The National Market Exchange - NMEX

The possibilities for establishing Hannaian Economic Development Investment Councils (HEDICs) within the United States as one method of promoting self directed and controlled investment and economic development for the citizens of disadvantaged communities has received a lot of attention since we first published a treatise on it a few months ago. We have been in consultation with several potential Local HEDIC Incorporators (LHIs) and prepared a generic blueprint that should serve as a starting point for LHIs who are thinking of incorporating a HEDIC for their communities.

A proposal prepared by the National Market Exchange (NMEX), and Hannaian Investment Banking Support Services (HIBSS) for the Local HEDIC Incorporator (LHI) in DLC a traditionally disadvantaged community. DLC - HEDIC Inc., (DLCH)

DLC - HEDIC Inc., (DLCH) will be one of the first of its kind, a Wall Street friendly, publicly traded Hannaian Economic Development Investment Council (HEDIC) within the United States.

The concept of a HEDIC was first developed some years ago by the Hannaian Investment & Publishing Group, a Self Directed and Controlled Investment Research Group, to address the need for the economic development of Black, Brown, and other historically disadvantaged communities. There is a significant need for a system that would resolve the multiplicity of problems that factor into resolution of this age old dilemma. As Wall Street friendly entities, properly developed and managed, HEDICs can provide a Capital Market Driven Economy (CMDE) for such communities while also incorporating unified common market concepts to maximize the benefits of the prodigious spending power of the residents of these communities.

HEDICs are a mechanism to channel the 1.4 trillion dollar purchasing power of Black America, an economy larger than that of Canada or Australia, into building an indigenous investment base that will focus its potential on investing in the growth of indigenous businesses within disadvantaged communities of the United States. HEDICs can likewise channel the even larger 1.6 trillion dollar Hispanic purchasing power in similar ways.

HEDICs are SEC registered Business Development Companies (BDCs) specifically designed and established to fund indigenous businesses within Historically Disadvantaged Communities. Also, HEDICs are essentially publicly traded Investment Funds designed to promote self directed and controlled investments by the residents of such communities. A major goal is to produce an investment oriented culture within these communities, and to grow businesses from the community that can eventually attain Wall Street type operations, ultimately creating a Capital Market Driven Economy (CMDE) for such communities. Another major objective is to benefit residents of these communities by affording them increased opportunities to control, direct, and more fully benefit from their spending power and purchasing activities.

HEDICs may also be established for special purposes such as to invest in certain industries, or to consolidate the investment interests and capabilities of existing special interest and community groups in order to facilitate the funding of their special projects.

HEDICs are a special type of publicly traded Business Development Company (BDC). Business Development Companies (BDCs) are a special type of investment fund established under the provisions of the 1980 amendments to the Investment Company Act of 1940, and regulated by the Securities & Exchange Commission (SEC) of the United States. BDCs operate similar to Venture Capital (VC) and Private Equity (PE) Funds which provide funding and investment opportunities for other businesses and projects. BDCs are specifically designed to provide small investors with a facilitated, highly regulated and protected way to invest in small developing businesses. BDCs must comply with certain debt accumulation and income distribution requirements, and can obtain special beneficial tax treatment if operated in compliance with SEC and IRS regulations specifically governing BDCs.

In addition to raising funding through the publicly traded capital markets and utilizing this funding to invest in, or otherwise fund or lend monies to targeted businesses within the target communities, HEDICs may also provide marketing and management support to targeted businesses.

The ultimate Goal of DLCH is to facilitate indigenous economic development by the residents of DLCH Area’s disadvantaged communities for the benefit of the residents, and the indigenous businesses within these communities. The DLCH Area exists within one of the Nation’s most affluent cities, yet one with a significant number of its residents living in underserved and disadvantaged communities. The DLCH Area, and DLCH County as a whole will benefit from the economic development activities of DCLH.

As one of the first HEDICs established within the United States DLCH will be a major element and factor in establishing a network of HEDICs throughout the United States. DLCH can ultimately become the leading fund raising and funding source for disadvantaged businesses and communities in the country. As the leader and first of its kind, DLCH and its initial shareholders should significantly benefit as an attractive investment opportunity for major investors, and from governmental funding, contracts, and entities with an interest in community economic development.

Also, as the funding of business operations will be the primary business of DLCH, and since the lack of funding is the primary problem of most business operations, DLCH should have a ready source of clientele for its primary services, and significantly benefit from access to many of the best available investment and funding opportunities.

DLC - HEDIC Inc., (DLCH) will be headed by Example Smith, a principal owner of Example Inc., a long time indigenous business within the Greater DLCH Area market. A joint venture partner in DLCH is the National Market Exchange (NMEX).

DLCH will utilize the services of the Hannaian Investment Banking Services Support (HIBSS) HEDIC Team to assist in the registration of DLCH as a public company and in the listing of its shares on an appropriate trading platform. HIBSS will also assist in its management and securities compliance needs.

DLCH will be established and operated with the following guidelines:

• Identify the service or catchment area or district which will generally be the historically underserved and disadvantaged communities within the Greater DLCH Area, and typical of many Black & Brown communities within the United States.
• Identify and consolidate the efforts of existing special interest and community investment groups and their special projects.
• Generate funding though capital market processes as a publicly traded company in which the local citizenry and other investors outside the catchment area can invest and gain equitable ownership in the HEDIC by buying shares on a liquid open market platform.
• Invest the funds raised into local businesses specifically researched and identified, through providing loans or equity investments. These targeted businesses should be located within the catchment area, and capable of creating economic development, producing jobs, and providing equity ownership, and excellent investment opportunities for indigenous investor shareholders.
• Encourage local citizens, small and large investors and others to expend their money and other resources to support the targeted and funded businesses, their products and services, and those otherwise supporting local economic development.
• Encourage local governmental authorities to provide incentives to attract applicable businesses into the catchment district.
• Encourage locally based investment banks and professionals to provide incentives, programs, and promotions to attract investors into the catchment district.

Major investors and investment entities should see an investment in DLC - HEDIC Inc., (DLCH) as an important and potentially lucrative investment because of the spending power and business support of their potentially large base of dedicated indigenous investor shareholders.