(May 29 – 13:10 ET) – Rice Capital has signed a letter of intent to acquire the mutual fund dealership business of J.R. Morgan Securities Inc. of Langley, B.C., effective Apr. 1.
Morgan provides back office support services for 10 independent financial planners and investment representatives in British Columbia, with mutual fund assets under administration of over $50,000,000.
John Morgan, president of Morgan, and Rice will be setting up a new joint venture company, Morgan Rice Financial to operate a branch office in Langley, B.C. MRF will acquire John Morgan’s personal business book of mutual fund assets under administration and the fixed assets of Morgan and its related company and Rice will own a 50 % interest in MRF.
Subject to regulatory approval, these transactions will be satisfied by a payment of $65,000 in cash and the issuance of 144,000 treasury common shares of RCE at a deemed price of $1.00 per common share.
-IE Staff