MISSISSAUGA, Ontario, May 13, 2013 /PRNewswire/ -- Crown Alliance Capital (OTCBB: CACL) a senior life settlement company, announced today that it has entered into a memorandum of understanding with American Medical Capital, a division of American Medical Enterprises ("AMC") for the non-exclusive sourcing of life insurance portfolios. The MOU sets forth a series of criteria that need to be met for Crown to be interested in purchasing the policies sourced by AMC, and begins the process of reviewing the first $50 million policy portfolio identified by AMC. The total portfolio is over $100 million, which Crown intends to acquire, contingent on sufficient financing and due diligence verification, in separate $50 million tranches.
"We were able to source and negotiate a tremendous deal on this portfolio, and are very happy to be finally moving forward into the final due diligence stage," said Lorraine Fusco, the Company's President and CEO. "By choosing to close this deal in stages we are able to complete the due diligence and underwriting process more efficiently."
Crown Alliance is a senior life settlement company focusing on polices that will render an internal rate of return of 14% or more. Crown's 5 year goal is to have assets under management in senior life settlement policies of $1 billion. With the completion of the purchase of this portfolio, the company is well on its way to achieve this goal.
Fusco explained: "Moving forward with this custom built portfolio with AMC is the next step in our plan to ensure the best and most stable return possible for the Company. The life expectancies and costs of the policies are expected to be well within our requirements."
About Crown Alliance Capital Limited
Crown Alliance Capital Limited (OTCBB:CACL) is a publicly reporting Corporation, formed in March of 2010 with the intention of acquiring senior life settlement policies. The company targets and acquires mainly universal life insurance policies that are no longer desired by individuals in order to build a large portfolio of policies that meet a rigid selection process. By becoming the owner/beneficiary of the policies and maintaining the premiums, Crown is able to obtain a substantial return on investment when each death benefit is ultimately paid.
Crown Alliance Capital Limited
2985 Drew Road, Suite 217
Mississauga, ON L4T OA4
Safe Harbor Statement: Certain statements and information included in this release constitute "forward-looking statements" as defined in the Federal Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied in such statements. Additional discussion of factors that could cause actual results to differ materially from management's projections, estimates and expectations is contained in the Company's SEC filings. The Company assumes no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by federal securities laws.
SOURCE Crown Alliance Capital Limited