PRESS RELEASE ON CHYS & CPN REAL ESTATE FUNDS
Cytonn Investments takes note of the recent discussions and circulating media surrounding the ongoing court case concerning the Cytonn High Yield Solutions (CHYS) and Cytonn Project Notes (CPN) fund. We acknowledge the concerns raised by our investors, partners, and the general public and would like to reaffirm our unwavering commitment to transparency throughout this legal process. Our primary objective remains to safeguard the interests of all stakeholders.
It is important to clarify that only the two entities, CHYS and CPN, are under liquidation. All other Cytonn entities remain solvent and continue to operate as separate legal entities, distinct from the two under liquidation.
With respect to the CHYS and CPN funds, we wish to inform our stakeholders that the matter is actively being considered by the court. Creditors are scheduled to meet with the official receiver, per court directives, with a notice set to be published in the national dailies by Friday this week. The sole purpose of this meeting is for the official receiver to update clients on the liquidation process's progress. Further court directives are expected on November 22, 2024. We would also like to remind investors to submit their proof of debt filings within 90 days from the court ruling issued on September 27th, September 2024.
The challenges surrounding CHYS/CPN can largely be attributed to the unprecedented disruptions brought about by the COVID-19 pandemic. The real estate sector, in which these funds were substantially invested, was significantly impacted. This prompted the invocation of the force majeure clause as a legal response to these unforeseen circumstances. While this measure was taken in good faith, some investors have sought legal recourse to contest the decision. Despite these challenges, Cytonn remains resolutely committed to ensuring that affected CHYS/CPN investors are fully reimbursed for their original investments.
Given the diverse viewpoints among investors regarding the best path forward, Cytonn made the decision to implement a structured restructuring process. This process is designed to enable investors to recover their full investment once the remaining projects have been completed.
“Getting all 4,000 investors to come to an agreement is a challenging task, which is why we find ourselves in court. Our primary goal is to complete the ongoing projects. We do not need to raise additional funds for this; instead, we plan to sell some of the idle projects and finish the ones that are already underway then repay our investors,” Edwin Dande, CEO, Cytonn Investments.
We recognize the personal and emotional nature of financial matters and empathize deeply with the concerns of affected investors and the broader public. Our dedication to transparency remains steadfast throughout these proceedings. Cytonn's primary goal continues to be ensuring that affected investors receive a fair market valuation for their investments.
For investors in the Cytonn Money Market Fund (CMMF), we wish to reiterate that your investments remain secure and accessible. The CMMF is a regulated fund managed by Cytonn Asset Managers Ltd (CAML) under the supervision of the Capital Markets Authority (CMA), providing the highest level of protection. You can find the certificate here and license here. The fund invests, in highly liquid securities like cash equivalents, government securities, and highly-rated debt-based securities. Coupled with end-to-end automation, clients can invest instantly from M-Pesa and withdraw instantly to M-Pesa and bank for amounts up to Kshs 150,000. The CMMF is entirely unaffected by the CHYS/CPN situation and continues to perform optimally. This was confirmed by Grace Weru, the Principal Officer of Cytonn Asset Managers in an X Space. You can listen in here.
We urge all investors to disregard any misleading information circulating on this matter.
We extend our gratitude for your continued support and patience as we work through this process. Cytonn remains fully committed to honoring its obligations and will continue to take all necessary steps to achieve the best possible outcome for all stakeholders involved.
The Cytonn Money Market Fund currently offers an annual yield of up to 18.16%. To invest, dial *809# or download the Cytonn App from the Google Play Store or App Store.
For any further inquiries or clarification, please contact us at clientservices@cytonn.com or call 0709101200 or WhatsApp 0741676635.
