ROMOCO'S FIRST SUBMISSION 

to the 

ALBERTA SECURITIES COMMISION

 In October of 1969, Rocky Mountain Life Insurance recognized its need for additional capital.  Romoco International Associates submitted a preliminary prospectus to the Alberta Securities Commission, at the time to raise funds for Rocky Mountain Life.  The prospectus was withdrawn due to the pressures of time commitments on ourselves. We decided to co-insure a block of our business and thus solve our financial problems. This has proven to be a costly process as the Company gives up future profits for immediate needs.         

ROMOCO'S SECOND SUBMISSION

 to the

ALBERTA SECURITIES COMMISION

  In early April of 1970, Romoco International Associates Limited submitted a prospectus to the Alberta Securities Commission. Our first reply to our submission from Mr. J. O. Darwish was dated June 19th, 1970. This was in excess of two months after our submission.

 Feasibility Studies

 We were required to obtain a Feasibility study on Romoco International Associates Limited which was done at great expense to ourselves.

 S. Ross and Partners prepared their Feasibility Study on Romoco International Associates that proved the Romoco program was very feasible.

  Actuarial Valuations

 We were requested to obtain actuarial valuations on Rocky Mountain Life and to obtain a market valuation from an investment dealer. The investment dealer was to be acceptable to the Commission. We found it virtually impossible to obtain an investment dealer that would prepare this valuation at any reasonable cost. We did obtain a local dealer with the proper credentials to prepare an evaluation.

 The actuary value ranged from $51.10 to $49.30. The value from the dealer ranged from $38.00 to $42.00 per share. We also used other methods of calculation and submitted them to the Alberta Securities Commission.

The comments of Mr. K. J. Rootes, the Director of the Alberta Securities Commission, in his letter of October 16th, 1970. On page 2 in the second paragraph where he stats “We now have a situation where the calculated market value using adjusted earnings would be $145.00, while the calculated market value using a ratio to book value would be approximately $20.00.” We were subsequently advised that the commission could accept a valuation of $20.00.

 Kick-Off Rally

 During all the negations we were satisfied that approval would be granted by the end of August, so we were planning a big “Kick-Off” rally for our stock sale. On the advice of our Lawyer Tevie Miller Q.C. We scheduled our rally for September 26, 1970.  He was confident approval would be granted by that time.

 Update Financial Statements

 We received a letter from Mr. J. O. Darwish dated September 18th, 1970 which was nine pages in length, and which requested many items not raised before. The basic problem was the request to update our financial statements. For various reasons this was not possible. It was our understanding that if a prospectus was submitted with in 120 days of the latest audited financial statement that statement would apply. We were being requested, after very lengthy negotiations, to update our financial statements we were confronted with an impossible situation.

 The time required to do this was insurmountable due to the lengthy co-insurance negotiations, and for an inside group to arrange a private placement of nearly $400,000 to maintain the solvency of the Company.

© Copyright Rocky Mountain Life Insurance Cougars