Honeypays Micro Credit Investment Ltd as a member based microfinance institution has always honored it’s agreement with its members and met all financial obligations, including supporting it’s members with interest free loans since inception.
Following the pull out of major investors in the midst of our aggressive expansion and diversification, our short term funds in long term projects and increasing rate of loan defaults, we faced some cahsflow issues which affected ability to meet short term financial obligations. We intended to quickly correct this by liquidating major assets to recapitalize and meet financial obligations.
We commenced the process of liquidating our assets (2 B/R in Aykon City and 1 B/R in Zada Tower, Business Bay Dubai) in November, 2019 in an effort to meet up with our financial obligations to our investors. This process was adversely impacted by the global pandemic as the traffic of tourist into Dubia began to wane.
Upon realizing this, we set out to explore other means of raising the needed funds. We approached our Apex body ANMFIN who after hearing our plans to raise funds with our assets and upon our request issued a letter dated 12th March, 2020 appealing to investors to be patient for six months. This lead to the appointment of a new management team which had Mr Richard Ododo as the MD/CEO. His appointment was against the backdrop of the role he played as MD/CEO of an of an insurance company in similar need to raise urgent capital and attract investors which he courageously pulled off with his team. However, he resigned after a short term in office. The strategy and plans to restructure and attract investors while still trying to liquidate our assets exited with the MD.
This left us with one option, liquidating the assets which the lockdown made impossible to achieve. Our assets in Dubia being our only source of raising capital at the moment is yet to be sold as economic and tourist activities are just resuming in Dubia.
Our promise to commence payments in August, 2020 (which we did) met some operational issues but our resolve and commitment in meeting our financial obligations to our investors is more than ever firmer. We continue to strive in our efforts to liquidate our assets while also trying to raise N500,000,000 in debt or equity funding.
We however appeal with all concerned that your capital invested are safe in our assets even though the process of liquidating it had taken longer than expected. Your understanding and patience through this phase of our company had proven that you truly believe in us and what we stand for.
The confidence and trust you have reposed on us will not be futile.