QualityStocks would like to highlight Forum National Investments Ltd. (OTCBB: FMNL). The company's business focus revolves around developing financial products within the United States Life Settlement marketplace. The company’s Life Settlement operations in the United States are conducted through its wholly owned subsidiary, The American Life Settlements.
In the company’s news yesterday,
Forum National Investments said it plans to commence the sale of its Canadian Financial bond offering securitized by senior U.S. life settlements Thursday, June 16, 2012, in Vancouver B.C.
The financial product is geared toward retail investors looking for investment opportunities not hitched to stock market fluctuations or broader economic impact; rather, the bond’s performance is hinged only to the maturity and payment of the death benefit of the life insurance policy that secures the investment.
Forum said it will utilize Life Settlements as the backbone for the securitization and the trigger for performance of the bond, and because of its unique structure, Forum management says the product is timely and expects it will be well-received in the investment community.
“The use of insurance policies underwritten by a minimum of AA rated insurance company to provide the underlying security for a retail bond has always been an interesting concept and now is a reality for investors,” Dan Clozza, CEO of Forum stated in the press release. “Given the economic uncertainty in Europe and around the world coupled with the low or negative returns from traditional investments, this type of financial product at this time is anticipated to be well received.”
The product is denominated in U.S. dollars, and is designed to provide an above-average return and serve as a potential hedge against the currently appreciating U.S. dollar. Investors can exercise the option to convert any amount of initial contributed capital and ongoing insurance premium costs at any time to common shares of the company at a currently stated 10 percent discount to market based on a weighted five day average market trading price of the securities; additionally upon maturity the investor will also have the same conversion option.
“We believe that this product offering removes all of the pitfalls and barriers to investing in this asset class. A typical Life Settlement investment offer returns of high single digits annualized with mid teen returns a very real possibility,” Forum reported.
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