The fate of investor funds, valued at over $500 million in local currency, hangs in the balance as shares of EquityLine Mortgage Investment Corporation, based in Canada, face a second suspension. The company’s decision to wind down operations has been prompted by regulatory interventions in Ontario and a lawsuit filed against them.
Amidst these developments, affiliates of Sagicor Group Jamaica, the largest preference shareholder, are closely monitoring the situation to safeguard their clients’ interests. Emphasizing diligence and comprehensive analysis, Sagicor remains confident in their decision-making strategy as they navigate the evolving situation.
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The Backstory:
In late 2018, Sagicor Investments Jamaica facilitated the listing of EquityLine’s preference shares on the Jamaica Stock Exchange (JSE). By February 2019, the ELMIC shares were listed, only to face a second suspension on July 26. The total value of the shares amounted to US$3.3 million, down from US$5.37 million at listing. Entities within Sagicor currently hold two-thirds of the total units, valued at US$1.26 per unit. -
The Suspension:
The suspension was a result of EquityLine’s repeated violation of JSE Main Market Rule 408, necessitating the submission of audited annual financial statements within a specified timeframe. Despite being reinstated briefly in June after submitting their accounts for 2023, the audited report was withdrawn, leading to another suspension. -
The Road Ahead:
EquityLine’s plan to wind up operations and distribute assets to settle investor claims is underway. However, complications arise due to a lawsuit filed by one of its affiliates, impacting the company’s liquidity. With assets valued significantly lower than projected, EquityLine faces a challenging path forward. -
Conclusion:
As the future of EquityLine Mortgage Investment Corporation remains uncertain, stakeholders are urged to exercise caution and vigilance. The unfolding events underscore the importance of thorough due diligence and proactive risk management in the investment landscape. Stay informed and heed regulatory warnings to protect your financial interests.
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