SOURCE: Global Earth Energy Inc.

February 04, 2011 08:15 ET

Global Earth Energy Inc. Posts Memorandum of Understanding From LB Tim Co. Ltd. of South Korea

WILMINGTON, NC--(Marketwire - February 4, 2011) -  Global Earth Energy Inc. (OTCBB: GLER) announced today it has posted the MOU from LB Tim Co. Ltd. on its website for public view. As per the agreement GLER has begun the process of applying for listing in the NYSE AMEX exchange, once the closing of the MOU has occurred. The details of the preferred shares and how the dividend is to be paid are as follows:

  • Dividend pays 15% per annum, paid annually
  • 1,000 shares issued
  • Priced at $100,000.00 per share
  • Convertible into common stock
  • Non-voting

The financial model for the preferred class A shares have been designed to secure investors' financial position. Preferred Shares: The following features are associated with this preferred stock. Stock is issued by Global Earth Energy Inc., ticker symbol GLER on the OTCBB. The company also is listed on the Frankfurt Bourse and the Berlin Stock Exchange. The preferred shares will not be traded on any public market.

ASSET: The asset that secures the preferred shares is in the form of (A) cash and (B) Senior Life Settlement Insurance Policies. The assets are placed in a Bankrupt Remote Delaware Corporation and a major Bank and Trust is appointed the Trustee. A Master trust Agreement is specifically dedicated to each and every offering that instructs the Trustee how to manage the account as outlined in the offering. The details are noted below.

FINANCIAL ASSET MODEL: The financial model for the preferred shares is designed to pay the interest and principal as outlined in the offering. Should the project or investment or use of funds fail to generate adequate funds, for any reason, to pay the dividend, as outlined in the offering, the assets backing the shares will have sufficient funds to meet the obligations as outlined. The specifics of the model are as follow:

  • $100,000,000 preferred share class A offering
  • 1,000 GLER preferred class A shares issued
  • $100,000 per share
  • $40,000,000 for project financing
  • $60,000,000 for escrowed assets to back preferred shares

The model has been stressed to the point that there is $100,000,000 of face value Senior Life Settlement Insurance policies placed in the account at the time the shares are sold. Further, sufficient cash reserves are deposited to pay the premiums for the policies and the interest due on the shares until year five.

The Senior Life Settlement Insurance policies will begin cashing in year five. This is based upon statistical data from Social Security records and independent Actuary analysis on each and every policy in the asset portfolio. In fact, the stressed model has a built in 36 month safety factor.

As the policies begin cashing in year five, thirty eight percent of the cash received from the face value of the policy is reinvested in additional Senior Life Settlement Insurance policies. The remaining funds are placed in the cash reserve portion of the account.

The financial model of the assets backing the shares funds the dividend as the share offering specifies. Thus the Joint venture life settlement model will pay the annual dividend. The investment from the Korean firm will allow the acquisition of $240MM of life settlement policies that will be wholly owned by GLER and managed by LifeCycle. That equates to gross earnings of $240MM in a ten year period to the company.

Sydney Harland stated that because of the soundness of the financial model the shares are based on it gives the investors a high yield with the safety of an asset backed securities. The policies that will securitize the shares and pay the dividend are acquired from Life insurance companies ranging from single A rated to triple AAA rated.

About LB TIM CO. LTD.:

A global financial consulting firm that combines skill sets and experience unparalleled in the primary markets we serve with rigorous research and analysis. LB Tim provides merger and acquisition, and strategic capital consulting services. LB Tim assists companies in obtaining financing through institutional placements of debt, mezzanine capital and equity. LB Tim assists businesses in financial difficulty or operating under the protection of a bankruptcy court. LB Tim has strategic relationships with investment banking, corporate restructuring and crisis management firms enabling us, where needed, to deliver comprehensive solutions to our clients. LB Tim has potential to arrange more than a billion dollars in various types of finance for the prospective projects.

LB Tim's personnel and associates have been involved in the major M&As for major real estate companies, major hotels, major IT companies, major department stores and etc. LB Tim has acted as third-party consultants for shipping banks and law firms engaged in corporate restructuring and M&A activity. Due diligence has included expert witness work, maritime project risk assessment, corporate appraisals, technical surveys of assets and valuations.

LB Tim has significant experience in financing for M&A and the prospective projects and brings an unparalleled range of skill sets to various areas.

About Global Earth Energy Inc.

Global Earth Energy Inc. provides renewable energy solutions. In addition, the Company is pursuing joint venture agreements with green solution providers worldwide.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipates" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from those expressed or implied by such forward-looking statements. Certain risks are detailed in the Company's Form 10-K and other periodic filings with the Securities Exchange Commission at www.sec.gov. This news release speaks as of the date first set forth above and the Company assumes no responsibility to update the information included herein for events occurring after the date hereof.

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