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Real Property Investment

    The trading of a new investment product – Real Property Investment Units “RPI Units, will form the base product in the commoditization of the real estate ownership industry.

We provide access to the real estate market that represents the largest untapped market for securities. Due to the high price of entry, relatively few investors participate in the acquisition of revenue producing real estate investment products.

We simplify the acquisition and disposition of real estate investment products and will significantly reduce transaction costs. A transaction will be as simple as trading stock: with the push of a button - real estate can be traded.

Difference between RPI Units and REIT's

• RPI Unit issuers and REIT's each allow for distribution of net cash flow to its unit-holders on a periodic basis

• A REIT is more like a mutual fund of properties, while RPI Units are more like individual stocks, allowing investors to choose specific project ownership

• RPI Unit issuers are less sensitive to changes in the rate of interest, as they are not as highly levered as REIT issuers

• RPI Unit-holders have an interest in a security instrument registered over the assets of the issuer, while REIT unit-holders do not

• RPI Unit-holders will, over time, benefit from the appreciation of the underlying assets

Marketplace Participants

• Issuers: Property Owners such as Partnerships, Developers, Pension Funds, Banks and Provincial & Federal Governments

• Investors: Institutional, Mutual Funds, Pension Funds and Retail Markets

• Investment Professionals: Investment & Financial Advisors and Registered Representatives

• Broker/Dealers

• Canadian Depository for Securities Inc. (“CDS”), and
Market Regulation Services Inc. (“RS”)

Benefit for participants

1. Benefits for Issuers

• Potential issuers will benefit from greater market exposure, have access to new sources of capital and increased liquidity for market participants

• e-globe x-change offers attractive financial options to the industry, provides an exit strategy for interim participants involved during the development phase of a project, while also providing a source of repayment for construction financing

• For property owners considering the disposition of real property,
e-globe x-change provides an ideal environment for partial disposition while maintaining control over the assets

2. Benefits for Investors

Just like the stock market, everyone will be able to participate in the real estate market. RPI Units are simple, liquid and are RRSP eligible. There are many benefits for investors who wish to participate in the real estate market and choose to acquire RPI Units on e-globe x-change. Investors will be able to:

• Select specific project ownership

• Receive ongoing distributable cash

• Enjoy appreciation of the underlying assets

• And have the ability to dispose of their RPI Units in an open and fair market whenever they choose

• Unit-holders will be able to spread their investment risk over a number of real estate projects

• RPI Units create an even playing field for all participants, small and large investors alike – everyone is treated equally.

3.Benefits for Investment Professionals

For investment professionals engaged in the wealth management of client portfolios, RPI Units present an exciting new product for the real estate market - it opens a new door of wealth management.

•  RPI Units are low risk, produce distributable cash, are simple to understand and trade just like equities

• For mutual funds, which currently cannot hold title to real property, RPI Units represent an attractive alternative investment vehicle for real estate, and are liquid

• RPI Units create opportunities for increased trade commissions and fees associated with new IPOs and represent another instrument to keep clients' money in-house

4. Benefits for Broker/Dealers

• For brokerage firms, e-globe x-change provides access to the largest untapped market for securities. The commoditization of the real estate market offers a unique opportunity to significantly increase revenues through new IPO's introduced to the market

• IPO's generate additional revenues for the firm including corporate finance fees, sponsorship and administration fees, and creates a new type of security to trade in a secondary market, which will generate additional trade commissions

• As a result of the commoditization of the real estate market and the ability to trade RPI Units openly on e-globe x-change, broker/dealers will now be able to harvest a new class of investor clientele, which to date, has held real estate assets outside the broker/dealers environment.

Operations of RPI Units

Transactions on e-globe x-change will occur through the participation of various strategic partners/alliances as well as regulatory bodies. Collectively, these parties will provide the necessary structure and environment to enable investors to acquire and sell real interest positions in specific real estate projects/issuers. Below is a list of key organizations which will fulfill these requirements.

• Securities Commission - A securities exchange operating in Canada is required to be "Recognized" in a jurisdiction under applicable securities legislation to ensure it operates in the public's best interest. Global Financial Group is seeking to obtain a Recognition Order from the British Columbia Securities Commission ("BCSC") for the operation of e-globe x-change. The Company has initiated the application process with the BCSC and will be seeking exemptive relief from the various Securities Commissions to operate in the other provinces of Canada .

• Trading Platform - A securities exchange requires a trading platform to perform the various trade orders from participating organizations. Management has selected the Horizon Trading System and is entering into an agreement with ComputerShare to begin the design of the trading platform for e-globe x-change.

• Clearing and Settlement - The Canadian Depository for Securities (“CDS”) is accountable for the safe custody and movement of securities, accurate record-keeping, the processing of post-trade transactions, and the collection and distribution of entitlements relating to the securities that have been deposited by customers. Subject to the Company's ability to obtain a Recognition Order, CDS has agreed to become the provider of clearing and settlement services for e-globe x-change.

• Regulation of Market Participants – Market Trading Conduct RS Inc. has been recognized by the Ontario , Quebec , Manitoba , Alberta and British Columbia Securities Commissions as a self-regulatory organization under the Alternative Trading System ("ATS") rules to act as a regulation services provider. In that capacity, RS Inc. regulates the trading activity of the exchanges' participating organizations. RS Inc. effectively administers the exchanges' market conduct and trading requirements and monitors and enforces compliance with those requirements by the participating organizations, their directors, officers, employees and affiliates. Subject to the Company's ability to obtain a Recognition Order, RS Inc. has agreed to become the provider of market regulation services for e-globe x-change.

• Trading and Participating Organizations - Trading on the e-globe x-change will occur through authorized registered representatives (IDA Members) including brokerage firms, pursuant to operating agreements for access to the e-globe x-change as Participating Organizations.

Applications to list on the e-globe x-change, or transactions which may be out of the ordinary course of business of an issuer, may also require sponsorship from a Participating Organization.

 



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