Sundance Strategies Signs Binding Letter of Intent to Acquire Portfolio of Life Insurance Policies with Face Value of Approxi...
December 08 2014 - 10:00AM
Business Wire
Sundance Strategies, Inc. (OTCBB: SUND), an innovative company
engaged in acquiring life insurance settlements and related
insurance contracts, policies and obligations, today announced that
it has signed a binding Letter of Intent (“LOI”) to acquire a
portfolio of life insurance policies from a life settlement fund.
Both parties anticipate closing this mostly stock transaction by
December 31, 2014. At a valuation of $10 million, the total value
of the transaction is equivalent to approximately $9.00 per
share.
The policies have a combined face value at maturity of
approximately $124 million and meet the stringent investment
criteria of Sundance Strategies. This portfolio has already been
processed into the Company’s Net Insurance Benefit (NIB) structure.
The NIB is the remaining cash available for Sundance when the
policy face value has been paid to the Company after a policy
matures, less the total of all premium payments, financing costs,
MRI and all other expenses have been subtracted from that face
amount.
Randy Pearson, President of Sundance Strategies, said, “We are
very pleased to have this LOI in place and look forward to closing
this transaction before the end of the calendar year. This
acquisition brings us even closer to our $1 billion target.”
He added, “With our goal of acquiring $1,000,000,000 face value
of life settlement policies within the next year, the cumulative
effect of these layered, year-over-year cash flows, when the face
death benefits are paid, will yield substantial growth to the
Company.”
Sundance, in association with Senior Lenders, Reinsurance
providers and a blue-chip service provider network, has been able
to purchase, service and plan to hold to ultimate maturity
portfolios that have financing for 100% of ongoing premium payments
and risk mitigating reinsurance (“MRI”) that reduces the overall
risk profile typically associated with maintaining life settlement
portfolios.
Additional information about this LOI is contained in our 8-K
Current Report dated December 5, 2014, which will be filed with the
Securities and Exchange Commission on or about December 8,
2014.
Disclaimer
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. In some cases, you can identify forward-looking statements
by the following words: “anticipate,” “believe,” “continue,”
“could,” “estimate,” “expect,” “intend,” “may,” “ongoing,” “plan,”
“potential,” “predict,” “project,” “should,” “will,” “would,” or
the negative of these terms or other comparable terminology,
although not all forward-looking statements contain these words.
Forward-looking statements are not a guarantee of future
performance or results, and will not necessarily be accurate
indications of the times at, or by, which such performance or
results will be achieved. Forward-looking statements are based on
information available at the time the statements are made and
involve known and unknown risks, uncertainties and other factors
that may cause our results, levels of activity, performance or
achievements to be materially different from the information
expressed or implied by the forward-looking statements in this
press release. This press release should be considered in light of
all filings of the Company that are contained in the EDGAR Archives
of the Securities and Exchange Commission at www.sec.gov.
Porter LeVay and RoseMichael Porter,
212-564-4700mike@plrinvest.comorSundance StrategiesMatt Pearson,
801-705-8968Chief Operations
Officermatt@sundancestrategies.comRandy Pearson,
801-705-8968Presidentrandy@sundancestrategies.com
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