behalf of the FSA by Margaret Cole on 28th November 2011 regarding ‘high risk’ and ‘toxic’ traded life policy investments (TLPI).
In his letter of 25th October, Andrew Tyrie raised serious concerns about the proposed FCA, specifically that the body – left unchecked – might go too far “in assuming that producers of financial services are ‘guilty until proven innocent’ in a framework with little or no redress against an overbearing regulator” (my italics). He also notes in point (8) that “The FCA will have what may be argued is a draconian new power to ban products”.
This letter to Mr Hector Sants of the FSA is reproduced with kind permission of:
TERENCE P O’HALLORAN BSc FCH AIFP Chartered Financial Planner
Dear Mr Sants
You have deigned to ignore me for virtually three years and even if you don’t agree with my view, one would have hoped that you would take some note of my experience and qualifications before totally ignoring me.
The actions taken by your staff in respect of ‘Life Settlement Funds’ is irresponsible and born of almost total ignorance of the marketplace.
I now notice that EEA Life Settlements have suspended dealing which merely creates concern and worry in the marketplace unnecessarily. Pre-emptory withdrawals following your colleagues ill advised comments is the cause.
Many of you will have read FSA/PN/102/2011 but for those who haven’t we reproduced it on the Opinions page. Please remember this is an opinion or discussion document and that you have 8 weeks to send them your responses, be they for or against. Both the FSA discussion paper and the ARM Steering Group discussion paper can be found in Links.