Mongolia Growth Group Ltd. Announces Transformative Partnership
Mongolia Growth Group Ltd. (YAK - CNSX),Following extensive research, Mongolia Growth Group Ltd. (MGG or The Company) has decided to enter the Mongolian Property and Casualty Insurance Market. A partnership has been struck with various members of UMC Group to provide consulting services during the business formation process with the intention that certain individuals will stay on as senior management of the future insurance company.
In keeping with the principles of MGG, the future insurance management team has agreed to receive below market salaries with the majority of compensation being based on profitability measures. According to the term sheet, future management will receive a perpetual non-transferable option to purchase 25% of the future insurance company at stated book value by injecting additional capital into the company. Management will also be given certain incentive packages based on profitability where a portion of the cash incentive will be used to exercise the insurance company option. In addition, various individuals and members of UMC will be granted an aggregate of 500,000 10-year consultant options to purchase shares of MGG at a price of $1.64 per share. The options will vest in 3 years and only vest if certain conditions are met, including the successful creation of the insurance company.
"We believe that insurance is a growth market in Mongolia where many consumers are not adequately covered," said Harris Kupperman, CEO of MGG. "We have found a management team that shares our culture of integrity and entrepreneurship. Their past success demonstrates their ability and we are thankful that they have chosen us as their partner to build this company."
"UMC is delighted to work with MGG in the Mongolian insurance markets," said Otgonjargal Gavaa, UMC Group partner. "We are looking forward to a long term successful cooperation in serving our valuable customers in Mongolia. UMC is committed to shaping competitive business models, delivering strong results in performance and building a company that will withstand the test of time."
In addition, three Mongolian individuals will be granted a combined total of 100,000 3-year consultant options to purchase shares of MGG at a price of $1.64 per share. These options are being issued in recognition of services already rendered. Management believes that these individuals will be an integral part of the future success of the Company.
For further details on the foregoing document, please refer to the Corporation's filing on SEDAR.
For more information on Mongolia Growth Group Ltd., please see our website:
www.MongoliaGrowthGroup.com
Or contact:
Jordan Calonego
jcalonego@MongoliaGrowthGroup.com
or
Harris Kupperman
hkuppy@MongoliaGrowthGroup.com
Forward-looking Information Cautionary Statement
Except for statements of historic fact, this news release contains certain forward-looking information within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks, uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the CNSX. There are uncertainties inherent in forward-looking information, including factors beyond MGG's control. MGG undertakes no obligation to update forwardlooking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements.Additional information identifying risks and uncertainties that could affect financial results is contained in MGG's filings with Canadian securities regulators, which filings are available at www.sedar.com. The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Source: Mongolia Growth Group Ltd. (CNSX - YAK)
In keeping with the principles of MGG, the future insurance management team has agreed to receive below market salaries with the majority of compensation being based on profitability measures. According to the term sheet, future management will receive a perpetual non-transferable option to purchase 25% of the future insurance company at stated book value by injecting additional capital into the company. Management will also be given certain incentive packages based on profitability where a portion of the cash incentive will be used to exercise the insurance company option. In addition, various individuals and members of UMC will be granted an aggregate of 500,000 10-year consultant options to purchase shares of MGG at a price of $1.64 per share. The options will vest in 3 years and only vest if certain conditions are met, including the successful creation of the insurance company.
"We believe that insurance is a growth market in Mongolia where many consumers are not adequately covered," said Harris Kupperman, CEO of MGG. "We have found a management team that shares our culture of integrity and entrepreneurship. Their past success demonstrates their ability and we are thankful that they have chosen us as their partner to build this company."
"UMC is delighted to work with MGG in the Mongolian insurance markets," said Otgonjargal Gavaa, UMC Group partner. "We are looking forward to a long term successful cooperation in serving our valuable customers in Mongolia. UMC is committed to shaping competitive business models, delivering strong results in performance and building a company that will withstand the test of time."
In addition, three Mongolian individuals will be granted a combined total of 100,000 3-year consultant options to purchase shares of MGG at a price of $1.64 per share. These options are being issued in recognition of services already rendered. Management believes that these individuals will be an integral part of the future success of the Company.
For further details on the foregoing document, please refer to the Corporation's filing on SEDAR.
For more information on Mongolia Growth Group Ltd., please see our website:
www.MongoliaGrowthGroup.com
Or contact:
Jordan Calonego
jcalonego@MongoliaGrowthGroup.com
or
Harris Kupperman
hkuppy@MongoliaGrowthGroup.com
Forward-looking Information Cautionary Statement
Except for statements of historic fact, this news release contains certain forward-looking information within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates at the date the statements are made, and are subject to a variety of risks, uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements including, but not limited to delays or uncertainties with regulatory approvals, including that of the CNSX. There are uncertainties inherent in forward-looking information, including factors beyond MGG's control. MGG undertakes no obligation to update forwardlooking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements.Additional information identifying risks and uncertainties that could affect financial results is contained in MGG's filings with Canadian securities regulators, which filings are available at www.sedar.com. The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Source: Mongolia Growth Group Ltd. (CNSX - YAK)
Comments
Post a Comment