The coronavirus crisis has caused emotional and economic difficulties for all and we are in unprecedented territory. The Midnight Sun Financial group is responding to the challenges in several proactive ways. First, we have taken steps to ensure that our team is protected and set-up for remote work for as long as the crisis may last. Second, we have been exercising extreme financial discipline to preserve cash and protect the value of all investments. Third, we have been deploying our proprietary short-cycle trading strategies in the public markets taking advantage of market turmoil and volatility. Fourth, we are actively developing new financial products for the new economic reality. Fifth, we have adjusted our offerings to respond to the changing market conditions:
30-Day USDCAD Derivative Contracts:
We continue to offer these Contracts and to make associated Loans. Currency volatility is extremely high at present and investors who have been successful in directional speculation have been realizing strong net leverage returns, in some cases in excess of 35% over a 30-
day period. We have also temporarily increased the barrier of our 30-Day USDCAD Derivative Contracts from 250 PIPs to 350 PIPs, which provides increased protection to investors against a knockout ($0.035 vs. $0.025). Once market conditions stabilize, we expect this barrier to return to 250 PIPs.
Midnight Sun Preferred Shares:
We will continue to offer Midnight Sun Preferred Shares on both a cash and cashless subscription basis through the end of June 2020. At that time, we will have completed the second round of our capital raise and, as planned, Midnight Sun will cease to offer Preferred Shares. Those investors who choose to exercise their early liquidity option will have their shares purchased in accordance with the terms of that option, with the most recent early liquidity closing having taken place on April 7, 2020.
We will continue to evaluate and to advance commercial loans, both to support the 30-Day USDCAD Derivative Contracts as well as in other circumstances. However, the timeframe in which commercial lending decisions will be made likely will extend beyond our targeted goal of seven days.
Private Equity and Real Estate Investments:
While we will continue to evaluate and to make private equity investments, our focus will be directed towards the opportunities that presently exist in the public markets and it may be challenging for private equity investments to compete with those opportunities at the present time.
7-Day USDCAD Gemini Shares:
The Gemini issuers, who are affiliated with the Midnight Sun Financial group, have currently suspended the issuance of Gemini Shares as a result of market conditions. The Gemini issuers are in the process of revising the terms, conditions, restrictions and privileges attached to the Gemini shares to be able to accommodate new issuances in the near future.
To protect our team, we unfortunately are no longer accepting courier deliveries or meetings in any of our offices. For the protection of our team members, to contact us please call (587) 401-1618 or toll free 1-877-304-6689. To discuss or subscribe for our 30-Day USDCAD Derivative Contracts, please contact Red Jacket Capital at (519) 871-9816 or at firstname.lastname@example.org