The structure and capital protection characteristics of the ARM Assured Income Plan will be based on the ARM Capital Growth Bond and will be backed by a Cash Entitlement Account, the objective of which is to deliver a return through prudent investment in a select and diversified portfolio of American life insurance policies (“SLS”). Further details will be issued shortly.
Catalyst has established itself as a provider of innovative investment solutions and has the ability to develop unique and innovative investment solutions.
The head of corporate finance at Catalyst, Andrew Wilkins, said:
“Whilst marketing the ARM Bond, many IFAs and retail investors asked us if we could develop an income variant. In response to this demand, ARM developed the ARM Assured Income Plan which, with a designed return of up to 10% p.a. and capital protection, we believe will be a very attractive investment.”
The ARM Bonds have been structured to repay both capital and yield at their respective maturity dates, however, return is not guaranteed. The value of investments may fall as well as rise and you may not realise the amount originally invested. Prospective investors are advised to seek independent professional advice before considering an investment of this type and should read the risks, as well as the terms and conditions contained in the Information Memorandum
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For further information, please call:
Andrew Wilkins, Catalyst Investment Group 020 7929 5090
Christopher Joll/Alice Proctor, MJ2 020 7491 7776
Notes to Editors
1. Catalyst Investment Group is a London based investment specialist focused on corporate finance for small cap, high growth unlisted companies and private client stockbroking. Catalyst has the ability to develop unique and innovative investment solutions and has developed the C3 Corporate Funding Structure which includes the C3 Bond and the ARM Bond (see below), which provides companies with the funds they require and investors with a higher level of investment protection than ordinary corporate bonds. Catalyst has a pipeline of C3 Funding Structure clients which currently include:
- ENECO Inc, a US technology company that has developed a solid state energy conversion/generation chip that generates extraordinary amounts of electricity when heat is applied to it.
2. The Catalyst C3 Corporate Funding Structure is a pre-IPO funding structure that works as follows:
- The investment opportunity (the “Company”) must be a sufficiently mature business to be listed on a recognised exchange (such as AIM) within 2 years of the initial investment.
- For each qualifying Company, Catalyst creates a special purpose vehicle (“the SPV”) to invest in the company.
- The SPV issues a C3 Bond (an investment product developed by Catalyst) to investors at twice the value of the investment required by the company.
- Out of the C3 Bond proceeds the SPV invests 50% to purchase a pre-determined percentage of the equity of the Company and a Call Option over an equal percentage of the Company’s Ordinary shares thereby funding the business.
- The 50% balance of Bond proceeds are invested in ARM Bonds (another Catalyst investment product) which, at maturity, is designed to give a return of 100%, providing virtually complete cover for the initial investment in the company.
3. C3 Bond is the core of the Catalyst C3 Funding Structure and is a corporate, covered, convertible Bond developed by Catalyst that offers the upside of investing in high growth companies whilst mitigating the potential risks. These bonds are issued by an entity to raise capital as a form of debt finance (corporate); part of the capital raised is invested separately to enable the full principal to be returned independent of the company’s performance (covered); finally there is an option to convert the Bond into shares in the company, allowing investors to benefit from an uplift in value of the Company (convertible).
4. The ARM Bond is a Capital Growth Bond issued by ARM Asset Backed Securities S.A (the “issuer”). The Bond is a deep discounted zero coupon bond with maturities of either 5 or 7 years, offering growth of up to 110.9% (for the 7 year option). This growth bond does not pay an income during the term of the bond. Instead, the bonds are purchased at a deep discount to face value which is the amount the bond is worth when it “matures” or comes due. The bond is backed by Cash Entitlement Accounts, with the objective being to deliver a return through prudent investment in a select and diversified portfolio of US Senior Life Settlement Policies. These portfolios should provide revenue and opportunity for capital growth which will enable the issuer to meet maturity value on the bonds.
