US-based Sundance Strategies has signed a binding Letter of Intent (LOI) to acquire a portfolio of life insurance policies from a life settlement fund, which could have a combined face value at maturity of about $124m.
The total value of the transaction is equivalent to around $9.00 per share, at a valuation of $10m, according to Sundance.
Sundance Strategies president Randy Pearson said: "We are very pleased to have this LOI in place and look forward to closing this transaction before the end of the calendar year. This acquisition brings us even closer to our $1 billion target.
"With our goal of acquiring $1,000,000,000 face value of life settlement policies within the next year, the cumulative effect of these layered, year-over-year cash flows, when the face death benefits are paid, will yield substantial growth to the company."
Sundance noted that the portfolio has already been processed into the company’s Net Insurance Benefit (NIB) structure.
The stock transaction is expected to be completed by the end of this year.