BMDS finds innovative way to raise $400,000
A Bermuda charity has come up with a creative way to raise money.
The Bermuda Musical & Dramatic Society has received approval from the Bermuda Monetary Authority to offer a debenture to raise $400,000 needed for upgrades to the Daylesford Theatre.
The BMDS membership voted in favour of the debenture at their recent AGM.
“To that end, we have taken legal advice and received approval from the Bermuda Monetary Authority and are now offering to the membership the opportunity to invest in the debenture and earn a 5.5 percent rate of interest,” BMDS president Nathaniel Butterfield said. “This opportunity is only available to members resident in Bermuda for Exchange Control Purposes.”
Mr Butterfield said the priority was to make the investment available to the maximum number of members.
Therefore, he said, each unit of investment is worth $5,000 for a total value of $400,000 for a total number of units being 80.
“Each member who wishes to invest subscribes for the amount they wish. That amount is then divided into units, i.e. $100,000 = 20 units. Each unit is numbered one through … and a ticket so marked is issued. If exactly 80 members subscribe, they each get $5,000. If more than 80 members subscribe, then each subscriber gets one unit only and only one draw is needed. We draw tickets until 80 are pulled and those lucky 80 are the investors in the debenture.
“If we are over-subscribed a draw will be held on a pro-rata basis. Any oversubscription of funds will be returned. Each investor must send in the total amount they wish to invest and at the end of the process, any surplus funds that have been sent to us will be returned to the subscriber.”
The deadline for receipt of funds is March 15, 2012.