Cytonn CEO Edwin Dande has responded following a viral video and the announcement by the Capital Markets Authority that Cytonn Investments is unregulated. In a write up to investors, Dande said that CMA was being malicious, and that no investor would lose their money. Here is what Cytonn CEO Edwin Dande:
“I have just seen a statement from Capital Markets Authority, CMA, regarding one of our privately placed products Cytonn High Yield Solutions, CHYS. On the back of a video clip, CMA is stating that the product is now being investigated “for criminal violations” because it is unregulated.
Kindly note that CHYS was structured as a private offer within the meaning of Regulation 21 of the Capital Markets (Securities) Regulation after consultations with the regulator, see letter attached. In their letter dated April 14th, 2016, the then Director of Market Operations, Wycliffe Shamiah, stated that “As you had observed, an offer will be considered a private offer if it meets any of the conditions provided.”
The statement appears malicious, designed to cause panic, and an attempt to distance itself from a real estate fund that has operated for over 7 years, and like other real estate funds globally, has had liquidity challenges given that real estate is a long-term asset and in this case is financed by short-term obligations.
I urge all our 30,000 investors to keep calm as we continue to address the issues making rounds in the social media, and just as we have handled previous unfair administrative action by CMA, we shall also handle this particular one. CHYS is invested in 10 well researched real estate projects, hence the investments are very safe but illiquid. The respective contracts do not allow withdrawals in periods of illiquidity.
Note that our other products – Cytonn Money Market Fund, CMMF and Cytonn High Yield Fund, CHYF continue to operate normally. JUST DIAL *809# TO INVEST or WITHDRAW ANYTIME, 24 / 7.”