Citadel EFT Inc (fka CDFT)

[Moneybgs]

CDFT on Road to Becoming BDC:

http://finance.yahoo.com/news/citadel-eft-inc-cdft-expects-200000644.html
Quote:
OCEANSIDE, CA--(Marketwire - Dec 12, 2012) - Citadel EFT, Inc.'s (OTCQB: CDFT) CEO Gary DeRoos announces that in keeping with the Company's pursuit of an American Stock Exchange-AMEX listing, the Company will be filing a registration in the New Year. The registration statement, once effective from the SEC, will move the Company into a '34 Act Company,' and will increase the distribution in the stock to meet the required amount of stockholders in the security.

Gary DeRoos, CEO, states, "This registration statement is a necessary step to becoming a Business Development Corporation, 'BDC,' as only 34 Act Companies can elect to become one. The BDC process perfectly reflects our expansion goals, because our stated objective will be to buy incomes, and pass dividends on to stakeholders. Creating dividends through existing business operations, as a group, we can certainly buy appreciable incomes and flow those dividends back into the Company as retained earnings, and to the stakeholders as cash dividends. The purchase of the $10,000,000 unencumbered, non impaired assets has catapulted CDFT from its current business operations. The next step is now to purchase identifiable and verifiable income that can be passed on to the shareholders, which the funding from the registration will do for us."

CDFT's Management believes that being a BDC entity is best suited for Company and its shareholders. A requirement to become a BDC, the Company needs to maintains a Net Asset Value and debt obligation below equity. At this time, the Company meets these current financial conditions and will move forward with a 1934 Act Registration Statement.

Definition of 'Business Development Company - BDC'

A company that is created to help grow small companies in the initial stages of their development. BDCs are very similar to venture capital funds. Many BDCs are set up much like closed-end investment funds and are actually public companies that are listed on the NYSE, AMEX and Nasdaq.


Investopedia explains 'Business Development Company - BDC'

To qualify as a BDC, companies must be registered in compliance with Section 54 of the Investment Company Act of 1940. A major difference between a BDC and a venture capital fund is that BDCs allow smaller, non-accredited investors to invest in startup companies. Some of the reasons why BDCs have become popular is that they provide permanent capital to their management, allow investments by the general public and use mezzanine financing opportunities.

Read more: http://www.investopedia.com/terms/b/bdc.asp#ixzz2H1LH7xcw