NOHO Signs Memorandum of Understanding with Greenfield Farms Food, Inc. for Insurance Syndication
PHOENIX, AZ / ACCESSWIRE / May 8, 2017 / NOHO, Inc. (OTC PINK: DRNK), a Wyoming corporation (the "Company"), announced the following:
NOHO Inc.'s newly formed financial services division has signed a Memorandum of Understanding with Greenfield Farms Food Inc. (OTC PINK: GRAS) as its first transaction partner.
The agreement will mark the launch of an insurance syndication where companies having net operating losses with medium to large employee bases will offer life insurance coverage to their mid-level and lower-level employees and pay their premiums for two years. NOHO will match target entities that satisfy these criteria with insurers in a rate arbitrage where employers will use their accumulated losses to offset tax liabilities.
David Mersky, NOHO, Inc.'s CEO, stated, "This is a wonderful opportunity we have been incubating for months. We have identified an insurance program that will leverage our marketing abilities to identify and pair employee bases with target companies under a co-employment relationship and offer employees life insurance as a 401(k) alternative. It's a great value for these employees which will provide them coverage for two years while we take advantage of the operating losses to earn tax free profits on the commissions. It's ironic, but the bigger the loss the company has, the greater the income opportunity. It's a win-win for all parties."
Pursuant to the terms of the Memorandum, NOHO has formed Cherry Hill Financial, LLC ("Cherry Hill"), an Arizona limited liability company, as its sole member. The transaction contemplates GRAS acquiring a 100% membership interest in Cherry Hill in exchange for 49% of the issued and outstanding shares of GRAS. The agreement will call for GRAS to divest itself of its restaurant assets as well as all current operations in anticipation of bringing in new staff and brokers to facilitate the enrollments. As the pilot transaction, this is anticipated to be the first of numerous future transactions of its kind for NOHO.
"We have identified an immediate revenue model by combining our ability to deliver large bases of employees and efficiently enroll them into free life insurance policies while generating profits for NOHO as the facilitator. Under this model, NOHO will acquire stock in many of these target companies. These assets will be booked corporately in NOHO's investment account, as negotiable securities, providing potential income and liquidity, as we continue to identify and bring value to our shareholders," NOHO's CEO, David Mersky, said.
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