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Company Research: Lead All Investments Limited
Lead All Investments Limited (the "Company") is a new company incorporated under the laws of the Cayman Islands. The Company has been established for the purpose of identifying and acquiring or investing in, and disposing of investments in businesses focusing on the use of multiple distribution strategies for the distribution of their goods and services. The Directors will focus on businesses using e-commerce, online shopping, direct selling and other related IT methods, to achieve growth and create shareholder value. The Directors believe there is good potential for growth amongst these "Multi-level Marketing" ("MLM") type companies worldwide, but, especially in the Asia Pacific region. The Company will primarily target companies operating in markets and sectors that the Directors believe have strong growth potential and in companies that have the potential to become multinational businesses.

On Admission, the Company will have no trading business, giving the Directors a platform from which to carry out detailed examinations of potential acquisition targets. The Directors' current intention is to make five investments within the first 18 months from Admission. The actual number and the size of each investment is likely to vary dependent upon the nature of each opportunity. The Directors may use the Company's quoted equity as a currency to increase the size of its investment in target companies.

The Investment Case

The Directors believe that market conditions over recent years have proven difficult for certain businesses operating in the MLM Sector and that an opportunity now exists for acquiring and/or investing in such businesses so that their growth potential can be realized for the benefit of shareholders.

Furthermore, as general economic trading conditions worsen as a result of the current economic crisis, more and more people are out of work, and are therefore looking at ways to supplement their income. MLM opportunities often appeal to such people. Furthermore, MLM distribution channels also appeal to product manufacturers in difficult economic times as they achieve sales with little up-front investment from the manufacturers.

The Directors believe that recent volatility in the worldwide general economic markets and the MLM sector has created a number of investment and acquisition opportunities. A number of MLM businesses may be short of capital yet have potentially highly valuable assets and operations. In addition, an increasing proportion of venture capital firms are shifting their focus to later-stage companies and follow-on investments in existing portfolio companies which is therefore exacerbating the lack of capital available for early stage MLM companies. The Directors believe they can take advantage of such opportunities and invest in companies with attractive valuation multiples. In the future, the Directors believe they can create value by sourcing further funds and experienced personnel thereby positioning the Company to take further advantage of demand in the MLM Sector. Investment Strategy and Policies

The Company's objective is to generate an attractive rate of return for Shareholders, predominantly through capital appreciation, by taking advantage of opportunities to invest in businesses focusing on the use of MLM strategies. MLM is based on grassroots-level networking where products are sold directly from an individual (known as distributor) to end-users without going through a retail distribution channel. Products are provided by these businesses direct to the distributors, who may develop their own networks of recruits to reach out to more prospects who assist in generating more sales. Subsequently, the distributor receives a commission for all revenues generated individually and through his recruits. The compensation however is for the products sold and not for the specific recruitment of individuals.

The Company aims to provide equity and equity-related investment capital, such as convertible loans, to companies which are seeking capital for growth and development, consolidation or acquisition, or as a pre-IPO round of financing. The Company's equity interest in a proposed investment may range from a minority position to 100 per cent ownership. The proposed investments are likely to be unquoted in the majority of cases, but may include publicly traded securities. These investments may be made in combination with additional debt or equity-related financing and, in appropriate circumstances, in collaboration with other financial and/or strategic investors. It is likely that a substantial portion of the Company's financial resources will be invested in building a broad portfolio of assets through smaller investments.

The Company intends to be an involved and active investor. Accordingly, where necessary, the Company may seek participation in day to day management through board representation, with a view to seeking to improve the performance and growth of the business. The Board may appoint consultants or independent industry experts or other representatives to represent the Company in managing the investments it makes.

The Company intends to focus on the Asia Pacific region. It will however consider any geographical area, to the extent that the investment fits within the Company's investment criteria. The Company will not be subject to any borrowing or leveraging limits.

The Directors consider that as investments are made, and new opportunities arise, further funding of the Company will be required.

The Directors are confident that the Investing Policy of the Company can substantially be implemented within eighteen months of Admission. If this is not the case, the Directors will seek the consent of the Shareholders for its Investing Policy at the Company's annual general meeting immediately following and on an annual basis thereafter until such time that its Investing Policy has substantially been implemented. If it appears unlikely that the Investing Policy can be substantially implemented at any time, the Directors may consider returning any remaining funds to the shareholders.
Technical InformationRegistered AddressCharts
Ticker SymbolNot known
ISIN CodeNot known
Industry SectorNot known
Listing ExchangeAIM
Trading StatusPre-float
First Trading Day7th February 2012
Lead All Investments Limited
Address lookup pending.
Lead All Investments Limited
has not commenced trading.
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