Secured by the way of nagative pledge , a pledge not to morgage any of its assets to anyone while the debenture exits
Gauranteed interes of 12% per annum till 2013
Which is two times the current average dividend yeild in the market
At least one and a half times bank savings deposite rates
Interest marginally lower than high volume fixed deposit rate but with opportunity to convert to shares
Interest accural starts from one week after recieving agent's returns
Convert to shares at today's market price any time you choose; fixed and guaranteed till 2013
debenture will qualify for all bonus shares given to share holders on convertion through automatic reduction of convertion price
For example ,if company gives bonus of 1 for 1 to existing shareholders, conversion price will be reduced by half
Get your money back in full on July 1, 2013 (no capital loss) if you decide not to convert
No forceful conversion (convertion totally at investor's discretion and timing)
Convertable Debenture ideal for those who:
Need assured cash income
Want to avoid capital loss in the current declining market
Whish to preserve the chance to make capital gain when the market recorvers even while enjoying definite high cash income in the meantime
Rights Issue
of
797,884,198 Ordinary Shares of 50 kobo each at N450
Priced at N4.50 per share -39% discount off current market price
Anchored on Crusader's track record
52 years' operating record in Insurance business
Profit After Tax Growth of 1,528% between 2003 to 2008 (N88 million to N1.45 billion)
That is, average annual compounded growth of 101%
N800 investment for 1000shares in 2003 with no further investment now worth N32,534
Translate to Growth of 3,717%
149% average annual compounded annual growth rate
If annual dividends added, average annual compounded yield at today's market price is 206%
Never missed dividend since quoted in 1990
Over 10,000 square metres of prime land in Old Ikoyi for redevelopment
Diversifying into financial services also
Shares being issued cum dividend - qualify for dividend on 2008 profit even though proceeds will not be recieved by Crusader till December 2008
Open to non - shareholders by buying rights on The Exchange for no more than the theoritical price of 47kobo but expected to be roughly 28 kobo per share (including transaction cost)
Projected total cost per share for non- shareholders - N4.78 per share
Aquisition of shares through purchase of rights guarantees full allotment
Which is two times the current average dividend yeild in the market