QDM International (QDMI), which is a Florida holding company with operations primarily conducted through its indirectly wholly-owned subsidiary based in Hong Kong, has filed an application with the Securities and Exchange Commission (SEC) in the US to raise up to $8m in a listing of its common stock.
The company is seeking a listing on Nasdaq although it is currently quoted on the OTCQB Venture Market in the US. It says that if the Nasdaq application is approved, its common stock will cease to be traded on the OTCQB.
The net proceeds from the proposed offering are to be approximately 40% for expansion of service offerings, 20% for marketing and branding, approximately 10% for new hires and training, including management, sales and customer services personnel and approximately 30% for working capital and general corporate purposes.
Through its subsidiary YeeTah, QDMI sells a wide range of insurance products consisting of two major categories: life and medical insurance, such as individual life insurance; and general insurance, such as car insurance, commercial property insurance, liability insurance and homeowner insurance.
YeeTah sells insurance products underwritten by insurers operating in Hong Kong to individual customers who are either residents or visitors from mainland China. YeeTah currently has agreements with 17 insurance companies in Hong Kong, and offers approximately 464 insurance products to its individual customers.
In addition, as a Mandatory Provident Fund (MPF) intermediary, YeeTah is also licensed to provide customers with assistance on information collection, explanation of MPF products and policies (excluding investment advisory services), assistance with applications to set up MPF accounts, and transfer of funds across their respective MPF schemes. The MPF and the Occupational Retirement Schemes Ordinance schemes in Hong Kong are retirement protection schemes set up for employees who are Hong Kong residents.
QDMI’s prospectus said, “Hong Kong’s independent insurance intermediary market is experiencing rapid growth due to increasing demands for insurance products by the Chinese population, especially visitors from mainland China. Although we do not sell any insurance products in mainland China or solicit any customers in China, we intend to grow our business by offering premium services and recruiting talent to join our professional team and sales force, expanding our distribution network through building more connections with business partners in Hong Kong and mainland China, such as wealth management companies, funds, trust companies, and overseas immigration agencies.”