|Canadian IPO |
Company Name : Sterling Leaf Income Trust
Filing Date : 7/18/2003
Offering : $5,000,000 - $10,000,000
Price : $10.00 per Unit
Closing Date : TBD
Exchange : TSXVenture
Eligibility : Alberta, Ontario, Quebec
Investpro Securities Inc.
Issuer's Law Firm : Burstall Winger LLP
Law Firm : Sarrazin Nicolo Bracaglia
Auditor : Smith, Nixon & Co.
Transfer Agent : Computershare Trust Company of Canada
Business Description :
Sterling Leaf Income Trust is an unincorporated, open-ended, limited purpose trust established under the laws of Alberta. The Trust has been established to acquire, through Sterling Leaf Income Services Ltd. (the "Corporation"), a company wholly owned by the Trust, interests in consumer installment sales contracts generated in the publishing industry. The Corporation's business will be managed by Mount Real Financial Management Services Corporation, a wholly owned subsidiary of Mount Real Corporation. Mount Real Corporation is a CBCA incorporated company with securities listed for trading on the TSX.
The Corporation will enter into the business of acquiring consumer instalment sales contracts. Initially it is expected that almost all of the consumer instalment sales contracts acquired by the Corporation will be pursuant to the sales of magazine subscriptions. Sales Management Organizations contact consumers by telephone, letter or other methods of direct marketing to sell magazines on an instalment basis. The agreement whereby a consumer commits to purchase such magazines on an instalment basis is referred to as a consumer instalment sales contract. The Sales Management Organization's offer the consumer a choice to subscribe to up to 600 different magazine titles for various subscription periods. The consumer can subscribe to the offer by entering into an instalment sales contract with the Sales Management Organization. By entering intothe instalment sales contract the consumer agrees to make monthly payments for a magazine subscription, typically for approximately a two year period. These monthly payments are charged directly to the consumer's credit card or through direct debit from the consumer's bank account.
Mount Real will acquire consumer instalment sales contracts from Sales Management Organizations. Mount Real will then sell such consumer instalment sales contracts to the Corporation, at a discount to the sum of the required monthly payments in batches expected to consist of 25 to 200 consumer instalment sales contracts. The Corporation, through the Administration Agreement with Mount Real, will then administer those consumer instalment sales contracts, including collecting the monthly payments and fulfilling the magazines subscribed for. In order to reduce the risk of non-payment and cancellation of the subscriptions, the Corporation will not acquire consumer instalment sales contracts until at least one month of payment has been made by the consumer. In addition, pursuant to the Administration Agreement, Mount Real will undertake to replace any consumer instalment sales contract that goes into default.
Industry Category : Trust Units
Company Financials :
Fiscal Year-End : December 31
Financials : Forecasted Consolidated Statement of net income for the year ended December 31, 2004
Revenue - $7,158,350
Net income - $565,835