14 Apr 2010 17:01
INSETCO PLC
14 April 2010
Pursuant to the business strategy as set out in the circular to shareholders dated 16 March 2010, Insetco plc ("Insetco") announces that it has entered into a licensing agreement with Dematco Inc. ("DMAT"), a US company traded on the OTC Markets Pink Sheets in the USA. DMAT is engaged in the business of dematerializing or converting insurance instruments from paper form to electronic form. The Company specializes in hitherto untraded or illiquid paper instruments allowing them to be traded electronically on exchanges or exchange platforms on a peer to peer basis.
DMAT has entered into an agreement whereby it has agreed to grant Insetco an exclusive non-transferable licence ("the Licence") for the use of the Life Insurance Solver Application, a range of products developed by DMAT for creating and trading derivative products based on life insurance products.
The Licence provides for Insetco to pay to DMAT 5% of any income arising to Insetco from the use of such know-how and products. In addition 50% of the net profits before taxation arising from the use of the DMAT know-how and product range, less the 5% licence fee less any overhead expenditure relating to such use, where such overhead expenditure is limited to a maximum of 20% of any such income arising will fall due.
Insetco has identified target users of such investment instruments and devises further applications and products from senior life settlements and other insurance assets. All business related to the above will be carried out with institutional investors in the USA.
Mr Charles Woodworth a director of Insetco has been active in creating investment products from insurance policies for several years, stated:
"The board believed that there was an increasing demand for investment products developed from insurance assets and that demand was spreading worldwide. I have known DMAT for the past two years and have watched the development of their new instruments with keen interest and believe that being able to utilise the DMAT know-how and product range provides a real and immediate opportunity for Insetco. I look forward to developing a stronger relationship with DMAT over the coming months."
Mr Robert Stevens, Chairman and CEO of DMAT, commented:
I am delighted to have entered into the agreement with Insetco. This will enable DMAT's investment ideas and products to gain wider recognition."
Contact
Insetco plc
Gary Truman 020 7309 2280
C Woodworth +1 212 584 5667
Charles Stanley Securities 020 7149 6000
Nominated Adviser
Russell Cook / Dugald Carlean
Dematco Inc
J Jennings +1 561 881 7318