https://twitter.com/effects_then/status/1298668126779965440?s=21

What did cytonn do to you? Hii machungu mingi can take you to a deep state of depression which you might take ages to recover.
#Wachana naye.

Mr Dande has accused CMA of engaging in an economic crime, terming the order ‘malicious, unreasonable, irregular and illegal,’ that will fold the high-yield fund he started running in December 2019.

“The directive will cripple the operations of the fund, plunge the fund manager and the investment scheme into chaos resulting into unnecessary legal suits due to breach of contract and lead to massive walkout of the unit holders. It will also plunge the fund manager and the scheme into a financial quagmire as the unit holders will require an immediate return of funds,”Mr Dande said in an affidavit.

Cytonn asset managers had invested about 80 per cent of the Cytonn High Yield Funds into Cytonn’s Alma and Applewood properties, drawing the attention of CMA and the June directive.

Mr Dande argues that Cytonn High Yield Fund is a special fund and does not belong to the category where the law limits the investment of the funds to 10 per cent where the fund manager, trustee and custodian are related parties.

“It is commercially impractical or even near suicidal for the fund manager to withdraw funds it has already invested in its real estate projects. Funds once invested needs time to mature,” said Mr Dande.

A bit misleading to claim Shiv Arora has jumped ship yet he's been appointed to lead a subsidiary of Cytonn

So has Arora's proxy on the board also resigned?

http://wazua.co.ke/forum.aspx?g=postmessage&t=37897&f=2&q=901413

PROPOSALS TO AMANA UNIT TRUST SCHEME (UTS)- AMANA SHILLING FUND CLASS B HOLDERS FOR CONSIDERATION AND ADOPTION

The Amana Shilling Fund (the Fund) Class B Unit Holders (specifically) having been informed of the impairment of their interests in the Fund as a result of losses incurred due to the investment by the Fund in the Nakumatt Holdings Limited commercial paper are requested to consider and adopt one the three options provided below.

It is important to note ACL does not accept any liability whatsoever resulting from the losses incurred in the Amana Shilling fund in providing the options.



Option A:
ACL has carefully considered various options avilaible that would ensure that the Unit Holders are able to salvage their investment. To this end ACL will offer the Unit Holders the option of recovering their investment through their acquisition of an equity stake in ACL. The proposed acqusition of an equity stake in the Sponsor would be undertaken on a voluntary basis by the Unit Holders and would be subject to such terms and conditions as will be contained in a Subscription Agreement to be executed by each of the Unit Holders. The Subscription Agreement will include, inter alia, the following terms:

a) The 59% funds written off in the Amana UTS Shilling Fund Class B be substituted for a 30% equity stake in ACL. This process will be done via an issuance of new shares in ACL.

b) The 30% equity shares will be issued proportionally to individual holdings of funds lost in the Amana UTS Shilling Fund Class B.

c) The dilution in shareholding of ACL would be as follows:
(i) A new investor has been identified to take up a 60% stake ( down from 70%)
(ii) Existing shareholders ownership will be reduced from 100% down to 30% and further to 10%.

d) The Unit Holders will be eligible for board seats in ACL in proportion to their 30% ownership.

e) The balance of the funds still supported by assets (circa 41%) will continue to be held in AUTS and governed by the Trust Deed as is.

f) The new investor will through its local networks attract new funding in the targetted amount of Kshs 300 Million to be managed by ACL as the fund manager. These funds will be invested to earn fees and increase profitability and returns for all shareholders. The funds will be sourced within 60 days of the equity conversion date.

g) The new investor will dedicate their time to the recovery and growth of ACL

h) Profits will be paid out in the form of dividends after catering for the working capital needs of ACL from internally generated funds. The new investor will comit to funding any shortfall in working capital for a period of 3 years following the equity conversion.There will be no call on the unitholders to finance working capital for 3 years. .

i) Should the unit trust fund holders choose option B, they would be required to waive the right of any legal action against ACL as Sponsor.

j) The new investor and existing shareholders can approachthe unit holders to acquire the shares at market price (put option).



OPTION B:
If option A is rejected by the Unit Holders; then without accepting any liability whatsoever resulting from the losses incurred in the Amana Shilling fund, the ACL shareholders (i.e. the new investor and existing shareholders) would propose to dilute their shareholding to 51% and issue new shares worth 49% to the Unit Holders under the following conditions:

a) The Unit Holders will be eligible for board seats in ACL in proportion to their 49% ownership

b) The preference shares currently issued to the new investor in ACL would be redeemed and not converted into equity, resulting in the new investor’s automatic exit from ACL within a maximum period of 1 year.

c) The working capital needs of ACL would be funded by both the existing shareholders and the Unit Holders in proportion to their new ownership (i.e. 51%:49%)

d) Should the Unit Holders choose this Option B, they will be required to waive the right of any legal action against ACL as Sponsor.



OPTION C:
If option A or option B are rejected by the Amana shilling fund Class B Unit holders, they are then requested to consider the following:

(a) Forfeit their investment in the Fund in accordance with the Fund’s Trust Deed and Rules and cease to have any legal or beneficial interest in the Fund or otherwise to the Sponsor or Trustee of the Fund in any manner whatsoever; or

(b) To continue their investment in the Fund through the conversion of the available balance of their investments in the Fund into equity in ACL in the manner set out below under either Option B or Option C.

Well..

🤷🏾‍♂️🤷🏾‍♂️🤷🏾‍♂️

http://wazua.co.ke/forum.aspx?g=postmessage&t=37897&f=2&q=901413

PROPOSALS TO AMANA UNIT TRUST SCHEME (UTS)- AMANA SHILLING FUND CLASS B HOLDERS FOR CONSIDERATION AND ADOPTION

The Amana Shilling Fund (the Fund) Class B Unit Holders (specifically) having been informed of the impairment of their interests in the Fund as a result of losses incurred due to the investment by the Fund in the Nakumatt Holdings Limited commercial paper are requested to consider and adopt one the three options provided below.

It is important to note ACL does not accept any liability whatsoever resulting from the losses incurred in the Amana Shilling fund in providing the options.



Option A:
ACL has carefully considered various options avilaible that would ensure that the Unit Holders are able to salvage their investment. To this end ACL will offer the Unit Holders the option of recovering their investment through their acquisition of an equity stake in ACL. The proposed acqusition of an equity stake in the Sponsor would be undertaken on a voluntary basis by the Unit Holders and would be subject to such terms and conditions as will be contained in a Subscription Agreement to be executed by each of the Unit Holders. The Subscription Agreement will include, inter alia, the following terms:

a) The 59% funds written off in the Amana UTS Shilling Fund Class B be substituted for a 30% equity stake in ACL. This process will be done via an issuance of new shares in ACL.

b) The 30% equity shares will be issued proportionally to individual holdings of funds lost in the Amana UTS Shilling Fund Class B.

c) The dilution in shareholding of ACL would be as follows:
(i) A new investor has been identified to take up a 60% stake ( down from 70%)
(ii) Existing shareholders ownership will be reduced from 100% down to 30% and further to 10%.

d) The Unit Holders will be eligible for board seats in ACL in proportion to their 30% ownership.

e) The balance of the funds still supported by assets (circa 41%) will continue to be held in AUTS and governed by the Trust Deed as is.

f) The new investor will through its local networks attract new funding in the targetted amount of Kshs 300 Million to be managed by ACL as the fund manager. These funds will be invested to earn fees and increase profitability and returns for all shareholders. The funds will be sourced within 60 days of the equity conversion date.

g) The new investor will dedicate their time to the recovery and growth of ACL

h) Profits will be paid out in the form of dividends after catering for the working capital needs of ACL from internally generated funds. The new investor will comit to funding any shortfall in working capital for a period of 3 years following the equity conversion.There will be no call on the unitholders to finance working capital for 3 years. .

i) Should the unit trust fund holders choose option B, they would be required to waive the right of any legal action against ACL as Sponsor.

j) The new investor and existing shareholders can approachthe unit holders to acquire the shares at market price (put option).



OPTION B:
If option A is rejected by the Unit Holders; then without accepting any liability whatsoever resulting from the losses incurred in the Amana Shilling fund, the ACL shareholders (i.e. the new investor and existing shareholders) would propose to dilute their shareholding to 51% and issue new shares worth 49% to the Unit Holders under the following conditions:

a) The Unit Holders will be eligible for board seats in ACL in proportion to their 49% ownership

b) The preference shares currently issued to the new investor in ACL would be redeemed and not converted into equity, resulting in the new investor’s automatic exit from ACL within a maximum period of 1 year.

c) The working capital needs of ACL would be funded by both the existing shareholders and the Unit Holders in proportion to their new ownership (i.e. 51%:49%)

d) Should the Unit Holders choose this Option B, they will be required to waive the right of any legal action against ACL as Sponsor.



OPTION C:
If option A or option B are rejected by the Amana shilling fund Class B Unit holders, they are then requested to consider the following:

(a) Forfeit their investment in the Fund in accordance with the Fund’s Trust Deed and Rules and cease to have any legal or beneficial interest in the Fund or otherwise to the Sponsor or Trustee of the Fund in any manner whatsoever; or

(b) To continue their investment in the Fund through the conversion of the available balance of their investments in the Fund into equity in ACL in the manner set out below under either Option B or Option C.