Did your broker recommend an investment in CION Investment Corporation?
The White Law Group continues to investigate potential securities claims involving broker dealers who may have improperly recommended CION Investment Corporation to investors.
CION Investment Corporation, non-traded business development company, invests in secured loans, corporate bonds, debt securities, and private companies, according to Bloomberg.
The company reportedly plans to list its shares on a national securities exchange within nine to 18 months, or earlier/later depending on market conditions, according to an article in the DI Wire, citing CION’s 2020 annual report filed on March 17th.
Shareholders will reportedly be asked to vote on five proposals to amend the company’s charter to more closely align with those of other publicly traded BDCs in the upcoming 2021 shareholders meeting, according to the report. If the proposals are approved, they will become effective when the company lists on a national securities exchange.
The company is also asking shareholders to authorize flexibility for the company, with the board’s approval, to offer and sell shares below net asset value during the next 12 months. As of March 25, 2021, CION’s NAV per share was $7.83 per share.
The trouble with non-traded BDCs, like CION Investment Corporation is that they are complex and inherently risky products.
Lack of liquidity is often problematic for many investors. Investors looking to sell often have difficulty finding a buyer, and can suffer significant losses on the sale.
According to Central Trade and Transfer, a secondary market for non-traded REITs and BDCs, shares of CION Investment Corporation recently sold for just $4.50 per share. The original offering price was $10.00 per share.
Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.
Filing a Complaint against your Brokerage Firm
If you are concerned about your investment in CION Investment Corporation, please contact The White Law Group at 888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois. For more information on the firm, visit www.WhiteSecuritiesLaw.com.